How to Hire a Subcontractor ?

Are you planning on hiring a subcontractor, but don’t know the necessary steps? Knowing the required steps could alleviate the risk of reworks, delays, quality and safety issues. As long as you are aware of the right things that matter when hiring a subcontractor, you’re covered.
Take a look at some of the things you should keep in mind when hiring a subcontractor.
#Strong Credentials
Know the subs’ history! Ask the worker to provide you with a report on their credentials, experience, expertise, and team. Examine if they have had lawsuits or disputes. Also, check their undergoing and future projects.
If the subcontractor’s history matches your expectations and the projects’ demands, then you can go ahead with the hiring process.
#They Should be Licensed
If there is a requirement to have a license in your state for a subcontractor, then you should definitely ask for one. Your clients can repudiate to pay someone who is not licensed, a risk we don’t think you’re willing to pay.
#Ask for Referrals and Follow-up on them
Asking for references will help you speak with people who are familiar with the subcontractor’s performance and work ethics. If a subcontractor is not willing to give you references, it’s a good enough sign for you to not hire them.
#Create a Written Contract
More often than not, people hire subcontractors based on their relationship with them – they seal the deal with a verbal contract instead of a written one. Not having a written contract with a subcontractor can lead to miscommunication, which in turn can result in misunderstandings.
#W-9 Form
One of the most important documents to keep in mind when hiring a subcontractor is an IRS Form W-9. This form is for all contractors you pay $600 or more in a year. In simple terms, it is a document used by employers to report the income earned by the subs. It is used to obtain the subcontractor’s taxpayer identification number, name and address.
#Keep a Record
You as a business professional do not require to show these documents to anyone, but if ever comes a time when you need to verify the relationship, you will have to provide the documents. For this purpose alone, you must create a file for every contractor you hire.

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