Nicole Kwapisz is a partner and construction attorney in the Miami office of Orlando, Florida-based law firm RumbergerKirk. Opinions are the author’s own.
Procuring subcontractors and managing their work is one of the most critical — and challenging — aspects of any construction project. Even highly experienced general contractors can encounter problems when expectations are unclear, communication breaks down or management processes are not consistently documented. While no two projects are alike, implementing a structured subcontractor management approach can help keep projects on budget, on schedule and out of dispute territory.
Disputes and delays often stem from ambiguity or gaps in how subcontractors are managed. Many of these issues can be avoided through up-front planning, consistent communication and systems designed to support accountability throughout the project lifecycle.
Start before the project begins
Effective subcontractor management starts well before work begins on the jobsite. Subcontractors should be vetted based on experience, safety record, reliability, reputation and financial stability — even when working with familiar partners. Each project presents unique risks and requirements, and prior working relationships, although important, should not replace project-specific due diligence.
Clear contracts are equally essential. Scope, deliverables, quality standards, deadlines and payment terms should be defined in writing, with no material terms left unaddressed. Any changes or revisions should be documented, circulated and formally incorporated into the agreement. Finalized contracts should be signed by all parties. Insurance requirements should also be addressed early. A certificate of insurance alone does not confirm adequate coverage, and contractors should verify that applicable policies meet project-specific requirements.
Setting expectations at the outset helps prevent confusion later. Preconstruction meetings allow teams to outline milestones, clarify roles and responsibilities, and discuss contingency strategies for addressing potential issues.
Centralize communication and documentation
Once the project is underway, centralized communication and documentation are critical. Project management software can streamline access to information and ensure all parties are working from the same materials. Communications related to compliance, revisions and key project decisions should be confirmed in writing to minimize the risk of disputes.
Open communication channels are equally important. Subcontractors should know who to contact with concerns and questions, and issues should be addressed promptly to avoid confusion or delays.
Tracking progress through regular inspections helps ensure quality control and milestone compliance. Enforcing sign-offs and maintaining accurate payment records promotes transparency and accountability across the project.
Relationships and payments matter
Strong working relationships with subcontractors are built on trust, consistency and mutual respect. Providing a safe, clean and well-organized job site supports productivity and reinforces collaboration.
Timely and accurate payments are another cornerstone of effective subcontractor management. Delays or inconsistencies can quickly strain relationships and disrupt progress, even when other aspects of the project are running smoothly.
Finish strong and evaluate performance
Project closeout is an opportunity to reduce post-completion disputes and reinforce professionalism. Overseeing punch list completion, final inspections, closeout documentation, final payments and the release of retention helps ensure the project ends on a high note. Involving subcontractors in the closeout process, including obtaining certificates of occupancy, can prevent last-minute complications.
After project completion, evaluating subcontractor performance provides valuable insight for future projects. Reviewing competency, efficiency, safety, adherence to deadlines and compliance with procedures allows contractors to refine their processes and strengthen future project teams. Seeking feedback from project stakeholders can also identify areas for improvement for future projects.
Technology should support people
Project management tools can significantly improve efficiency by streamlining communications, documentation, scheduling and payment tracking. Many firms are also using site-based technologies such as drones, artificial intelligence-powered robots and cameras, 3D models and simulators and wearable technology to promote safety and monitor environmental conditions. However, in the end it is the people who use these tools to make a project successful.
Barry Craft, president of Craft Construction and a client of my law firm, implements a variety of processes to manage subcontractors across large construction projects that often run concurrently. He emphasizes the importance of defining project goals early, maintaining open communication and monitoring progress to deliver high-quality projects.
“We rely on technology in our day-to-day operations, but ultimately, construction is a people business,” Craft said. “We often work with the same subcontractors, who remain reliable and offer high-quality product.” He added that a large part of his company’s professional success has been due to constantly learning and improving, particularly in regards to how his organization manages project teams and subcontractors.
Avoid common pitfalls
Even with strong systems in place, construction projects involve many moving parts, and issues can still arise. However, a robust subcontractor management process helps define roles, set reasonable expectations and reduce ambiguity, leading to better outcomes when challenges occur.
Common pitfalls to avoid include informal handshake deals, undocumented contract changes, unrealistic promises, sole reliance on certificates of insurance and ignoring early warning signs of problems on a project. Addressing small issues early can prevent them from becoming lengthy and costly disputes.
