Subcontractor prequalification is a must. To what extent, depends on your projects.

Q: Should I prequalify my subcontractors before hiring them?

A: Without a doubt yes. The only questions is how in-depth the qualification process should be.

1. The arguments
   1. Subs won’t bid my projects if I make them prequalify
      1. If they don’t cannot complete a prequal form for you do you really want them on your job?
   2. It will raise prices
      1. Any slight increase in pricing is far lower than the benefits of having qualified subs
   3. Too much effort for very little return
      1. Doesn’t need to be that much effort and it can avoid a catastrophe
2. The upside
   1. Less walk-offs and project problems
   2. Less calls from vendors that haven’t been paid
   3. Everyone on the project performs better
3. What to look for
   1. Experience
      1. Have they done this type of work before
   2. Size and Scope
      1. Do they have the capacity and experience on this size of project
   3. Financial capabilities
      1. Can they handle this project

Key Questions:

1. Do you properly qualify your subcontractors?

2. Do you have a written process in place?

3. How can you improve it?

Take-Action Items:

1. Start qualifying your subs

2. Develop a standard process