
One bad subcontractor can turn a profitable job into a disaster. The client does not care whose fault it is - they only know the ceiling is cracked, the electrics are wrong, and the bill is already paid. When that happens, you own it.
This is really a conversation about construction arbitrage - the model where you are the general contractor (main contractor in the UK) who sources the client, manages the delivery, and keeps the margin. In that model, your subcontractor network is not a resource. It IS your product. Build it right and every job runs clean. Build it on whoever answers the phone first, and you are always one crisis away from burning what you built.
Why finding good subcontractors is harder than it looks
The problem is not a shortage of people who call themselves subcontractors. The problem is sorting the ones who actually perform from the ones who will disappear mid-job, cut corners on materials, or send you invoices that bear no relation to what was agreed.
Most contractors solve this the hard way - they find a bad sub once, lose money, and then slowly build a better list over years. This guide shortcuts that process. Here is the system for finding, vetting, and locking in the right people before they ever touch your work.
Where to actually find good subcontractors
Not all sources are equal. Start at the top of this list and work down - the further down you go, the more vetting you need to do yourself.
- Referrals from other GCs and project managers. This is the gold standard. Another general contractor recommending a sub is a genuine endorsement - they have run jobs with them and stood behind the result. If you do not yet have that network, build it. Join local construction trade associations (in the US, the American Subcontractors Association has regional chapters; equivalents exist in every market), attend industry events, and talk to other operators. A referral from someone who has used the sub on a real job is worth ten cold calls.
- Material suppliers and merchants. Your local builders' merchant or trade supplier knows which subcontractors buy consistently, pay their accounts, and stay busy. That is a proxy for professional reliability. Ask your merchant rep who they see come in regularly for the kind of work you need - electricians, plumbers, framers. They will tell you.
- Trade directories and online platforms. Platforms that list licensed tradespeople (they vary by country and state - look for those that verify licences and insurance, not just self-reported profiles) are a starting point for names. Treat anyone from here as unvetted until you have done the work below. Never use an online directory as a final filter.
- Targeted job postings. If you need a specific trade for a regular flow of work, post for a subbbing relationship - not a one-off job. Describe the type of projects, the volume, and the payment terms upfront. The right subs - the ones who are running a proper business - will respond to a sustainable working relationship faster than a one-off rate.
- The site itself. If you are on a job or visiting another site, and you see trades working cleanly - neat work, proper PPE, materials stored correctly - ask who they work for and whether they take on subbying. The best referral is work you have seen with your own eyes.
How to vet a subcontractor before they touch a site
Every subcontractor goes through the same checklist before they work for you. No exceptions, no matter how good the referral or how busy the site is.
- 01Verify their licence. Every trade has licensing requirements, but they differ by country, state, and province. In the US, licensing is state-level - a plumber licensed in Texas is not automatically licensed in Florida. In Australia it varies by state; in the UK, Gas Safe and NICEIC are mandatory for gas and electrical respectively. Check the official register for your jurisdiction. Do not accept a photocopy of a card - look the number up yourself.
- 02Get proof of insurance. Ask for a current certificate of insurance showing public liability / general liability coverage, and confirm the policy is in date. Depending on the trade and your location, also check for workers' compensation or employer's liability, and any trade-specific endorsements. If they cannot produce a certificate of insurance within 24 hours, walk away.
- 03Speak to references. Ask for two or three references from jobs completed in the last twelve months - not from five years ago. Call them. Ask three questions: did the work come in on budget, did it come in on time, and would you use them again without hesitation? If any answer is no or uncertain, that is your answer.
- 04Do a site visit or a small trial job. Before you put a new sub on a major project, give them something smaller first - a single-room remodel, a phase of a larger job, a snag list. You want to see how they communicate, how they handle unexpected problems, and whether their finish standard matches your client's expectations. The trial job is the real vetting.
The onboarding conversation that sets the tone
Before a new sub starts, have a proper onboarding conversation. This is not a casual chat - it is where you set the standards that will govern every job you work on together.
- Walk the scope in detail. Every item, every finish standard, every material specification. Assumptions cause rework - rework kills margin. If there is anything ambiguous in the scope, resolve it before work starts, not after.
- Agree payment terms upfront. When you pay, how you pay, and what triggers payment. Put it in a written subcontract. Verbal payment agreements cause disputes; written terms prevent them.
- Set communication expectations. How you want progress updates (daily photo reports, weekly calls, whatever your standard is), and how you want problems flagged - immediately, not after they have compounded. A sub who hides a problem costs you ten times what a sub who surfaces it immediately costs.
- Confirm site rules. Arrival time, site security, PPE requirements, how waste is managed. Whatever your standards are, state them clearly on day one.
How to keep good subs coming back - where most operators fail
Finding a good sub is half the job. Keeping them is the other half - and most operators lose good subs through entirely avoidable behaviour.
Good tradespeople are not loyal to the highest payer. They are loyal to the GC who pays on time, communicates clearly, and makes their life easy. Be that operator and you will never scramble for trades again.
@mointhemarket
- Pay on time, every time. This is non-negotiable. Good subs have work everywhere - they will simply stop picking up your calls if you are slow to pay. If your cash flow is tight, that needs fixing before you scale - slow payments to subs will destroy a network faster than anything else.
- Give them sight of the pipeline. A good sub who knows you have three jobs coming in the next month will clear their diary for you. A good sub who hears from you only when you are desperate will charge you desperation rates. Share your forward schedule with your A-list trades.
- Give them clean scopes. Every time a job scope is vague, the sub either pads the price to cover unknowns or cuts corners to protect their margin. A well-written scope that leaves nothing ambiguous means competitive, accurate pricing every time.
- Tell them when something goes right. A short message saying the client loved the finish costs you nothing and means everything to a tradesperson who rarely gets direct feedback. Positive reinforcement builds loyalty faster than any financial incentive.
Building your A-list subcontractor network
The goal is not a long list of subs. The goal is a short list of people who are genuinely good, genuinely reliable, and genuinely committed to your standards. Here is the target to aim for.
| Trade | Minimum A-list | Why more than one |
|---|---|---|
| Electrician | 2-3 | Demand spikes; one will always be booked out |
| Plumber | 2-3 | Emergencies require immediate availability |
| Carpenter / joiner | 2-3 | Volume of finish work is high on most projects |
| Laborer / groundworker | 3+ | Daily need on active sites; high turnover |
| Specialist trade (HVAC, roofing, etc.) | 2 | Fallback cover for key phases |
Once you have two or three vetted, reliable options for every trade you regularly use, your operation is genuinely resilient. One sub going dark no longer stops a site. One bad quote no longer pins you to a bad price. The network is the asset - and construction arbitrage is what turns that network into serious, consistent margin.
Red flags that tell you to walk away
No matter how desperate the timeline, some subs are not worth the risk. Walk away from anyone who:
- Cannot produce insurance documents within 24 hours
- Cannot give you references from the last twelve months
- Is dramatically cheaper than every other quote - always a sign of corners being cut
- Changes the price after the scope is agreed
- Communicates poorly or goes quiet for days without explanation
- Has never worked on a job of your size or complexity before
- Pressures you to skip a written contract and work on a handshake
The temptation to use someone unvetted when you are under pressure is real. Resist it. One problem sub on one job can cost you more than the margin you protected by rushing. Slow down the selection, and the jobs run fast.
The operators who have already built this - a reliable sub network, clean systems, and consistent margin - are in Contractor Club. If you think you belong in the room, the circle will decide.
Request entry to Contractor Club⟶The bottom line
Your subcontractor network is not a support system. It is your competitive advantage. Build it deliberately: start with referrals, vet hard, onboard properly, pay on time, and build toward two or three reliable options per trade. Do that, and you will never scramble for coverage, never accept a bad price, and never get burned mid-job. That is how the construction arbitrage model scales - and only players know.
Frequently asked questions
Where is the best place to find subcontractors?+
The best source is referrals from other general contractors or project managers you trust - these come pre-vetted. After that: local trade associations, material suppliers and merchants who know which tradespeople buy regularly (a sign of steady work), and targeted job boards or platforms. Avoid taking cold calls from unknown subs mid-project.
How do you vet a subcontractor before hiring them?+
Check their licence for their trade, verify they carry the right insurance (at minimum public liability / general liability), ask for two or three references from recent jobs of similar size, and meet them on site before the job starts. The site visit tells you more in ten minutes than any portfolio. Red flags: vague pricing, no insurance documents on hand, and references they cannot produce quickly.
How do I keep good subcontractors coming back?+
Pay on time, every time. Good subs have options - they will walk to whoever treats them best. Beyond payment: give them clear scopes so they can price accurately, communicate early when a job moves or changes, and let them know about upcoming work in advance so they can plan around you. Loyalty flows both ways.
How many subcontractors should I have for each trade?+
At least two per trade, ideally three. A single sub for any trade is a single point of failure - if they are sick, overbooked, or let you down, your site stops. Two gives you cover; three gives you competition. Once you have three reliable options for every trade you regularly use, your operation becomes genuinely resilient.
Should I use a subcontractor who is cheaper than everyone else?+
No. A sub who is dramatically cheaper than the market is either cutting corners on labour, cutting corners on materials, or cutting corners on insurance. All three outcomes cost you more in rework, liability, or client complaints than you saved on the initial rate. Price shop for fair rates, not the lowest quote.
What insurance should a subcontractor have?+
At a minimum, public liability insurance (called general liability in the US and Canada) that names you as an additional insured. Depending on the trade and your country, they may also need workers' compensation or employer's liability, professional indemnity, and specific trade endorsements. Always ask for a certificate of insurance before they start work - not a verbal assurance.
The human behind The Playbook
mointhemarket Managing construction businesses across continents - with full location freedom. Running several at once. Bought and sold many more.
Go deeper
Learn the model, then get in the room
The full breakdown of construction arbitrage lives on our sister site, constructionarbitrage.com. When you want the operators who actually run it, join the Construction Arbitrage Players community.
My listening book THE EDGE is out now - 24 chapters on how the money really moves through a contracting business, made to be listened to on the drive. Free to start. See what is inside.
My book The Family Secret - how construction arbitrage really works - is coming soon.
Only Players Know
The game is real. The room is closed.
Contractor Club is a private, application-only circle of construction arbitrage operators. If you think you belong inside, apply and the circle will decide.
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