subcontractor-management

# Subcontractor Management This skill provides practical guidance for construction project managers on subcontractor administration. It covers the full subcontractor lifecycle from prequalification through project closeout, with emphasis on documentation, compliance, and issue resolution. > **Legal Notice**: Termination, default, and bond claim situations require involvement of your company's legal/risk management team. PMs should document thoroughly and escalate—do not make unilateral termination decisions. ## Quick Reference Tables ### Subcontractor Issue Response Matrix | Issue Type | First Action | Documentation | Escalation Trigger | |------------|--------------|---------------|-------------------| | Schedule slippage | Verbal discussion + daily log | Recovery schedule request | 5+ days behind with no recovery | | Quality defects | Punch list + photos | NCR or deficiency notice | Repeated defects, safety impact | | Manpower shortage | Discuss at sub meeting | Written manpower request | Failure to staff within 3 days | | Safety violation | Stop work if imminent danger | Incident report + photos | Any serious violation | | Payment dispute | Review contract terms | Meeting minutes | Dispute exceeds $10K | | Insurance lapse | Suspend work immediately | Written notice | Any lapse—zero tolerance | | Scope dispute | Review contract + RFI | Scope clarification letter | Impacts schedule or budget | ### Communication Escalation Ladder | Level | Method | When to Use | Follow-up | |-------|--------|-------------|-----------| | 1 | Verbal (document in daily log) | First occurrence, minor issues | Note in daily report | | 2 | Email summary | Recurring issue or verbal ineffective | Request acknowledgment | | 3 | Formal letter (certified) | Pattern continues, contractual impact | Track delivery confirmation | | 4 | Cure notice | Contract breach, need formal remedy period | Copy legal/risk team | | 5 | Default notice | Cure period expired, considering termination | Legal/risk must be involved | ### Payment Application Checklist | Item | Verify | Common Issues | |------|--------|---------------| | SOV line items | Match contract + approved COs | Unapproved extras included | | Percent complete | Field verify 3-5 major items | Over-billing early trades | | Stored materials | Invoices + photos + insurance | Not segregated, no bill of sale | | Retainage | Correct percentage held | Early release requests | | Lien waivers | Current + match prior payment | Conditional vs unconditional confusion | | Change orders | Approved before billing | Billing unapproved work | | Back charges | Deducted from payment | Sub disputes without documentation | ### Insurance Requirements Quick Check | Coverage Type | Typical Minimum | Verify | |---------------|-----------------|--------| | General Liability | $1M per occurrence / $2M aggregate | Named as additional insured | | Auto Liability | $1M combined single limit | Covers owned, hired, non-owned | | Workers Comp | Statutory limits | Employer's liability $1M | | Umbrella/Excess | $5M (varies by contract) | Follows form on underlying | | Professional Liability | Design-build or specialty only | Claims-made vs occurrence | ## Reference Files ### Scope Management - [Scope Gap Identification](references/scope-gap-identification.md) - Scope matrices, buyout gap analysis, responsibility assignment, RFI triggers ### Performance Issues - [Performance Documentation](references/performance-documentation.md) - Daily log entries, warning letters, cure notices, photo documentation requirements ### Coordination - [Coordination Requirements](references/coordination-requirements.md) - Trade-specific needs, sequencing, access requirements, trade stacking ### Default & Termination - [Default & Termination Procedures](references/default-termination-procedures.md) - Default criteria, notice requirements, termination steps, legal considerations ### Payment Administration - [Payment Application Review](references/payment-application-review.md) - SOV validation, percent complete verification, stored materials, lien waivers, retainage ### Compliance - [Insurance & Bonding Requirements](references/insurance-bonding-requirements.md) - COI review, additional insured, bonding requirements, bond claim procedures ### Selection & Qualification - [Subcontractor Prequalification](references/subcontractor-prequalification.md) - Questionnaire elements, reference checks, financial review, capacity assessment ### Cost Recovery - [Backcharge Administration](references/backcharge-administration.md) - Notice requirements, documentation, deduction procedures, dispute resolution ## Subcontractor Meeting Best Practices ### Weekly Subcontractor Meeting Agenda 1. **Safety moment** (5 min) - Current focus area, recent incidents 2. **Schedule review** (15 min) - 3-week lookahead, milestone status 3. **Coordination issues** (15 min) - Trade conflicts, access needs 4. **Manpower report** (5 min) - Current vs planned, upcoming needs 5. **Quality/punch items** (10 min) - Open items, inspection results 6. **Submittals/RFIs** (5 min) - Outstanding items, approval status 7. **Open discussion** (5 min) - New issues, concerns ### Meeting Documentation Requirements - Attendance sign-in sheet - Published agenda in advance - Action items with owners and due dates - Minutes distributed within 24 hours - Track action item closure ## Key Contract Provisions to Know | Provision | Why It Matters | Typical Location | |-----------|---------------|------------------| | Scope of work | Defines what's included/excluded | Exhibit A or Schedule | | Notice requirements | Cure period, claim deadlines | General conditions | | Payment terms | When you must pay, retainage rules | Payment article | | Change order process | How to add/modify scope | Changes article | | Default/termination | Your rights and obligations | Termination article | | Indemnification | Who bears risk for claims | Insurance/indemnity article | | Dispute resolution | Mediation, arbitration, litigation | Disputes article | | Flow-down provisions | Prime contract terms that apply | General conditions | ## Common Subcontractor Disputes | Dispute Type | Prevention | Resolution Approach | |--------------|------------|---------------------| | Scope gap (work not covered) | Detailed scope review at buyout | RFI to architect, negotiate CO | | Delay claim | Document sub's actual delays | Compare to baseline schedule | | Acceleration claim | Written direction only | Review correspondence | | Changed conditions | Pre-bid site walks | Document conditions, negotiate | | Payment timing | Clear SOV, regular billings | Review contract terms | | Backcharge disagreement | Photo documentation, prior notice | Provide backup, negotiate | ## Related Skills For Procore-specific subcontractor workflows (invoicing, directory management, communication logs), see the **procore-project-management** skill. For schedule-related subcontractor coordination (float, critical path, delay analysis), see the **schedule-management-cpm** skill. For safety-related subcontractor requirements (OSHA compliance, JHAs, incident reporting), see the **construction-safety-management** skill.