The Importance of Hiring a Credit-Worthy Subcontractor

One of a general contractor’s worst fears is hiring a subcontractor who goes bankrupt and fails to complete the project at hand. Whether an area’s economy is slowing down or booming, hiring a credit-worthy subcontractor should be a high priority for anyone wanting to see a project through to completion. Here are a few questions to consider when choosing the best subcontractor:

What are the company’s history and status among clients?

Safeguard your reputation and accomplish your end goal by taking these simple steps to ensure a subcontractor is worthy of your business:

  • Check public records to make sure the sub doesn’t have any suits, liens, or judgments against them.
  • Call three vendors to confirm that the sub has paid all bills on time.
  • Confirm with Sunbiz that the sub has an active status listing for their legal structure.

You can also check the D-U-N-S number to access the business’s credit score and history, along with their D&B profile. With all of the publicly available information, there is no reason your company should risk working with a company unless they have a solid history of paying their bills and following through on their commitments. 

Will they be in business for the long haul?

With construction companies being at greater risk for bankruptcy, regardless of the state of the economy, it’s important to know that you can trust a subcontractor to finish the job. 

Ask for solid evidence of the company’s financial soundness, along with current documentation for how they plan to complete your project. Knowing that you can depend on your sub provides peace of mind and confidence that the job will be finished on time and within budget. A subcontractor who cannot produce sufficient documentation to show their financial stability is likely not worth the effort to employ. 

At Waldron Carpentry, we aim to provide you with highly accurate information –  including financial estimates – to ensure that your project is completed within the budget and timeframe that you establish. With over 20 years of experience and a proven history, we go above and beyond to follow through on our word and to help build your reputation as well. 

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