Intro to subcontracting:

As a contractor, your business is only as good as the work you produce. Therefore it is imperative that you bring on the right people to represent your brand. There are plenty of sub contractors looking for work, even in smaller markets. The challenge, however, is finding quality subs that you can trust and rely on. Once you find a contractor that fits well with your company, make sure you take the time to build a strong working relationship with them and keep them happy. In this playbook, we will dive into how to find subs, what to look for in a good sub, and how to properly interview, select and onboard a subcontractor.

Sourcing Subcontractors:

Finding subcontractors can seem like a daunting task when you first start your business. The good news is, there are plenty of subcontractors in your market looking for work, you just need to figure out how to find and contact them. There are many different resources you can use. Similar to marketing for potential customers, the best way to maximize your opportunities is to use all the resources available to get into contact with as many as possible. Here are some tactics that you can utilize for your search.

1. Internet and online recruiting - You can post ads and campaigns on various websites to help you generate names. This is often the least time consuming approach to recruiting sub contractors and often yields good results. Some websites are more effective than others, but you can find some sort of success by posting or searching on the following sites. When posting to these sites, having a sponsored job post will typically produce better results. These sponsored job posts will typically cost around $100, but well worth it if you are able to generate a few quality candidates. When creating a post you can use this Subcontractor Job Post Template.
2. Angies List
3. Home Advisor
4. Indeed
5. Google Jobs
6. Craigslist
7. Yellow Pages
8. Glassdoor
9. Networking - This tactic has always been a staple for sub recruiting and often yields the most success when done properly. Networking with others who have been in the industry for a while is a great starting point as they know who the best subs are in your area. This does take some time, but it is a great way to meet people who will have a positive impact on your business. Here is a list of people/businesses you should consider networking with to generate subcontractor names.
10. Sherwin Williams - Store Manager/Sales Rep
11. Benjamin Moore - Owner/Sales Rep
12. Home Depot - Pro Desk Manager
13. Lowes - Pro Desk Manager
14. Local Small Paint Suppliers - Manager
15. Local Hardware Store - Manager
16. Other Contractors - They have experience working with these subs, and will know who is quality and who is not.
17. Current Subcontractors - If you already have a sub, they might know others who are looking for work.
18. Local Job Posting - Posting local ads through social media or even the old school approach of leaving flyers in designated areas is a great way to generate some interest from potential subs. This approach is generally pretty cheap and takes minimal time. Many subs find their work through social media outlets like Facebook or next door. Also, almost every sub contractor will make their way into a supply store once a week and may take interest in a flier you have posted. Here is a list of small and local advertising you can utilize to generate a few candidates.
19. Facebook Post or Ad
20. NextDoor Post or Ad
21. Flier at Sherwin Williams and other paint suppliers
22. Flier at Home Depot and other home improvement stores
23. Use Permit Records - This works great when you are in search of a particular trade. You can use the city’s building department and find relevant permits online. For example, if you want to hire a painter, you can search for a licensed subcontractors related to painting. Before hiring, make sure to record their names so you can ask the owner and find out how that tradesman performed.
24. Local Job Fairs - Not every job fair would be relevant, but most markets will have a trades specific job fair that you could attend. Many skilled tradespeople attend these events to try and find work. This tactic is typically better if you are looking to hire employees rather than subcontractors, but it will be a good networking opportunity regardless. You never know who you might come across at an event like this.
25. Drive By - As you are running your business, you will find yourself spending a fair amount of time in your car driving from place to place. This is a great opportunity to keep an eye out for any other painters doing work in the neighborhood you are in. If you notice a crew working with an unmarked vehicle, chances are, they are a subcontractor. Don’t hesitate to stop by and introduce yourself and to see if they are interested in some additional work. The plus side of this approach is you are able to see them in action and see if they do quality work.
26. Hiring an agency - This is something I do not recommend, especially early in the business, as it can be expensive and the results are never guaranteed. This is a tactic typically used by more established businesses who do not have the time to put towards finding workers.

What to look for in a sub contractor:

Once you have gone through the process of generating potential candidates for your business, you can start the process of selecting the right candidate to hire. You could very well generate 20+ candidates utilizing all of the tactics we talked about above, but it doesn’t make sense to put every single one through an interview process. So you want to look out for some key attributes that will make taking the time interviewing them worth it. This step can be done through a quick 5 minute screening call, or you can have them fill out a form with a few questions asking for these details. Here is a list of basic must-haves you should know about your sub contractors before they even meet with you for an interview:

1. Minimum 1 Year Experience in the industry - 1 Year may feel like too short of a time, but painting is not rocket science. It does not take long for a painter to develop the skills to be considered a quality painter.
2. They have reliable transportation.
3. They have all of their own tools and equipments
4. Sprayers
5. Ladders
6. Rollers
7. Brushes
8. Masking Gun
9. Caulk Gun
10. Prep Equipment (Scrapers, 5in1, shields)
11. Drop Cloths
12. Buckets
13. Other materials such as tape and plastic should be provided by you on a per job basis.
14. Proof of General Liability Insurance - Requirements vary from state to state
15. Proof of Workers Compensation - Requirements vary from state to state
16. Phone for communication and scheduling.
17. Minimum of two crew members total - safety reasons (Them and one other person)
18. References from customers or other contractors - or photos of recent work

Subcontractor Interviewing and selection:

The next step after screening through the “Must Haves” is to do a formal interview. You want to make this process as professional as possible, as this will help set the expectation for the crew to be equally professional throughout the working relationship. Be sure to schedule an in person interview with the subcontractor. Don’t set a dress code for the interview, in order to see how they present themselves naturally. You can conduct the interview on a job site, or you can take them out to lunch, but your good subs are going to be busy, so don’t be afraid to go to them.

Your goal in the interview process is to get an understanding if they would be a good fit for your business. Do they hold similar values and is this someone you can trust? Your interviews should typically last anywhere from 30-60 minutes. To help get an understanding of what you should talk about in your interview, use this interview script and take notes on their answers. These are the 5 key focus points you want to cover in your interview.

1. Rapport and communication - How well do they communicate and talk?
2. Painting Competency - How well do they know the trade? Do they work safely
3. Culture - Do their values align with yours?
4. Customer Service - How will they treat your customers
5. Compensation - How much do they expect or need to make and does it make sense for you?

Using these 5 key factors you can score a candidate on how good of a fit they are. Using a 1-5 scoring system, 1 being not a fit at all and 5 being the perfect fit, you can rate the candidate in each category. A general rule of thumb: if they don’t score at least 15 points, you would typically not hire that subcontractor.

Onboarding Process:

The final step of hiring a subcontractor is putting them through a proper onboarding process. This is crucial for setting proper expectations and creating a strong working relationship. These are the key aspects you should cover with all of your subs during the onboarding process.

1. Finalize Compensation
2. Structure pay on a per day or per job basis, do not use an hourly rate
3. Each job may fluctuate in price on a per job basis depending on the scope of work, but always ensure you have a hard number.
4. Never share the percentage you are paying or the overall project price.
5. Make sure all paperwork and tax forms are completed.
6. Validate that their insurance is up to date and add your company as additionally insured on their policy if necessary.
7. Fill out 1099 Misc Tax Form
8. Subcontractor Per Job Agreement signed and filed
9. Hold Harmless Agreement signed and filed
10. Set communication expectations
11. Daily Communication Standards
12. Scheduling Standards
13. Communications with customers
14. Customer Service Standards
15. Under promise, over deliver
16. Don’t agree to anything before discussing with me
17. How to handle frustrated customers
18. Quality
19. Expectations around quality of work
20. Ensure they follow important notes from customers
21. 0 Touch up expectations
22. Final walkaround to prove work is done, not to find mistakes
23. Leave the site cleaner than how you found it.
24. Clean up is daily, not at the end of the job

Additional Tips for hiring subcontractors:

1. Always be looking for more subs! Even if you have a solid couple of crews, it is important to continue to find others in case you have a falling out with a crew or they become unavailable.
2. Meet and build relationships with as many contractors as you can.
3. Do not rely on just one source for generating potential candidates.
4. Take the time to build a strong working relationship with your crews. Many subs will appreciate the effort you make.
5. Take care of your crews when they work for you. Take them out to lunch or provide a small bonus if they do a great job. Small gestures go a long way.
6. Stand your ground when you have a disagreement with a sub.
7. Never pay more than 25% of a job up front.
8. Hold tight to your expectations and don’t budge. You give a sub an inch and they will take a mile.

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