Subcontractor onboarding checklist: what GCs often collect before the first payment

In short: Many general contractors collect the same handful of items before a sub's first payment: a certificate of insurance, workers' comp or an exemption document, a W-9, a license where one applies, and a signed agreement. Then they note the expiration dates so renewals can be requested later. The right list depends on your state, your contracts and your insurance, so your agent and attorney are good people to review it.

Sub paperwork tends to pile up when it's handled one job at a time. A short, standard list can make it the same request every time, and it's usually easiest to get while the sub is waiting on a first job or payment.

Here's a starting point to adapt. It's not a legal requirement list, and yours may look different.

The checklist

1. Certificate of insurance

Usually an ACORD 25. Many GCs look at:

• The insured's name, and whether it matches the business you're hiring and paying
• Each coverage line and its dates, such as general liability, auto and umbrella
• Limits, if your contract or carrier asks for specific amounts
• Certificate holder and any additional insured wording your contract calls for

How to read an ACORD 25 goes through it box by box. Our guide to subcontractor certificates of insurance covers what GCs commonly ask for, and additional insured has its own guide.

2. Workers' comp, or an exemption document

Workers' comp may appear on the certificate, or the sub may have an exemption or no policy at all. Nationwide's premium audit guide suggests securing "a Workers Compensation Certificate of Insurance from all subcontractors prior to the subcontractor beginning any work on behalf of your business."

If a sub doesn't carry it, see hiring a subcontractor without workers' comp. In Florida, the construction exemption guide may help.

3. W-9

The IRS says that once you've determined someone is an independent contractor, "the first step is to have the contractor complete Form W-9," on its page about forms for independent contractors. Our W-9 guide covers when to ask and how to store it.

4. Trade license, where one applies

Licensing rules vary by state, city and trade. Many GCs keep a copy on file and note its expiration date. Your state's licensing board is usually the place to look up what applies.

5. A signed subcontract or agreement

Many GCs have their attorney prepare a standard agreement and get it signed before work starts. Insurance requirements and payment terms often live here, so the rest of your list may follow from it.

6. Contact details, including the insurance agent

Beyond the sub's own email and phone, the agent's contact can be useful, since agents usually issue certificates. It's often listed in the Producer box on the certificate.

Optional items some GCs add

Depending on your work and your contracts, you might also see:

• Bonds
• Safety documents or training records
• Lien waivers, usually collected with payments rather than at onboarding
• Banking or payment details, through whatever secure method your bookkeeper prefers

A longer list may not be better. Each item is something a sub has to find and send, so it may be worth keeping the list to what you'll actually use.