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Welcome To:

The Contractor Checklist

Legal Tips Master Class

Understanding Subcontractors — What Every Homeowner Should Know

(A Five-Part Homeowner Education Series)

Objective:


To teach homeowners how subcontractors fit into the construction process, how to ensure legal protection, and how to use The Contractor Checklist tools to manage documentation, accountability, and communication.

The Legal Relationship

Summary:


Subcontractors are licensed specialists hired by your general contractor (GC) — not by you directly — yet their performance directly affects your home, budget, and liability. Understanding how this relationship works helps you stay protected and informed.

Key Points:

  • Subcontractors work under your GC’s license and insurance.

  • You have the right to verify licensing, bonding, and insurance.

  • Clear scope of work and lien waivers prevent legal disputes later.

Action Items:

  • ✅ Request your GC’s Subcontractor List and verify each trade’s license status with your state licensing board.

  • ✅ Add copies of licenses, insurance certificates, and bonds to your Digital Home Manual > Subcontractor Verification Folder.

  • ✅ Confirm that all subcontractors sign lien waivers once payment is made — this protects your property from future claims.

Contracts and Documentation

Summary:


Every subcontractor should have a detailed written agreement defining expectations, payment schedules, warranty terms, and insurance coverage. This ensures alignment among all parties and reduces costly misunderstandings.

Essential Documents:

  • Scope of Work (inclusions + exclusions)

  • Start + completion dates

  • Payment schedule and responsibility

  • Change Order Procedures

  • Warranty terms for labor and materials

  • Insurance and liability coverage

  • Dispute resolution process

Action Items:

✅ Ask your GC or project manager for copies of all subcontractor agreements before work begins.

✅ Store them in your Digital Home Manual > Legal Docs > Subcontractor Contracts.

✅ Highlight contract clauses about change orders and warranties for easy reference later.

Legal Protections for Homeowners

Summary:


Your biggest risks during construction involve payment disputes, liens, or injury claims. Legal safeguards ensure financial transparency and prevent unwanted liability.

Protection Checklist:

  • Proof of Insurance + Worker’s Compensation for every subcontractor

  • Payment records with dates + amounts

  • Final Lien Waivers before issuing final payment

  • No direct payments to subs unless written approval exists

  • Include subcontractor compliance within your main contract

Action Items:

✅ Use The Contractor Checklist’s Lien Waiver Tracker to confirm every payment is cleared before moving forward.

✅ Keep copies of all receipts and invoices in your Payment Record Folder.

✅ Add a “Subcontractor Compliance Exhibit” to your main construction contract template for future projects.

Accountability and Communication

Summary:


Successful projects rely on clear, respectful communication. While subcontractors report to your GC, you should remain informed about who’s on-site and what’s happening day to day.

Best Practices:

  • Maintain an updated Subcontractor Contact List (names, roles, phone numbers).

  • Record progress with notes + photos in your Digital Home Manual > Field Logs.

  • Report issues through your GC — never give direction directly to subcontractors, as this can blur liability lines.

Action Items:

✅ Create a shared communication log in Google Sheets or The Contractor Checklist app for tracking updates.

✅ Schedule brief weekly check-ins with your GC to review subcontractor progress and address any concerns early.

✅ Keep digital photos of milestones for reference during warranty or close-out phases.

The Role of The Contractor Checklist

Summary:


The Contractor Checklist is your command center for subcontractor management. It provides the templates, forms, and guidance you need to stay organized, compliant, and confident throughout your build.

Included Tools:

  • Template Contracts & Legal Forms for Subcontractor Agreements

  • Lien Waiver and Payment Tracking Sheets

  • Communication Logs & Accountability Checklists

  • Guided Sessions on Document Storage and Review

Action Items:

✅ Download the latest Subcontractor Management Toolkit from The Contractor Checklist library.

✅ Upload all subcontractor documents and verification data to your Digital Home Manual.

✅ Review the guided tutorial on “Subcontractor Accountability & Documentation Setup.”

Thank you for completing this Session!

Due Diligence is the difference between designing with confidence and building on guesswork.

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