top of page

Building a Subcontractor Compliance Program That Works

  • jboynton96
  • Jun 16
  • 2 min read


Part 3: Building a Subcontractor Compliance Program That Works


Having a structured subcontractor compliance program is one of the most effective ways to protect your construction business. A proactive system helps ensure every subcontractor meets safety, insurance, and legal requirements before ever setting foot on your job site.


What Is a Subcontractor Compliance Program?


It’s a standardized process that outlines the documentation, qualifications, and policies each subcontractor must meet before working with your company. A good compliance program makes onboarding faster, reduces legal risks, and ensures everyone is on the same page.


Key Components of an Effective Program


1. Prequalification Checklist Before any contract is signed, request:


  • Proof of valid insurance (general liability, workers’ comp, etc.)

  • Active licenses and certifications

  • References and portfolio of past projects

  • EMR score and OSHA history


2. Standardized Subcontractor Agreements Use consistent contracts that include:


  • Indemnity clauses

  • Clear insurance requirements

  • Safety expectations

  • Payment terms and dispute resolution processes


3. Centralized Documentation System Maintain a secure and easily accessible system to store:


  • Insurance certificates

  • Safety records

  • Project-specific documents Cloud-based compliance software or even a dedicated internal folder structure can simplify tracking and updates.


4. Compliance Tracking & Follow-ups Set reminders to review and update expiring documents like COIs and licenses. Don’t let outdated paperwork go unnoticed—this could leave your company exposed during claims.


5. Training & Communication Provide clear onboarding materials, host safety briefings, and ensure subs know who to contact for compliance-related questions.



Why This Matters?


A strong compliance program isn’t just about documentation—it’s about creating a culture of accountability and professionalism across your projects. It ensures that every subcontractor represents your brand standards, reduces delays, and protects you from costly legal battles.


📌 Next in the Series: When Things Go Wrong — Handling Claims Involving Subcontractors. In Part 4, we’ll walk you through what happens when a claim arises and how to be prepared if a subcontractor is involved.


Looking to strengthen your subcontractor compliance process? 


Coastline Risk can help you assess your current system and recommend strategies to reduce liability. 👉 Get Professional Guidance





Contact Us Today: (617) 500-1824. / info@coastlinerisk.com


Protect your business, your team, and your projects with CoastlineRisk. We're here to help you navigate the complexities of the insurance industry and secure the coverage you need to succeed. 


Learn more At Coastlinerisk.com




 
 
 

Comments

bottom of page