Short answer: Manage each subcontractor through four handoffs: qualification, agreed scope, weekly field coordination, and payment/closeout. Put an owner and a dated record on every handoff. Software can make the current record easier to find and can remind the team about missing documents; it does not decide whether coverage is adequate, a change is approved, or payment can legally be withheld.

This is an operations guide for general contractors, not legal, insurance, or tax advice. Rules vary by state, contract, payment method, and the people on the job. Opsite publishes this guide and sells contractor software; use the sample-job test below to evaluate us and other vendors on the same work.

1. Qualify the sub before assigning a job

Record the legal business name, contact who can commit the company, trade, license number where required, and who verified it. Check status with the licensing authority rather than treating an uploaded image as current. For California jobs, the CSLB license lookup is the direct source; another jurisdiction may have different requirements.

Ask your broker or risk adviser which insurance certificate, limits, endorsements, and dates apply to this job. Keep the document and the review decision together. A certificate on file is not proof that every loss is covered, and an expiration reminder is not the same as validating a policy. If the sub is an independent contractor for tax purposes, the IRS advises collecting Form W-9 for the correct name and taxpayer ID. Confirm classification and reporting with your accountant.

2. Agree on scope and change control before mobilization

A purchase order can describe a particular scope and price, but it is not automatically a substitute for a subcontract. The governing agreement, project requirements, and local law determine what terms you need. Before work begins, identify the current signed document and check:

  • What is included, excluded, and supplied by others;
  • Plans and revision date, location, sequence, access, and expected milestones;
  • Price, approved schedule of values or milestones, retainage if applicable, and payment process;
  • Who can direct a change and how a price or schedule change becomes approved;
  • Required closeout records, insurance updates, and communication contacts.

For example, if a framing sub finds a drawing conflict, do not let a field text become an unpriced commitment by accident. Record the question, identify the affected revision, decide who can authorize the change, and attach the written decision to the current scope. A job record should show both the original amount and each approved change.

3. Run a short weekly coordination check

Use a weekly meeting or job update to compare the planned work with the actual crew, materials, inspections, and open decisions. Record who attended, what changed, who owns the next action, and when it is due. Put relevant photos and daily notes on the correct job; the person on site should review any AI-drafted summary before it is shared or used in a dispute.

Check expiring documents against the upcoming work and assign a human to review a replacement. A system alert is useful when it identifies the document, sub, job, due date, and reviewer; it is not evidence that the sub renewed coverage or that a payment was blocked. Keep phone and text decisions by adding a dated summary to the job record and asking the other party to confirm the point that matters.

4. Match payment to approved work and the right records

For each pay request, compare the current approved scope, progress or delivered materials, previous payments, retainage, change approvals, and any exception. Record the reviewer and decision. If an amount is disputed, follow the contract and applicable payment rules; a generic “hold payment” rule can create its own problem.

Lien waivers need particular care. California's CSLB forms distinguish conditional and unconditional progress and final releases. A conditional release is used when payment has not yet cleared; an unconditional release states the claimant has been paid and can waive rights even if that statement is wrong. Paying one party or receiving its release does not prove lower-tier claimants were paid. Use counsel and the correct state form for your draw and payment facts; our California GC waiver guide has a more detailed form-selection checklist.

Keep the payment date, method, amount, payee, approved scope, supporting invoice, and any applicable release together. Do not assume an accounting sync proves the sub received funds or resolves a disputed amount.

Test subcontractor software on one sample job

Use a redacted job and one fictional sub. Ask every shortlisted vendor to complete the same sequence while you watch:

  1. Add the sub, attach an insurance certificate, set an expiration date, and show who reviews or rejects a replacement.
  2. Create an agreed purchase order or subcontract record, then approve one change. Find the current amount and the earlier version.
  3. Send a field update with a photo and an open question. Have the PM and sub find the same current decision from their own views.
  4. Submit a pay request against the approved work. Show the review, exception, waiver or closeout record, payment status, and exportable history.
  5. Ask which step is automatic, which is merely a reminder, which requires human approval, and which plan or integration is needed.

Record the outcome in the free GC software scorecard. Your vendor ratings and notes stay in your browser unless you export them. A successful scripted demo is only a starting point; have a PM, office lead, and sub try the tasks themselves before buying.

Where Opsite fits

Opsite's feature page describes purchase orders, subcontractor documents, a sub portal, and compliance review. Its current plans list purchase orders on Starter and the Sub Portal and Compliance Hub on Professional and Enterprise. Ask us to show this sample-job sequence in the plan you would actually buy. Verify the reviewer, alert, waiver, payment, and QuickBooks behavior in the product rather than relying on a feature label. For a broader GC shortlist, see our AI contractor software comparison.

Request a contractor workflow review → Tell us which handoff—documents, scope changes, field decisions, or sub payments—is hardest to trace. We will use it as the demo test and say where Opsite does or does not fit.

Common questions

Does subcontractor software automatically make a sub compliant?

No. It can organize records, surface expiry dates, and route a review. A qualified person still needs to check the applicable license, insurance, contract, and job requirements, and to act on exceptions.

Do I need a signed lien waiver before every payment?

Do not apply one blanket rule to every payment. The form and timing depend on jurisdiction, contract, who is being paid, whether funds have cleared, and potential lower-tier claims. In California, distinguish a conditional release for an unpaid progress or final payment from an unconditional one that says payment was received. Check the CSLB forms and legal advice for the job.

Is the 1099-NEC threshold still $600 in 2026?

For payments made in 2026, the IRS says the general Form 1099-NEC reporting threshold is $2,000, up from $600 for payments made before 2026; exceptions and payment-method rules can apply. This does not make Form W-9 collection unnecessary. Confirm your situation with your accountant and current IRS instructions.

Reviewed September 28, 2026. Verify current law, vendor capabilities, plan terms, and payment requirements for your own jobs.