Working With General Contractors Reference

Why this matters

General contractors (GCs) are major customers for many specialty trades - new construction, remodels, additions. Working with GCs differs from direct-to-homeowner: payment terms, scheduling, scope agreement, billing all unique. The tech who navigates GC work well builds steady B2B revenue. This is the field card.

What GCs are

General contractor:

• Coordinates a construction project
• Hires + manages subs (subcontractors)
• Bills the customer / property owner
• Schedules + sequences work
• Carries general liability + workers' comp

Their customer: property owner OR developer

Your customer: the GC (not the property owner, even if you're working in their home)

When you're a sub

As subcontractor:

• GC pays you
• GC coordinates schedule
• GC handles customer relationship
• You execute your trade scope

You're NOT:

• Directly engaged with property owner for scope decisions
• Authority on overall project
• Customer's primary contact

Contract types

Subcontractor agreement:

• Written contract with GC
• Scope, price, payment terms
• Insurance requirements
• Indemnification language
• Don't proceed without one for significant work

Purchase order:

• Specific scope + price
• Less comprehensive than contract
• Common for smaller jobs

Bid + acceptance:

• Your bid; GC acceptance
• Often via email
• Acceptable for smaller scope

Scope clarity

Before starting:

• Drawings + specifications (full set)
• Specific scope (what you do, what others do)
• Boundaries (where your work ends + others begin)
• Materials supplied by you vs GC
• Cleanup responsibility
• Warranties expected

Ambiguous scope = disputes + lost money.

Pricing for GC work

GCs expect:

• Competitive pricing (they bid out)
• Hold-up to project budget
• Change order pricing (separate from base)

Pricing strategy:

• Fair (not premium; not lowest)
• Detailed line items
• Clear what's included / excluded
• Add change order processes

Direct-to-consumer pricing usually higher than GC sub pricing (different overhead, marketing, etc.).

Change orders

Original scope changes:

• New scope item
• Different material
• Site condition discovered
• Customer request added

Change order process:

• Written change order
• Scope description
• Price
• Time impact
• GC + property owner approval (often)
• Then proceed

Don't:

• Do extra work + bill later (often denied)
• Modify scope verbally
• Trust "GC will pay" without paperwork

Scheduling

GC schedules subs:

• Sequence matters (you can't do duct before walls framed)
• Coordinate with other trades
• "Pulled" when site ready
• "Released" when your work done

Best practices:

• Be available when called
• Show up on time
• Don't promise more than you can deliver
• Communicate delays immediately

GC builds reputation on hitting schedule; sub who delays threatens that.

Site coordination

On a multi-trade site:

• Other trades present
• Coordinate access (you + plumber + electrician can't all be at the same wall)
• Don't damage others' work
• Don't cover own work that other trades need access to
• Respect safety + cleanliness

GC may have site meeting:

• Pre-job (kickoff)
• Weekly progress
• Issue-specific

Material handling

Some GCs supply materials; some expect you to:

• Materials list per agreement
• Storage on site (or you bring daily)
• Theft protection
• Damage tracking

Check before starting; assumption costs money.

Documentation

For each job:

• Signed contract / PO
• Drawings (your copy with notes)
• RFI (Request for Information) + responses
• Change orders
• Photos of work
• Submittals (manufacturer cut sheets, equipment specs)
• Permits
• Inspection records

Document thoroughly; protect against disputes.

Permits

GC often pulls permits; sometimes sub:

• Specify in contract
• Don't assume
• Permit cost + responsibility
• Inspection scheduling
• Closeout

If you pull permit: license must match work; inspection delays possible.

Inspections

Code inspector visits:

• Rough-in (before walls closed)
• Final
• Each trade has own inspections

Inspector visits:

• Be present OR available
• Address issues directly
• Don't argue with inspector publicly
• Document findings + corrections

Cleanup

Sub responsibility:

• Clean up after own work
• Remove debris
• Don't leave materials for others
• Don't damage finished work

GC handles overall site cleanup; you handle your area.

Payment terms

GC payment typically:

• Net 30 from invoice receipt
• Some net 45-60
• Pay-when-paid clauses (GC pays when GC gets paid; risky for sub)
• Pay-if-paid clauses (GC only pays if GC gets paid; very risky)

Avoid pay-if-paid contracts when possible; you take risk for GC's customer not paying.

Lien rights

If GC doesn't pay:

• Mechanic's lien against property
• State law-specific
• Notice + filing requirements
• Effective leverage (property can't be sold OR refinanced)

Standard procedure on commercial projects.

Insurance requirements

GC typically requires:

• Liability insurance (substantial per-occurrence coverage typical)
• Workers' comp
• Auto coverage
• GC named as additional insured
• Certificate of insurance (COI) provided

Without insurance: GC can't legally use you.

Indemnification clauses

Watch contract language:

• "Hold GC harmless"
• "Indemnify GC for any claims"
• Make sure you're insuring only your work, not GC's

Some clauses are unenforceable; some are dangerous. Read carefully.

Specific trade considerations

HVAC sub on new construction:

• Ductwork rough-in
• Equipment install
• Refrigerant lines
• Coordination with framers, drywall, electrical
• Manual J calculations

Plumbing sub:

• Underground rough-in (slab homes)
• In-wall rough-in
• Fixtures install at end
• Coordination with framers, drywall, electrical

Electrical sub:

• Service entry
• Panel install
• Rough-in (boxes + wire)
• Finish (devices + fixtures)
• Coordination with all trades

Roofing sub:

• After framing complete
• Before exterior trim
• Weather coordination

Specific scenarios

GC asks you to skip permit / inspection:

• Don't
• Code violation; your license at risk
• Refuse politely

GC asks you to charge less than market:

• Decision based on volume / future work
• Don't accept loss-leader pricing
• "I can do for [your price]; can't go lower"

GC asks you to bill higher to property owner than your invoice to GC:

• Possibly fraud
• Don't participate
• Walk away if pressured

GC's project is over budget:

• Sometimes GC asks subs to cut prices to save the project
• Negotiable case-by-case
• Not obligated

GC's customer changes scope:

• Should be change order
• GC's customer relationship issue
• Don't lower your price because customer changed mind

Customer relationship

References

• ASA (American Subcontractors Association) resources
• State construction lien laws (varies)
• ConsensusDocs OR AIA contract documents
• AGC (Associated General Contractors)
• Manuall internal: Customer Communication Standards, Service Call Pricing Models