Subcontractor checklist template 2025

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In determining the employment tax status of a worker, the IRS considers three categories of evidence: Behavioral control, Financial control, and Relationship of the parties.
This handy checklist for subcontractor selection helps contractors perform due diligence to make sure subcontractors are qualified, experienced and financially stable.
What procedures are typically followed during the subcontractor selection process? Typically, the process involves issuing a request for proposal (RFP), reviewing bids, evaluating past performance and references, and conducting interviews.
4 Steps to Evaluate Subcontractor Performance Establish Key Performance Indicators for each activity. Evaluate the Subcontractors work against Key Performance Indicators. Determine who reviews the Subcontractor evaluations. Acknowledge good performance and act on red flags. Conclusion.
All subcontractors should be providing you with an IRS W9 form. This documentation lets you know the type of company the subcontractor is (corporation, LLC, sole proprietor, etc), as well as their tax identification number or Social Security number if they are an individual.

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To assess the reliability and solid track record of a subcontractor, scrutinize their portfolio, verify references, investigate their financial stability and examine their safety records to confirm they consistently produce quality work while adhering to deadlines.
Ask about their knowledge of applicable legislation, best practice and industry standards. Check their references out. Ask previous customers about the contractors standard of work, and if they managed health and safety well when on site. Always make sure that you see proof of the risk assessment relating to the job.

contractor pre qualification checklist