How to Manage Subcontractors Without the Headache
Subcontractors are essential to most trade businesses, but managing compliance documents, assignments, and payments can be a nightmare. Here's how to streamline it.
The subcontractor challenge
Most trade businesses rely on subcontractors for specialised work or to handle overflow. A builder might use subbies for electrical, plumbing, and plastering. An electrical contractor might bring in data cablers or solar specialists.
The challenge isn't finding good subbies — it's managing the paperwork, compliance, and coordination that comes with them.
Compliance is non-negotiable
In Australia, engaging subcontractors comes with legal obligations. You need to verify and maintain records of:
- ABN — Confirm their Australian Business Number is valid and active
- Insurance — Public liability and professional indemnity, with adequate coverage
- Licences — Trade-specific licences appropriate for the work (e.g., electrical licence, plumbing licence)
- White card — General construction induction card for anyone on a construction site
- Working with Children Check — If applicable to the work environment
These documents expire. An insurance certificate that was valid when you first engaged a subbie might have lapsed six months later. Without a system to track expiry dates, you're exposed to significant liability.
Assigning subbies to projects
Knowing which subcontractor is on which project — and when — prevents double-booking and ensures the right people are on the right sites. A centralised system beats the usual approach of text messages and mental notes.
For each assignment, track:
- Which project and what scope of work
- Start and expected completion dates
- Agreed rates (hourly, daily, or fixed price)
- Purchase order number for their records
Purchase orders and payment
Issue a purchase order for every subcontractor engagement, even small ones. It protects both parties by documenting the agreed scope and price before work begins.
A good PO includes:
- Description of work
- Agreed price (inc/ex GST)
- Payment terms
- Reference to the main project
Streamlining the process
33 Trade's subcontractor module lets you maintain a register of all your subbies with their compliance documents, licence numbers, and expiry dates. Assign them to projects, generate purchase orders as PDF, and track which subbies are available.
Expiring documents surface in your dashboard so you can chase updated certificates before they lapse — not after a site inspector flags it.
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