Title: How to vet a subcontractor | Cercha

Description: Vet a residential sub by checking the signing business, license, workers’ comp, issuer-sent COI, references, and current crew capacity.

Canonical: https://cercha.pages.dev/guides/vet-a-subcontractor/

# How to vet a subcontractor before awarding work

Subcontractor checks

Match each requirement to evidence and a dated check. Resolve identity, coverage, reference, and capacity questions before you approve the scope.

You have a name and a possible start date. First, match the business that will sign the agreement to its license. Check workers’ compensation, obtain a COI directly from the issuer, and call references about named jobs. Use the separate [work and crew fit review](/guides/find-good-subcontractors/) to assess workmanship and staffing.

Use this checklist for residential work. Record where and when you checked each item, who checked it, and what remains open. Ask the licensing board, your licensed insurance adviser, or your attorney about requirements for the specific work. Do not use a generic checklist as legal or insurance advice.

## Decide what to check before requesting documents

Start with the scope, project location, work dates, and proposed agreement. Name the person who sets the license, insurance, safety, and business requirements. Ask them to settle unclear requirements before requesting documents from the sub.

Keep the first call separate from final approval. A first-call sheet can cover identity, relevant work, interest, and capacity. Keep sensitive documents and detailed checks in your private onboarding process.

For example, [Constructed Matter](https://www.constructedmatter.com/prequalification) requests a W-9, insurance evidence, applicable license information, and references from prospective partners. That is this builder's document list. Other builders may ask for different documents.

Avoid sending a large form with unexplained fields. Tell the applicant what you need, why it applies, where to send it, and who can answer questions. Mark any unresolved requirement as pending.

## Match the business name across documents

Write the proposed contracting name exactly as it appears in the draft agreement. Compare that name with the business contact, license record where applicable, and insurance evidence. Ask for an explanation when a trade name and legal entity differ.

Use this identity record:

| Item | Question to resolve |
| --- | --- |
| Contracting party | Which business signs and performs the agreement? |
| Contact | Who can answer scope and onboarding questions? |
| Field lead | Who will supervise this package? |
| License and insurance records | Which name and business does each record identify? |
| Invoice | Which entity sends invoices under the agreement? |
| Mismatch | Who explains it, and what evidence closes it? |

Keep a name mismatch open until someone explains it. Ask the issuer or adviser to interpret documents where needed. Do not assume a similar name is the same business.

If a different business will sign the agreement, repeat the checks that change affects before award. Save the explanation with the final agreement so the next reviewer knows why you accepted it.

## Check the license with the issuing board

Ask the local trade board which license, classification, and limits apply. Use its official records to check the proposed business. Record the result and date. A logo or license number on a quote does not replace the check.

For a North Carolina job, use the lookup that matches the work:

| Official lookup | What to check | What the lookup does not settle |
| --- | --- | --- |
| [NC Licensing Board for General Contractors](https://portal.nclbgc.org/Public/Search) | Search the contracting entity and license number. Compare classification, limitation, and current status with the proposed work. | A qualifier record alone is not the company's license. The board says GC licensing has no insurance requirement. [GC board FAQ](https://www.nclbgc.org/faq-contractors/) |
| [NC State Board of Examiners of Electrical Contractors](https://arls-public.ncbeec.org/Public/Search) | Search by license number or company. Check the electrical classification against the work. | Electrical classifications have different scopes and limitations. A search hit alone does not establish that the license covers this electrical work. [Electrical licensing](https://www.ncbeec.org/licensing/) |
| [NC State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors](https://public.nclicensing.org/Public/Search) | Search by company or license number and check classification for the proposed trade. | This board covers plumbing, HVAC, fuel gas piping, and fire sprinkler trades. Its record is not a general-contractor or electrical license. [Board scope](https://nclicensing.org/) |
| [NC Industrial Commission coverage search](https://ccms.ic.nc.gov/insurancecoverage/inscov/insCoverageSearch) | Use the employer or policy fields to investigate workers’ compensation records. Record the search date and policy dates. | The Commission warns that database information is not proof of coverage and can omit recent or unreported changes. It does not verify general liability. [Database warning](https://www.ic.nc.gov/) |

Keep license, insurance, references, and capacity as separate review items. These lookups do not tell you whether the crew can meet your start date.

California's [CSLB warns that a displayed license number does not establish current validity](https://web.cslb.ca.gov/consumers/hire_a_contractor/Finding_The_Right_Contractor.aspx). Keep that jurisdiction attached to the guidance. Use the applicable authority for your own project.

Save enough information for someone else to repeat the check. Note the business name searched, record identifier, result, and any question sent to the board. If a name search fails, investigate further. Ask the board to resolve the license question.

## Check workers’ compensation separately

North Carolina generally requires coverage or qualified self-insurance for businesses regularly employing three or more employees, with exceptions. Corporate officers count toward that threshold; sole proprietors, partners, and LLC members are not automatically counted. Use the [NCIC employer guidance](https://www.ic.nc.gov/workers-compensation-claims/employers) and ask the Commission about the specific business.

Keep this check open if the only answer is that the sub has fewer than three employees. [G.S. 97-19](https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_97/GS_97-19.html) addresses upstream compensation liability, including subs below that threshold, and obtaining issuer evidence before subletting. Have your attorney and licensed agent assess the arrangement before you award the work.

Ask for workers’ compensation evidence identifying the employer, carrier, policy number, and effective and expiration dates. Compare it with the [NCIC coverage search](https://ccms.ic.nc.gov/insurancecoverage/inscov/insCoverageSearch). That portal includes an injury-date field for historical inquiries; do not record a proposed start date as an actual injury.

Resolve a mismatch or missing result with the issuer and Commission. The [NCIC warning](https://www.ic.nc.gov/) says unreported changes and changes reported within the last 30 days may be absent. A database match cannot replace current issuer confirmation.

## Get the COI from the issuing agent or insurer

Ask the sub to have its issuing agent or insurer send a current certificate of insurance (COI) directly to your designated reviewer. Include the proposed contracting entity, job location, scope, and work dates in the request. This is a suggested way to check the COI. It does not mean North Carolina requires direct delivery.

Independently check the issuing agency's contact details before asking it to confirm the document. If the sub forwards a file, confirm who issued it and whether it is current. A forwarded COI is not automatically invalid; direct delivery gives you a contact at the issuer to answer those questions. The [California CSLB recommends carrier or agency verification](https://web.cslb.ca.gov/consumers/hire_a_contractor/Finding_The_Right_Contractor.aspx), as California guidance.

Match the named insured to the proposed contracting party. Check each required coverage row, policy period, and limit with your licensed adviser. Ask the issuer to explain mismatches and send any policy provisions or endorsements your adviser needs.

In North Carolina, [G.S. 58-3-149(b)](https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_58/GS_58-3-149.html) states that a certificate of insurance is not a policy and cannot expand the underlying coverage. Subsection (e) ties notice rights to the policy or endorsement, rather than certificate wording alone.

Treat the COI as evidence to review. Ask your adviser which endorsements or other documents they need. Do not add wording to a certificate and treat it as new protection.

Record who checked the documents, the review date, and any open questions. If work extends beyond a listed policy's expiration date, request updated evidence before that date.

Recheck after an entity change, coverage-change notice, renewal, scope change, or delayed start. Write down who will check again and when.

## Ask references about a specific job

Take the comparable project identified in [work and crew fit](/guides/find-good-subcontractors/). With permission, contact a reference who knows that job. Confirm the business, actual role, foreman, and limits of their firsthand experience.

Record the reference's account separately from the candidate's account. Return a workmanship or staffing question to fit review. Leave an unverified statement unresolved rather than treating reputation as credential evidence.

## Check today's capacity

Confirm whether the named supervisor and start conditions in the fit record are still current. Date the answer and record who gave it. A changed crew, employer, or start window needs a new review of the affected items.

Use the [capacity review](/guides/subcontractor-capacity/) to document the assigned crew and its other commitments.

Use [hiring subcontractors](/guides/hiring-subcontractors/) for the final award and site-release decision. Evidence validation does not reserve a start date.

## Choose the other checks this job needs

Ask your project team which safety, financial, bonding, or technical checks apply. Request only the evidence needed for those decisions. Send sensitive financial documents through a private channel. Limit who receives them.

Do not decide worker classification from the business label alone. For federal employment taxes, the [IRS examines behavioral control, financial control, and the parties' relationship](https://www.irs.gov/taxtopics/tc762). Ask your CPA or attorney about your arrangement rather than treating a signed subcontract as the answer.

Do not approve a sub because all the files arrived. Check whether each file answers the requirement. Record “not applicable” with a reason instead of leaving a blank that another person might interpret as checked.

## When judgments, liens, or background concerns need a deeper check

Have the project decision owner and construction attorney define the question before collecting more records. A large material advance, a required bond, or an unexplained business-identity discrepancy can justify a narrower review. These are suggested triggers, not requirements for every applicant.

Separate a business-record question from a personal background or credit check. Explain the purpose and reviewer to the company. Have counsel determine the lawful process and any required consent or notices before ordering a personal report. Obtain authorization for private references or records requested from the company.

For an NC court-record question, start with the [Judicial Branch's record-access guidance](https://www.nccourts.gov/help-topics/court-records/obtaining-court-records) and the relevant county clerk. That guidance directs background checks to the clerk's office rather than Portal. Ask for the actual filing and disposition instead of relying on a search snippet.

Match the legal entity, location, case number, parties, and relevant dates before attaching a record to your candidate. A filed claim or lien is not a finding of misconduct. Have counsel interpret the record, including a judgment's current status, dismissal, satisfaction, or disputed identity.

Give the company a private opportunity to explain a discrepancy and provide current supporting records. Save its response with the source and reviewer decision. Keep allegations out of public profiles and reference lists. The [FTC recommends collecting only needed sensitive information and restricting access](https://www.ftc.gov/business-guidance/resources/protecting-personal-information-guide-business).

For an optional financial-document request, use the purpose, reviewer, and access limits in [subcontractor prequalification](/guides/subcontractor-prequalification/). Tell field staff the decision and any work condition, not the private evidence behind it.

## Settle document gaps and mismatches

Suppose the work and reference check out, but the insurance documents name a different business. Mark it needs review. Ask the sub and issuer to explain the difference, then send the answer to your adviser.

Assign someone to resolve the issue by a set date. Keep the original evidence and the explanation together. Record what the reviewer accepts and why. Do not rewrite the issuer's document yourself.

If the business later proposes a different crew or start window, ask about capacity again. An explained document mismatch tells you nothing about a replacement crew. Check the new answer, then update your decision.

## Use a qualification worksheet

Track checks privately with this table:

| Requirement | Evidence and source | Decision record |
| --- | --- | --- |
| Identity | Agreement name and supporting explanation | Reviewer, date, mismatch status |
| License | Relevant board record | Scope question and resolution |
| Workers’ compensation | Issuer evidence plus dated NCIC search | Employer match, policy period, unresolved issue |
| COI and other coverage | Certificate sent by issuer plus adviser review | Sender, policy dates, required endorsements, next check |
| Experience | Comparable project and reference | Actual role and limits of evidence |
| Capacity | Supervisor, commitments, start conditions | Next confirmation and owner |
| Project-specific checks | Requirements set by the project team | Result, open issue, and due date |

Use clear statuses: ready for award review, needs review, declined, or not applicable with a reason. Name the person who makes the final decision. Keep the approved scope and evidence together.

Before work starts, recheck time-sensitive items and confirm that the site is ready. If the scope, business, supervisor, or schedule changes, ask which checks need another review. Record the decision and its date.

## Choose the evidence you need to check

Open the guide for the document or coverage question that remains unresolved.

- [How to verify a contractor license](/guides/verify-contractor-license/)
- [How to check a subcontractor's insurance](/guides/check-subcontractor-insurance/)
- [Certificate of insurance: what it shows and what it does not](/guides/certificate-of-insurance/)
- [Additional insured: what it means for a builder](/guides/additional-insured/)
- [What happens if your sub has no insurance](/guides/subcontractor-without-insurance/)
- [Does a subcontractor need workers' comp?](/guides/subcontractor-workers-comp/)
- [General liability insurance for subcontractors, explained](/guides/general-liability-for-subcontractors/)
- [What is subcontractor default insurance?](/guides/subcontractor-default-insurance/)
- [What documents to collect from a subcontractor](/guides/documents-from-a-subcontractor/)
- [A license is not insurance: two separate checks](/guides/license-is-not-insurance/)

## Where Cercha fits

Cercha's portfolios, builder and sub endorsements, credential badges, and Messages provide starting points for these checks. Use a badge to identify what needs checking, then confirm the current license and policy at their sources. Its coverage disclosure warns that information may not reflect changes within the last 30 days and directs you to verify with the employer or insurer. Cercha starts in the Research Triangle (Raleigh-Durham), with a waitlist elsewhere; keep approval in your own review process.

More [guides for builders](/for/builders/) and [vetting and credentials](/guides/topics/vetting-and-credentials/).

Published 2026.10.14. Updated 2026.10.14.

[More guides: Vetting and credentials](</guides/topics/vetting-and-credentials/>)

## Related guides

- [How to find good subcontractors: judge fit first](</guides/find-good-subcontractors/>)
- [Hiring subcontractors: a step-by-step process](</guides/hiring-subcontractors/>)
- [Subcontractor prequalification for home builders](</guides/subcontractor-prequalification/>)

## Build your connections

[Ask about the Cercha beta](</beta/>)

## Sources

<a id="source-1"></a>

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2. Contractors State License Board. (n.d.). *How do I find the right licensed contractor?* California CSLB. Retrieved October 14, 2026, from https://web.cslb.ca.gov/consumers/hire_a_contractor/Finding_The_Right_Contractor.aspx

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7. North Carolina State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors. (n.d.). *Verify License Search*. Retrieved October 14, 2026, from https://public.nclicensing.org/Public/Search

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