Running the Business · Part 3
Template: the subcontract review checklist. Twelve clauses, three boxes each
Lesson 19 of 19~6 minFree previewCurrent as of September 2026
One page to fill out before signing any subcontract, in the order the clauses usually appear, with three boxes per clause: the law overrides it (sign), strike it (with the section to cite), or negotiate it (with your ask written in). A filled-in example for a residential remodel subcontract follows. Keep the completed sheet in the job folder with the marked-up subcontract.
What the full lesson covers
- Twenty minutes, every subcontract, before the signature.
- Four clauses are already overridden by California law; do not spend negotiating capital on them.
- Scope, retention, insurance, and change process are where the negotiation belongs.
- Send the marked-up subcontract back with a two-line cover note; GCs expect it from subs who last.
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More lessons in Contracts and Getting Paid
- 1The home improvement contract (B&P 7159): every required element, the exact notices, and the three-day right to cancel
- 2The deposit cap: $1,000 or 10 percent, whichever is less, and progress payments that cannot exceed the work. CSLB's most common citation
- 3Service and repair contracts (B&P 7159.10): when the short form applies, what it must say, and how a service call falls out of it
- 4Subcontracts with GCs: the twelve clauses to read, what to strike, and what to negotiate