Why are subcontractor requirements project-specific?

Different construction projects can require different insurance limits, licenses, and documentation. A subcontractor may meet the requirements for one project while needing attention on another.

How do contractors track subcontractor COIs?

Contractors typically collect a Certificate of Insurance, compare the available insurance information with the project's requirements, track expiration dates, and follow up when coverage is missing, insufficient, or approaching expiration.

Can a current COI still fail a project requirement?

Yes. A COI can show a policy period that has not yet reached its listed expiration date while the available coverage limit is still below the project's required minimum or another required item is missing.

Does an updated subcontractor COI automatically change compliance status?

No. Updated documentation advances the correction workflow, but the information should still be reviewed and re-evaluated against the applicable project requirements before the compliance result changes.

What Is Subcontractor Compliance?

Q: What is subcontractor compliance?

Subcontractor compliance is the process of checking whether subcontractors meet the requirements that apply to a construction project. Those requirements can include insurance, licenses, documentation, expiration dates, and other organization-defined conditions.

Subcontractor compliance helps construction teams track whether contractors meet project-specific insurance, licensing, documentation, and expiration requirements.

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What is subcontractor compliance?

Subcontractor compliance is the process of determining whether subcontractors meet the requirements that apply to a construction project. It is a core part of subcontractor prequalification—confirming a contractor can satisfy the project's insurance, licensing, and documentation requirements before work begins. Those requirements can include insurance types and limits, Certificates of Insurance, trade licenses, expiration dates, and other project-specific documentation.

Why is subcontractor compliance project-specific?

Construction projects can define different insurance and credential requirements. A subcontractor that meets a $1 million General Liability requirement on one project may fall short when another project requires $2 million. The compliance relationship therefore needs to be evaluated against the requirements of the specific project.

See contractor and subcontractor compliance software →

Important scope

Subcontractor compliance software can help organize insurance, licenses, documents, requirements, expirations, corrections, and review history. It does not replace job-site safety programs, contractual review, licensing authorities, or regulatory obligations.

Project-Specific Compliance

The same subcontractor can have different results.

Project requirements determine the result. Switch between the examples to see how a higher insurance minimum changes the subcontractor's status.

Calculate a Coverage Gap

Same Subcontractor

Lone Star Plumbing Co.

Project Requires

$2M GL

Available

$1.5M GL

$500K Coverage Gap

The same subcontractor now falls below this project's higher illustrative minimum.

Illustrative project requirements only. Actual requirements are defined by the organization.

Subcontractor COI Tracking

How do you track subcontractor COIs?

Effective subcontractor COI tracking goes beyond storing a certificate. Subcontractor verification means comparing the insurance information with the requirements of the project where the subcontractor is working.

1
Define project requirements
Set the insurance types, minimum limits, licenses, and other documentation required for the project.
2
Collect subcontractor documents
Receive the Certificate of Insurance and other required credential information.
3
Compare against requirements
Evaluate available information against the project-specific requirements to identify missing items, insufficient limits, or other exceptions.
4
Track expiration dates
Monitor listed expiration dates so upcoming renewals can be addressed before documentation becomes outdated.
5
Request corrections
When something is missing or insufficient, request updated information from the subcontractor.
6
Review and re-evaluate
Review updated documentation and re-evaluate the applicable requirements before changing the compliance result.