In the construction industry, disputes often arise not from bad intentions, but from unclear documentation.
During the fast-paced bidding phase, it is common for a General Contractor and a subcontractor to have a “sidebar” conversation via text or phone call. “Yeah, I’ll include the haul-off of the debris in that number.” If that commitment is not formally documented and attached to the bid, it is essentially non-existent.
To maintain accountability and protect your project schedule, you must adopt a clinical approach to documenting subcontractor commitments.
Many subcontractors prefer to submit “Lump Sum” quotes: “Electrical Package: $18,000.”
For a GC, a lump sum is a risk. It does not specify what is not included. Does it include the temporary power pole? Does it include the low-voltage wiring? Without a documented scope of work, the subcontractor can later claim these were “extra” items, leading to change orders that eat into your fee.
Every bid received should be accompanied by a scope checklist. If you are using a manual process, send a “Scope of Work” PDF with your initial invitation. Require the sub to either check the boxes or explicitly list their exclusions on their letterhead.
Every revision, every question, and every confirmation must be searchable. If you have to say, “I think we talked about this on the phone,” you have already lost the argument. A centralized bidding system ensures that every document and every revision is timestamped and filed under the project.
Before you award a contract, perform a final “Scope Review.” This is the moment to verify that the number in your budget matches the exact commitment made by the sub.
One of the most dangerous habits in pre-construction is the “informal award.” This happens when a GC sends a text message saying, “You’re good to go on the Smith job, see you Monday,” or gives a verbal “OK, sounds good” to a price update over the phone.
While these communications can technically be legally binding in many jurisdictions, they are functionally useless when it comes to resolving a specific scope dispute. If the sub arrives on Monday and refuses to install the specific fixtures you expected, a text message saying “sounds good” doesn’t help you prove they agreed to that specific line item.
Accountability requires that every “Acceptance” is tied to a specific version of a document. You must be able to say: “I accepted your bid dated October 12th, which included Section 4.2 of the specs.” Without this level of precision, you are essentially signing a blank check and hoping for the best.
Using a centralized system like Bid Bench ensures that the “latest version” of the commitment is always visible.
Ensure your subs are committed to the scope.
Bid Bench provides the professional audit trail you need to manage subcontractor relationships. Start your free trial at app.bidbench.com/signup.