If the subcontractor you're looking to engage doesn’t have an Australian Business Number (ABN) or your State/Federal equivalent, that’s a big red flag. No business registration means they might not be running a legal business, they may not have as much as experience as you think, and you could face tax issues when paying them. You can check their ABN online for free here: https://abr.business.gov.au

Are they actually qualified for the job? For example, electricians and plumbers must be licensed. Always ask for proof and independently verify their details. Each State provides a public register where you can check the details and currency of any trade licence. For example, in NSW (Australia) you can check a licence here: https://verify.licence.nsw.gov.au/home/Trades

If they get injured on your job, who’s legally and financially responsible? Make sure the subcontractor you want to work with has workers’ comp cover so you don’t get caught out. You can check for a current policy through iCare using their ABN here: https://www.icare.nsw.gov.au/employer-lookup

If your subbie damages property or injures someone, who pays? If they don’t have public liability insurance, the liability could fall on you. Always ask for a current certificate of insurance. Check the covered entity, coverage level (typically between $5-20 Million) and the policy expiry date

A quick call to a past client or prime contractor can save you a world of trouble. Were they reliable? Did they do good work? Have they got the right set of skills and experience for your job? If they have a history of late jobs or poor workmanship and being hard to work with, consider walking away and finding someone else for the job.

Misunderstandings lead to missed scope, errors, rework, disputes and lost profits. Write down exactly what they’re responsible for, what materials they need to provide, and what’s included in their price. No surprises = fewer arguments later.

How much are you paying them? When? What proof of work do you expect to accompany invoices? Put it all in writing. Avoid disputes by agreeing on rates, timelines, job documentation and invoicing terms before the job starts.

How will they report progress? Who do they check in with? A simple communication plan stops things from going off track and avoid project delays.

They need to know (and follow) site safety procedures. If they cut corners, it could be your problem. Ensure they are properly inducted and comply with all safety directions and procedures as you would expect from your own team and anyone else entering and or working on your site.

Even with the best planning and best of intentions from all parties, things can go wrong. Agree upfront on how to handle any disputes—whether that’s a sit-down chat, mediation, or another process that you can both agree on. Having an approach that is pre agreed will help to deescalate the situation, should it arise.