How do you handle sub disputes?
Document the work scope and payment terms before the sub steps foot on the job. Most disputes stem from misaligned expectations, not malice. Here's how to prevent them and what to do when one happens anyway.
Write down the scope and payment terms
A handshake deal is how disputes start. Before a sub shows up, put the work scope in writing: what exactly are they doing, what materials are included, what's excluded, and what the payment is. Include start date, expected completion date, and how changes get handled. Payment terms matter too—are they invoicing per phase, at completion, or net-30. A roofing contractor who says "we agreed on 8k" and a sub who says "that was just a quote" is headed for court. The writing protects both of you. It doesn't have to be fancy—email confirmation works. What it needs is specificity. "Reroof the east side" is not specific. "Remove existing asphalt shingles, add new plywood where needed, install GAF Timberline HD shingles in Colonial Blue, flashing at three valleys and two skylights" is specific.
Communicate scope changes in writing
A sub finds rotted framing. You tell them verbally to fix it. They invoice for an extra 2k. You think it was included. They think you authorized a change order. Write it down when it happens. Text, email, whatever—just document that you approved it and agreed to the price. Same for deletions. If you tell a sub "don't bother with the deck staining," confirm it in writing so they don't invoice for work that won't happen. Disputes almost always come from the gap between what was said and what was heard. Writing closes that gap. It also keeps your subs honest. A sub who knows you're documenting changes is less likely to invent one later.
Pay on time and keep records
Late payment breeds disputes. If a sub completed their work, pay them on the agreed schedule—not when the customer pays you, unless that was the deal upfront. Keep records: emails, text confirmations, invoices, proof of payment. If a dispute lands in small claims court or mediation, you need to show what was agreed and what was paid. Many disputes die because one party can't prove their case. You want to be the party who can. If you use job tracking software, have a way to document sub invoices and payments in one place. It's not about being paranoid. It's about having your answer ready when a sub claims they only got paid half.
Know when to stop working and escalate
If a sub is missing deadlines, producing poor work, or ignoring your calls, don't wait. Have a conversation immediately. Explain what's not working and give them a chance to fix it. If nothing changes in a week, stop assigning them work and tell them why. Don't ghost. Don't just move on to the next sub and hope the first one goes away. A sub with a grudge will talk to your customer, leave bad reviews, or file a lien claim. A direct conversation costs an hour and prevents months of headache. If the relationship is broken past repair, put it in writing: "Based on X, Y, and Z, we won't be working together going forward." Keep it factual. No insults. You're protecting yourself and being fair to them.
Bottom line
Get the scope and terms in writing before work starts, document all changes as they happen, and address problems head-on before they become disputes. A few minutes of clarity at the beginning saves weeks of fighting later.