Short answer: To vet a subcontractor you've never worked with in another state, check five things before award: (1) license status and any disciplinary actions on that state's licensing board lookup, (2) a current certificate of insurance naming you as additional insured, (3) bonding capacity for large scopes, (4) financial red flags — bankruptcy filings on PACER and liens or judgments in county records — and (5) two recent references from GCs in the same market on similar work. Add OSHA inspection history for safety-critical trades. Most of this takes under an hour per sub and can be done entirely online.
When you work in your home market, you vet subs by reputation. Your super knows who shows up. Your PM knows who pays their suppliers. In a new state, you have none of that — and a sub who defaults mid-job 300 miles from your office is a much bigger problem than one down the street.
The good news: nearly everything you need to check is public. Here's the process.
1. License status and disciplinary history
Start with the state licensing board for the trade. Look for: active status, license classification matching the scope, expiration date, the named qualifier, and any complaints, citations, or disciplinary actions.
How licensing works varies a lot by state. A few examples GCs run into often:
- Texas: no statewide general contractor license. Electrical contractors and air-conditioning/refrigeration contractors are licensed by the Texas Department of Licensing and Regulation (TDLR); plumbers by the Texas State Board of Plumbing Examiners. Many cities add their own registration.
- California: the Contractors State License Board (CSLB) licenses general and specialty contractors, and its lookup shows bonds, workers' comp, and disciplinary actions.
- Arizona: the Registrar of Contractors (ROC) licenses contractors and publishes complaints.
- Nevada: the State Contractors Board licenses contractors with a monetary limit on the size of job they can take — check that the limit covers your scope.
- Massachusetts: the state licenses construction supervisors and registers home improvement contractors; electricians and plumbers have their own state boards.
- Rhode Island: the Contractors' Registration and Licensing Board registers contractors and handles complaints.
- Missouri: no statewide general contractor license; licensing is handled by cities and counties such as St. Louis and Kansas City.
- Utah: the Division of Professional Licensing (DOPL) licenses contractors by classification.
Rules change, so always confirm on the board's own site for the trade you're hiring. If you're inviting subs through Struvia, each subcontractor's profile shows license status checked against state data where it's available, along with the date it was last verified.
2. Insurance
Require a certificate of insurance (COI) before any work starts, and check:
- General liability, auto, workers' comp, and umbrella limits that meet your subcontract.
- You (and the owner, if required) named as additional insured, with primary and non-contributory wording if your contract calls for it.
- Policy dates that cover the whole job.
- A call or email to the issuing agent to confirm the certificate is real and current.
Our subcontractor insurance requirements guide covers limits and wording.
3. Bonding capacity
For large or critical scopes, ask for a letter from the sub's surety stating single-job and aggregate bonding capacity — even if you don't require a bond. A sub who can't get a surety to back them for your scope size is telling you something about their finances.
4. Financial red flags
- Bankruptcy: search federal bankruptcy filings on PACER by company name and owner name.
- Liens and judgments: search the county recorder and court records where the sub is based. A pattern of suppliers filing liens against a sub's projects means they're not paying their bills.
- Business registration: confirm the entity is active and in good standing with the secretary of state.
- Supplier check: call the local supply house the sub buys from and ask if they're current on their account. Suppliers are often candid.
5. Safety record
For trades with serious safety exposure — steel, roofing, excavation, electrical — search OSHA's establishment search for inspections and citations, and ask for their EMR (experience modification rate). An EMR above 1.0 means worse-than-average claims history.
6. References from the same market
Ask for two GC references on similar-size work in the last two years, in the same metro or region. Ask the references:
- Did they man the job and hit the schedule?
- How were their change orders — fair or aggressive?
- Did their suppliers get paid?
- Would you hire them again on a job like this one?
7. Put it in writing before award
Collect everything in one prequalification file: license lookup screenshot, COI, W-9, surety letter if required, references, and a signed subcontract with your scope sheet attached. Our subcontractor prequalification form is a template. And if the bids you're vetting are far apart, read why subcontractor bids vary so much before you award to the low number.
Out-of-state subcontractor vetting checklist
| Check | Where | Red flag |
|---|---|---|
| License status and class | State board lookup for the trade | Expired, wrong classification, over job-size limit |
| Discipline and complaints | Same lookup | Recent citations or unresolved complaints |
| Insurance | COI + call to agent | Not additional insured, lapsing mid-job |
| Bonding capacity | Surety letter | Can't get a letter for your scope size |
| Bankruptcy | PACER | Recent filing by company or owner |
| Liens and judgments | County records | Repeated supplier liens |
| Safety | OSHA establishment search, EMR | Serious citations, EMR well above 1.0 |
| References | Two local GCs | Hesitation on "would you hire again" |
How Struvia helps
When you're bidding in a new state, Struvia matches your bid packages to subcontractors in the project's area and shows each sub's license status from state data where available, plus how they've responded to past invites, so you can spend your vetting time on the subs who actually bid. See how to find subcontractors in a new market for the sourcing side, or upload a plan set to try it.
Frequently Asked Questions
How do I check if a subcontractor is licensed in another state?
Search the state licensing board for that trade. Many states license electrical, plumbing, and HVAC separately from general contracting, and some leave general contractor licensing to cities.
Where can I see a contractor's disciplinary history?
Usually on the same state licensing board lookup, listed as complaints, citations, or disciplinary actions.
How do I find out if a subcontractor has filed for bankruptcy?
Search PACER, the federal court records system, by company name and owner name.
What documents should I get from a new subcontractor?
A W-9, certificate of insurance naming you as additional insured, license information, a surety letter for large scopes, references, and a signed subcontract with the scope attached.
*Reviewed by Baylor Jeppsen, Construction Estimating Expert and Founder of Struvia.*
