How to Move From Homeowner Handyman Work to Subcontracting for GCs

Do I need a license to be a subcontractor for a GC?

It depends on your trade and the dollar size of your piece of the job, not on the fact that a GC hired you. Don't assume the GC's license covers you.

If your trade is electrical, plumbing, HVAC, mechanical or gas, assume you need a state license no matter who hired you (Qualifying Agents). For finish and structural trades like framing, drywall, roofing, masonry, painting, concrete and flooring, whether a sub needs a license depends on the state and the dollar size of that portion of the work (Qualifying Agents).

Before you call a single GC, do this:

• Decide your trade (next section).
• Call your state's contractor registration office and ask whether that trade needs a license or registration for subcontract work, and at what dollar amount.
• Ask your town's building department whether any local registration or permit rules touch your scope.
• Write down the answer, the date and the name of the person you talked to.

Rules differ by state and change over time, so get the answer from the office, not from a forum or a buddy.

Should I pick one trade or keep doing a little of everything?

Pick one trade lane for GC work and keep the odd jobs for your homeowner customers. A GC hires a sub to finish one scope on a schedule, and someone who does a bit of everything is hard to slot in.

PlanHub says to define your trade specialty clearly from the start, using skills you already have (PlanHub). To choose yours, look back through your last year of jobs and ask three things:

• Which trade made you the most money per hour?
• Which one do you finish fastest with the fewest callbacks?
• Which one can you show with clean before and after photos?

For many handymen the natural lanes are drywall and paint, trim and finish carpentry, flooring or tile, and punch-list and turnover work. Write your lane as one sentence, for example: "Interior finish carpentry for residential remodels and small multifamily: trim, doors, hardware, built-ins." That sentence goes on your business card, your capability sheet and every bid board profile.

What paperwork and insurance do GCs want from a sub before I can start on site?

Expect to hand over a W-9, a certificate of insurance, proof of any license or registration your state requires, and a signed subcontract before you set foot on site. When companies hire subs, they evaluate credentials, verify insurance coverage and set up detailed written agreements, so expect the GC to do that with you (ServiceTitan).

PlanHub makes the same point from the sub's side: registering your business, getting the proper licenses and buying insurance protects you and makes you a more credible partner to general contractors (PlanHub).

A certificate of insurance (COI) is a one-page form your insurance agent issues that shows what coverage you carry, your limits and the policy dates. GCs often ask to be listed as an additional insured. Call your agent and ask:

• What general liability limits do GCs in my trade and area usually ask for?
• Can you add a GC as additional insured, and what does it cost?
• Do I need workers' comp, even if I work alone or use a helper now and then?

Insurance and workers' comp rules vary by state and by contract, so your agent has the final word. Your starter packet should hold:

• Your registered business name (LLC or sole proprietor, ask your accountant which fits)
• A completed W-9
• Your COI
• Your license or registration number, if your state requires one
• A one-page list of your trade, service area and contact info

When the subcontract arrives, read the scope, price, schedule, change order process, payment terms, insurance requirements and lien waiver language before you sign. Have anything large looked at by a construction attorney.

How do I get my first sub job from a general contractor?

Start with GCs who already know you, then add bid boards, and make the first job small. A cold email saying "I do everything" gets ignored, while a short message with your lane, your insurance and a few photos gets answered.

Here is a sequence that works:

• List every remodeler, builder and property manager you have crossed paths with: past homeowner jobs where a GC was on site, your supply house counter, other trades.
• Send each a one-page capability sheet with your trade lane, service area, license number if you have one, insurance carrier and 3 to 5 job photos.
• Offer a small paid first job, such as a punch list, one unit or one room, so they can see how you show up and finish.
• Ask for a reference after the job and put it on your sheet.

What if you have no commercial jobs yet? Show homeowner work the way a GC would judge it: clean photos, a homeowner who will take a call, proof you carry insurance, and fast, clear replies to messages. That reads as reliable even without a commercial portfolio.

Bid boards are the other door. Most leads for specialty contractors come through job boards where GCs and owners post projects that need sub bids. You get pre-qualified, sign up and receive alerts when a project in your trade and area goes out for bid (ServiceTitan). PlanHub also recommends bidding platforms for finding commercial and multi-family projects and getting direct bid invitations from GCs (PlanHub).

Are they worth it? There is no good public data on win rates for a new sub, so test it. Set up a free profile, filter tightly to your trade and a driving radius, and see how many invitations you get in a month. Starting as a sub also keeps costs down, since many contractors launched with under $2,000 that way, avoiding the overhead of managing full projects and the cost of marketing for clients (Jobber).

How do I bid a sub job when I've only ever quoted homeowners?

Bid only your scope, priced from your real costs plus overhead and profit, because the GC will compare you line by line against other subs. The homeowner is buying trust and convenience, and the GC is buying a number and a reliable finish.

Build the bid in this order: read the plans or scope sheet, count quantities, price materials, estimate labor hours, add overhead and profit, then write inclusions and exclusions. Always list what you are not covering, such as demo, patching other trades' work, permits and cleanup beyond your own debris. Add how long the price is good for.

Say a GC asks you to bid drywall repair and paint touch-up on 6 units. If materials run $900 and you figure 40 labor hours at $60 an hour, your cost is $3,300. If you add 20% for overhead and profit, the bid comes to $3,960. If another sub comes in lower, don't chop your margin blindly, but check whether your hours are padded or your scope is bigger than theirs. Our free job cost calculator helps you check those numbers before you submit.

If you want to speed up the writing, Magic, the AI assistant in MagicBuild, builds an estimate from a photo and a description at your own prices, which you can then adjust for a sub bid.

How do I get paid as a sub, and how long will I wait?

You get paid on the terms in your subcontract, which usually means after you invoice and often after the GC is paid by the owner. Expect a wait that is longer than getting paid on the spot from a homeowner.

There is no good data in the research I have on typical wait times, so your contract is the only number that counts.

Before you sign, get these answers in writing:

• When do I invoice (monthly, by milestone, at completion)?
• How many days after I invoice do I get paid, and does that clock start only when the GC is paid?
• Is there retainage held back, and when is it released?
• What lien waivers do I sign with each payment? Rules vary by state, so ask your state's contractor registration office or an attorney.

The pay-when-paid and pay-if-paid wording matters a lot, because it decides whether you wait or you carry the risk if the owner does not pay the GC.

Protect your cash flow with a few habits:

• Ask for a deposit or a materials draw on the first invoice, so you are not floating the supplier bill.
• Invoice exactly the way the contract says, with the right job name, number and attachments, because a sloppy invoice gets pushed to the bottom of the pile.
• Keep enough cash to cover a full cycle of materials and helper pay.
• Send a polite follow-up the day after the due date.

Say you finish and invoice $3,960 and the contract says net 30 after the GC is paid. If the GC's owner pays late, you wait too, so plan for that. Use our free invoice template to get a clean invoice out the same day you finish.

In MagicBuild, invoices can be paid online, you can see job profit as the work goes, and it syncs with QuickBooks, which keeps the books tidy when you have a few slow-paying jobs open at once.

Where do I start this week?

Pick your trade lane, call your state's contractor registration office and your insurance agent, and send your capability sheet to three GCs. Once the paperwork is ready, bidding and invoicing get much easier.

You can try MagicBuild free for 14 days at start a free trial, or use the free job cost calculator and invoice template first. Either way, you can see what MagicBuild does for a small crew at $69 a month, with crew and clients not costing a seat.