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Operations

Managing subs: COIs, W-9s and payment terms

Before a milling sub, a striper or a trucking company works your job: a current certificate of insurance naming you, a W-9, and a signed subcontract. Then track the expiration dates.

3 min read

Subs let a paving company take work it can't staff: milling, striping, concrete, trucking, sometimes a second paving crew. They also bring risk onto your job. An uninsured sub's accident can land on your policy. An unwritten deal about payment ends in a phone argument, or a lien on your customer's property.

Three documents before any work

1. A certificate of insurance (COI).

  • It names your company as an additional insured on their general liability, and the customer too if your contract requires it.
  • Coverage limits meet what your contracts require of you. Your subs' limits should match the limits your customers hold you to.
  • It shows auto liability for any sub that drives trucks or equipment, and workers' comp for any sub with employees.
  • The dates cover the whole job.

A certificate isn't the policy. If something looks off, call the agent listed on it.

2. A W-9. It gives you the sub's legal name and taxpayer ID for 1099 reporting. Get it before you pay them anything. For payments made starting in 2026, the 1099-NEC reporting threshold rose from $600 to $2,000. Your accountant can confirm which subs need one.

3. A signed subcontract. A handshake isn't a scope.

What the subcontract says

  • Scope: exactly what they do and don't do, with quantities and specs.
  • Schedule: when they start, how long they have, and what happens if they're late.
  • Price and payment terms: when they invoice and when you pay. Common terms are net 30 from their invoice. Pay-when-paid or pay-if-paid clauses, which tie their payment to yours, are enforced differently from state to state. Some states limit or void pay-if-paid. Check yours and say it plainly to the sub.
  • Retainage: if your customer holds it from you, you can hold the same from the sub, released on the same terms.
  • Lien waivers: a conditional waiver with each invoice, and an unconditional waiver when they're paid. Use your state's forms where your state has them.
  • Insurance and indemnity that match your contract with the customer.
  • Change orders: extra work only with written approval, the same rule you follow with your customer.

Track expirations

Insurance renews on the sub's schedule, not yours. A COI that was good in April can expire in the middle of your July job.

  • Keep each sub's COI, W-9, license and signed subcontract in one place.
  • Track every expiration date, with a reminder a month before and again a week before.
  • When a certificate expires, the sub doesn't work until you have the new one.

Send the same request to every new sub: "Please send a certificate of insurance naming [your company] as additional insured, your W-9, and the signed subcontract before we can schedule you." It takes a minute and sets the expectation.

After the job

Rate the sub while it's fresh: on time, quality, cleanup, paperwork. Next spring, when you're choosing between two milling subs, the notes from last season beat anyone's memory.

Pavr is job software for paving, sealcoating, striping and concrete contractors. It keeps each sub's W-9 and certificate of insurance, emails you 30 days and 7 days before one expires, and warns you before you assign a sub whose paperwork has lapsed. Try it free →

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