What GCs Look for When Selecting Subcontractors (Straight from the Source)

Why Understanding GCs’ Expectations Matters

In California’s construction industry, the relationship between General Contractors (GCs) and subcontractors can make or break a project. GCs are tasked with managing complex scopes, meeting strict compliance requirements, and ensuring that public and private projects—from affordable housing developments under AB 2873 to school modernizations under Measure R—are delivered on time and within budget.

For subcontractors, this environment is both an opportunity and a challenge. With billions of dollars in infrastructure and housing projects flowing through the state each year, there’s no shortage of work. But GCs are selective. They don’t just hire the lowest bidder; they hire subcontractors who lower their risk, simplify compliance, and add real value to the project team.

Think about it from a GC’s perspective:

• They’re balancing labor shortages, material delays, and client expectations.
  
  
• They’re under pressure to meet participation goals for Small Business Enterprises (SBEs), Disabled Veteran Business Enterprises (DVBEs), and Disadvantaged Business Enterprises (DBEs).
  
  
• They’re accountable to state agencies, local governments, and private developers who expect transparency and results.
  
  

In this environment, subcontractors who understand what GCs are really looking for—and position themselves accordingly—have a massive advantage. Whether it’s proving you can maintain a safe jobsite, showing financial strength, or demonstrating compliance with CUF (Commercially Useful Function) requirements, the key is aligning your capabilities with the GC’s priorities.

This article digs deep into those priorities. We’ll cover what GCs consistently say matters most, why certain criteria carry more weight in California, and how subcontractors can stand out in a highly competitive market. The goal is simple: help you understand the GC’s checklist, so you can move from just another bid to a trusted project partner.

Core Selection Criteria: What Matters Most

GCs in California rarely pick subcontractors based on price alone. They evaluate risk, compliance, and long-term trust. Below are the most important criteria GCs consider—along with how Pegbo.com helps subcontractors meet and showcase each one.

1. Proven Experience and Track Record

• What GCs Check: Completed projects of similar scope, references from past GCs or agencies, and EMR safety scores.
  
  
• Why It Matters: According to AGC, 71% of GCs say past performance is the top factor in subcontractor selection.
  
  
• Pegbo Advantage: Subcontractors can upload project history, references, and safety metrics directly to their Pegbo profile. This lets GCs verify qualifications instantly instead of chasing documents.

2. Compliance and Certifications

• What GCs Check: Valid DBE, SBE, DVBE, WBE, or MBE certifications; CUF compliance; responsiveness to GFE outreach.
  
  
• Why It Matters: Missing or expired certifications are a top reason bids are disqualified. California DGS maintains over 20,000 active certified SBEs—competition is fierce.
  
  
• Pegbo Advantage: Pegbo displays certifications in a visible, filterable format. GCs can search by certification type, trade, or location—making compliance transparent and easy to confirm.

3. Financial Stability and Risk Management

• What GCs Check: Bonding capacity, proof of insurance, and reliable payment history.
  
  
• Why It Matters: Subcontractors without financial depth risk project delays. Dodge Construction Network reports 20% of subcontractors experience late or missed payments, a red flag for GCs.
  
  
• Pegbo Advantage: Subcontractors can list bonding limits and insurance details directly in Pegbo, giving GCs confidence they’re financially capable before awarding contracts.

4. Workforce Availability and Capacity

• What GCs Check: Crew size, union status, training certifications, and ability to scale labor quickly.
  
  
• Why It Matters: California construction jobs are expected to grow 8% by 2030 (CA DIR), intensifying labor competition. GCs can’t risk hiring subs who can’t field enough workers.
  
  
• Pegbo Advantage: Subcontractors can note service regions, workforce size, and trade expertise in their Pegbo profiles. GCs filter by location and capacity, ensuring they only contact subs who can deliver.

5. Safety and Risk Management

• What GCs Check: OSHA logs, safety programs, and EMR ratings.
  
  
• Why It Matters: OSHA’s “Fatal Four” hazards cause 60% of construction deaths, making safety one of the first items GCs review. An EMR over 1.0 can disqualify a subcontractor.
  
  
• Pegbo Advantage: Subcontractors can showcase safety records, training certifications, and zero-incident milestones in Pegbo, signaling they’re a low-risk partner.

6. Communication and Technology Adoption

• What GCs Check: Responsiveness to RFIs, use of project management tools, and ability to submit digital documentation.
  
  
• Why It Matters: McKinsey reports that 75% of construction projects suffer cost overruns or delays, often due to poor communication.
  
  
• Pegbo Advantage: Pegbo centralizes subcontractor profiles and compliance data, cutting down GC admin time. Subs who keep their profiles complete show they’re organized, responsive, and tech-ready.

7. Price and Competitiveness

• What GCs Check: Transparent, competitive bids that align with scope and compliance requirements.
  
  
• Why It Matters: A low bid that creates compliance issues or delays costs more in the long run. 60% of contractors admit rejecting the lowest bid in favor of a more reliable subcontractor (Construction Dive).
  
  
• Pegbo Advantage: By listing certifications, capacity, and safety credentials, subcontractors on Pegbo justify their pricing with visible qualifications—making it easier for GCs to choose value over “just cheap.”

At a Glance: GC Priorities vs. Pegbo Solutions

How Subcontractors Can Stand Out

In California’s construction market, subcontractors are competing for attention in one of the busiest and most compliance-driven environments in the nation. With billions of dollars tied to public works, affordable housing, and infrastructure projects, GCs have a large pool of potential subcontractors to choose from. Standing out requires more than competitive pricing—it requires subcontractors to prove they are safe, compliant, financially stable, responsive, and trustworthy partners. Below are the most effective ways to stand out in a crowded field.

Keep Capability Statements Updated and Professional

General Contractors often start by looking at a subcontractor’s capability statement. A professional and updated document acts as your résumé, helping GCs quickly determine if you’re qualified for their project. According to the U.S. Small Business Administration, small businesses that maintain a polished capability statement are 63% more likely to secure government and subcontracting opportunities.

A strong statement should include certifications (DBE, SBE, DVBE), bonding and insurance limits, regions served, union affiliations, and a snapshot of completed projects. Many subcontractors lose opportunities simply because their documents are outdated or incomplete. Pegbo helps address this gap by acting as a “living capability statement.” Instead of relying on a static PDF, subcontractors can keep their Pegbo profile current, ensuring GCs always see their latest qualifications when searching for partners.

Highlight Safety as a Core Value

Safety is one of the first things GCs review when evaluating subcontractors. A poor safety record doesn’t just raise concerns—it can disqualify you entirely. California’s Cal/OSHA enforcement has grown increasingly strict, with average penalties for safety violations ranging from $5,000 to $7,000 per citation. Even a single violation can slow down work, increase costs, and harm a GC’s relationship with the project owner.

Subcontractors with strong safety programs, EMR scores below 1.0, and documented training programs (such as OSHA 10/30 or CPR certifications) immediately gain an advantage. Showcasing “zero-incident” milestones or awards also signals that your team is committed to safe practices. On Pegbo, subcontractors can highlight their safety metrics and certifications, making it easy for GCs to confirm that they are a low-risk, safety-conscious choice.

Respond Quickly and Professionally to GC Outreach

GCs work under strict deadlines, particularly for public contracts. When they send out bid invitations, they remember subcontractors who respond promptly—and they also remember the ones who don’t. A Dodge Construction Network survey revealed that over half of subcontractors (55%) lose out on projects simply because they fail to respond to outreach on time.

The reality is that even a short, professional “thank you, but we’re unable to bid this time” leaves a positive impression. It signals that you’re organized and respectful of the GC’s time. Pegbo helps subcontractors stand out by centralizing GC outreach in one platform, making it easier to receive, track, and respond to opportunities before deadlines close. Fast responses are often the difference between being shortlisted and being forgotten.

Maintain Compliance Readiness

Compliance is not optional—it’s the backbone of California contracting. Whether it’s meeting participation goals for SBEs and DVBEs or documenting Good Faith Efforts (GFE), GCs must prove to auditors that they’ve engaged the right subcontractors. Yet many subcontractors get passed over because they fail to provide certification numbers, submit expired documents, or don’t understand CUF (Commercially Useful Function) requirements.

With more than 20,000 certified SBEs and 1,700 DVBEs listed with California’s Department of General Services, subcontractors must stand out by being easy to verify. Pegbo makes this process seamless by storing certifications and compliance data in one central place, allowing GCs to confirm eligibility instantly. For subcontractors, this reduces the risk of being overlooked simply due to missing or outdated paperwork.

Demonstrate Workforce Capacity and Trade Expertise

California’s labor shortage is a pressing issue. The Department of Industrial Relations projects an 8% increase in construction job demand by 2030, which means subcontractors who can mobilize skilled crews quickly will be in high demand. GCs want to know if a subcontractor has the workforce to meet deadlines without delays.

Subcontractors should clearly outline their crew size, union or non-union status, and regions they can realistically serve. Training and certification records should also be maintained to prove workforce readiness. By listing labor capacity and geographic service areas on Pegbo, subcontractors show GCs exactly what they can deliver—reducing uncertainty during the selection process.

Use Technology to Build Trust

Construction is becoming increasingly digital, and subcontractors who resist technology risk being left behind. McKinsey reports that 75% of construction projects worldwide suffer delays or cost overruns, often due to poor communication and mismanaged documents. GCs now expect subcontractors to work with digital tools, submit documents electronically, and respond through project management systems.

By adopting Pegbo, subcontractors demonstrate that they are organized, tech-ready, and easy to work with. Having compliance records, safety stats, and certifications in a central hub shows GCs that you’re prepared to communicate at their pace—reducing administrative headaches and strengthening trust.

Build Long-Term Relationships Beyond the Bid

Finally, subcontractors can stand out by treating every project as an opportunity to build a long-term relationship with a GC. While submitting competitive bids matters, trust and reliability are what keep subcontractors on a GC’s preferred list. The Associated General Contractors of California notes that subcontractors with strong GC relationships are 40% more likely to be invited to private bid lists.

To achieve this, subcontractors should attend outreach events, follow up after projects with thank-you notes or project summaries, and look for ways to provide added value beyond price. Pegbo extends these relationships by keeping subcontractors visible year-round, ensuring that GCs can find and reconnect with them outside of formal bidding cycles.

Key Takeaway: Subcontractors who emphasize professionalism, safety, compliance, responsiveness, workforce readiness, and technology adoption consistently stand out in the eyes of GCs. Pegbo.com transforms these qualities into visible advantages, helping subcontractors build trust, win more bids, and secure long-term partnerships.

FAQs (Straightforward Answers)

Q1: Do certifications guarantee work?
No, but they significantly improve your chances. Many public projects require GCs to hit certified participation goals.

Q2: What’s the #1 dealbreaker for GCs?
A poor safety record or failure to meet CUF requirements. These are red flags that can cost the GC their contract.

Q3: Can small subcontractors compete with large firms?
Absolutely. California legislation like AB 2019 and AB 2873 was written to create opportunities for small and certified businesses. Pairing with platform Pegbo helps you connect with the right GCs.

Q4: How do I build long-term relationships with GCs?
Deliver quality, communicate clearly, and be consistent. One good project can turn into three referrals.

Building Trust Wins Contracts

In the construction landscape, where compliance rules are strict and competition is intense, trust is the single most valuable asset a subcontractor can offer a General Contractor. GCs are not just comparing prices on a spreadsheet—they are evaluating risk, reliability, and the confidence that comes with knowing a subcontractor will deliver without complications.

Trust starts before the contract is even signed. When subcontractors present a professional, up-to-date capability statement, respond quickly to outreach, and provide clear compliance documentation, they set themselves apart as organized and dependable. Every GC wants a partner who won’t require constant reminders or paperwork chases. According to Dodge Construction Network, nearly 60% of project delays are tied to miscommunication or late responses—a reminder of how much professionalism matters.

On the job site, trust is reinforced by action. Subcontractors who keep safety a priority, meet deadlines, and communicate proactively create smoother projects and less stress for the GC. One successful collaboration often leads to the next. In fact, the Associated General Contractors of America reports that over 40% of subcontractors who perform well on a project are invited to bid again within the next two opportunities. That’s proof that consistency and reliability translate directly into more contracts.

The most successful subcontractors know that building trust is not a one-time effort—it’s a long-term strategy. It requires demonstrating financial stability, maintaining compliance, and proving that your workforce and systems are ready to handle the job. This is where Pegbo.com makes the difference. By centralizing certifications, safety data, project history, and contact information, Pegbo helps subcontractors turn their strengths into visible proof. For GCs, it reduces the uncertainty of selection. For subcontractors, it creates opportunities that might otherwise be missed.

If you’re ready to stand out in California’s competitive market and become the subcontractor GCs can trust, it’s time to put your best profile forward. Join Pegbo.com today—and start turning compliance, safety, and reliability into contracts that grow your business.