SubContractor Requirements

At GEM LLC, we hold our subcontractors to the same high standards we set for ourselves. We’ve been in business for over 14 years and continue to grow because of our reputation for quality, integrity, and accountability. To be considered for our subcontractor list, you must meet the following requirements:

General Requirements

• Must carry valid liability insurance and workers’ compensation (where applicable)
• Must provide proof you are a legitimate business (e.g., EIN, LLC documentation, or other verifiable records)
• Must be able to complete a 1099 form for tax purposes
• Must be set up to receive ACH payments – we do not pay in cash or checks
• Must maintain a clean and professional appearance on all job sites
• Must follow all OSHA safety regulations and GEM LLC’s safety standards
• Must have reliable transportation, tools, and equipment for the work being performed
• Must communicate promptly and professionally with GEM staff and clients
• Must read, understand, and accept GEM LLC’s Subcontractor Agreement, which includes:
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• Non-Compete: Subcontractors may not perform work for any GEM client (past, present, or referred) for a period of up to 3 years after the last job worked with GEM, unless given written approval by GEM LLC.
• Confidentiality: All client information, pricing, and GEM business practices must remain strictly confidential.
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Project Expectations

• Ability to take on full remodeling projects (preferred) including kitchens, bathrooms, additions, and full home renovations
• Specialty trade subcontractors (plumbing, electrical, flooring, etc.) are also considered when projects require specific expertise
• Must meet deadlines and follow project schedules set by GEM LLC
• Must deliver high-quality workmanship that meets or exceeds GEM LLC standards
• Must keep work areas clean and respect the client’s property at all times
• Constant job site progress photos must be uploaded as directed for documentation, accountability, and client updates

Materials & Responsibility

• GEM will supply all major project materials (cabinets, vanities, sinks, countertops, flooring, fixtures, etc.), unless otherwise noted in the project scope
• Subcontractors are responsible for supplying their own tools, fasteners, adhesives, blades, and other consumables needed to perform their trade
• If a subcontractor is found to be wasteful, careless, or negligent with materials supplied by GEM, they will be held financially responsible for replacing those materials at their own cost
• Client-Supplied Materials: If a project includes materials provided by the client (such as appliances, lighting fixtures, or finishes), subcontractors must handle them with extreme care. Any damage caused by the subcontractor will be their financial responsibility to repair or replace

Work & Payment Terms

• All bids must be submitted within 48 hours unless an extension is approved
• Must be able to commit to projects you accept – no cancellations or no-shows
• Job Agreements: A subcontractor agreement must be signed for each individual project to protect both GEM and the subcontractor
• Milestone Payments Only: Payments will be made at the completion of clearly defined project milestones — no lump sum payments, no advances

4-Stage Milestone Payment Breakdown (Equal 25%)

1. Post-Demo Payment – 25% of subcontractor’s agreed payment, issued within 48 hours of demolition completion and site cleanup
2. Rough-In / Mid-Project Payment – 25% of subcontractor’s agreed payment, issued within 48 hours of framing, rough plumbing, electrical, and inspections (if applicable) being completed
3. Finishes & Installations Payment – 25% of subcontractor’s agreed payment, issued within 48 hours of substantial completion of finish work (flooring, cabinets, tile, trim, etc.), prior to final walkthrough
4. Final Completion Payment – 25% of subcontractor’s agreed payment, issued within 48 hours of all punch list items being completed and the project being signed off by GEM and the client

Change Orders – Approved change orders will be paid in full within 48 hours of completion of the change order workand GEM receiving client payment.

Additional Terms

• Exclusivity Bonus: Subcontractors who choose to work exclusively with GEM will receive bid requests 24 hours before they are sent to the general subcontractor list
• Growth Opportunity: If at any time you and your crew desire to transition from subcontractors to full-time GEM employees, this can be discussed as part of our long-term growth strategy
• Performance Incentives: GEM offers bonuses on select jobs for exceptional workmanship, client satisfaction, and on-time delivery
• Accountability: Penalties may be applied if a project goes over schedule or budget due to subcontractor negligence, poor planning, or lack of communication
• Consistent communication and reliability are required to remain on our active subcontractor list

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