What to Do When a Subcontractor Leaves Deficiencies

It happens to every general contractor eventually. You’ve hired a subcontractor, they’ve done their work, and when you inspect it closely (or worse, when your client does) you find deficiencies. Maybe it’s drywall that’s not smooth, trim that’s not tight, or paint that’s inconsistent.

Now what?

This guide walks through your options for handling subcontractor deficiencies, from getting the original sub to fix it to bringing in a specialist. We’ll help you figure out the best path forward for your specific situation.

Assess the Situation First

Before taking action, understand what you’re dealing with:

Categorize the Deficiencies

Cosmetic issues:

• Minor paint imperfections
• Small drywall blemishes
• Slight gaps in trim
• Minor scratches or marks

Functional issues:

• Doors that don’t close properly
• Flooring that squeaks or moves
• Fixtures that aren’t level
• Cabinets that don’t align

Code/compliance issues:

• Electrical not to code
• Framing deficiencies
• Fire stopping missing
• Accessibility non-compliance

The category matters because it determines urgency and who should fix it.

Document Everything

Before you pick up the phone:

1. Photograph each deficiency with good lighting
2. Create a written list with locations and descriptions
3. Note which trade is responsible for each item
4. Prioritize by severity (code issues > functional > cosmetic)
5. Estimate the impact on project timeline if not resolved quickly

This documentation protects you legally and makes conversations with subcontractors clearer.

Option 1: Get the Original Subcontractor to Fix It

This is usually your first move, and it should be. There’s likely a contractual obligation for them to correct deficient work.

How to Approach the Conversation

Do:

• Be specific about what needs correction
• Reference your documentation
• Set a clear deadline
• Put it in writing
• Remain professional

Don’t:

• Threaten immediately (you might need them on future projects)
• Make vague complaints (“it doesn’t look right”)
• Assume malice (often it’s rushed work, not bad faith)
• Wait too long to raise issues

When This Works Best

Getting the original sub to come back works well when:

• You have an established relationship
• The deficiencies are clearly their responsibility
• The scope is limited
• You haven’t already paid in full
• Timeline isn’t critical

When This Doesn’t Work

The callback approach often fails when:

• The sub disputes responsibility
• They’re already on another project
• The relationship has soured
• You need a faster resolution
• They don’t have the skills to fix it properly

Option 2: Withhold Payment or Back-Charge

If the subcontractor won’t address deficiencies, your contract likely gives you options:

Hold Retainage

If you’re still holding retainage, this is your leverage. Clearly communicate:

• What deficiencies exist
• What needs to be done to correct them
• The deadline for correction
• That retainage won’t be released until items are resolved

Back-Charge for Repairs

If you need to bring in another contractor to fix the work:

• Document the deficiencies thoroughly
• Get quotes for the repair work
• Notify the original sub in writing of your intent to back-charge
• Keep records of all costs
• Deduct from amounts owed (if any remain)

Important: Check your subcontractor agreement before back-charging. Most contracts have specific procedures you must follow.

Option 3: Bring in a Finishing Specialist

Sometimes the cleanest solution is to bring in someone else to handle deficiency repairs, especially when:

• The original sub won’t or can’t come back
• Deficiencies span multiple trades
• Timeline is critical
• You want guaranteed quality

The Multi-Trade Advantage

A deficiency repair specialist who works across multiple trades can be particularly valuable because punch list items rarely fall neatly into single-trade categories. A door that doesn’t close right might need:

• Carpentry (planing the door or adjusting the frame)
• Drywall (patching around the frame)
• Paint (touching up affected areas)

One skilled team handling all of this is far more efficient than coordinating three separate subs.

What to Look for in a Deficiency Repair Contractor

1. Multi-trade capability: Can they handle carpentry, drywall, paint, trim, and hardware?
2. Experience with punch lists: Do they understand the urgency and scope?
3. Professional documentation: Will they provide clear records of work completed?
4. References from other GCs: Have they helped builders in similar situations?
5. Clear pricing: Do they quote by item or by hour? Get this straight upfront.

Option 4: Legal Action (Last Resort)

For significant deficiencies with substantial costs, legal action might be necessary. This typically involves:

• Formal demand letters
• Mediation or arbitration (if contract requires)
• Litigation

Reality check: Legal action is slow and expensive. For most punch list deficiencies, the cost of litigation exceeds the cost of just getting it fixed. Reserve legal action for major failures where significant money is at stake.

Prevention: Reducing Deficiencies Before They Happen

The best deficiency is one that never occurs. Strategies to reduce subcontractor deficiencies:

Better Selection

• Check references thoroughly
• Look at recent completed work
• Start with smaller scopes to test quality

Clearer Expectations

• Detailed scopes of work
• Quality standards in writing
• Walk-through before final payment

Progress Inspections

• Don’t wait until completion to check work
• Address issues when you see them
• Document throughout the project

Strong Contracts

• Clear quality standards
• Retainage provisions
• Back-charge procedures
• Dispute resolution process

The Nookmaster Approach to Deficiency Resolution

At Nookmaster, we’ve built our business around helping GCs and builders resolve deficiencies efficiently. Our approach:

• Fast assessment: Usually same-day
• Multi-trade capability: We handle drywall, paint, trim, carpentry, flooring, and hardware
• Clear quoting: You know the cost before we start
• Single point of contact: One team, one invoice
• Professional finish: Work that meets the standards your clients expect

We don’t ask what went wrong before. We focus on making it right now.

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Dealing with subcontractor deficiencies on a current project? Contact us for a free assessment.