By using the AIA G700-series documents, or similar documents, to properly record the contractor’s schedule of values, provide site observation to verify validity of contractor’s applications for payment, and to ensure that consent of the bond surety is secured prior to the release of any retainage or final payment to the contractor, as well as secure affidavits of lien releases from the contractor or a bond to properly protect the owner’s property in the case of any unsecured affidavits of lien releases.
Advise the owner to require labor and material payment bond to cover any lack of payment by the GC. Require the contractor indemnify the owner against any third-party claims. Affidavits of lien release can also be required with each application for payment. If the owner has reason to suspect a sub is not being paid, they can request proof of payment from the GC.