What to Consider When Choosing Subcontractors

Delivering a construction project requires the contribution of several parties coming from varying backgrounds, as the extent of their involvement differs from stage to stage. The participation of some parties is necessary throughout the time frame of a construction project, while some are only needed to take part in a particular stage. Nevertheless, some of the factors that influence the success of a construction project are the individual performance of involved parties and the level of collaboration among them. Often, the negligence of one party creates a domino effect that ripples across many parts of the project, affecting other parties.

A large amount of construction work is carried out by subcontractors in many types of construction projects. In an ideal world, a variety of subcontractors are appointed to undertake different construction activities at a construction project, complete their tasks to the required standard, and help the prime contractor meet the project baseline. However, this rarely happens in reality.

Realistically, only a careful selection of subcontractors will get you the right one capable of performing to the required standard. Considering only the cheapest labor or not bothering to conduct a background or qualification check on subcontractors before hiring them will not do you any good, and you will also put your business’s reputation at stake. You will probably be left with shoddy work that you have to rectify with your resources.

Fortunately, there are some effective ways to help you make sure that your subcontractors will finish their work on time, within budget, and to the expected standards.

Try Sourcing Subcontractors through Word of Mouth

Word of mouth is the oldest form of marketing, and it has been quite useful in finding reliable subcontractors. You can try asking other prime contractors, construction managers, or project managers that you know to provide you with recommendations. The construction industry is relatively large in terms of the workforce, and it should not be difficult to find reliable ones through this traditional sourcing method. Ultimately, coming across a subcontractor who has gained a good word of mouth will be your chance of adding a valuable asset to the workforce of your business.

Make Sure to Offer a Fair Rate

You should be prepared to offer reasonable pay to any reliable and trustworthy subcontractor you have found. You won’t want to throw away all the resources you have spent on looking for the right one. If you offer an unreasonable rate, the subcontractor will likely be offended, declining to undertake the job. The subcontractor may spread the word that you don’t offer good pay, and it will be even harder for you to look for subcontractors when you have a new job.

You should do your research before you offer a rate to any subcontractor. Finding out what the market rate is for that particular job is a good start, and the easiest way to do this is by asking the person who has recommended the subcontractor.

Ensure a Well-Drafted Contract between You and Your Subcontractor

Your construction contract with any subcontractor should clearly state the roles and responsibilities of the subcontractor and any applicable terms and conditions. Additionally, including the work specifications and your expectations in the contract is a necessity. In the agreement, one of the essential inclusions is how a progress payment is to be made and when it is to be submitted.

Before allowing subcontractors to commence their jobs, you must make sure that they have already been provided with workplace induction training, in which they were informed of all the safety and emergency procedures and implemented construction management plans. You must also request the subcontractors submit their construction management plans that deal with health and safety, environment protection, and industrial relations, and ensure that they are aligned with your corresponding plans.

Organize Weekly Meetings

Holding weekly meetings with your subcontractors is an effective way to make sure that everyone is on the same page. Apart from being a platform for keeping everything on track, these weekly sessions will also allow them to raise concerns about work quality, safety, potential sources of construction disputes, and other project-related issues.

Ultimately, you should record important conversations by making notes and including these in your construction diary. If you have just had a dispute with your subcontractor, you should note the cause of the dispute and how it has been resolved. Filing any written correspondence is a necessity, as you may need them at a later point in time to resolve misunderstandings or settle disputes.

Establish a Good Communication Channel and Working Relationship with Your Subcontractor

Last but not least, there must exist a right, and reliable communication channel between you and your subcontractors, and any communication should be easily comprehensible and concise. If there arises a sudden change order, the affected subcontractors must be informed of it as soon as possible.

When communicating with your subcontractor, you must not only focus on what you should say. Effective communication is more about listening than talking, and you have to understand not just the information being communicated to you, and also the emotion being conveyed by the speaker. Doing this will make you become an engaged listener, and you will be more approachable and capable of building an h4 working relationship with your subcontractors. Contact us today to hire a professional CPM Scheduling consultant.