Subcontracting major construction projects can be lucrative for your firm. However, construction companies looking for subcontractors often ignore the catastrophic outcome in case they falter.
It is important you take the necessary guard when it comes to selecting the right subcontracting partner. The ultimate quality of your project largely pivots on the competitiveness of your subcontractors. Moreover, the professionalism of your subcontractor significantly determines the final project costs, timeframe, and client satisfaction.
In this article, the experts at GoBridgit have come up with some guidelines that would guide you on how to find subcontractors. Check out the best construction staffing tips and resources here https://gobridgit.com/blog/best-construction-staffing-resources/.
Why Would Subcontracting Be Ideal For Your Business?
Construction businesses often partner with subcontractors while working on specialized, large, and diversified projects. At times, you might lack adequate resources to work on the project yourself.
Besides, you can save certain expenses by subcontracting some tasks. Particularly, when it comes to specialized short-term projects, subcontracting proves beneficial in terms of productivity, efficiency, and quality.
Here are certain reasons justifying the necessity to outsource projects to subcontractors.
- Subcontracting leverages your efficiency in large projects
- The process might be cost-effective for construction firms
- In some domains, subcontractors hold the necessary expertise
- You don’t have any permanent commitment
- Construction projects turn to be more productive on outsourcing
- You have fewer legal compulsions to bother your business
- Sub-contractors specialize in certain aspects that you don’t
However, no construction business manager would want untrained hands to work on their projects. To eliminate the chances of partnering with the wrong subcontractor, you should have stringent collaborative policies in place. You must also be aware of what are subcontractors’ capabilities before outsourcing work.
Choosing The Right Subcontractor: What Should You Check Out?
Now that you understand what subcontractors are, you would be on the lookout for a reliable partner to deal with specific projects. These guidelines would help you determine how to subcontract work in construction.
1. Assess Financial Strength
The financial strength of a successful subcontractor would be a direct reflection of its professional competence. It makes sense to partner with a vendor with healthy financial statements, as it speaks tons for the company’s success.
Before working with a subcontractor, check out the audited financial statements along with year-on-year comparisons and ratio calculations. This would reveal the company’s credit, trends, and payment records.
The process would also let you know whether or not they have any past due accounts or liens. Also, take care to explore if the company has any legal issues. If you find the path clear, you can confidently proceed to the deal.
2. Consider Operational Abilities
While partnering with subcontractors on large projects, it makes sense to evaluate their current operational capabilities. Would they be able to scale the operations up if the need arises?
Scrutinize the company’s corporate culture, organizational structure, supply chain, risk management tactics, and insurance limits. This way, you can rest assured that the company would not falter under pressure.
Examine the vendor’s forecast for the coming year as well as the volume for the current year. You can make your decision after learning about their existing projects and those in the pipeline. Of course, you should check out their licenses, certificates, and insurance documents.
3. Software They Are Using
Successful contractors and vendors in the construction industry habitually use robust tools for project management. When you subcontract your tasks, make sure to check out the tool they have been using.
Construction management software largely eliminates human errors and streamlines operations. Besides, these tools help contractors and subcontractors to identify skill gaps. Moreover, these tools go a long way in reducing downtime and saving resources.
While you have already been using one of these tools, you should expect the partnering company to be using it. This would keep you both on the same page when it comes to tallying and coordinating figures.
4. Safety Practices
As a forward-thinking business operating in the construction sector, you would prioritize safety at your workplace. As you collaborate with a construction subcontractor, you would also want them to adhere to the industry standards. Accidents come without warnings, and such unexpected incidents can lead to project delays.
Before you assign them to any project, make sure they have the right kind of support staff to handle emergencies. Professional subcontractors have a full-time safety manager monitoring the situation. Once you find that the firm complies with the established norms, you can subcontract your projects to them. Most importantly, the work-culture of both the companies should intersect somewhere.
5. Experience And Reputation
While these aspects might sound obvious, it makes sense to look beyond the superficiality. Check out reviews about the subcontractor on third-party websites, forums, and aggregator portals rather than simply looking into their official website. Also, seek references to know more about their resource allocation practices, commitment, and quality assurance.
Experience and reputation go a long way in determining the success of construction projects. In case you find that the subcontractor was involved in litigation cases, conflicts, or legal issues in the past, be careful while striking the deal.
While you might find positive reviews about the subcontractor, make sure not to overlook the company’s accountability. It’s out of your own interest that you should investigate who actually runs the business and directs the workers.
In a nutshell, the subcontractor must be accountable for all their activities on the job site. This encompasses crucial aspects like resolution, decision-making, and compliance. Before you get into any sort of subcontracting project, assess the company’s safety record. Also, check out whether or not their workers undergo any type of safety program.
Once you determine what subcontracts are and their role, it’s imperative to track the progress. This is where you would need the right project management software. When you hire multiple vendors or outsource different aspects of a large project to several subcontractors, tracking the progress turns out to be a challenge.
However, with the best project management software, you can have a concrete idea of how the project stands. Reach out to the experts to get the right project tracking tool recommended for your business. This way, you can successfully manage multiple subcontractors from a single and unified interface on your system.
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