DOMESTIC / NOMINATED SUBCONTRACTORS MANAGEMENT TIPS
Abdul Azeez Azhardeen MSc CPM, BSc (Hons) QS
Senior Contract Administrator | With over 13+ years' extensive experience in Commercial & Contracts Management
The Subcontractor packages, budget, and workmanship are very important to the main contractor. Some of the main contractors failed to manage their subcontractors in terms of the project cost, time and quality of work. Here following subcontractors' management tips would help for your current or future projects.
????i.?????????All contractual instructions must be in writing and addressed to the subcontractor’s representative.
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?????ii.?????????Subcontractor management is not always about the subcontractor and how they perform. Subcontractors should be treated fairly and paid on time. Late payments can cause problems with the subcontractor.
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????iii.?????????Always check the subcontractor’s price carefully, ensuring there are no hidden, or extra costs, which will be incurred by the contractor, and that they’ve complied with the project schedule.
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????iv.?????????Make sure that the person supervising the subcontractor understands what they should check, such as progress, quality, safety, and potential issues, as well as ensuring that the contractor and the subcontractor meet their obligations.
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?????v.?????????Ensure your subcontractor is given all the correct project information, specifications, scope,?project schedule?with key milestones for their work, and terms and conditions before they price the work. Adding additional requirements later, or changing the scope or project schedule, will cause extra costs and change orders.
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????vi.?????????Ensure that a sound contract document is used, one that includes the scope, terms and conditions, milestones, the obligations of both parties, the full price and what it includes, and the project conditions. The contract document must be unambiguous.
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??vii.?????????Never award a contract to a subcontractor based solely on price alone. The subcontractor must have the knowledge, experience, and resources, to deliver the work. The cheapest price can turn out awfully expensive if the subcontractor does not perform according to expectations.
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?viii.?????????Don’t pass risks to the subcontractor which they that to control. Some contractors believe they can simply pass risks down to subcontractors and then forget about them.
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????ix.?????????When there’s a problem with the subcontractor’s performance, such as schedule slippage, immediately address this in writing, and follow up to ensure the problems are fixed. Take early action.
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?????x.?????????You usually cannot terminate a subcontractor without going through the proper procedures, which should be outlined in the contract document. This includes notifying the subcontractor in writing of the concerns, which should also include the required actions from the subcontractor, with a timeline for the remedial actions. Only if the subcontractor fails to rectify the issues within the specified time can the subcontractor be issued a written notice of termination.