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August 11, 2021

Developing a healthy relationship with your subcontractors

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Whether you are a general or subcontractor, the relationships you build with one another will determine how successful your businesses become. Have you ever heard of Symbiosis?In one way or the other, Symbiosis describes the ways in which organisms live together for their mutual, and therefore, intrinsic benefit. 

Ecology aside, contractors rely on subcontractors to provide them with goods or services that they do not cover, and subcontractors rely on the resources contractors provide to sustain their own business. This relationship is mutually beneficial and thus plays an important role in the sustainability of both parties. 

If one tries to cause harm to the other then the party causing the problem will eventually suffer as well. Therefore, it’s always better to establish a good relationship than a bad one. 

In this article, the focus will be on the general contractors. We will look at 7 aspects that general contractors have to bear in mind when developing a healthy relationship with their partners or subcontractors. 

Be clear with rules and expectations from the beginning

There’s nothing worse than when a subcontractor doesn’t deliver the results you expected and when told to make changes, they will usually refer to the clause within the contract that goes something along these lines:Any additional charges made to completed work will be charged extra.

Asymmetry of information occurs when one party (i.e. contractors) to an economic transaction possesses greater material knowledge than the other party (i.e. subcontractor).Asymmetry, in most cases, is a normal phenomenon that affects the majority of field-service businesses. Why? Well, mainly because contractors are required to coordinate the work of dozens of subcontractors and for that reason, it is considered natural for information to be lost or miscommunication to occur. It’s usually an unintentional error, but it is very important to be as clear as possible when you talk to subcontractors about what you want. When they have a clear action plan (and possibly a written outline) of the work they need to do, they will be sure about the tasks they need to complete. It’s also a great way to encourage efficient time management. 

When the request is not clearly communicated, some of the issues that may arise are: 

  • Unexpected changes that the subcontractor has to make, such as reorganizing a team, using and acquiring new materials, changing the action plan and more. This is usually the case when management makes sporadic project changes.

  • Different deadlines than previously expected or agreed upon is also a disadvantage to unclear requests by management. Any changes or discrepancies between the action plan of subcontractors and management results in different original quotes, time frames and even subcontractor availability.

Try to be as organized as possible from the very beginning of your project. A thorough walk-through with your subcontractors will prove invaluable when future changes need to be made, as they will be ready and can better manage projects. 

Be prepared for delays

The best thing you can do when talking to subcontractors is to be realistic about potential delays that can happen in the future. Construction projects often require a lot of improvising, but when you engage subcontractors try to include some time that can be dedicated to any possible delays that are out of your control. This can be because of unpredicted weather changes, injuries or even unexpected problems with tools. It’s better to work smarter by scheduling the completion of your project with subcontractors by a week longer, just in case. So whatever delays may arise, you’ve got the deadline sorted.

If you are prepared to allow the subcontractors a little time either before or after the supposed deadline of the project, this will ensure that the project will still be completed within the selected time frame. It’s basically just including some wiggle-time in the original plan. And when you’re prepared for potential delays, the project will be less likely to take longer and go over budget. 

Communicate

One of the most important parts of relationship-building is communication, and this is true for those relationships with subcontractors as well. It’s best to set a meeting before the project begins so that everyone is on the same page. Scheduling a few in-between meetings is also a great way to monitor the project. When each person knows what role they have within a project, conflicts are avoided and ground of mutual understanding is created. There will also be a lot of respect for both parties’ input.

When you communicate your expectations, you will:

  • Have the opportunity to discuss your on-site visits from time to time to give them some directions, guide them and give input where needed. 

  • Be aware of your subcontractor’s areas where they need space and time to do their own work so that you don’t end up micromanaging them and creating conflict. 

Don’t forget that they’re professionals as well, and you hired them because they’re experts in their fields. Trust the choices you make, and better yet - trust the subcontractors you take on.

Discuss the financials

While in many cases budgets are difficult to set because of varying expenses, it’s still nonetheless better to communicate clear financial limitations. You should talk to your subcontractors about any budget restrictions and about any limits. Being upfront and transparent will most definitely foster a healthier and honest working relationship with your subcontractors. 

This way, you can better manage a project budget by:

  • Creating some space to make changes to the budget.

  • Taking on a contractor that gives you a quote below your budget, but that still produces value.

Financial aspects can definitely be tedious and stressful, but if communicated clearly you’ll save your business a lot of money and potential disagreements with subcontractors. 

Pay your subcontractors on time

When a whole project is completed successfully and your relationship with your subcontractors is great, there is no need to delay payments. It’s not fair for anyone to have to work weeks or months and not get paid on time. So don’t risk spoiling the great relationship you’ve built with your subcontractors. Treat them how you would like to be treated so that you won’t create any tension. 

Choose the right subcontractors

When choosing subcontractors for your projects, try to do as much research as possible. You should choose a subcontractor that you can work with comfortably and that you see a potential good working relationship with. When you choose the right team for the job, you’ll have satisfactory results.

Some things you should keep in mind when looking at subcontractors are:

  • Do your research - don’t just skim and scan possible subcontractors.

  • You can also ask people within your industry to get some recommendations.

  • Analyze past projects to know what to look for in future subcontractors.

  • Make sure that they have all the right licenses

  • Run background checks to see how they completed past projects.

Try to be as organized as possible 

Some see being organized as a form of art, and in most cases it is. It takes a lot of work to get it right, but there’s always time to start. Especially when hiring subcontractors for a project, you need to be as organised as possible. It helps with developing healthy relationships and also being on the same page with them. This way, you can prevent unexpected problems that may arise during a project.

With any construction project, it’s important to have healthy relationships with subcontractors. Whichever method you choose, don’t forget to always be honest and transparent. Communication is one of the strongest bridges between businesses and subcontractors, so being able to clearly talk about requests will avoid any future misunderstandings.

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