How do you manage subcontractors in the construction industry?

In the construction industry, many companies call on the services of subcontractors. Strengthening their workforce, they are an essential component in the success of their projects. But good management of subcontractors is essential. Let's take a look at what subcontracting means, and the best practices to adopt to ensure a fruitful collaboration. 

What is subcontracting?

In France, subcontracting is governed by law. It is based on a subcontract between two companies: the principal and the subcontractor.. However, it is also mandatory to draw up a contract between the client (the end customer) and the principal.

The subcontractor works for the client. It is accountable to the client, and not to the end customer, the project owner. The client therefore provides the subcontractor with very precise specifications, on the basis of which the subcontractor proposes an execution schedule. There is no relationship of subordination between the two companies. They are bound solely by the execution of the given mission. 

Why subcontract in the construction industry?

A construction company responding to a call for tenders may need extra manpower, or specific skills that it doesn't have in-house. Subcontracting allows it to have them at its disposal on a one-off basis.be more flexible. In today's tight job market, this practice is growing rapidly.

The risks of outsourcing

Using subcontractors is not without risk. You have to make sure that the work is of good quality, that the personnel respect safety measures, and that they are compliant and productive. To achieve this, good subcontracting management is essential.

Selecting subcontractors

Define your needs

Before calling on subcontractors, you need to assess your in-house resources and their availability. In what areas is your company short-staffed? What skills and qualifications are required? This will help you define the gaps you need to fill.

Search for subcontractors

To find the right subcontractors for your needs, you can look at professional directories, specialized websitesbut also study recommendations. Take a close look at the experience of potential future collaborators, their reputation, their technical skills, etc. Check that the companies you turn to employ qualified personnel who have legal employment contracts and are trained in safety standards.

Request a quote

Compare quotes from several subcontractors and choose the best value for money. But don't go for the cheapest bidder without checking his references. Make sure that the selected company has the necessary licenses and insurance.

Draw up a clear subcontracting agreement

To protect your project, draw up a precise subcontracting agreement. It should include expectations, deadlines, costs, penalties for delays, quality standards, and so on. Don't forget to include a dispute resolution clause.

Communicating and coordinating

Successful subcontractor management requires good communication.

Meeting and transparency

Meeting with subcontractorsTo achieve this, regular meetings are needed to discuss project progress, any concerns and any necessary adjustments. Transparent communication between all parties. The slightest grain of sand needs to be reported, so that corrective action can be taken quickly and the site does not suffer delays.

Centralized management

For large-scale projects, it's often a good idea to appoint a project manager or someone responsible for managing subcontractors.

Digital management tools

To help you in your task, there are high-performance project management software that centralizes documents, facilitates their sharingetc. They also enable you to track the presence and movements of subcontractors on site in real time.

Monitor subcontractor performance

The quality and conformity of subcontractors' work must be assured. Regular inspections are carried out, and compliance with deadlines is verified. A system of rewards and penalties for exceptional performance or failure to comply with contract terms can be introduced and applied.

Managing problems and conflicts

To avoid legal disputes and site delays, effective management of problems and conflicts is essential. Rigor and mediation are essential.

As soon as a concern arises, it needs to be addressed and solutions found. 

Base your dispute resolution clause on your subcontracting contract. It specifies ways of resolving disputes. If a dispute arises, you can call for mediation, and if that fails, you can consider legal action.

Financial management of subcontractors

At every stage of the construction project, it's important to keep costs under control, to make sure they don't get out of hand along the way! A precise record of payments is keptand any change in orders must be approved and verified.

Managing subcontractor safety

Safety on construction sites is a priority. To achieve this, it is essential to ensure, as mentioned above, that workers are trained in safety standards. Then, regular inspections must be carried out to check that everything is in order, so that any errors can be quickly corrected. All incidents are recorded to ensure traceability.. Their causes must be identified to ensure that they do not recur.

Closing subcontracts

Once the job has been completed, it's important to check that the work complies with contract specifications and quality standards. Once it is clear that subcontractors have fulfilled their contractual obligations, they are paid. Finally, subcontractors must provide documentation relating to warranties, certificates of conformityetc.

Conclusion

Correctly managing subcontractors in the construction industry is complex, but essential to the success of a construction project. It's also fundamental to your company's reputation in the sector! To help you in this task and avoid mistakes, specific digital tools exist. They are synonymous with time-saving and precision.