Online Induction >> Subcontractor Management Software

Published 19/05/2023

What to Include in your Subcontractor Plan

The duration of a project and the likelihood of a subcontractor being awarded more projects to execute by a company depend on the relationship between the two parties. A management plan helps outline the relationship between the subcontractor and the parent company in a given project, as the company expects quality deliverables from the subcontractor.

The company uses a subcontractor management plan to shortlist subcontractors depending on the desired qualifications. But what is the aim of the subcontractor management plan? It is designed and implemented by the company to evaluate and select the best subcontractors to improve health and safety within the workplace. Also, it is aimed at improving operational efficiency and lower safety cost.

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Steps to follow when managing subcontractors

Before a construction project is awarded to subcontractors, the prime contractor assesses the project needs by sending quotations to the subcontractors to include in their proposals. The prime contractor awards the project to the best subcontractor(s) who qualify and meet the health and safety standards.

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Subcontractor pre-qualification

To get a refined subcontractor, you must start with the pre-awarding phase. Pre-qualifications entail evaluating the relationship of the subcontractors with previous clients by cross-checking their tracks of the record as well as understanding their performance, risk and safety profile. You also need to evaluate the validity of working licenses, insurances, compliance with work health and safety protocols, risk and safety history, previous incidents and availability of the subcontractors. In the pre-qualification phase, assuming the competency of previous subcontractors you have worked with is not accepted because they may have lost the workforce they had before or their licenses have expired.

Use software to select and manage the best subcontractor

Manual systems are old, overwhelming to maintain and site management has benefitted from emerging technologies. Selection of subcontractors and managing them throughout a project or while on site is a much easier process with a subcontractor plan and subcontractor management software that automatically picks the best subcontractor depending on the qualifications required, classifies them by risk level, helps you manage their compliance while working on site and enables you to implement post day 1 engagement plans around their ongoing work and performance while on site. The management plan helps schedule assignments, requests, and resources and manages data.

- Set up a communication channel

Communication is the backbone of every successful project. A reliable communication channel between the prime contractor and the subcontractors must keep all parties informed. Reliable communication channels facilitate report generation and store data in a centralized location.

- Document contract details

Professional prime contractors effectively manage subcontractors by putting into writing all details concerning the contract. No agreement should be made verbally at any time in the contract, as it can be forgotten.

- Define terms of work

The subcontractor must adhere to the prime contractor's terms of work. Before signing the contract, the parties must agree on working days, hours, off days, and signing in and out times. The prime contractor also delegates the duties as per the subcontractor's specifications.

Importance of subcontractor management plan

- Subcontractor Management Compliance tool

The plan acts as a compliance tool for the prime contractor because all subcontractors are vetted to evaluate their contract eligibility. Since health and safety are critical for workers, the subcontractor must submit a valid license and other relevant documents to prove competency. Induct all subcontractors, communicate important site safety procedures, share safety knowledge and ensure awareness around risks and hazards on site. Manage their ongoing compliance and performance.

- The prime contractor saves time. Projects are assigned the maximum time they should take, and project time starts to count once the prime contractor secures the contract. Now, with a subcontractor management plan, it is easy to evaluate the subcontractors and choose the best quickly.

- Quality results

The quality of a construction project depends on the competency of the workforce. The subcontractor management plan comes with the right subcontractor who helps the prime contractor to execute some tasks.

- Save on finances

Qualified subcontractors have a trained workforce that upholds high working health and safety standards. If the workforce observes the set standards, the prime contractor saves on frequent hospital bills and compensation.

Since prime contractors cannot execute all construction site tasks, they delegate some duties to subcontractors. After the prime contractor is given the contract, the client does not mind who does what and when. It is up to prime contractors to ensure they delegate tasks to qualified subcontractors, and only by using a subcontractor management plan.

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