How to hire subcontractors for construction, subcontracting exchanges

How to hire subcontractors for construction, subcontracting exchanges

Regardless of, whether you are a project manager for a larger general contractor or a new general contractor, one thing is for sure:

You need to know, How to Hire a Subcontractor or Trade Contractor.

In the construction industry, it is always important to establish a good working relationship. Many garbage collectors and routines will work together for years. If the subcontractor continues to perform quality work – And the CEO builds a good relationship with them – Why change something? When the general contractor and their subcontractors work well together on a project, More often than not, they stick together too.

However, all (inevitably) Changes. New general contracting firms are being created or they are expanding. Knowing that, How to hire a new subcontractor, is important to ensure that, to keep your projects up to date, when that time will eventually come.

However, Hiring subcontractors doesn't have to be confusing or uncomfortable. We have compiled a list of questions, that you need to set (and fields, Things to note) during the prequalification process of your subcontractor. In this way, You'll all be able to prepare for the next big job.

Why Hire Subcontractors?

Before looking for a subcontractor, Ask yourself a few basic questions. When you need to hire a subcontractor? You need it at all?

Here are some basic guidelines, Things to consider when hiring a subcontractor.

When to hire a subcontractor

Consider the scope of work for your project. Remember, that subcontractors – These are specialists – They are experts in their field.

Although you can find a subcontractor for almost any scope of work, There are a couple of common areas of subcontractors, Things You Should Know.

Large companies usually do drywall or concrete work on their own and hire subcontractors for everything else. However, even smaller companies hire subcontractors for mechanical, electrical and plumbing works, as well as for underground utilities, structural steel and glazing.

If any of your construction projects include such works, It is best to hire a subcontractor.

When you need a subcontractor

You really need a subcontractor? Likely, Yes.

"Hiring subcontractors will often cost you less to get the job done, than the use of brigades, not trained for special work. Experts know, What materials they will need before starting work, and therefore will be able to get a job. Run faster – with less downtime to find parts or materials ».

All this special know-how and willingness to hire subcontractors will save you time and money in the future. It can even lead to savings, which will go to the owner.

How to hire subcontractors

The process of hiring a subcontractor involves many different steps.

We will look at the main questions, that you need to ask, To determine the requirements for a subcontractor, and then, What you need to include in your agreement with the subcontractor at the end.

Where to find subcontractors?

To find subcontractors, CEOs and project managers usually refer to such sites subcontracting exchanges, as and other trade organizations.

Once there, The contractor will send a request for proposals. The application lists the important details of the project, such as required skills, Objectives and timeline of the project, Map of construction projects.

If you are the CEO with a request for quotation on one of these sites, We recommend that you do your due diligence. Don't grab the first offer you receive right away. Instead, collect at least three sentences, To compare options – and find the best subcontractor for your project.

Pre-selection process for subcontractors

After that, how they posted a request for proposal on some marketplaces or newspapers, Most companies instruct their subcontractors to go through a pre-selection process for subcontractors. In this way, Any subcontractor, with whom they work, meets their standards and expectations.

Although prequalification processes vary, There are a couple of universal forms and questions, Which you need to enable. We have some recommendations for you.

Also note, that most GCs pre-qualify their subcontractors once a year. If there is a new type of project or a particularly large one, CEOs prefer to pre-qualify subcontractors for each project.

Subcontractor scalability

As part of your prequalification process, it is imperative to have full disclosure of the size of the subcontractor, who wants to work with you.

It really depends on the project, that you're working on. If you are engaged in the reconstruction of a residential kitchen, then renting plumbing or smaller electrical equipment is usually suitable for you. but, If you work on the 20th floor of a new multi-storey building, for which it is necessary to install eight bathrooms on each floor, Then you'd better look for contractors, that would match the speed and scale of your work. Business Overload, not designed for the size of your work, – A quick way to slow down the whole process.

At this point, you'll also want to check and make sure, that the subcontractor has all the equipment of its own – And it will be enough to get your job done.

If you find, that you often do the same job, You, probably, You can skip this step. But if your projects are often different, You may want to consider switching to a pre-qualification process for each project. This will help you avoid overburdening your subcontractors.

Subcontractors with experience

The essence of hiring a subcontractor – This is his specialized knowledge. It means, that you need subcontractors with at least a few years of experience. Good news: If someone wants to become a licensed subcontractor, He must go through a rigorous learning process:

"For such specialties, as locksmithing and electricity, Most training programs last three or four years. And when someone finishes these programs, He knows his stuff inside and out. This makes them better prepared for any situation, And it makes them faster in performing their particular discipline “.

During the prequalification process, ask for a portfolio of work. To see – means to believe (Especially in construction), and you will be able to see, whether their style matches yours.

Subcontractor Safety Records

Security – One of the most serious problems in construction, And rightly so,. That's why it's important, to have all your potential subcontractors provide safety records.

Ask for their confirmation and how much time they have lost due to construction accidents and injuries in the past. You'll also want to ask about their chief security inspector and get information about their credentials and history.

While safety is always an issue on construction sites, Ensuring security in the process of hiring subcontractors reduces your risk. Ensuring security from the outset goes a long way in ensuring that, to ensure that your project is on schedule and on budget.

Licensing for subcontractors

Different regions of Russia have slightly different requirements for hiring a subcontractor. Be sure to read the specific rules of your region of the Russian Federation.

for example, Subcontractor licenses are required in some regions, and in others – not. If you work with subcontractors, Do it legally. This helps ensure the quality of their work and protects your business in case of litigation or disputes in the future.

Subcontractor's Daily Accountability Reports

The next step in the process of hiring a subcontractor? Establishing that, how you and your subordinates will communicate throughout the project.

Between different change orders, tasks and punched cards, Dealing with subcontractors can be time-consuming, like CEOs, So it is with superintendents. That's why we recommend stating your expectations in advance, When it comes to daily reports and timesheets.

Using Raken, Unified Building Group embeds daily reporting directly into subcontractor agreements. Since then, how they started using Raken, Manage more than 300 It's easier for subcontractors, Than ever, And as a result, they won more projects (and business).

Documents and contracts of subcontractors

Most subcontractor contracts are tax documents, To be filled in by employees, not by a company. However, It's still worth thinking about in the prequalification process for your subcontractor. This is because, that you need to have a written document every time, When you hire subcontractors.

"Include details of the fee structure, Payment Terms and Cancellation Policy. Also mark all payment deadlines, as well as the start and end dates of the project.".

Don't forget to also include a daily reporting requirement. This guarantees, that you will have clear communication and accountability throughout the project lifecycle.

Taxes on the payroll of subcontractors

Although you are not responsible for withholding payroll tax for your subcontractors (They'll do it themselves), Their completion of the tax form is written proof of that:, that they will handle the relevant withholdings and taxes on their part. This will help you get rid of any problems, If you start working.

Financial statements of the subcontractor

Many CEOs ask for subcontractors, who want to work for them for a few years, prepare financial statements for the company by a third party.

This usually helps the CEO to know, What's the business, with which they are dealing, is legal, what is their capital?, Debt-to-inequality ratio, and accounts receivable and payable.

In fact, You're looking at these numbers, To make sure, that they are comparable to other subcontractors in the field. After all, You want to work on your project with an honest company.

It is also important to communicate the retention in advance. Most GCs will retain 10% from the subcontractor's salary until then, until the work is completed – or in a year – to cover any unforeseen problems after completion of construction. Although this is a common practice, It's always a good idea to let it know (and fee structure) Early on.

Subcontractor insurance and bonds

Finally, You need to ask your subcontractor for two things to protect your business: – A letter of recommendation from a subcontractor company – Subcontractor's Insurance Certificate (with confirmations).

When reviewing the insurance, double-check, whether its limits correspond to the scale of your project.

Example of a subcontractor hiring process

We know – There was a lot of information.

Here's a breakdown of the entire process of hiring subcontractors in steps::

  1. Registration on the portal.
  2. See the current list of subcontractors or general contractors, You'd like to work with.
  3. Organize the prequalification process.
  4. Make sure, that they have manpower and equipment, Suitable for your work.
  5. Check out their experiences and past work.
  6. Examine their safety records.
  7. Check their license.
  8. Implement a system of daily reporting and accountability.
  9. Fill out tax forms as part of the final agreement.
  10. Examine financial statements and records.
  11. Get copies of insurance and bonds.

Follow these steps, and you will find, that hiring a subcontractor can be quick and easy. Remember: the main thing – Good communication (Especially explicit). With clear expectations right from the start, you can build healthy professional relationships with subcontractors across all of your facilities.

Easy-to-use website software connect you with your subcontractors.

To improve the quality of daily reporting, They've created super daily and segmented daily reports. “Everyone in a row” allows all your external subcontractors for the project to make their daily report on the site. (They are even indexed in the main daily report for this project.) Segmented Daily Reports, on the other hand, allow you to set up custom segments for more collaborative and organized reporting. You can segment by supervisor, Change, location, etc.. d., For maximum visibility.

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