Did you know how trusted construction contractors and subcontractors are to complete construction projects? According to Statista, the top construction contractors earned tens of billions of dollars in revenue throughout 2023 alone.
Construction subcontractor management is made even more effective with the right technological solutions. Construction management software, such as Contractor Foreman, allows you to schedule and communicate the full scope of the construction project much faster and more efficiently than you could do without those solutions. You can also manage all documents, including contracts, blueprints, equipment order forms, and even your subcontractor hiring agreements.
Having the right solutions in place to successfully manage construction subcontractors makes your life as a project manager far easier than it would be if you managed these work crews without technological assistance. Here are some other helpful ways to make construction subcontractor management a little easier and a lot more effective.
What is Subcontractor Management in Construction?
As a construction project manager, supervising your subcontractors is an important part of your job. Subcontractor management in construction brings the various skills, knowledge, and experience of different specialists together to complete a budding construction project. You’ll know your efforts have paid off if each subcontractor works in unison, completes their assigned tasks, and positively contributes to the workplace culture.
Types of Subcontractors in Construction
There are multiple types of subcontractors you can hire for a construction project. Generally speaking, most subcontractors fall into one of three categories.
- Specialty subcontractors. These contractors are specialists in a particular field, which elevates the quality of work you can expect. Plumbers, electricians, and other specialists can be subcontracted to contribute to your project and make a lasting impact on the quality of the building.
- Trade subcontractors. Similar to specialists, trade subcontractors have a particular niche they specialize in. However, their areas of expertise involve skilled trades such as carpentry or roofing that help cement the foundations of your in-development building.
- Service providers. Finally, you can contract service providers to help manage the conditions of the job site as the project progresses. You can subcontract landscapers or waste management services to improve the surrounding environment while your skilled labourers work on finalizing the construction itself.
Who Manages a Subcontractor?
There are two types of people tasked with managing subcontractors: general contractors and project managers. Fundamentally, they serve a similar purpose, especially when it comes to managing subcontracted talent.
The role of general contractors is to plan, implement, oversee, and inspect a construction project. As work on a new building develops, the general contractor is the person responsible for verifying the new development is in compliance with building codes and is therefore safe to use.
The responsibilities of a project manager in construction are slightly different. They’re tasked with overseeing the full project, coordinating with architects and engineers to develop the plan, create timelines, distribute resources, and manage deliverables.
Both general contractors and project managers have numerous responsibilities. While managing subcontractors is an important part of both jobs, there are ways to make the process a little easier. Construction managers who have invested in construction management software have access to built-in people management resources, keeping track of all subcontracted contacts, their documents, time sheets, incurred expenses, and more—all in one place.
Importance of Subcontractor Management in Construction Projects
The importance of subcontractor management cannot be overstated because it plays a vital role in construction project success. Here are some of the main benefits of subcontractor management and why each of these advantages matter.
Enhanced Project Efficiency
One of the most significant benefits is that effective subcontractor management increases the overall efficiency of project progress. When you have all your subcontractors aligned around shared goals, your workflows become more efficient and supportive.
Ensure Quality and Compliance
Remember that general contractors who oversee the subcontractors they hire must inspect the finished work and ensure it’s in compliance with standard building codes. Effective subcontractor management keeps all workers focused on delivering quality results. This way, compliance inspections are quick and painless.
Mitigate Risks and Reduce Costs
Anything you can do to control costs will make clients much happier. When you effectively manage your subcontractors, you know how they’re spending their time, using available resources, and hitting their milestones. By using construction project management software to centralize all these data variables, you’ll easily find ways to make the work more cost-efficient.
Improve Client Satisfaction
Compliance and client inspections come at the end of every construction project. If you’ve successfully managed your subcontractors so that the output of their work is guaranteed quality results, clients will almost assuredly be thrilled with the quality of their new building.
Tips and Best Practices for Managing Construction Subcontractors
Now that you understand the why’s behind effective subcontractor management, let’s move you onto the how to do effectively. Here are some practical tips and best practices to keep in mind.
Define Your Subcontracting Needs
This one is pretty straightforward. Figure out what your project requires from subcontracted support and identify the skills you’ll need to fulfill those expectations.
Pre-Qualify Contractors Carefully
Another pretty simple best practice, and a critical one to follow. Don’t simply hire anyone offering their services. Check their experience, past work, and financial stability. If they seem too good to be true, or if there are gaps in the background check, there’s probably a reason to take a pass.
Outline Clear Contract Details With Subcontractors
Once you have narrowed down to a handful of effective subcontractors, you’ll need to brief them on specific tasks, terms, and conditions. You can use construction management software to help manage agreements with all your subcontractors and set very specific expectations. All this information can be centralized in your construction management platform, making it easy to stay on top of all your subcontractor agreements.
Spot Potential Risks and Scheduling Issues Early
Even after you vet and select your subcontractors, there may be issues that slip through the cracks. Once the job is underway, you may discover risks that will impact your construction schedule. Use your construction project management software to help identify possible delays, adjust your work schedule, and implement effective backup plans.
Establish Clear Communication Channels
Another construction subcontractor management tip is to establish clear communication channels with all stakeholders involved in the project. A useful construction management software directly integrates with third-party systems and has downloadable apps that allow for mobile usability. This ensures real-time communication is possible whenever necessary.
Regularly Assess Subcontractor Performance
This is another fairly straightforward subcontractor management best practice. Track their progress and provide feedback when needed. If the work is disrupting your project schedule, consider making a change and bringing aboard new talent.
Focus on Job Site Safety
An important subcontractor management best practice and general contracting tip to follow is to enforce job site safety protocols. Ensure all subcontractors get the proper training so that they’re fully protected as they go to work.
Build Strong Relationships
Effective subcontractors who prove their worth are more valuable as long-term partners you can rely on. Treat all subcontractors with respect and professionalism, but make extra note of those that go above and beyond in the quality of their work. They’re worth bringing aboard again on your next contracted construction project.
Pay Subcontractors On Time
This is another simple subcontractor management best practice, but it’s one that many construction managers fail to enforce. Everyone deserves to be paid on time and for the agreed upon amount. Make sure you’re showing respect to your subcontractors by compensating them as they deserve.
Use Technology to Stay Organized
You’ve seen mention of construction project management software a few times in this guide, and there’s a reason. Construction management software is designed to make the lives of all contractors easier by simplifying the administrative aspects of any construction project—which includes subcontractor management. If you haven’t yet, you should take advantage of free trials with these solutions so that you can update your construction management process with modern solutions.
Promote Team Collaboration
Another basic subcontractor management best practice is to cultivate a culture of teamwork, collaboration, and celebration of each other’s wins. Everyone feels happier and more productive when their work is appreciated, so take a few moments to show your subcontractors that you value their contributions.
Keep Detailed Records
Every project manager must maintain diligent records of subcontractors, work orders, permits, project updates, and more. With the right construction project management solution, you can centralize all these records in one location. If there are any questions about a particular project, simply refer to your platform, pull up the record in question, and address the matter right away.
Mistakes to Avoid in Subcontractor Management
While you’re now aware of subcontractor management best practices, what about common mistakes that can disrupt your subcontractor relationships? Here are a few key mistakes to avoid as you build your subcontractor roster.
Overlooking Due Diligence
Remember, the best practice to pre-qualify your contractors? If there are any gaps in those background checks, don’t overlook that. Move onto another contractor.
Failing to Communicate Expectations
Transparency is key when managing any relationship—co-worker, subcontractor, supplier, or client. If you don’t set clear expectations, don’t be surprised if the work doesn’t match what you have in mind.
Delayed Payments
Don’t leave your subcontractors waiting for payments. If you owe money at a pre-agreed upon date, make sure payment is issued on time.
Ignoring Performance Monitoring
One of the most common subcontractor challenges is failing to keep track of their work and performance. Neglecting to track these updates can lead to issues with the quality of work or the timeline when work is delivered.
Not Using Technology to Streamline Processes
Modern construction management uses innovative technologies to create more efficient workflows. Using construction management software like Contractor Foreman, managing projects and subcontractors is no longer a tedious task. It’s much faster, easier, and centralized with a construction project management platform built to scale.
Tools for Subcontractor Management in Construction
Now, here are a handful of recommended subcontractor construction management tools you can use to make your projects run a little smoother and more effectively.
Construction Project Management Software for Subcontractors
You’ve heard a lot about Contractor Foreman as a reliable subcontractor construction management resource, and there’s a good reason. It’s one of the most affordable and easy solutions that centralizes all your project management needs to build your next development.
Similar platforms to consider include Procore or Buildertrend, all of which assist with scheduling, tracking, and collaboration among all your subcontractors.
Communication Platforms for Construction Teams
Slack and Microsoft Teams are reliable resources for file sharing and real-time communication. You can also have your subcontractors download the mobile versions of those platforms so you’re always able to communicate about a project need.
Financial Management Tools for Construction Projects
FreshBooks and QuickBooks are prime examples of financial management tools to help manage your budgets—both of which integrate with Contractor Foreman. Use these resources to keep track of budgeting, invoicing, expense tracking, and more.
Conclusion
If you’re planning to hire subcontractors for your next construction project, make your life a little easier using technologies that simplify subcontractor management. If you’re ready to modernize your workflow, start a free trial with Contractor Foreman today.
