Engaging and Managing Subcontractors

About this course.

Subcontractor management makes or breaks a project because, on almost every construction job, the great majority of the physical work — and therefore of the cost, the program and the quality — is actually carried out by subcontractors rather than by the head contractor's own directly employed labour. A head contractor typically coordinates a chain of specialist trades: excavation, concreting, framing, bricklaying, roofing, plumbing, electrical, plastering, tiling, painting and many more. If those subcontractors are well chosen, clearly instructed, properly coordinated and fairly managed, the project runs smoothly. If they are poorly selected, vaguely engaged, badly sequenced or unfairly treated, the project suffers delays, cost blowouts, defects, disputes and safety failures. In a real sense, managing subcontractors well is managing the project.

The first reason subcontractor management is so important is that the head contractor remains responsible to the principal for the whole of the work, even though most of it is done by others. When a builder signs a head contract to deliver a project, the builder generally carries the obligation to complete the works to the required standard, on time and within budget, regardless of how many subcontractors are used. If a subcontractor performs badly, the head contractor is usually the one answerable to the principal for the resulting delay or defect. Subcontracting distributes the work, but it does not distribute away the head contractor's own responsibility for the outcome. This is why a head contractor cannot simply engage subcontractors and step back; the head contractor must actively manage them to meet its own obligations.