As a contractor, managing subcontractors is a key facet of your job. But, it’s not exactly the easiest part of your job either.
However, you don’t have to go it alone. In fact, by creating a helpful subcontractor management plan that you can use for each and every project, you can make managing your workers much, much easier.
If you’re familiar with what a subcontractor management plan is, then keep reading for a nice refresher. If you’re totally new to the subject or are looking to get better acquainted with it, then we’ve got you covered too!
Here is a breakdown of what a subcontractor management plan is and the content that should be in it.
Subcontractor Management Plan Defined
A subcontractor management plan is essentially a guideline on how the relationship between yourself and your subcontractors will work for the duration of a project.
Why Are They Necessary?
SMPs are necessary because it will help ensure that your expectations are clear for your contractors and that they stay within the parameters and meet the goals and due dates that are outlined in your contract with them.
Essentially, it’s the methods by which you, the construction business owner, will ensure that everything is done correctly and on-time.
Content Suggestions For Your SMP
Your subcontractor management plan may include the following:
In order to make sure that you’re bringing aboard the most professional and best crew for the job, prequalification is necessary. While some contractors may try and avoid this step altogether simply to save time, this is not recommended.
By prequalifying your subcontractors, you can make sure that they have the experience in completing similar projects, have the certifications and licenses that they must have for their role, and that they don’t have any violations against them that renders them unable to work.
Don’t play fast and loose with who you hire, as it may come back to bite you in the end.
Insurance Considerations and Creation of Contract
Any subcontractor you are bringing on to a project should be able to provide you with proof of the insurance that is needed when working on that specific job site. Make sure that prior to the subcontractor beginning any work, you first get all insurance information squared away.
After insurance considerations, a contract should be created, which should include information such as:
The names of the parties involved in the contract:
- The legal names of the parties involved in the contract
- The scope of the work, including:
- Each subcontractor’s clearly defined responsibilities and authorities
- Each subcontractor’s deliverables identified, and required content clearly specified
- Each subcontractor’s clearly identified and described services that it is responsible for providing
- Schedule and budget constraints
- Each subcontractor’s clearly defined requirements for quality, including the requirement to allow independent quality inspections of materials and processes
Safety Plan and Training
A safety plan and subsequent training are necessary and should be outlined in the SMP.
The safety plan should include:
- Management Commitment
- Responsibilities for Different Parties
- Safety Rules and Regulations
- Disciplinary Policies
- Accident and Reporting Procedures
- Safety Training Requirements
- Emergency Response Plan
You should also require your subcontractors to make sure that all their employees are properly trained. When it comes to what they need training for, make sure to thoroughly outline them in the “safety training requirements” portion of the SMP.
Inspections and Review
The last portion of your subcontractor management plan should include the conducting of inspection both during work in progress, as well as post-project.
This will allow you to make sure that everything is going according to what was agreed to.
But, you should also plan for what should happen if things aren’t going as well as you’d like during your inspection (i.e. certain aspects of the project weren’t done yet, they are way behind schedule, etc.). Included in your SMP should be an outline of what will happen if during these inspections if the work is unsatisfactory.
Focus on Completing Projects and Less on Your Accounting With 24hr Bookkeeper Today!
Managing subcontractors is a tall order. And as a construction business owner, it’s important that you implement the proper systems to ensure that you’re spending the majority of your time ensuring that great work gets done for your clients.
One area of your business that can be time-consuming and take you away from delivering results for your customers is accounting. Wouldn’t it be great if you could have someone else take care of your bookkeeping while you focus on the job at hand?
Well, by tapping 24hr Bookkeeper for assistance with your accounting, you can do just that.
We offer construction software integration, workflow advisory, and monthly bookkeeping services so you can focus on getting the job done instead of worrying about your finances.
Call us today at 218-885-3100 to get started — or, fill out this contact form and let us know which services you’re interested in and how we can help take your construction business to the next level!
And, make sure to check out the rest of our blog for more construction management tips!