Hiring subcontractors is often a way of life. After all, the average residential home requires between 11 and 30 subcontractors to complete, according to the National Association of Home Builders.

Add a few more to that number for commercial contracting.

And managing those subcontractors? Sometimes, it’s the hardest part of the job. In addition to managing the work using contractor software for small business, here are a few ways to make managing subcontractors easier.

The hiring process

“Hire slow, fire fast,” as the adage goes.

Companies or general contractors should scrutinize potential new hires as carefully as they review any project plan. Look at their work history, make sure they have the appropriate licenses and insurance, investigate their processes, and visit their job sites.

If the scope of work is going to affect the reputation of the business, scrutiny becomes even more important. The effects of bad work or a massively delayed schedule cannot be put back in the box.

One question that may arise: “But what about when I win a big bid and have to scale up fast?”

Sure. It’s a competitive business. But it’s still better to take a little extra time and eat a bit of margin to find the right subcontractor than rush to fill a job site with unsafe or unreliable workers.

Fire fast

This doesn’t mean that businesses should fire any subcontractor the second they mess up. People make mistakes and projects sometimes suffer unforeseen complications. It’s just a fact of life.

What it does mean is that businesses should be pragmatic about letting go of subcontractors that aren’t working out without guilt. Maybe they were hired because they are cheap. Maybe the business has worked with them before but their skill set isn’t quite up to the task of the current project.

Whatever it is, make the determination fast and then move on. Businesses cut their losses all the time when it comes to projects and materials – an underperforming subcontractor no different.

Set clear expectations

Here are a few questions FMs should ask when setting those expectations for contractors:

  • Do they understand the scope of work they’re being asked to perform?

  • Do they understand the quality and standards they’re expected to meet?

  • Are they fully aware of, and in agreement about, the timeline of deliverables?

  • Do they know exactly which aspects of the overall project, from safety to materials, they’re expected to manage?

  • Do they know who to talk to if they have any questions about the job?

That last point is especially important. Construction work is fraught with unexpected variables. Contractors and subcontractors need to know who to talk to when they have a question, who they can get the correct answer from – and that person needs to be available the entire time are on site.

Finally, get it all these expectations and agreements in writing. Nothing says accountability like a written and signed contract.

Be meticulous with scheduling & subcontractor time

Companies have a schedule for their jobs. Subcontractors may well also have their own schedules. Everyone’s running their business.

That means to have an effective job site, companies must be precise in the way they schedule crews and subcontractors. To do that, it’s a good idea to bring subcontractors into the total scope of the project as well as their individual piece of it. When the jobs are assigned into individual tasks and milestones, it makes sense as a part of a complete, moving mechanism.

This is also where a software solution comes in handy. Software that uses Gantt-based/timeline-based scheduling tools and granular task management can make the job of assigning and tracking all of the moving parts of the job – including subcontractors – an easier part of the overall process rather than a massive headache.

Software can also enable FMs to ask subcontractors to maintain status and update logs to a central system that can be tracked anywhere, so those who need to can stay on top of their progress from any location.

Provide detailed assessments so subcontractors can grow

A good subcontractor is an investment in relationships and time. Managing subcontractors today is also setting up for managing subcontractors tomorrow.

It’s crucial to put the time in to do a detailed review and analysis of their work. Even great subs have room for improvement, and mediocre ones sometimes just need a nudge to become great. The best outcome of working with good subcontractors is that they can be relied on again and again.

Eventually, with a stable of outstanding, reliable subs, you can capture projects of increasing size, difficultly, and financial reward.

Get client’s input

This is a small, but important detail not to forget. The assessment of subcontractors is going to be based on their performance and relationship that is built. It’s also important to ask the client about their evaluation of subs. It’s critical to get a second opinion. They might reveal a side to a subcontractor or job that was not obvious.