Subcontracting is a crucial component in the construction industry, essential for the successful and timely completion of complex, multifaceted design-build projects. A report by Dodge Data & Analytics reveals that subcontractors perform nearly three-quarters of all construction activities in the United States, underscoring the significance of establishing productive partnerships with subcontractors.
By fostering a strong relationship with the most suited subcontracting partner, contractors can achieve high-quality results, meet project deadlines and preserve a positive overall experience for all stakeholders involved. Conversely, selecting the wrong subcontractor can result in costly delays, rework, and compromising safety and quality standards.
To foster successful working collaborations, here are six key tips contractors should adhere to when seeking subcontracting partners for design-build and other construction projects.
1. Select Most Qualified Candidate
Choosing the right subcontractor for the job is crucial to the success of the project. A thorough prequalification process can save countless headaches later. Look for subcontractors who have a track record of safely delivering high-quality work within the market and for similar scopes on time and within budget. Review the subcontractor’s track record as an indicator of future performance. Conduct thorough due diligence, including checking references and reviewing past projects, to evaluate whether the subcontractor is the ideal fit for the job. Financial stability and capacity also play a crucial role in determining if the subcontractor can support the project from start to finish. Assess workforce capabilities and availability to meet project demands. Reach out early — even before the selection process officially begins — to gauge interest and potentially benefit from specialized input before finalizing package proposals.
2. Align on Culture and Work Styles
Companies with compatible work styles and values collaborate more effectively. Discuss safety standards and expectations at the outset of the relationship. Share your company’s quality control and safety processes and discuss how the processes can be implemented throughout the subcontractor’s operation. Explain preferred technologies to use and workflows to establish operational compatibility. Communicate your company’s values and approach to doing business in order to create alignment on fundamental principles. When subcontractors clearly understand an organization’s operational style, they can integrate seamlessly into the company’s project ecosystem.
3. Define Clear Scope Parameters and Required Resources
The first step in working with a subcontractor is to clearly define the scope of work. This includes outlining the specific tasks, deliverables, timeline and quality standards expected from the subcontractor. By clearly defining the scope of work upfront, both parties can avoid misunderstandings and disputes later during the project, setting the stage for smooth execution. Contemplate right-sizing packages based on the subcontracting community’s capacity and capabilities. Consider market availability of trades in the project location when developing scope packages. Don’t be afraid to go beyond the nearest community if there are not enough workers available to complete the project safely. Account for project requirements, including any minority business enterprise and women business enterprise participation goals that need to be met. Respect client preferences for specific subcontractors they have partnered with in the past.
4. Establish Clear Communication Channels
Effective communication is essential when working with subcontractors. Establishing clear communication channels from the outset will help everyone stay on the same page throughout the project. Designate specific points of contact to streamline communication channels. Create processes for addressing concerns before they escalate into larger issues. Regular meetings, progress updates and a designated point of contact can all contribute to successful communication. Maintain open and honest communication throughout the process, as it will help create transparency and build trust.
5. Build Positive Working Relationships
Respect forms the foundation of productive partnerships. Demonstrate this by bringing specialists in early for design input to leverage the subcontractor’s experience. Value subcontractors’ professional insights and suggestions rather than dictating all terms. Address any concerns promptly and professionally to maintain goodwill. Create collaborative problem-solving environments where innovation can flourish. Honor the subcontracting specialists’ knowledge. Early involvement of key trades such as electrical can improve design development, identify potential issues and expedite procurement of long-lead material and equipment.
6. Monitor Work and Address Issues Promptly
Clearly identifying and communicating inspection issues and hold points for subcontractor’s work can help catch issues early. When problems arise, address them immediately rather than allowing them to fester or multiply. Maintain open communication during challenging situations to preserve relationships. Focus discussions on solutions rather than on assigning blame for problems. Document resolutions clearly so all parties understand the path forward. By staying actively involved while respecting subcontractors’ experience and background, contractors can maintain project momentum while upholding quality standards.
The Bottom Line
The difference between project success and failure often hinges on subcontractor relationships. When contractors invest in meaningful partnerships with subcontractors — treating them as valued collaborators rather than just vendors — all parties benefit.
Remember that unsuccessful relationships with subcontractors don’t just create headaches; they can lead to costly delays, safety issues and compromises in quality. By following these six steps, contractors can create productive partnerships that deliver exceptional projects and build the foundation for the success of future projects.
