Hiring subcontractors is commonplace within the construction industry. While we love to hire people within our companies and infuse them with our culture, there comes a time where soliciting outside help makes sense for your business. Subcontractors can provide additional help on certain projects or provide a skill that your current workforce doesn’t possess. For example, construction projects often bring in plumbers or electricians. However, managing subcontractors is not without its challenges. Since they don’t work for you, it can be uncertain if they have the work ethic, business stability, or customer service acumen to enhance your project. If they don’t, it can be damaging to your reputation.
In this two-part series, we will provide simple, yet effective tips for managing subcontractors. You may skip to part two for additional tips.
Make Sure Your Subcontractor Is Qualified
Before you make the hire, you need to know if they can actually do the job. First, ask for a record of their licensure and insurance. Next, ask for information that indicates financial stability, such as financial statements. It’s also important to know if they have filed for bankruptcy at any point. Besides these items, inquire about their previous work experience, safety record and legal history.
Make Sure The Contract Is Clear
Once you make the hire, it’s important that the contract explicitly spells out all aspects of the work that they are doing. A Tallahassee construction lawyer can guide you in this area. Clearly define the subcontractors responsibilities and who they will report to. Provide clear guidelines for handling disputes as well.
While your subcontractor will bring a specific skill set to the table, it’s still important to inform them of the procedures of your site. They need to know what your quality expectations are as well as how to interact with employees, other subcontractors, and your client.
When you are working with a subcontractor, you are essentially working with another company. Your subcontractor will likely have other projects that he or she is working on. It’s important to take that into account when planning your project so that delays are minimized or eliminated.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.