Introduction
Subcontractor relationships are a cornerstone of successful construction project management. As a construction manager, your ability to foster and maintain effective relationships with subcontractors directly impacts the safety, schedule, quality, and profitability of your projects. While managing subcontractor relationships can sometimes feel like “adult kindergarten,” the importance of these partnerships cannot be overstated.
Many companies operates across 20-30 states with approximately anywhere from 50-90 projects underway at any given time. Due to the diversity and geographic spread of those projects, subcontractor relationships must be created quickly and managed effectively for both immediate and future success.
The Value of Subcontractor Relationships
Subcontractor relationships are essential for the following reasons:
- Efficient Project Execution: Effective relationships ensure that subcontractors can perform their work without unnecessary delays or obstacles.
- Learning Opportunities: The most valuable lessons often come from managing challenges with weaker subcontractors.
- Reputation Building: Strong relationships foster mutual respect, which leads to higher-quality work and potential leads for future projects.
Survey Insights: Understanding Subcontractor Perspectives
A survey of subcontractors provided valuable insights into how they perceive their relationship with the company. While the results were average, they highlighted areas for improvement. Subcontractors value:
- Safety: Projects that prioritize safety above all else.
- Schedule Management: A clear and achievable schedule.
- Profitability: Opportunities to recognize and achieve profits.
Key Strategies for Supporting Subcontractors
1. Communication
Effective communication is the foundation of any strong relationship. Key communication strategies include:
- Scope Meetings:
- Collaborate as a team (estimators, managers, and superintendents) during job buyouts.
- Explore options like prefabrication to enhance subcontractor productivity.
- Premobilization Meetings:
- Clearly define expectations early to prevent future conflicts.
- Establish quality control (QC) methods and production mockups to align on standards.
- Weekly Coordination Meetings:
- Use these meetings to clarify goals, address challenges, and update stakeholders.
- Even if formal meetings aren’t always necessary, ensure there is a clear and effective communication method for your project.
2. Coordination
Proper coordination ensures a smooth workflow and prevents disruptions. This involves:
- Project Sequencing: Plan the project flow strategically, identifying areas of critical path to maintain momentum.
- Material Delivery Logs: Maintain up-to-date logs to avoid delays due to missing or late materials.
- Supervision and Recovery Plans: If a subcontractor falls behind, provide support to help them recover, whether through additional resources, coordination with other trades, or reminders of prior commitments.
3. Accountability
Holding subcontractors accountable ensures project milestones are met and builds mutual respect.
- Scheduling:
- Collaborate with subcontractors to create realistic schedules and hold them accountable to deadlines.
- Treat the project schedule as a dynamic document, adjusting as needed while maintaining urgency.
- Progress Payments:
- Withhold payments if necessary to ensure attention and adherence to agreements.
- Future Work:
- Build trust by reminding subcontractors of upcoming work opportunities.
- Encourage subcontractors to bring leads on new projects when they want to continue working with the company.
Mission Statement
As an industry, and as construction managers, we don’t just manage subcontractors; we respect and empower them to succeed. By building strong, respectful relationships, we align our goals with theirs. A profitable subcontractor is a happy subcontractor, and a happy subcontractor contributes to a successful project. Let’s live our mission through every interaction, fostering relationships that benefit both parties.
Conclusion
Strong subcontractor relationships are integral to the company’s success. By focusing on communication, coordination, and accountability, we can ensure a safe, efficient, and profitable environment for both the company and our subcontractors. Remember, the way we manage our subcontractors today will shape the future of our projects and the reputation of our company.
