Subcontracting in the AEC industry has greatly increased in recent years. Technology, size, and scale of projects tend to be larger and more complex. As a result, many firms subcontract work because of insufficient resources or expertise in a specific area. For firms working in the government arena, contracts may require a certain participation rate of MBE, WBE or other partners with disadvantaged business status.
Since the performance level of subcontractors is a reflection of the company that hired them, it’s critical to effectively manage them throughout the course of daily operations until a project is complete. Following these tips should help streamline this process and prevent unnecessary complications:
- Picking the right partner
- Knowing your numbers
- Setting the stage
- Ongoing communication
- Overseeing and monitoring projects
Subcontracting work to qualified partners continues to be an effective strategy for companies who have insufficient resources or expertise in a specific area. Download our whitepaper, Subcontractor Management for Engineering Companies, for an in-depth analysis of these subcontractor management strategies that can have a positive impact on your customer relationships and your bottom line.