How To Turn Your Subcontractor Into A Trade Partner

Common Myths

A common mistake builders make is to have an “us against them” attitude toward their trades and subcontractors and general contractors. Stories of those adversarial relationships are prevalent in the industry. You've probably even heard a few of them.

A construction manager threatens to fire the subcontractors if they don't send someone to the construction site that afternoon. The builder's purchasing department wears brass knuckles to beat down the contractor bids. However, that's actually a shortsighted way to do business. A sub can have the cheapest price and cheapest quality of work, too.

While price is important, it’s the timeliness, reliability and quality that will ultimately make or break the Builder.

In other words, it's all about the construction trade partners and the builder-trade partnership.

The Importance of Construction Trade Partners

Construction trade partners are the understanding of each party's value-added contribution and value is a give-take accord that is mutually beneficial to both companies, and it really begins with the builder seeing the subcontractor as more than just a milestone in the building schedule.

Improve Communication and Collaboration

The subcontractor, if it's an industrious company, has knowledge about product improvements, cost reduction solutions and waste elimination opportunities. They may even offer ideas on how to reduce cycle time within their given construction project phase.

A forward-thinking builder will tap into that knowledge base. They invite the subcontractor to strategic meetings that involve the product they work with. They also involve them in the Quality Control Program and ask for input on checklists and inspections. That respect is reflected in the jobs under construction, especially when the trade partners, general contractor or subcontractor within the construction industry feel invested in the builder.

Invested Subcontractors tend to place preferred Builders at the top of their schedules and send their best crews to the jobsites. When this happens, the Construction Manager is no longer just managing “subs.”

The builder and trade partner are assembling a team, and the crews working on the job site need to be treated as such as they communicate often and openly. They also encourage the use of the QC Program as a platform to communicate and address the standards and expectations, without having to re-say, remind and recall.

A strong QC Program uses a number of communication tools to standardize the building process. Beginning with a Scope of Work, a subcontractor agreement where both parties see eye to eye, it defines materials, applications, performance expectations and the allotted time frame to complete the job.

Prioritize Training

Checklists and inspections are tools are developed and used on the job site to ensure proper job execution and completion. When checklists and inspections are used, callbacks and punch lists are eliminated. They also ensure job readiness for the following trades, which knocks-out dry runs.

Recurring errors can be addressed with Hot Spot photos, showing right and wrong examples. All of these tools can be utilized with paper copies on the jobsite or in the inspection box. Or, they can be transmitted and completed electronically on phones and tablets.

When working a system together, the builder and subcontractor can quickly update and distribute QC checklists and inspections. Doing so will continually improve jobsite performance. However, while technology is efficient, there’s always a place and time for the personal touch of a phone conversation or face-to-face meeting.

That face-to-face meeting is especially important when reviewing trends and performance reports. Praise strengthens partnerships and loyalties. Constructive criticism is better accepted and handled straightforward and in person. And performance improvement plans should result in improving the QC checklists and inspections.

At the end of the day, though, there's one thing all builders must understand. Despite how strong or successful a partnership is, it can all fall apart if the builder is slow to pay. In fact, most stories of adversarial relationships and builder-trade construction trade partners are rooted in a tardy dollar.

Many conflicts can be avoided by the builder paying on time or at least honestly addressing late payment issues. A first-rate building company is always upfront and transparent with its electrical, plumbing, air conditioning, property, remodel, or installation subcontractors.

One measure builders can take to improve payment turn-around is to allow onsite construction project managers to work with trade contractors and trade partners in order to approve job completion.

When the Construction Manager is using a checklist to ensure the job is 100% complete and ready for the next process of the project phase, he can approve payment using the QC System.

That information is immediately transmitted to accounts payable, eliminating the weeks wasted in an archaic system that manually shuffles paperwork, processes business invoices, and manages approvals.

Subcontractors play a key role in every builder's success, regardless of size or the number of projects built a year. A mutually beneficial partnership with trade partners and trade contractors with focused management leadership and open communication will affect both the prices negotiated today and the quality of construction project work delivered in future.