What is the main secret of wonderful business relationships? These are high-level communication properties together with 100% control over the situation (deadlines, supply chains, payments, etc.). Sometimes, even the most experienced businessmen forget about this rule.
For example, customers prefer to get the final result and usually skip the negotiations and meetings according to the tender procedures. This way the communication level decreases. The same story in the construction sector is with subcontractors. Subs usually are ignored by other parties in the tendering and building processes.
One of the essential aspects of business relationships in construction is great interactions and hassle-free communication with subcontractors. Bid estimating software will greatly benefit this process. However, it is also necessary to know a few rules and features when hiring subcontractors for a particular project.
Features of Subcontracting Relationships
The peculiarity of subcontracting relations is that the general contractor acts as a contractor, performing both GC’s and regular ones’ part of the work provided for in the contract with the customer and the functions of the customer in an obligation with the subcontractor, exercising control over his activities:
- The general contractor is liable to the customer for the consequences of non-performance or improper performance of obligations by the subcontractor, and to the subcontractor.
- Liability for non-performance or improper performance by the customer of obligations under the contract.
- A subcontract agreement may be concluded not only with one but also with several subcontractors. In this case, the general contractor coordinates the activities of all subcontractors.
Finally, it is recommended to keep track of all the aspects at once not to miss a detail in the contract if you are a subcontractor or a general contractor. One party is responsible almost for all the on-site operations while the second one should control everything from the legal and management points.
How to Find a Subcontractor?
To build a house hassle-free and stay pleased with the final result, you need to hire the right contractor. Here are tips on how to find the right company or an individual specialist:
- Be specific. Before you start looking for a contractor, you need to make sure you have everything in place. This requires you to make sure you have plans, project estimates, and everything related to your project.
- Environmental issues. Technological developments have allowed people to build homes that are not only beautiful but also environmentally friendly. The contractor must be experienced in the use of high-quality recycled building materials. The professional should also have advanced knowledge on how to save energy after the house is completed.
- Ask about self-discipline and time management. Sometimes, subcontractors prefer to overestimate their scheduling abilities. This way all the deadlines are failed. Try to make some kind of exam with the testing work on the site according to the specified time frames.
Contract with a Subcontractor
A construction contract is an agreement obliging the contractor to perform construction work on the instructions of the customer for a specified price within the period specified in the contract. The obligations of the contractor are:
- Carrying out works according to the estimate and technical documentation;
- Supply of the construction site with the necessary tools, structures, and materials;
- Elimination of defects that have arisen during construction work;
- Compliance with the provisions on environmental protection provided for by legislative acts;
- Delivery of the finished object within the period agreed upon by the contract.
When drawing up a construction contract, it is required to specify which of the parties is responsible for the accidental destruction of the object of the agreement. The party that assumed this responsibility undertakes to fully compensate for the damage to the counterparty.
If the responsibility for this risk is not provided for in the contract, then the responsibility for the accidental loss of the object lies with the contractor. The contractor is also responsible for damage to materials, tools, and objects that are used to carry out construction work. Responsibility for the conservation of the object lies with the customer.