Maintaining good relationships with your subcontractors ensures that projects are completed successfully. These six tips will help you prioritize and improve these connections.
Key takeaways
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Why improve subcontractor relationships?
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6 tips for working with subcontractors
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Establish open communication
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Set clear expectations
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Put agreements in writing
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Know how to handle agreement negotiations
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Ask for feedback
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Take time to vet
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Using subcontractors for your projects brings many benefits, like cost savings and outside expertise, in addition to avoiding a long-term commitment or the obligations that come with hiring regular employees.
But contractor relationships are still important to prioritize and maintain. You want workflows to run smoothly, and you may need to hire the same subcontractors again and again. It’s crucial to take the necessary steps now to improve these relationships.
We’ll be walking through why it’s important to improve subcontractor relationships and six tips for working with subcontractors.
Why improve subcontractor relationships?
So, why do these relationships matter? Because they’re often short-lived or for one project only, you may think that subcontractor relationships aren’t as important as those with clients, vendors, employees, or other third parties. However, subcontractor dealings are often more complicated and unique than others. There are a few reasons why you want to focus on improving interactions, including:
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Making sure the work is being done properly and is high quality
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Contract terms don’t put you at unnecessary risk
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Subcontractors feel supported and motivated
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Problems can be solved quickly
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You can use the same contractors again in the future
It’s helpful to walk through a few tips when working with subcontractors to improve these relationships and interactions. Remember that each subcontractor relationship will be different with a variety of special circumstances or requirements. But these general suggestions will help you get started on the right foot. Here are six tips for working with subcontractors.
1. Establish open communication
Create a plan from the beginning that outlines how and when you’ll talk or meet. Set up regular check-ins so that project progress can be tracked and any hiccups can be addressed. Establish the best ways to reach each other and where the subcontractor can go with any questions or concerns.
Will there be other employees that are points of contact for certain issues? Make sure you provide information about everyone the subcontractor will be working with. You also want to discuss how each party will fit into the other’s workflows and business priorities.
Open communication is a must to improve relationships and make everyone feel comfortable throughout the project.
2. Set clear expectations
Even the most experienced subcontractors need guidance when working with you. You need to be clear about what you expect them to do and what you expect them not to do. Create a clear plan so they know when they should be completing key milestones and what those milestones look like.
Make sure everyone is on the same page about what they should be doing each day, for how long, and with what resources. Follow up by asking subcontractors if everything is clear to avoid questions coming up down the road.
3. Put agreements in writing
Always outline expectations and terms in a written agreement. This helps both of you define roles and responsibilities. Outline how any changes will be handled – for example, if the timeline needs to change or the project cost increases, you need to have a process to deal with those amendments.
If you work with the same subcontractors each year, revisit agreements annually to make appropriate changes as project needs or costs shift. Make sure both parties sign the agreement and get a copy.
4. Know how to handle agreement negotiations
Negotiations can often put a strain on subcontractor relationships. When you’re looking at a contract, it’s important to be firm about your own protections while staying open to what they have to say. Because different subcontractors will come with their own expectations and requirements, it may be helpful to talk to a legal professional about the best approach or to review contract language. But make sure negotiations are as friendly and professional as possible.
5. Ask for feedback
Ask for comments regularly from subcontractors throughout the project as well as when it’s completed. Find out what they struggled with or what was most challenging. Ask for their opinion on how processes can be improved or what their experience was like working with your team.
Gathering feedback from a subcontractor not only allows them to share their thoughts, which can create a more trusting relationship; it also helps you improve workflows and get objective opinions from parties outside of the business.
6. Take time to vet
You need a solid process in place for vetting all subcontractors. This includes ensuring they have the right insurance protections or licenses. Make sure these certifications are up-to-date. Check-in with their past clients to evaluate their work and verify the information they provide.
Ask for other pertinent information, like how they manage their business, what other projects they’re working on, their legal history, and their approach to work in general. You may want to work with subcontractors who share your same values, so vetting them upfront can give you valuable insight into their priorities.
Using the right accounting system
A significant part of ensuring your subcontractor relationships are successful is using the right accounting system that incorporates compliance management and budgeting. These tools will help you ensure subcontractors are vetted and compliant and that their services fit within your budget. You may also realize after evaluating your cash-flow situation that you need to hire subcontractors instead of additional full-time employees.
When you’re trying to manage subcontractor relationships for your business, talk to the team at Franco Blueprint about how we can help. Our experienced professionals will assist you in automating your accounting system and setting up your business for success with the right financial tools.
To learn more, get in touch with Franco Blueprint for a free consultation.