Survival of Contractors through Outsourcing

It’s no secret that times are tough for the construction industry. Clients are expecting Contractors to provide more and more in terms of deliverables in exchange for prices that seem to be nearing the bare cost. In order to survive, contractors are forced into running leaner organizations to avoid being crushed by the weight of their own overhead cost. In order to achieve this, these firms are opting to outsource the bulk of their technical, Quantity Surveying, and planning works. Contractors are forming strategic partnerships with companies that are fully dedicated to providing such services with specialized teams to complete the tasks.

Pre-award services

Pre-award services include both commercial and technical. Most tenders will require the contractor to submit a commercial offer including a priced breakdown of the works and a technical offer demonstrating the contractor’s understanding of the project and the overall plan for execution.

Commercial services typically include quantity take off from drawings, quantity verification of provided Bill of Quantities, commercial review of terms and conditions and risk assessment. All such services can be outsourced to reputed quantity surveying companies or a trusted freelancer network built by the contractor overtime.

Technical services typically include preparation of logistics plans, the methodology of construction, PMV plan, Staffing strategy, the program of works, labor & resource requirements and more recently BIM. Contractors set the strategy, requirements, and guidelines while leaving the legwork for specialized firms to complete.

Post-award services

Project awarded! Now its time to start the work. The initial stages of any project are loaded with submittals of all types. Though some of these submittals are company specific the rest can be effectively outsourced.

shopdrawing preperation

Shop drawings

 

Contractors are required to submit showdrawings and detailing for the execution of their work. In addition, where drawings are submitted by specialized Subcontractors, the main contractor is still required to coordinate these drawings between different trades and produce composite drawings.

 

This can be readily outsourced to specialized companies and where need be a coordinator can be deployed to the contractor’s offices and integrated into the contractor’s team. This also applies to BIM model preparation.

Planning services

These services range from the preparation of the baseline program to regularly updating and preparing the planning reports. Depending on the scale of the project and the level of reporting required the Contractor can work out the number of visits required by the outsourced planner or obtain a dedicated resource for the project. If the contractor has planning staff available, the hired outsourced team can act to reinforce the contractor’s team and complete the more time-consuming tasks. This allows the contractor to minimize the size of his own team.

Quantity Surveying Services

Basic QS services include all types of quantity take off for the purpose of payments or order placement. This applies upstream for client payments and downstream for subcontractors. More advanced services include all commercial tasks such as contract administration, commercial reporting, risk management, procurement, and claims preparation, defense, and review.

Conclusion

We have touched on a few of the commonly outsourced tasks by contractors. This approach allows contractors to dynamically change the size of their extended team to suit the workload without being overburden by the additional overhead. Outsourcing is also the solution to eliminating idle staff costs. With the availability of dedicated companies such as Maham Engineering Services, among many others, contractors can easily comply with the client’s requirements and complete projects successfully without the additional overhead.

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January 13th, 2018|0 Comments