The Importance of Vetting Subcontractors and Supply Vendors

At some point, every construction company must work with supply vendors and outside contractors to complete specialized work that their in-house manpower simply can’t provide. The challenge lies in determining which vendors and subcontractors are the most reputable and reliable.

Third party subcontractors and suppliers are a direct reflection of your business. It’s essential for all construction companies and project managers to properly vet their subcontractors and supply vendors to ensure they are qualified to produce the best work/product on time, within budget, according to safety regulations and to the highest quality standards.

Subcontractors and Vendors Reflect Your Business

Dealing with underperforming subcontractors and subpar supply vendors can quickly become a nightmare. A subcontractor or vendor who fails to deliver the materials and services you need to complete your building project can be extremely detrimental to your reputation and your bottom line.

Poor subcontractors and suppliers disrupt workflow, create delays for other scheduled subcontractors and can propel your work costs through the roof. Subpar work and supplies can cause safety hazards and undermine the integrity of the entire project. Not to mention, when it comes to your construction company’s reputation, one bad review can lead to unfathomable damage to your business’s reputation.

The good news is this can be avoided by adequately vetting your subcontractors and supply vendors.

Hire Credentialed Contractors

As educational and industry requirements have changed, the supply of skilled craftsmen and suppliers continues to diminish. After soliciting requests for project bids, be sure your selection process includes a careful evaluation of the contractor’s tradesmen.

Look for a contractor who cultivates a team of a long-term worker compared to hiring a local crew for each job. Ask the potential contractor to provide a list of their workers and request their industry experience, education and credentials, and job histories. If this information is not available, think twice before hiring.

Hire Contractors with the Right Equipment

Never underestimate the importance of hiring a contractor with the right equipment to get the job done. Inappropriate or underperforming equipment can add to the time it takes to complete a project.

When it comes to your reputation, remaining on the schedule is essential to customer satisfaction. Immediate access to the equipment and tools needed to complete a job makes the difference in whether or not your contractor can stick to your project timeline.

Ask For References and Client Testimonials

Subcontractors and suppliers with a solid reputation will have no problem producing references from previous jobs and clients. Be sure to ask for their work history, including the scope of work completed, jobs performed and for references from previous clients. Additionally, ask any potential contractor or vendor if they are currently involved in any open disputes over previous work or services rendered.  

It’s also a good idea to inquire about a subcontractor’s schedule of upcoming jobs. This will ensure they can handle your project without overextending their resources and manpower.

Financial Inquiry

When it comes time to hire a subcontractor or supply vendor always inquire about their financial strength and stability to handle your proposed job. Details such as annual contract volume, sales volume, and net worth will provide a great snapshot of their ability to handle your project volume.

A quick review of financial details may reveal red flags, to include more debt than equity or a lack of working capital. Subcontractors often supply plenty of materials up front, and you want to make sure they can handle these potential costs before they start any project.

Require Strong Quality Controls

This goes hand in hand with your subcontractor directly representing your construction business. If their work is subpar or inadequate, you will be left handling the damage control. Quality control and quality assurance (QA/QC) programs help to ensure the work will stand the test of time.

QA/QC ultimately prevents warranty work and reduces the potential for construction defect claims down the road. When vetting potential subcontractors and suppliers, ask about their QA/QC programs. If they don’t have any systems in place, you may want to move onto the next applicant.  

Subcontractor and Vendor Assistance

Hiring a subcontractor or supply vendor can prove to be a daunting task. If you follow the above tips you’ll be well on your way to selecting a candidate that will get the job done to your construction companies impeccable standards. However, it’s perfectly natural to want a little assistance to ensure you’re making the right selection.

At Building Bling our online portal is designed to connect construction companies and project managers with qualified, reputable subcontractors and suppliers. With hundreds of contractors and vendors available for review at the tip of your fingers, you’ll save the time and money associated with hiring the wrong construction products or service provider.

Our secure online platform allows you to vet products and services, their appropriateness for your proposed use, their previous work history, safety history, client feedback, and much more. Best of all, once you find your ideal subcontractors and vendors, you’ll build a solid network to partner with for years to come.

November 19th, 2017|0 Comments

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