How to build rock solid, reliable relationships with contractors
In this post, we’ll outline some key ways subcontractors can build ever stronger relationships with main contractors in the construction industry.
But first, here are five things subbies do that are guaranteed to send contractors running for the hills:
- Sending in an incomplete bid
- Sending a bid with errors and inaccurate data
- Submitting the bid after the deadline
- Going back to the contractor with extra charges
- Not responding at all to the contractor’s RFP
Sound familiar? If you recognise any of these happening at your organisation, you could be seriously damaging your chances of forming strong working relationships with contractors, subsequently hindering your chances of securing projects.
When bidding for construction projects it’s vital that you get the basics right to set the contractor/subcontractor relationship off on the right foot. If this sounds obvious, why do so many contractors complain about their subcontractors continually making these mistakes?
Therefore, you should always ensure that your bids are complete, accurate and submitted prior to the deadline. You should also always respond to communications from the contractor and you should avoid going back with extra charges as you could risk damaging your professional reputation.
What you should be doing instead
On any construction project, it is essential that everyone within the team is focused on completing it on time and on budget. This leads to shared success, greater trust and a more effective working relationship – which all help towards delivering long-term benefits for both parties.
With budgets under pressure in the industry, and a lack of clarity about the next six to 12 months of activity due to the uncertainty around Brexit, many in construction are either postponing projects or reducing their overheads, leading to a requirement for further subcontractors to carry out work.
For the main contractor, there will still be projects to complete. Doing this efficiently, with a full understanding of the data and information available within your business, will help you to make better decisions. This will be revisited in a future blog post and in an upcoming whitepaper that we'll be publishing.
However, for the subcontractor, what is the key to a good working relationship between you and the main contractor?
Importance of a collaborative working relationship
As outlined earlier, a strong working relationship between contractors and subcontractors is vital to the successful completion of construction projects, no matter how large or small.
This is true across the board, but more so for any construction companies reducing the number of directly employed construction workers. By becoming increasingly reliant on the services provided by subcontractors, you must ensure the working relationship is a positive one.
Subcontractors must put a considerable amount of effort into building a successful and collaborative working relationship with contractors right from the start, when they are bidding for work. This will reassure the contractor that your business is reliable, giving you the best possible chance of winning the project bid. It also helps to avoid any issues arising during the bidding process.
Communication should underpin everything
Clear communication between both parties is key to all working relationships not least the relationship between a contractor and subcontractor. Responding quickly to tenders will increase your chances of being awarded the contract as contractors are keen to get worked started as quickly as possible.
Keeping in regular contact with the contractor throughout the duration of a project will greatly reduce the possibility of any miscommunication issues.
Keeping to the initially agreed budget and schedule is the number one factor that will lead to stronger working relationships between contractors and subcontractors. If the subcontractor goes over budget or past the agreed milestone deadlines this can have negative impacts on the reputations of both parties and lead to a damaged business relationship.
However, if changes do arise, this is where the communication aspect can make all the difference, from negotiating a new deadline to providing a clear view on what’s happening on site.
Use technology to benefit the working relationship
With budget and time being two of the most important factors in delivering a successful product, it is important that subcontractors can accurately predict what they will need. This should be reflected in bidding. Be honest and accurate in terms of what can be achieved competitively.
This is where technology can help. Careful analysis of previous work and what it cost to deliver can be referenced and should be used to guide future work.
Using tools like ConQuest estimating software ensures that the contractor and subcontractor benefit from using a common platform. It makes it easier to analyse previous work and provides a means of sharing estimates and related documentation more easily between the contractor and subcontractor.
This improves transparency and helps to prevent duplicated effort, leading to more productive working relationships between contractors and subcontractors.
