Many projects go badly because the wrong subcontractor is selected. 
Often the subcontractor that submitted the lowest price is selected.
But, it is not only about price.

In our previous article Subcontractor scope of works we discussed how important is was to define the scope that you require your subcontractor to price to ensure that work was not accidently omitted, and also so work was not duplicated. 

In What to include in Subcontractor pricing documentation we looked at what documentation should be supplied to prospective subcontractors so they could accurately price the work.

Finally in Subcontractor construction contract documents and  Subcontractor contract documents part 2 we considered what should be included in your subcontractor's contract document.

So now you have received prices for your project from a number of subcontractors. How do you decide who you will use? Will you take the subcontractor with the lowest price? Will you check that the subcontractor has the capabilities to do the work? Will you compare the prices from each subcontractor to check that the cheapest is really the cheapest, and that you won't incur extra costs by employing the subcontractor?

Well that's what we are going to consider in this article and the one that follows.

It’s important to check the following:

• Does the Subcontractor have the required experience?
• Can they produce acceptable quality?
• Have they worked on similar projects or for similar Clients?
• Do they have the resources to carry out the work?
• Do they have the financial means to carry out a project of this size?
• How does the size of the project compare to the size of projects the Subcontractor has undertaken in the past?
• What other work are they currently doing?
• What is their safety record?
• Do they have a good reputation? Are they reliable and complete their projects on time?
• Have they got a previous record of being claims orientated and having legal disputes with their Clients?
• Do they have the required registrations?
• Do they use good reliable Subcontractors? Who will their main Subcontractors be?
• Has there recently been a change in their management?

Past performance, however, is not always indicative of how a Subcontractor will perform on a project.

Once the prices, or quotations, have been received they must be carefully adjudicated, ensuring that ‘apples are being compared with apples’, like with like.

​It’s important not to just look at the total price, but rather consider the whole price submission. Which is what we look at in our next article.

​Paul Netscher has written several easy to read books for owners, contractors, construction managers, construction supervisors and foremen. They cover all aspects of construction management and are filled with tips and insights.
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Contract documents should set out the rights and obligations of all the contracting parties. 

A flawed construction contract document can lead to problems and disputes during construction.
​
In my last article Subcontractor construction contract documents we discussed that the contract document was a legally binding contract. Also that the subontract document does not have to be lengthy and that the contract document should be appropriate to the work.

​So what should be included in your subcontract document?

The subcontract contract document must include or make provision for:

• The scope of works. See  Subcontractor scope of works
• The price, and where required a break down of the price and unit rates.
• Contract terms and conditions.
• Project specifications.
• Applicable drawings.
• Specific project conditions.
• Termination procedures.
• The subcontract construction schedule, clearly showing commissioning and any discontinuities
• The project safety requirements.
• Applicable quality requirements, procedures, tests and documentation.
• Commissioning requirements.
• Spare parts to be supplied.
• Warranties and guarantees required.
• Clarification of what the Subcontractor must supply to carry out the works.
• The Contractor’s obligations.

​Much of the contract documentation should have formed part of the pricing documentation. Read What to include in Subcontractor pricing documentation​
You cannot add things into the document extra to what the Subcontractor priced.

​Paul Netscher has written several easy to read books for owners, contractors, construction managers, construction supervisors and foremen. They cover all aspects of construction management and are filled with tips and insights.
"I highly recommend this book be read by all newly qualified construction project managers as well as those more experienced." Reader review on Amazon
Visit to read more.
The books are available in paper and ebook from most online stores including Amazon.

In our previous article we discussed What to include in Subcontractor pricing documentation​. This followed a previous article Subcontractor scope of works  where we looked at how important it was to get the scope of works right before asking subcontractors to price work.

Subcontractors are critical to the success of most construction projects. Regrettably many problems arise with subcontractors. Many of these problems occur even before the subcontractor starts work. Often the wrong subcontractor is selected, or the subcontractor isn't given all the correct information to price the work. Then there are problems with the contract document which makes it difficult to administer the subcontractor, and flaws in the documents which even give rise to claims from the subcontractor. 

In this article we consider the actual contract document that you use with construction subcontractors.

In our next article Subcontractor contract documents part 2 we consider what should be included in the subcontractor's contract document.