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.
What to check when selecting a subcontractor
It’s important to check the following:
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.
Other useful articles
some reasons why projects lose money
Managing subcontractors on your construction project. What you should consider.
What you need to know to close-out your construction project successfully
Do you want to learn how to manage construction projects successfully
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