Prequalifying subcontractors has become crucial, but the vetting process can prove to be difficult for most. The economy has made it more important than ever for general contractors to vet subcontractors on construction projects, although it has become more difficult in many cases to do so, experts say.
A key area of prequalification scrutiny is a subcontractor’s financial data. Also particular details like annual contract volume, sales, and net worth, and full financial statements. We take care of all that vetting for you.
Because this is sensitive, we employ the utmost discretion. In the past year or so, more subcontractors have been willing to volunteer private financial data, partly as a marketing tool in competitions with less financially secure subs.
Other targets of prequalification we consider are:
Safety management history
Occupational Safety & Health Administration data such as illness/injury rates and lost workdays
Insurance coverage and surety bonding capacity
Work history, including the type of work done, jobs completed and in progress and disputes over previous work.
The focus of a prequalification review can vary depending on the type of work involved.
Vetting subcontractors create administrative headaches for the general contractor and the sub itself. In response, Tech 11 has created a system with subcontractors’ prequalification information. The system is intended to make the information more accessible to general contractors while saving subcontractors from making separate prequalification submissions with each bid.
The quality of a project depends on the quality of the subcontractors performing the work. The work of these vital individuals can also greatly affect a project’s timeline and final costs. That’s why properly vetting subcontractors for a project and managing them effectively is so essential to a project’s success.
In our preconstruction process, we perform extensive evaluations of all the subcontractors we work with. We create relationships with many of the best subcontractors, keep records of their performance on each project, and consistently re-evaluate them and their work.
Here are some things we consider when selecting and vetting a subcontractor:
We always make sure that the subcontractor is a well-run business and consider the company’s bond capacity and insurance. How the subcontractor handles labor time capturing and reporting, and other compliance issues are also important to know.
They must have proven records of performance as we work hard at the relationships with subcontractors and make sure you only work with the best. This ensures that projects are of the highest quality and that they are completed on time and on budget.
Let us help with your project. Call us to schedule a consultation.