Tips for Managing Subcontractor Relationships

Recently GCs have been moving away from the term subcontractors to trade partners. It started coming about on design-build projects where trades were being onboarded a lot sooner and partnering on the planning of the project with GCs, but now it's become a lot more widespread. I think GCs think that when their marketing teams and departments call subcontractors trade partners that it automatically means that they are partners. My opinion is that the naming doesn't matter. I'm not actually against the name "trade partner" instead of "subcontractor", but I am against using the name "trade partner" incorrectly. What matters is how you actually treat your "subcontractors" or "trade partners". GCs should earn the right to call someone a partner by: ✅ Paying on time. ✅ Communicating effectively. ✅ Providing the best contracts possible for their subs by having proactive conversations with their clients. ✅ Advocating for you to the client/owner on COs you submit. ✅ Looking out for work that will benefit their subcontractors. On the flip side, it's not just on the GCs to earn their right to call subs partners. Subcontractors also need to earn the title of partner by: ✅ Providing quality workmanship. ✅Meeting deadlines that they agreed to. ✅Having clear communication. ✅Properly documenting their work per the contract. ✅Being willing to problem solve with your GC because problems will come up. Having true partners makes every party win. But please don't call your subcontractors partners unless your company is actually forming true partnerships. There are plenty of companies out there that are creating true partnerships, but there are also a lot that aren't.

Today's riddle: "I am often overlooked as someone else's responsibility, but I will either haunt you or laud you every day your business operates for many years to come. Who am I?" "I am your relationship with your subcontractors." When you are building a new location or store for your business, if you rely on your General Contractor to manage all sub-contractor interactions, you do so at your own peril. Here are 5 steps to ensure what you are building and will operate in for many years to come is set for success: 1. Get out of your office and regularly visit the site at least each week while it is under construction. Seems straightforward, but it's not as common as one would think. So many small adjustments or errors can be caught and made before concrete is poured, plumbing is roughed in, sheetwork is hung, etc. Rework is nothing more than time and money down the drain. 2. See step #1 again. The old saying "when the cat's away the mice shall play" applies to both your teenage children and some sub-contractors. Knowing that you, the end client, could appear on site anytime keeps the focus where it needs to be on your project. 3. Bring your subcontractors lunch every now and then while they are working on site! Everyone working hard on the job appreciates nice people and a full stomach - and it magically improves the responsiveness, speed, and quality of the work done on your project. 4. Make sure your subcontractors are paid on time. Please don't play with fire on this one. A delayed paycheck for subcontractors can result in them either walking off the job or your project being relegated to the mysterious Dog House of Delayed Responsiveness. Both will cost you dearly. 5. Happy subcontractors = prompt receipt of signed lien waivers. If quick receipt of your tenant improvement allowance $ after your new store opens matters to you, that depends on how you treated your subcontractors during the job. Follow the steps above, and you're in a much better position to receive your signed lien waivers and subsequent TI $, fast! #restaurants #construction #franchising