March 22, 2011

Give Your Contractor Management A Boost With Good Supplier Selection

The phrase “contractor management” will possibly not worry you too much as a skilled project manager, but far more likely if you are a new to the world of site planning and project risk management. Nevertheless, even the knowledgeable PM’s would tell you to move forward carefully as each would have paid their construction management schoolfees on the basis of this subject. Contractors can be an incredibly unique bunch of people. I have been inspired by some very capable workers, just as I have been let down by some very incapable contractors. The truth is, they are the hearts and minds of the project, so they are essential to its success. Failure to regulate their actions and identify their processes and preferences, can result in your project scoping going into the danger zone and you wasting a good deal of time fixing the mistakes and changes that occur as a result.

So where do you start (or should have started) if your trades people are canceling on you, they can’t find materials and their subcontractors are not turning up? Contractor management is your job! You are ultimately responsible for their actions (and failure to action).

Let us then have a quick look at how you can get the right people to the right place at the right time. Yup, that is called best project management and it starts with…… PROCUREMENT!

1. Procurement planning is the key. You can simply not neglect this area. Make sure you introduce a well thought out procurement plan for the project. That means thinking long and hard about the criteria (quality, capability, cost) that you want the building contractors to conform to. That way, you will not only get the best responses, but the most suitable suppliers tendering for the work.

2. Once the tenders are in, make sure you follow up on referees and do your homework on their past performance. Remember, bigger is not always better. I mean, the bigger the contractor does not mean the better the job (and especially the price for that matter). There is some good quality to be extracted from smaller suppliers, but you need to check if they have the resources to service the project.

3. Ask for a list of their subcontractors. You will find some very helpful info here. In doing this exercise, you will not only be able to evaluate the quality of their suppliers but also their application to plan the project delivery strategy effectively.

4. Ask them to commit to a construction schedule and make sure that their scope of works is very well defined. The clever contractors will try to keep the scope as open as possible. That way, they can claim on variations and blow out your project budget before you know it. As they say, the devil is in the detail!

Stick to the above and your contractor management battle with be half won. Project risk will decrease and your project delivery will be a lot more proactive and timely.

Do you have questions about contractor management and how to procure the best guys for the job. Emmaus Projects is a company that specialise in best project management with over 30 years experience in the property development industry. Visit their website for more information.

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