A HANDBOOK FOR SUCCESS
TOP 5 TECHNIQUES FOR SUCCESSFULLY MANAGING YOUR SUBCONTRACTORS
4
FORECAST SUBCONTRACTOR PERFORMANCE
Subcontractor costs do not need to be a black box. With the right tools and processes, you can track and manage subcontractor financials in detail.
- As contracts are created, the value of the commitments should be immediately visible against the budget.
- If you are collecting contract component data against your subcontractors, then you always have a real-time percent complete available for those scopes.
Especially on projects where there is a mix of self-perform and subcontracted work, a certain amount of unknowns may be common with the subcontracts. By getting subcontractor commitments and progress back to your cost system, you can have confidence in all your scopes. Field issues and scope changes often result in change orders to vendors. All this information can be combined to create an effective forecast of how individual subcontracts will perform over the life of the project.
- Choose (or create) the right forecast method for all your contracted scopes and you’ll be confident in the projections for the entire project.
Monitor subcontractor costs and performance to improve project forecasting.