Solving Your 3 Top Issues with Subcontractors

When working with subcontractors, you probably aren’t a stranger to issues. Subcontractors can sometimes be late, not complete the project as you expected, or a variety of other things. Working with subcontractors is different than working with employees because you don’t have as much control. However, they are an important component to the success of your business. Here are some tips to solving your 3 top issues with subcontractors.

Documentation

One of the biggest issues you can have with a subcontractor is documentation. They may not turn paperwork in on time or may not provide the necessary paperwork you need.

Solving this issue starts with the first document you use with your subcontractor: the contract. Always make sure to have a contract when working with a subcontractor. This contract will outline expectations, responsibilities, and deadlines that need to be met. When you develop this contract at the beginning, it will help make sure everyone’s on the same page. It will also create legal liability should the subcontractor not fulfill their duties.

You can also solve this issue by implementing an easy documentation system. If you typically request that subcontractors turn in their documents in person, they may not get around to it. If you accept documents via email, the email may get lost in clutter. Instead, try using an online cloud service such as Google Drive. Cloud services are accessible to everyone and keep documents organized so you’re more likely to get documentation submitted on time.

Miscommunication

Miscommunication is an issue in virtually every interpersonal relationship, not just with subcontractors. However, working with subcontractors does provide a greater risk of miscommunication because you may not be directly supervising them.

The most important step in solving this miscommunication issue is tracking communication. Document every verbal agreement and important conversation, and share this with the subcontractor. This way you know you’re both on the same page at all times.

Another important step to solving miscommunication is clarifying understanding at the end of every important conversation. This may seem redundant, but it is beneficial in the long run. When you’re reaching the end of a conversation, say something along the lines of “So to be clear…” or “Let’s make sure we’re both on the same page…” and summarize your understanding of what you’ve agreed on or decided. Two people often have different understandings of the same conversation, and clarifying gives you the opportunity to stop any mistakes before they happen.

Deadlines

A serious issue you may have with subcontractors is missed deadlines. Missed deadlines not only affect you, but also your customer, so you want to be preventative in solving these issues.

To be preventative with missed deadlines, you can start by giving flex dates in the contract. For example, you can give a deadline that’s a few days or a week before the actual deadline. This allows for some extra time in case there are problems that arise.

You can also outline in the contract who is responsible for extra costs associated with missed deadlines and proper procedures that need to be followed if a deadline will be missed. As mentioned above, this will create legal liability. However, don’t be afraid to amend the contract should deadlines or other things outlined in the contract change with agreement from all parties.

Find Security with HFS Financial

You have a lot on your plate dealing with customers, subcontractors, and your own employees. We hope our tips on solving your top 3 issues with subcontractors helped. Let us take some more weight off your plate by helping your customers find the financing they need with our 60-second loan application. Call us today at 1-800-254-9560 to set up a secure and easy way to boost your company’s bottom line. “You Dream It, We Finance It.”