Subcontracting is a very popular way of cooperation with skillful narrow-direction specialists. This form of relationship is applied not only for construction. Nevertheless, contractors sub painters, roofers, and other workers out more often than entrepreneurs from other niches. It can be explained with 100% transparency of cooperation and benefits each party of these relationships gets.
Especially if most processes contractors run together with subs are automated and exceptionally digital-friendly. Construction bidding software and other digital tools can make a difference and simplify most routine tasks required for a great subcontracting experience. General contractors hire competent specialists and are obliged to meet the most common rules and regulations of this form of the business relationship.
Why Do Disputes Between Subcontractors and Contractors Take Place?
But some disagreements and disputes still take place between GCs and subs. Even modern contractor quoting software that helps with costing, estimating, and bidding routines together with communication, management, and other apps can prevent conflicts between subcontracting parties.
If you are interested in hassle-free cooperation while subbing out or hiring subcontractors as the general contractor, take a closer look at rules and regulations that will help manage and understand the peculiarities of workflows and legal background better.
The Most Common Operational Challenges of Subs
If you are an inexperienced subcontractor, it is better to sign agreements with general contractors only after the attorney’s advice. This way you will not miss any detail in the contract. Your rights will be protected as well according to the letters of the law. Nevertheless, there is a range of common challenges that can take place even if you are a skillful sub who works for a long time and has a brilliant reputation.
These issues usually cover operational problems and weak spots. It is possible to highlight three of them that play a significant role in the context of operational workflow stability and security:
- Cash flow – the payment rates should be specified at the very beginning. It means that you should not sign any agreements if you are not sure of the regularity of transactions and payouts. All the payroll obligations should be determined by the parties. If you decide on operational issues at the very beginning, it will be easier to avoid conflicts about overtime compensations and other challenges related to financial background.
- Scheduling – it is necessary to specify all the timelines. The right of the subcontractor to pick sides with the schedule and inform about day offs, working hours, and other information. This way you can count on the continuous pay streams if you establish operational scheduling peculiarities.
- Labor market – the desire of the general contractor is to hire skillful workers. That is why your task as a subcontractor is to provide all the leverages to estimate your competence level. To hit the best labor market, you need to present your portfolio, cases you have already realized successfully, and recommendations of your previous employers.
It is worth noting that there are other rights besides opportunities to manage payment rates and scheduling terms. For example, all the subcontractors can regulate the scope of work according to the required deadlines. Additionally, it is possible to find out more insights about labor laws and contract terms in the Department of Labor (DOL) web resources and other documentation.
To sum up, it is better to explore all the rules, rights, and regulations of subcontracting yourself. Then, consult attorneys and ask them to supervise your first contracts. Everything comes with your experience. The more you are subbed out; the more confident you will be with new agreements and subcontracting relationships that will be profitable for both parties – subs and GCs.