10 Ways Your Subcontractor is Screwing You and You Don’t Even Know It

September 26, 2014

Being a contractor responsible for a number of projects can be overwhelming, especially if you are dealing with subcontractors.

Here are a few ways a subcontractor can cost you big money:

1. Stealing time

Subcontractors may come and go on the job site, or take unnecessary breaks which they will expect to be paid for while holding up the progress of the project.

2. Negotiating for other projects with the developer

There are times when subcontractors take it upon themselves to speak to the developer to find out about other upcoming projects in an attempt to get a foot in the door without the contractor.

3. They are using unlicensed contractors

When hiring subcontractors you are operating in good faith that all their paperwork is in order. If there is no process where licenses have to be verified, you may unknowingly have unlicensed contractors working on your project.

4. They don’t have insurance

Your subcontractor may have had their insurance lapse during the project without informing you and an accident occurs, bringing light to the situation.

5. Their people don’t have experience in a particular area

When using a subcontractor, it is important to make sure they have the proper experience. The subcontractor’s employees may not have a lot of experience, which will cause mistakes to be made, extra time will be lost on the project and you will lose money.

6. They made mistakes and did not communicate properly

Subcontractors can make mistakes and feel that as long as it looks correct, it will be okay which could run into issues during inspection.

7. They are going over budget

Ordering excessive materials, wasting time and other discrepancies can cause the project to lag which costs money.

8. They don’t have the proper equipment

The subcontractor may not have the proper equipment to do the job, which will cost the contractor money in time and having to order equipment.

9. They don’t communicate safety concerns

Subcontractors may incur a number of safety issues and have not communicated them with the contractor which will cost money in the event a hazard occurs.

10. They don’t have enough materials

When subcontractors don’t monitor their materials, not having enough will hold up the progress of the project, costing the contractor money.

Staying on top of these red flags is key for a project manager to effectively run the project, keep image of the company professional and stay on budget.