EFFECTIVE
OUTSOURCING Landscape estimating specialist, Colm Kenny digs into the pros and cons of using landscape subcontracts
O
ver the last 10 years or so, the approach of landscape contractors in the way they operate and manage their businesses has changed dramatically. Much of this change came about from economic necessity: the recession demanded leaner businesses practices. For many, it was simply a matter of keeping spades in the ground. During the boom times, businesses expanded at a rapid rate and operators found themselves having to make significant machinery and infrastructure purchases just to keep up with demand. These investments were - as time would tell - often ill considered, poorly planned and recklessly financed. As we have seen, a great many were caught with their pants down and exposed to unsympathetic banks. With life now back within the industry, a lot of contractors are finding themselves rebuilding and restructuring their businesses and while things are most certainly improving, growth has been somewhat slow paced. The slow pace is giving contractors the opportunity to consider how best to manage and run their operations. Instead of hastily leaping on the next project like they did before the crash, contractors are looking back on the lessons learned. New leaner and more efficient systems are being implemented to ensure profitable business re-established. A key component of this is proper use and management of subcontractors. The engagement of subcontracts provides specialised skills when required and a flexible solution to labour and additional machinery without being exposed to debt. It may not be cost effective to increase the size of full time staff because the workload in the industry is inconsistent due its very nature. While this has been a common practice in the construction industry since the beginning of time due to the complexity of construction projects, it is only now starting to creep into the landscape industry.
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PROCUREMENT To have a symbiotic working relationship with subcontractors, it’s important for management to see all aspects of the subcontractors’ involvement. Like your own operation, a business is only as good as its employees. Your subcontractors will be the face of your business whenever they are on a project for one of your clients, so you need to hire the best available. Word of mouth has always been the primary method of getting business because it means satisfied customers think well enough of a company to commend it to others. The landscape industry is no different. Since the industry is relatively small, it shouldn’t be difficult to find subcontractors by asking around. It’s always good business to never have to rely on just one subcontractor. You should endeavour to build up a list of contractors that you could approach depending on the type, location etc. of the project you may need them to assist you with.
AGREE THE NUMBER The next area to manage is the price for the works. The best way to avoid conflict in this area is for a subcontractor to give you an estimate before you give the overall price to your client. You will have to add on your own attendances and profit before you revert to the client. To get an accurate cost and reduce the risk of a dispute down the line, give each contractor under consideration exact details of the project with as much information as is available to you. Bring them to the site and show them the situation on the ground. Items like access, parking, storage of materials etc. are never fully explained on a drawing but can have a bearing on cost and timeframes. As a main contractor you should be prepared to pay a fair rate for doing the job. Of course you can negotiate a deal, but if you end up getting one over on the subcontractor, friction and disputes will more than likely
HORTICULTURECONNECTED / www.horticulture.ie / Winter 2017
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