December 2021 | 17
SUBCONTRACTORS USA
contractors & Agencies
GA ER TEXAS by having them fill out prequalification forms. Essentially, prequalification is like a background check. If your reputation is solid, and you have all your documents in order, prequalification is nothing to be concerned about, but organization is key. General contractors may have specific requirements for prequalification, and generally they create branded forms for subcontractors to fill out. Across the board, prequal statements tend to include requests for financial records, safety information, proof of insurance, and contractor certifications. A helpful tip is to search for examples on the web and use them as personal checklists.
L ea rn how to negotiate and analyze a Master Subcontractor Agreement, or MSA. This is an official document highlighting all expectations for a subcontractor, orchestrated between the general contractor and the subcontractor. In order for the sub to receive total compensation, they are to follow all requirements that are outlined in an MSA. This document determines your guidelines for an entire project, and any mishaps could ruin chances of winning repeat business. The goal of MSA is to make it clear from the beginning what is expected of your team on a project, so there are no misunderstandings down the line. One of the best ways to get ahead of the competition and prove yourself is to show that you are proficient with current digital tools. Competency in the tech area is still considered rare among subcontractors, which is fair, considering most general contractors have not been requiring their subs to use digital technology on projects until very recently. Now that there are more tech solutions catering
to the needs of those in the field, nearly all large general contractors are implementing software on their projects. Wearable tech devices are also becoming more common on jobsites, used for safety, tracking, and more. And in fact, some companies include mandatory software usage in their MSAs. By being able to show a contractor that you are skilled with software programs and digital tools, you automatically get a leg up on the competition who still write everything down with pen and paper. As a general contractor, one of the most critical keys to success is maintaining collaborative, fruitful working relationships with subcontractors. These days, tasked with managing projects that are larger, more complex and data-driven than ever before, it’s even more important to build solid subcontractor relationships. It can be a balancing act. On one hand, you need to effectively track their progress — holding them accountable for quality, safety and timelines. On the other, respecting their expertise and seeking their input and innovation while also providing them with the resources, timely communications, and information they need to highly perform. Set guidelines, rules, and expectations from the start. Keep subs in the loop and communicate often. It’s important to have a fluid system of record keeping in place. Continue to track progress, and reward good performance. With a healthy mix of industry best practices and modern technologies, today’s leading general contractors are able to not just maintain healthy working relationships with their subs, but consistently improve them. Now is the time for business people, whether you are a contractor or subcontractor, to start taking action to build your business. Building better relationships and obtaining more education are just some of the things you can do to strengthen your business. When our contractors and subcontractors are solid, that makes for a stronger Texas.
• $100.9 billion (5.3%) of the state’s GDP of $1.9 trillion. • Private nonresidential spending in Texas totaled $45.4 billion in 2019. • Construction jobs pay well. In Texas
Sources: US Census Bureau The Associated General Contractors of America Statista Associated Builders and Contractors Levelset Raken
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