What does it mean to “manage contractors well”? How do you judge if you are doing well or not? The author of this note, as a result of his reasoning, cites the following thesis:
Managing contractors well means ensuring that the interactions are transparent and manageable so that the contractor enjoys the process and provides us with quality services when we need them.
Even in the literary translation of the above quote, the main idea is immediately visible. It is necessary to build a transparent and understandable system of principles on which interaction with contractors will be based.
First – Choose the right contractor software
Whether you’re a builder, contractor, subcontractor, or construction project manager, contractor tracking software can help you in a number of ways.
The biggest benefit of construction software is that it helps teams do their jobs better, stick to deadlines and budgets, and get a better return on their investments.
Second – Promote collective responsibility for the success
You don’t like the fact that contractors are trying to “switch the arrows” when problems arise? According to the author, it is extremely important to form a sense of belonging to the contractor in your business result. For example, if a contractor consistently exceeds an agreed SLA level, explore the additional business opportunities that high-reliability services offer.
Third – Learn to calculate the real damage from downtime due to the fault of the contractor
That is, consider the amount of damage caused to your business by the downtime or degradation of the service provided by the contractor. Why is it so important? Because it is important to ensure the objectivity of penalties. Working with you, as a customer, should not cause a feeling of uncertainty. Well, also do not forget to make sure that the terms of the contract are not worded in such a way that it is cheaper for the contractor to “fall” than to ensure the agreed level of SLA.
Forth – Keep your staff ready
Do you have “specially trained people” who will interact with contractors? Do not appoint inexperienced and incompetent employees in this matter to this role! Otherwise, the contractor will feel that they are working with him, as they say, “on a residual basis.” Well, he will work “without pleasure.”
Therefore, do not forget to make sure that the person you decide to put on this difficult site has the following skills:
- problem solution
- formation of documentation and reporting
- analysis and comparison of budgets and expenses
- identification and risk assessment
Fifth – Make openness and honesty the basis of interaction
“Less is better, but better,” a political figure little known to modern youth wrote at the beginning of the last century. Even if you regularly meet with the contractor (for example, if he takes you to a restaurant on Fridays), this does not mean that you have perfectly built communications. First, you yourself should demonstrate openness and honesty. Only then can you count on reciprocity, which will really help reduce the risk of misunderstanding. Demonstrate respect for the competence of the contractor, ask for his opinion on various aspects of your interaction, and pay attention to recommendations for improving anything. By acting proactively in this way, you can prevent many problems before they occur.
And even when it seems to you that you have an ideal process of interaction with contractors, do not relax! You need to constantly monitor the progress in developing your communications with them. Only then can you rely with greater confidence on the constant positive dynamics of the performance of your contractors.