A Subcontractor Management Plan generally refers to a standard of selection of subcontractors who are selected on the basis of series of qualifications and evaluation. This management plan ensures safety of the working employees as well as enhances efficiency. It also tackles the problem of effective cost management. The management plan acts as a bridge between the employer and the subcontractor.
This, in turn, creates a path for two-way communication and paves the way for growth and prosperity in the organization. The Subcontractor Management Plan is like a filter to the organization as it assures quality subcontractors to work as project managers and in other activities. In addition, the management plan also ensures the health and safety of the subcontractors within the organization.
Selection Procedure of A Subcontractor
The selection is done on the basis of certain procedure - The candidates have to comply with the organization’s code of conduct. Secondly, they are to have financial stability. Third, they need to have a competitive attitude. Fourth, they should be competent enough. Fifth, all candidates must adhere to their health and safety and lastly, their performance as a project manager should be evaluated.
Above mentioned criteria for the selection of subcontractors must be followed globally. Thus, after the selection, the subcontractors are to perform functions, according to the requirements. One can find a number of Subcontractor Management Procedure pdf on the internet for better understanding.
Thepurpose of a Subcontractor Management Plan is to build a mutual relationshipbetween the contractors and the company. This is to ensure that the product deliveries from the subcontractors are of the highest quality and also todevelop long term goals with the company.
Role and Responsibilities
When a company is a contractor, they are assigned with a certain number of roles and responsibilities –
I. they have to build a subcontractor management plan
II. get access to information technologies,
III. ensure proper pieces of training and quality assurance.
Roles and Responsibilities of A Subcontractor
For a formulation of a quality project, a subcontractor puts in all efforts. Over time, when the project reaches the stage of implementation, there are five areas of responsibilities -
I. Business process and re-engineering
II. To manage change
III. To organize human resource
IV. They are also responsible to bridge the communication between a company and the project managers so that they are informed about various decisions.
V. Provides a number of different skills and expertise.
Ways for A Successful Subcontractor Management Plan
There are a number of ways and practices for the proper management of a subcontractor plan. The first and foremost requirement is to have an unambiguous subcontractor who in turn will provide a work statement. Secondly, the subcontractors need to work in such a manner in which the character of each subcontractor is reflected. Third, for proper management of all, the subcontractors need to be documented.
Thus, these practices lead to a successful Subcontractor Management Plan.
The prime contractor coordinates the work of the subcontractors. They ensure quality delivery of projects and smooth functioning of the management. Many a time, issues like mismanagement of projects and constraints in the schedule arise – these issues can be resolved with the help of a master project schedule. In this master schedule, there is a chain of projects that are interdependent. Apart from projects, a master schedule also includes meetings that are to be held at regular intervals, so that each subcontractor is free to discuss issues and seek guidance from their prime contractors. For detailed infromation and assitance about contracts and bids you can give a visit to xfactorgov. They assists in all kind of federal bids and givernment contracts.
A Weekly Account of Subcontractors
Every week, a subcontractor is supposed to deliver a project to the organisation, for which they will be marked. A proper balance sheet is made at the end of each week, to calculate their total cost account. Every Friday by noon, a report is delivered. This report will consist of the elements of the progress of a subcontractor. As a result of which, it will be indicative as to how much progress has been made. If the work is behind a given schedule, it results in cost reduction.
On the requirements of a company, the organisation reviews the progress report of a subcontractor. If a complaint needs to be made, the prime contractor or the team leader is informed. They can discuss the issues concerning the delivery of a product or a service.
Approval of the Services
Once a product or a service that is delivered by a subcontractor is reviewed, the company checks for its quality assurance. The company has to make note that the product meets with their requirements. Only then the company can proceed to publish the documentation of the quality assurance plan. A subcontractor on the other hand has to prepare a form for the acceptance of the delivery and make sure it is submitted to the organisation to which it has delivered. The document has to be duly signed by the parties. Once this is done, the form is finally submitted for the customer's approval.
Remember to note that a subcontractor is accountable for all the delivery of the products and services.
Once a product or a service is properly delivered, the company is supposed to pay the subcontractors. The subcontractors must present the invoice suitably and professionally and must be timely submitted. There should be a proper format for presenting an invoice. It will consist of the number of hours that they have worked on a single project. For any deliveries, the company, or the organisation to which it has been delivered, it must be mentioned to avoid mismanagement and chaos. Lastly, the work of a Project Director is to sign the payment invoices of the subcontractors and in this way, it will get authorised.
Therefore, managing a subcontractor’s plan is not an easy task. It requires a proper delegation of authority and command. Each step of the plan correlates to the other. In this way, there is a check and balance in the working of the organization.