Sub-contractors play a crucial role towards achieving project objectives. The Project Management team needs to ensure that sub-contractors will finish their work on time and on budget with minimal changes. To achieve these goals a project-wide Code of Accounts (COA) needs to be put in place which also applies to sub-contractors. Sub-contracts should also be set up such that their schedule of prices and schedule structure are aligned with project's COA. This will result in better sub-contract management, and more accurate progress reporting, cost control and schedule forecasting. RFP documents should prescribe the required milestones, schedule template, schedule of prices and set clear progress reporting requirements. In this paper, the process of subcontract management is examined from the pre-award (RFP) stage to post-award subcontract administration, from the perspective of project controls. The concept of Governing Quantities for cost and Construction Work Packages for the schedule will be introduced.
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