BEST PRACTICES FOR MANAGING SUBCONTRACTORS

摘要

The unstable economic conditions will most certainly have some impact on the construction industry with some contractors and subcontractors likely to go out of business. How do you minimize the risk when selecting partners on a project? Many general contractors are looking to subcontractor qualification programs. A subcontractor qualification program looks beyond a subcontractor's demonstration of insurance policies and bonds to the inner workings of that subcontractor's business, namely the finances. Absher Construction Co. recently implemented a subcontractor qualification program as a risk management strategy. Lane Tanabe, chief financial officer for Absher Construction Co., explains, 'This qualification program includes a detailed questionnaire developed with the help of our surety, CNA. The form must be completed by subcontractors before they are given consideration on projects of a certain size. The program is endorsed by the president of Absher to make sure that all subcontractors bid on a level playing field."