7 Biggest Subcontractor Woes
In construction projects, general contractors hire subcontractors to handle specific aspects of a project, which ranges from plumbing to roofing and electrical fittings. A subcontractor may employ and pay a team of workers to help him with the task. In their line of duty, subcontractors face both internal and external challenges that affect their work. While some of these pain points are new, others have been around for decades. Below are the seven greatest subcontractor woes.
1. Worker Shortage
Worker shortage is a pressing problem for many subcontractors as project demand increases. Many youths perceive the construction industry negatively as less desirable and opt for white-collar careers. To curb this issue, many construction companies are revamping their pay, training, and working conditions to attract new talent.
In addition, many baby boomers are retiring each day raiding the construction industry of their expertise and experience. Approximately 54% of project managers are baby boomers. This trend leaves subcontractors with few or no project managers to work with.
2. Short Timeframes
Project subcontractors continue to struggle with short timeframes. With the number of projects available skyrocketing, subcontractors are given unreasonably short deadlines to complete projects. Worker shortage intensifies the problem and subcontractors struggle to stay on schedule. To meet strict deadlines, subcontractors are employing project management technologies to streamline operations and save time.
3. Unpaid Work
Subcontractors spend sleepless nights figuring how to complete a project with the client’s budget in the stipulated time. They coordinate workers and resources to ensure they complete a project promptly. Regrettably, many subcontractors are not compensated for work done. A good number of contractors have filed claims against their bosses –general contractors and owners- for unpaid work. For example, King’s downtown hotel owe subcontractors around $11 million in unpaid work.
4. Equipment Failures
For subcontractors to work effectively, they require a broad range of equipment. Subcontractors face the challenge of equipment failure occasionally. Maybe the excavator breaks down, and the subcontractor cannot replace it immediately. Perhaps the project requires equipment that the contractor does not have. Vandalia Rental comes in handy for all these situations to offer subcontractors a broad range of equipment for hire to meet their needs.
5. Lack of Communication
Subcontractors often cite lack of communication as a significant woe in their job. Lack of communication between the subcontractors and other project’s stakeholders including the contractor, owner, and architect has adverse effects. It leads to project delay, errors, time wastage, and increased costs. Improving communication between all the involved parties in a project can improve operations and cut costs.
6. Unfavorable Contract Terms
Subcontractors get contractors with unfavorable conditions to their disadvantage. Construction projects bear a lot of financial risks. General contractors pass a great extent of the risk to subcontractors. Subcontractors have to shoulder liquidated damages, consequential impacts, and warranty coverage. They have to cater for costs associated with missed deadlines; some that may not be their fault. Additionally, due to the risky nature of construction, subcontractors incur considerable costs in insurance and workers compensation. Subcontractors should adhere to safety practices to ensure the site is safe for workers and mitigate risks.
7. Government Regulation
The construction industry is among the sectors with immense government oversight and regulation. Construction regulations are continually changing, and subcontractors have to stay up to date with them. They have to spend time keeping up with the regulations and additional time implementing them in the site.
Subcontractors play a substantial role in construction projects to assure their success. However, many woes plague subcontractors in their line of duty. They encounter a great deal of stress when dealing with workers shortage, short time frames, government regulation, unfavorable contract terms, and equipment failures. If you would like to hire construction equipment and save your day, contact us. We have a wide array of construction equipment that will help you work efficiently.