Understanding the intricacies of subcontractor pricing including variables like equipment for loading and unloading, and dealing with sub-quotes that do not include the full scope of work is vital in the construction industry. Additionally, considering factors such as project delays, effect of long lead items and project schedules can greatly impact the overall project outcomes.
Key Insights
- Subcontractor pricing involves numerous aspects including whether the bid includes equipment for loading and unloading materials. A general contractor might provide some equipment to maximise space and efficiency on site.
- When dealing with sub-quotes, it's important to consider whether the quote includes the full scope of work, such as clean-up, stocking and scrapping. The cost impact of these variables should be evaluated before deciding which price to use.
- Other factors influencing subcontractor quotes include delays by other trades, the impact of long lead items on the project duration, and sufficient time allocation in the project schedule. It's crucial to have a quality contractor with enough labor force to prevent delays, address long lead items early in the project and ensure a realistic project schedule is developed.
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Subcontractor pricing includes numerous variables that require project-specific considerations such as the fact that subcontractor pricing may not include their own scaffolding or forklifts to unload materials. Keep in mind that if every subcontractor had their own equipment on-site, there wouldn't be enough room to move around, so it's common for general contractors to provide some of this equipment for use by all trades. It's important to understand whether your sub-bid includes equipment for loading and unloading.
Now let's talk about dealing with sub-quotes that do not include the full required scope of work. Does your drywall contractor include their own scraping? Do they include their own material stocking? Or is the general contractor going to have to clean up the job themselves? Two bids—one that includes all the stocking and scraping and one that doesn't—are priced differently. Which price should you use? That's for you to decide when you evaluate all the bids and determine what these costs are.
You may also want to ensure that you have single-source responsibility for any one trade of work and, therefore, make that subcontractor fully responsible for the entire scope of work without needing to add to it. Now let's talk about some of the factors that can impact subcontractor quotes. Delays by one trade can affect all the trades that follow, so make sure that you have a quality contractor with enough labor force to keep up with both the scope of work and the schedule to avoid delaying subsequent trades.
Long lead items could have a tremendous impact on the overall duration of the project. Make sure that long lead items—whether you're the general contractor or the subcontractor—are addressed early in the project. If you're a subcontractor, make sure the general contractor is advised of any long lead items so that your contracts can be written early enough in the project to accommodate them.
If not enough time is allowed in the schedule for trades to work, one thing you need to consider is who developed the schedule. Was it the general contractor? If you're a subcontractor reviewing this, you may need to raise your concerns and notify the general contractor that sufficient time has not been allotted to complete the work. Often, subcontractors are more knowledgeable about their own scope of work and can assist tremendously with estimating durations and scheduling the project.
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An overall project schedule or time frame should be provided to subcontractors before bidding. If you're a general contractor, know that subcontractors can provide valuable input on the overall schedule—if they're allowed to review it ahead of time. If you're a subcontractor and did not receive one, it’s wise to inquire with the general contractor or at least discuss the overall schedule to ensure it aligns with manpower requirements for the project.
