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4.4. Managing Subcontractors and Suppliers: A Comprehensive Guide

After finalizing the contract with the main contractor, you effectively grant them full authority on the construction site. However, this does not necessarily mean that they will personally handle all repair and finishing work for your house or apartment. While you have the right to prohibit them from using external organizations, it’s often impractical. Certain tasks, like installing air conditioning and heating systems or fitting doors and windows, are better entrusted to specialized firms. You should also sign a contract with these firms, where they are referred to as ‘subcontractors.’

 

Hiring and Monitoring Subcontractors

 

Should the client always personally seek out subcontractors and make contracts with them when planning to renovate their apartment or country house? There are clear advantages to independently hiring subcontractors:

 

  • Each performer is directly accountable to the client for the quality of their work.
  • Payment to the subcontractor is made only after the acceptance certificate is signed.
  • It’s easier for the client to control the timing of various tasks.

 

However, this approach can be challenging for several reasons:

  • The client might not have comprehensive knowledge about these firms and their services.
  • Gathering information and monitoring the work can be time-consuming.
  • Some clients hire a construction manager for convenience, but this option is only viable for those with sufficient resources.

 

Consider the alternative where the primary contractor hires other firms for specific tasks. In this scenario, the main contractor becomes the ‘general contractor.’ They select external performers and enter into contracts for related work, in agreement with the client. This method has its benefits:

  • The client does not deal directly with subcontractors, as the general contractor bears the primary responsibility for the repair work.
  • All financial transactions are conducted with the general contracting organization.
  • The general contractor is primarily responsible for monitoring the work.
  • The client signs an acceptance certificate with the main contractor.

 

However, there are downsides to this approach:

 

  • The general contractor, acting as the client to the subcontractor, may give orders only to ‘preferred’ firms, potentially leading to the client paying extra due to inflated bills by the subcontractor.
  • The general contractor may delay work schedules, blaming the unreliability of subcontractors.
  • It can be challenging to determine who is responsible for specific flaws in the interior design – the general contractor or the subcontractor.

 

Sometimes, the general contractor, being primarily responsible for the work quality, blames the subcontractors, who then deny these mistakes.

Both methods have their pros and cons. Based on my experience, I recommend combining these two approaches. Where feasible, assign the main construction or renovation work to a general contracting firm, while personally making contracts for specialized services and supplies.

 

Choosing and Monitoring Suppliers

 

First, let’s understand the difference between a supplier and a seller.

When we go to a building materials store, purchase what we need, and arrange for further purchases, we are dealing with a regular seller.

However, if we visit a representative of a foreign company, select a product from a catalog, pay for it, and then receive it from abroad, we are dealing with a supplier.

In this case, a contract is made with the supplier for a batch or a single unit of goods. The supplier organization is fully responsible for the quality and safety of the goods, as well as for adhering to the delivery times specified in the contract.

If the supplier is actually a dealer of the manufacturer, they should provide a full warranty not only for the quality but also for the after-sales service of their products.

 

Therefore, when choosing a supplier, for example, of plumbing fixtures, always inquire whether they provide ‘turnkey’ installation at the customer’s request. Full assembly and connection diagrams are also beneficial, as there is always a risk of damaging an expensive product due to improper installation. Naturally, all installation instructions should be in a language you understand, in this case, English.

 

If you’re uncertain about choosing suppliers and subcontractors, you can turn to me, design specialist Olesya Blashchenko. I will help you select reliable material suppliers and conscientious subcontracting performers.

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