Typically, demolition contractors have a tried and true group of subcontractors that they rely upon for regular projects. Such relationships often date back years, and are based on deep mutual trust. However, it’s inevitable that even the longest-established demolition firms will need to seek out new contractors from time to time. A new project may demand a new skill, for instance. Or regular subcontractors may be too busy for a certain upcoming project. As such, demolition contractors must be prepared to vet potential subcontractors.
Why is it important for demolition contractors to prequalify subcontractors? Because failing to do so puts demolition companies at risk of producing substandard results. Beyond client considerations, demolition firms must also recognize that their work is inherently dangerous, and that partnering with the wrong subcontractor could lead to worker injuries or even fatalities. Finally, demolition projects may involve hazardous substances that must be properly handled to protect the environment as delineated in environmental law. Thoroughly scrutinizing potential subcontractors reduces risk to the demolition business. In general, demolition companies should look for expertise, financial stability, dependable and skilled employees, and robust management in subcontractors. Read on for more tips on how to choose subcontractors.
Successful Subcontractor Selection: 3 Tips for Demolition Companies
1. Research Reputations. Ask for references. Speak to past customers. Research any mention of the contractor in news reports. Look into official city documentation regarding the contractor. For instance, how has the subcontractor in question responded to noise complaints? Questionable performance will be revealed under careful investigation. Also inquire about the subcontractor at agencies in charge of pollution control, worker safety and licensing. A litigator may help you investigate any outstanding or past lawsuits and violations of construction law.
- Look Into Certifications and Industry Associations. Specialized certifications imply a level of excellence among subcontractors. Regular involvement in construction associations suggests a sincere dedication to excellence.
- Check Out Financial Performance and Surety. Research whether the subcontractor has ever filed for bankruptcy. Also consider asking for additional financial performance information, such as current year revenues, net equity, and total and current assets. Likewise, insurance protection is key because an underinsured subcontractor could leave your demolition company exposed to litigation. Before entering into business with a subcontractor, discover their surety provider’s name and contact information, as well as bond rates for their volume of work, single project bonding capacity, and aggregate bonding capacity.
Millennia ago, Confucius advised, “Never contract with a man that is not better than thyself.” The same lesson—to be careful in the selection of one’s business associates—still applies today. If demolition contractors hold themselves to high standards, they should likewise demand exceptional quality from their subcontractors.