How Smart Subcontractors Choose the Right Team and the Right Opportunities

By Jeff VanderLaan, CEO, and Leah Gradl, Corporate Marketing Manager – Kent Companies, Inc.

Trade contractors are facing swift economic tailwinds. Construction and development are booming across most of the country. Work isn’t scarce, but in many cases, a skilled workforce is. It becomes the limiting factor in choosing which projects to build and when. As demand for services grows, trade contractors are more selective in choosing their customers.

During times of work scarcity, the scales are tipped in the general contractors’ and construction managers’ favor. Everything from price, to contract terms and work schedule are largely dictated by the customer. Even the most sophisticated trade contractors are pushed to make difficult choices between layoffs and low revenue or accepting job circumstances that they don’t prefer.  

In today’s market conditions, the opposite is true. The scales are tipped in favor of trade contractors. Given the array of available work, successful trade contractors pursue only the best jobs with the best customers. General contractors and construction managers who embrace trade contractors as partners get the most attention. They understand how to work together to solve problems and deliver projects in the most effective way.

Savvy trade contractors analyze what makes the best customers, and they focus their periodically scarce skilled trade resources on those customers. As a concrete specialty subcontractor, we look for these distinctions among our good customers.

1. Safety as a priority.  Safety must always be the number one priority for every contractor on every job site. Preferred general contractors and construction managers approach safety collaboratively before a single shovel hits the dirt. They are proactive in cultivating a safe culture by engaging subcontractors in job hazard analyses in advance. This achieves safer job sites and better results than adversarial inspection programs.

1. Call early, call often.  We appreciate general contractors and construction managers that approach us early on in the design and development stages. Design/build scenarios aren’t new to the MEP trades, but getting subs involved earlier that aren’t technically design/build provides a clear benefit to the subs and the project as a whole. Savvy subcontractors look for opportunities to provide input on constructability and logistics. We can ultimately save the entire project time and money. The earlier we get involved the more quickly we can hit the ground running when the drawings are complete.

1. Negotiate for value, not low price.  A race to the bottom dollar doesn’t benefit anyone. The notion that a cheap price is the best price is a mirage. The appeal of a low price quickly evaporates when arguments over change orders, schedule delays, missed scope, and general incompetence come to light. A yard of concrete or a 2×4 ultimately cost the same no matter who installs them. We look for general contractors and construction managers who focus on choosing the best subcontractor for the job, not the low-price provider. Their due diligence in budgeting through the design and development phases and collaborating to ensure a full scope at the best price will ultimately create speed, innovation, and job harmony. And subs that attempt to price gouge when facing high demand don’t stay anyone’s friend for very long.
   
   
2. Have a fair contract.  General contractors and construction managers that present fair contracts that everyone understands are in a position to motivate everyone to work together. Smart subcontractors read contracts in their entirety, and they use them to negotiate fair terms with their customers. We watch for red flags like broad form indemnity, set-off, and unreasonable notice timing.

1. We can be friends.   My wife tells our children that the only time you yell is when there is an emergency. The same is true at work, whether in the office or on the job site. Subs and general contractors that approach every project with an understanding that everyone wants a successful outcome get further. We have shared interest in doing more work together in the future.

Rely on each other’s expertise. General contractors and construction managers are successful because they are good at what they do. The same is true for trade contractors. Great customers value our point of view and give us the opportunity to contribute ideas and problem-solving approaches. We hold mutual respect for each other’s strengths, challenges and point of view. We know the best approach is to work together to develop solutions.

It’s a good time to focus on your best customers. Creating valuable partnerships with the right general contractors and construction managers will pay dividends no matter the market conditions.

Kent Companies is a 3^rd-generation family-owned business with expertise in commercial and industrial construction, mixed-use construction, multi-family housing, tilt-up concrete, post-tensioned cast in place structures and a full range of concrete-related specialties. Kent Companies operates nine offices and employs over 1,500 concrete construction professionals nationwide. For more information please visit www.kentcompanies.com.