3 Challenges For Construction Subcontractors In 2018

How Can Subcontractors Better Manage CCW in 2018

Subcontractors in 2018 continue to face the yearly complications associated with Cash Flow, Client Communications, and Workforce Shortages, the CCW of construction contracting. General contractors seldom take on the full major and minor operations of an ongoing construction project. That means that management and performance of many task-specific operations end up in the hands of competent subcontractors. However, this is not merely a matter of hiring out a specific function performance. In fact, when a subcontractor accepts a project task, they are also taking on the burdens and responsibilities linked to:

  • Ensured cash flow
  • Acquisition of necessary assets, including labor, materials and equipment
  • Scheduling workflow
  • Labor management and wages pay schedules
  • Compliance
  • AND Completing, collecting and organizing all necessary task-related documentation.

In this brief text, we will discuss the 3 CCW challenges faced by subcontractors in 2018. First we define the challenges, and then we illustrate how Assignar operations software for construction contractors can benefit subcontractors as well as general contractors.

3 Challenges Faced By Subcontractors in 2018 – Cash Flow, Client Communications and Workforce Shortages

1) Cash Flow
From electrical to plumbing and from metal framing to roofing, every construction project task comes with a functional price tag, a tag that typically first passes through the hands of the subcontractor. For smaller firms, problems associated with cash flow can easily mean life or death of the company. Yet even the biggest subcontractors may face struggles in this aspect of the job. Monthly fronting in millions of dollars for expenses and labor costs is no minor operational concern. And a shortage in cash flow affects timely job completion, a problem to the general contractor as well as the subcontractor.
2) Client Communications
In many events, problems with failed cash flow can be traced back to failed client communications. Yet that is only one aspect of operations complications created due to poor communication with the general contractor. Effective and reliable operational communications promote:

  • Successful project scheduling
  • Workforce and asset availability
  • Necessary QC and Safety compliance
  • AND Timely completion of each task.

3) Workforce Shortages
Working lean reduces expenses, but it can also result in unexpected project delays. In a thriving economy, adding to the unskilled workforce can sometimes be difficult. But what happens when a major trade subcontractor runs low on seasoned workers? This is a challenge that even experienced subs sometimes fail to overcome. And when that happens, the project suffers, the client screeches and the general contractor gets mud in the face.

Assignar Solution For Managing Subcontractors

In essence, general contractors cannot afford the expenses and losses generated when subcontractors in 2018 fail to manage CCW challenges. And such shortcomings need not happen. Assignar provides effective real-time supply chain connections that help you:

  • Schedule and allocate subcontractors
  • Automate timesheets and invoicing
  • Collect forms and manage documentations
  • Initiate effective workplace communications
  • AND Track and confirm quality assurance and safety compliance.

Click here to learn more about the complete solution in the management of subcontractors and vendors.


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Productivity in Construction , Workforce Management