With the rise of digital work, many contractors look for more flexibility and independence in their work.
As a result, an increasing number of workers are opting to become independent contractors.
In fact, a recent study by the National Association of REALTORS® found that about 57% of construction workers are now independent contractors.
As a construction manager, you would not find a shortage in contractors offering their services for your upcoming project.
If you’ve already gone through hiring and paying for independent contractors, that’s just the tip of the iceberg.
When it comes to managing contractors in construction, you need to consider a few important factors.
Continue reading to learn more about the seven principles for managing independent contractors, and prevent any major hiccup during your lucrative construction project!
If you already manage a construction team, you know there’s more to it than finding and hiring the right people.
You need to ensure that your team is coordinated, organized, and productive. The same goes for managing independent contractors.
Here are the top seven principles you need to keep in mind:
The first step in managing independent contractors is having a clear work scope. This means you need to know what tasks need to be completed and when.
The scope of work will serve as the foundation for your construction projects. It will also help you determine which contractors you need to hire and how many.
For example, if you need to build a new office space, you’ll need to hire an architect, an electrician, and so on.
Or to renovate a hospital’s emergency room, you might need a construction manager, an interior designer, and a team of general contractors.
Each type of project requires different types of contractors who provide services that are specific. So ensure that you have a clear scope of work before moving on to the next step. Management will become easier and more efficient this way.
The next step is to communicate the scope of work with your contractors. This includes sending out a Request for Proposal (RFP) to potential candidates.
In the RFP, you should include all the necessary details about the project, such as the budget, timeline, and deliverables.
You should also include your expectations for their services. For example, let them know if you need them to work on-site. This will help you weed out contractors who aren’t a good fit for the job and help set the right expectations from the start.
Word-of-mouth contracts might be quicker sometimes, especially if the general contractor is a relative or friend. But as things go in any industry, written contracts are a must!
So, it’s time to create a contract after you’ve found the right person or people for the job. No effective contractor management can be complete without the main contract.
This document will serve as a legal agreement between you and the contractor. It should include all the important details about the project, such as the scope of work, timeline, budget, and payment terms.
The contract will also outline the expectations and responsibilities of both relevant parties.
For example, it should state that the contractor is responsible for completing the work on time and within budget.
It should also state that you, as the construction manager, are responsible for providing them with the necessary resources to complete the project. This document will protect both parties in case something goes wrong.
As we mentioned earlier, setting the right expectations from the start is important. This way, you and the contractor will know what’s expected of each other, and there will be no surprises later.
To do this, you need to have frequent and clear communication with your contractors.
For example, if there are any changes to the scope of work, timeline, or budget, you need to let them know as soon as possible
The same goes for any concerns or issues you might have. By managing expectations, you can avoid conflict and ensure that everyone is on the same page.
Any construction work, especially one done remotely, must be monitored closely.
This means that you need to check in with your contractors regularly to see how they’re progressing.
One way to do this is to set up progress reports. These reports should include information about what’s been accomplished, what still needs to be done, and any challenges or issues that have arisen.
Another way to monitor progress is to have regular meetings in person or over a video call. This will allow you to see the work firsthand and ask any questions you might have.
It will also give your contractors a chance to raise any concerns or issues they might be having.
This goes hand in hand with monitoring progress, but it’s important enough to merit its own point.
When you have remote contractors, it can be difficult to know when they’re working and when they’re not.
To avoid any issues, it’s best to set up a tracking system where they need to clock in and clock out. This way, you’ll know exactly when they’re working and how much time they’re spending on the project.
There are a few different ways to do this, such as using a kiosk clock. Such clocks that integrate facial recognition can verify that it is the authorized person working.
A key factor that’s integral in construction management is keeping track of expenses.
For instance, if you have contractors working on a project that requires 3 months to complete ( as stated in the contract), you’ll have to ensure the project is done on time and within budget.
And any extra expense incurred during the project must be reported and justified. To do this, you need to keep track of all the costs associated with the project.
This includes things like material costs, labor costs, and equipment rental costs. Tracking all the expenses allows you to stay on top of the budget and avoid any cost overruns.
The construction industry is witnessing a rebirth, especially after the global pandemic. If you start brushing up on a few skills in managing independent contractors, you’ll find that you’re in a much better place to succeed.
Independent contractors need to be managed differently than employees. The working relationship is different, and so are the expectations.
By following these tips, you can be well on your way to better managing independent contractors.
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