From the course: Construction Management: Managing Risk

Unlock the full course today

Join today to access over 22,600 courses taught by industry experts or purchase this course individually.

Managing subcontractors and suppliers

Managing subcontractors and suppliers

From the course: Construction Management: Managing Risk

Start my 1-month free trial

Managing subcontractors and suppliers

“

- Part of the reason that we hire trade contractors is to transfer risk to a more capable party. Now, sure, I could self-perform all the electrical work, for example, in a building project, and if I did it really well, I could save money, because I would get to keep the markup being added by an electrical subcontractor. However, think about the risk involved and the things that could go wrong. I would have to hire a supervisor that knew the work and skilled labor to perform the work. But what happens if I can't find these people? And how much risk is there in bringing on a new supervisor and hoping that they can manage the work efficiently? Also, this is a typical construction project, which means that there are going to be periods of time where there is no work for these electricians. Since I don't have anywhere else for them to go, will they quit? Will they be available when I need them again, or will I have to go hire new ones all over again? That's just too many unknowns, with the…

Contents