ProjectManager
by Jennifer Bridges | Aug 16, 2023Construction projects must be well orchestrated. There are many contractors working on various aspects of the overall project. Contractor management is a process to manage the contractors and make sure they’re doing what they need to do, when they need to do it and meeting quality standards.
In the most general sense of the word, a contractor is someone who has signed a contract that legally binds them to specific work, including labor and materials. A contractor is generally independent working as a freelancer in a sense for the property owner or general contractor.
Being able to manage outside contractors is facilitated by the use of project management software. ProjectManager is award-winning project management software that connects contractors with general contractors, property owners, architects, engineers and subcontractors all in real time. Our software has multiple project views so everyone can work on the tools that are most appropriate. They can then share files, comment at the task level and more, creating a virtual workplace that connects the office, the job site and anywhere else work is being done. Get started with ProjectManager today for free.
Contractor management is a process used in projects where some or many of the workers are employed by contract as opposed to those who are salaried employees of a company. The goal of contractor management is to plan, manage and track the work of contractors to ensure that they’re meeting milestones in the schedule and keeping to the project budget while maintaining safe working conditions and delivering quality work.
To fulfill the goals of contractor management, there are certain steps that must be followed. Here’s a list of the process for contractor management.
A work breakdown structure is a hierarchical tree chart in which the final deliverable is on top and all the deliverables that lead up to that branch are down below it. Once you’ve identified all the deliverables in your project, you can break those down into tasks.
Each task will have a start date and an end date, which is its duration. This is the beginning of a schedule for the project work. Then you’ll want to figure out which tasks can be done by which team member and assign those tasks to them.
Next, create a statement of work (SOW), which is a legally binding document that defines all the work that must be done in the project. This includes activities, deliverables and a timetable. It’s a very detailed document that’ll set the course for the whole project to come.
It’s time to contract with your contractors. There are multiple types of contracts, which are listed below, so you can determine which is the right one for your job.
At a basic level, a service contract should include:
To ensure that the work is being carried out as contracted, the time, scope and cost of the work should be regularly monitored. If there are any issues, they can be addressed to keep work on track. In the end, this guarantees not only timely delivery at the agreed cost but that the work meets quality standards.
Some contractors are expensive and the relationship between the contractor and the person who hires them can be difficult. But it’s always recommended that work, especially construction work, be done by licensed contractors. For one, they have liability insurance and workers comp to protect all parties in case of an accident. But that’s only one reason.
Contractors are experts at a very specific skill that is required for different aspects of construction projects. Very few construction workers are able to do everything from plumbing to electricity and roofing, and you wouldn’t want them to. Best to hire those who know their specialty inside out.
Hiring a contractor might seem expensive at first until you compare it to hiring a salaried employee to do that job. A salaried employee will have to be trained, there are benefits attached to the job and taxes that the company will have to pay. All that aside, you still might not be able to hire someone with the experience and skills of a contractor focused on that one activity.
Use this free Project Budget Template for Excel to manage your projects better.
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We already mentioned that a salaried employee has to engage in some type of training, but if you need a roofer, say, or someone to pour cement, you’ll have to train them specifically for that job. That’s a lot of time away from the job site and even after they’re trained their skill set is so specific that they can’t do anything else. Better to hire a contractor and save time, money and effort.
Jennifer Bridges, PMP offers her practical tips on how project managers can manage contractors on their projects.
Jennifer cautioned that an “us versus them“ environment with contractors on the project is a sign that your project is out of balance and could veer off track. Your contractors need to be viewed as intrinsic to the project and you must foster ways to work together for the good of the project.
You also need to make sure you’re getting the most value out of contractors, especially if they’re external. She noted the seven tips that help her manage contractors:
We’ve created blogs, templates and guides to facilitate the contractor management process. Here are a few of them.
