Question

Please answer the following two questions.

What are the keys steps that should be undertaken when procuring a subcontractor? Who are the parties that might be involved?

Answer 1

Key steps to procure subcontractor:-

1. Find whether you have right or not :- Subcontrators can be procured by person or firm authorised by owner to do so. If you have authorization then go ahead

2. Decide the scope of work:- In this step the scope of work i.e. to be subcontracted is to be decided. Here designer and Architect may be involved.

3. Explore the market and find the agencies who have experience of doing work as to be subcontracted. If there is availability of many firms in market then you must go for short time open tender process and call the bids of the firm for good competition and reasonable rates for the work.

4. Check eligibilty of the firms:- Checking of eligibilty must be on the basis of nature of work i.e. past experience of firm, financial implications i.e. turnover of firm and certification from any renowned agency. At this step owner of the project must be involved for showing transperency in the system. Other agencies like designer, Architect and Engineer may also be involved in this step.

5. Award the subcontract:- Final award is issued to the subcontractor. Thi award must be in line with main contract.

6. Agreement : A joint agreement is signed between Contractor, subcontractor and the owner.

Parties Involved: Owner, Contractor, Designer, Architect and Engineer