Category Archives: Sub-letting

Sub-letting the construction project can degrade the quality of work

We live in the era of outsourcing where every possible business is outsourced in some way or the other. Some businesses are outsourced to foreign countries and some remain inside but are outsourced to parties that are known to do that kind of work. This is also known as sub-letting projects. What typically happens here is the person who is responsible to complete the project hands over the work to a third party who in turn further hands it over to the part who will indeed complete the work.

Now the people involved in the middle does nothing significant other than enjoy the profits that will reap out of the work. This is the modus-operandi that many in today’s business follow. The first party may or may not be aware that the project has changed many hands and therefore are only interested with the quality of work. They know just one thing and that is they want the finished stuff in good shape. Anything less than what they have expected can lead to non-payment and other legal hassles.

In the construction sector, the scope of sub-letting the work is immense; which is why you will find many small and mid-sized construction companies ready to tie up with a mighty enterprise and get involved in the construction of a huge project.

However, the thing that is of great concern is the quality of work may not be at par excellence and this can be a worrying factor for the construction company that has bagged the project. The company that lets the work to other small companies needs to ensure that the quality of work is not compromised by any way and for this purpose it should take corrective measures every time it finds things not in place.

Review the progress of work at regular intervals:-

One of the most important things that is required to be done is to review the progress of work at regular intervals. Once you let-out the project to other companies, your responsibility doubles. You of course let out the project due to lack of infrastructure on your part and by letting it out to other companies you stand the chance to earn more profits. But that does not allow you to have a freehand on the quality of work. You have to make sure that you take some time out and review the work in ground. Visit the site at least once in a month and check the progress report. Try to evaluate the actual with the estimates and see if the work will be completed within the stipulated timeframe.

Do not shy to fire a contractor from their shoddy work:-

When you let out a work to a third party and you find out that the party is not good at it or is not taking your work seriously, you should be ready to take a tough call. Remember, it is your baby and if someone is not taking good care of it, you have every right to kick him out. Start with warnings and if you do not see any improvement then it would be the time to take the call.