Thankfully, we do not often experience a significant disagreement over performance under a subcontract agreement. But, when we do, it’s often a failure on the part of both parties to fully understand and agree to the scope of the work before it starts. There are a number of things that can be done to minimize disagreements:
- – Scrub the drawings and specifications to ensure both parties understand what’s required.
- – When necessary, seek confirmation from the originator of the documents if questions remain.
- – Eliminate any differences between contract documents and subcontractors’ proposals.
- – Obtain advance approval of any deviations from the documents.
- – Document time frames for design, fabrication and delivery of materials and equipment.
- – Agree on manpower, equipment, schedule and sequencing of the work.
- – Track and measure everything every week. Correct as necessary.
- – Put it in writing.
- – Consistently communicate and encourage compliance.
No agreement is perfect. The bottom line is that each party must agree that what one is buying is completely in line with what the other is offering. Both parties then have a mutual understanding of what is expected. Add communication and cooperation and you’re on your way to a successful effort.
Written by: Michael York (Division Manager)