Transcript HALMSTAD UNIVERSITY S School of Business and Engineering

SUBCONTRACTORS
A subcontractor is a person or a company hired by a
general contractor to perform part of the work of a
construction job for a general contractor.
For example, a contractor might be building a house,
but might hire a firm or a person specializing in electrical
engineering to install the electrical systems needed in the
house. Generally the subcontractor will either relieve the
main contractor of part of the building work, or will be able
to perform work at lower expense or at a greater skill level
than the general contractor could.
Why subcontracting ?
The construction companies that execute the entire
work without the subcontractor’s are rare …
The non-adoption of this procedure would request a great amount of
men and equipment that would be, at some moment, sub used.
Facing that reality, two possibilities have emerged:
-to hire and lay out
-to use subcontractors
Structural tree
Subcontractor duties
 Estimate cost of own work
-bid full price for the project
-bid offering his services by the hour
 Work Without or with minimal Supervising
The subcontractor is responsible for his aspect of the project. It is the duty of the
subcontractors to liaise with other subcontractors working on other aspects of
the project to ensure that the project is completed efficiently and on schedule
 Manage a Team
subcontractor may have a team of workers. He is responsible for hiring them,
paying them and dealing with all employment issues regarding these workers.
The contractor will have no authority over these workers
 Keep Account
Monitoring who is on site, how many hours they work and ensure that the
information is stored correctly in a database
Types of subcontractors
Categories depending on the service type:
• Subcontractors of basic activities:
constituted mainly by concrete, masonry, etc.
• Subcontractors of technical specialties:
execute activities such as electric facilities, hydraulics, airconditioning etc.
• Labour or materials subcontracting specialties:
painting, floors, windows, etc.
Types of subcontractors
Categories depending on the type of employment:
• Domestic (Named) Subcontractor:
contracts with the main contractor to supply or fix any materials or
goods or execute work forming part of the main contract.
• Nominated Subcontractor:
contracts permit the architect or supervising officer to reserve the
right of the final selection and approval of subcontractors.
Subcontracting advantages:
• Flexibility Improves:
ability of the company in responding to market changes
• Productivity Increases:
start to present a larger productivity when compared with the
company’s own labour force
• Easiness in Costs Control:
use of subcontractors with contracts of fixed price facilitates costs
control and reduces the responsibility of the manufacturer's
supervision
• Reduction of Delays:
big organization structure in the general contractors are reduced by
specialized subcontractors units.
• Elimination of Sub-used Labour and Equipment Maintenance:
Subcontractors have their own equipment which is regular
maintenance
S3 Road
Part 1:
Contactor:
Mota - Engil Central Europe S.A.
Subcontractors:
Mota-Engil, Engenharia e Construcao, S.A.
Przedsiębiorstwo Robót Drogowych Lubartów S.A.
Przedsiębiorstwo Budowy Dróg i Mostów sp. z o.o.
Part 2:
Contractor:
HERMANN KIRCHNER Polska sp. z o.o.
Subcontractors:
HERMANN KIRCHNER Bauunternehmung GmbH
HERMANN KIRCHNER Hoch-u. Ingenieurbau GmbH
Parts 3+4:
Contractor:
BUDIMEX S.A.
Subcontractor:
FERROVIAL AGROMAN S.A. Campo de las Naciones
•
By applying to a tender – everyone company can apply
to a tender, and gave his owns proposal. Investor choose
the best offer
•
By being invited to a tender – Investor invites
companies, which prepare offers for tender
Different approaches to get
a contract

By replying to an advert – companies look for
advertisement, and contact with investor. Investor
choose offer

By negotiating a contract with an investor – Investor and
contractors negotiate contract’s conditions
References
http://www.wisegeek.com/what-is-a subcontractor.htm
http://www.ehow.com/list_6608765_subcontractor-duties.html
http://www.pcc.usp.br/fcardoso/papercibchilew62subcontractors.pdf
http://drogas3.pl/PL/strona_glowna/1/130/Umowy_dla_pierwszych_odcinkow_S3
_w_lubuskim_podpisane/
http://drogas3.pl/PL/145/Miedzyrzecz-Sulechow/
Brian Cooke, Peter Williams, 2010. Construction Planning, Programming and
control, third edition.
Bengt Hjort, 2010, Construction Methods and Management-Compedium
Questions
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Who are subcontractors?
Subcontractor is a person or a company hired by a general contractor to perform part of the work
of a construction job for a general contractor.
Why subcontracting?
Without subcontracting it would request a great amount of men and equipment that would be, at
some moment, sub used. When subcontracting it is easier for a general contractor to find bigger
and better contracts, without bearing costs of hiring new people, buying equipments and so on.
What are the categories of subcontractors?
Domestic (Named) Subcontractor, Nominated Subcontractor, Subcontractors of technical
specialties, Subcontractors of basic activities, Labour or materials subcontracting specialties.
What are the advantages of subcontracting?
Flexibility Improves, Productivity Increases, Easiness in Costs Control, Reduction of Delays,
Elimination of Sub-used Labour and Equipment Maintenance.
What are different approaches to get contract?
By apply to a tender, by invite to a tender, by reply to an advert, by negotiate a contract.
What is the different between „apply to a tender”, and „invite to a tender”?
In „apply to a tender” every companies can apply to a tender, and in „invite to a tender” only invited
companies can apply to a tender.