Construction software has changed the way construction firms have been doing business. Without construction-specific solutions, establishments are finding it increasingly hard to survive in a competitive landscape. A lot of these tasks are delegated to subcontractors for completion. Due to underinvestment in digital solutions, a lot of subcontracting needs are overlooked.
To be precise, in the construction industry, subcontractor management is a common term. It is generally a practice of outsourcing, assigning tasks under a contract to another party. They provide a solution when complex projects need to be handled. A contractor hands over a part of obligations or hires subcontractors to provide skilled services for certain building requirements.
Often, a general contractor supervises a substantial amount of work done by subcontractors. A number of different activities are performed by a skilled workforce under contract and contribute to a high percentage of the total value of a project. Thus taking stock of the importance of subcontractor management in construction is a must and a necessity too.
Moreover, having Enterprise Resource Management (ERP) software helps in devising that a subcontractor management plan is in place. Besides, construction software like ProjectPro is instrumental in tracking and managing construction projects with Business Central and backed by Microsoft itself!
What are the advantages of subcontracting?
There are many advantages in hiring subcontractors from meeting timelines to mitigating risks. Here are some key benefits:
Mitigates inherent risks in the project
Deployment of additional resources to complete the task on time
Results in added productivity and profits
The process is expedited and timelines are met
Helps in saving labor cost
Owners can exercise budget control
Specialized work is taken care of
Thus for contractors having outsourced skilled workmen is a must but an owner needs to take control of sub-contractual requirements of their businesses. This is why ProjectPro, specially designed for construction firms offers specific solutions to the problems faced by real estate developers.
Read on to know the benefits of ProjectPro and how it can help you deal with sub-contractual needs:
1. Enhances Productivity
Right from managing and tracking subcontractors, ProjectPro provides the best project management solution. Having a technology system that streamlines your business operations results in added productivity and ensures gains.
2. Automates Tasks
The owner is in charge of managing the subcontractor contracts. With the help of a module that can handle work completion, lien release waivers, and certificates of insurance. In fact, change orders and pay-when-paid features also take care of the business aspect well.
3. Keep Track of Subcontractors
ProjectPro is a perfect accounting system that helps in dealing with in-depth project data. Apart from guaranteed precision, it is also capable of managing multiple subcontracts at the same time. It is the right tool to help you assess and give a comprehensive view of your bottom line.
It also gives construction managers the necessary time to focus on important issues and improves efficiency. Besides allowing owners to manage risks, taking care of document management, and allowing project teams to collaborate any time they want.
4. Keep Tabs on the Project Data
ProjectPro allows construction firms to track project data in the following manner:
Access data on subcontracts through user categories. No need to go through piles of documents to locate subcontract documents but access the data directly via any other device. In addition to this payment history, order modification, materials reconciliation, and billings are also done with the help of the subcontract module.
This construction accounting system helps you locate data based on job reports to complete the deliverables on time. Apart from keeping a check on project-related tasks and streamlining activities, it has intense capabilities to easily help owners gain visibility on data.
5. Save on Costs
Software that easily provides meaningful insights and helps you carry out financial risk analysis by easily itemizing tasks where you are overspending, and how you can save costs, results in overall profits. This can help in increasing revenue by identifying areas of overspending and taking action accordingly.
Subcontractors form an important part of the construction ecosystem. They fill in the gap when shortages of skilled labor arise and project delays happen. But managing subcontractors can be a headache if you don’t have a proper system in place.
Having robust software like ProjectPro with an in-built intelligent transaction processing platform and data handling capabilities, builders can now keep track of project progress and operational workflow.
By maintaining accurate, timely, and reliable data powered by the latest Microsoft technologies, ProjectPro allows users to source the skills needed but in a flexible way.
The most common issues that arise when dealing with subcontractors are communication and keeping to timelines. It requires a relentless focus on project management and keeping a track of how the project is evolving as well.
Moreover, to remain successful construction managers should invest in an all-in-one construction accounting software because of its lucrative solution.
With good software in place, you can easily figure out when the payment is due and remain in control of the situation. You can now focus on important aspects like workflows, material deliveries, and whatever is important to keep the construction project going.
Apart from this, having a good strategy in place to manage subcontractors is important and allows for better business performance. With tech-driven solutions, it is easy to now promote subcontractor efficiency and schedule maintenance reports.
Not only digital systems are now monitoring subcontractor activities and performance but also have automated the record updating process.
Quick checklist on subcontract capabilities of ProjectPro:
Easily creates subcontract change orders
Can create a new purchase order or add new lines to subcontract
Ability to track insurance policies and expiration dates on the subcontract card
Subcontracting by Vendor Report helps you see how many jobs a subcontractor is actively working on.
Ability to create a new version of job billing