Labour has always – and likely will always – be the biggest variable cost on any construction project. With project margins being squeezed ever tighter, it’s hugely important to monitor all project costs. In particular, subcontractor costs must be monitored.
It’s important to find the balance between cost and quality when it comes to subcontractors. Whilst it may be tempting to reduce overheads by hiring new, inexperienced subcontractors, businesses can end up paying for their mistakes. This can drive the entire project cost up.
Not only do businesses increase the risk of errors being made by hiring cheap subcontractors, they also increase the risk of on-site accidents. This can generate costs well into the thousands.
Paying more for experienced subcontractors may add to the overall project cost. However, doing so can reduce the risk of errors, ensure deadlines are met and uphold stringent health and safety standards.
Consider using subcontractor management software
There are many benefits of using subcontractor management software such as Evolution Mx.
Store insurance expiry details
It’s important to ensure your construction business uses subcontractors with the relevant, valid insurance. By storing insurance expiry dates within Evolution Mx, an alert will be triggered when trying to process payroll. This makes it difficult to pay a subcontractor with expired insurance.
Verify subcontractors with HMRC
Reduce the time spent verifying subcontractors with HMRC by doing it directly from Integrity’s construction-specific management software. This ensures your business is compliant at all times.
Attribute subcontractor costs to projects
Keep track of the labour costs on specific projects in the Contract Ledger of Evolution Mx. Storing specific subcontractor costs against the correct contracts will ensure your business keeps tight control of costs, maximising your potential margin. To learn more about how our management software can benefit your business, visit our blog.
Take the hassle out of managing construction subcontractors with Evolution Mx. Get in touch to arrange your free demonstration today.
