Skip to content

Labour has always - and likely will always – be the biggest variable cost on any construction project, and with project margins being squeezed ever tighter, it’s hugely important to monitor all project costs – in particular subcontractor costs.

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 and driving 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, which can generate costs well into the thousands.

Paying more for experienced subcontractors may add to the overall project cost, but 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.

  1. 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 for this particular subcontractor, making it difficult to pay them.

  1. Verify subcontractors with HMRC

Reduce the time spent verifying subcontractors with HMRC by doing it directly from Integrity’s construction-specific management software, ensuring your business is compliant at all times.

  1. 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 that your business keeps tight control of costs, maximising your potential margin.

Take the hassle out of managing construction subcontractors with Evolution Mx. Get in touch to arrange your complimentary demonstration today.