Discussion on problems existing in the subcontract management of construction projects

Thread Content

Discussion on the problems existing in the subcontract management of construction projects. With the continuous growth of China’s economy, the construction industry is also developing rapidly. Due to the surging demand in the construction sector, higher requirements are placed on the management of construction projects, particularly the management between general contractors and subcontractors. At present, the general contracting model is predominantly used in China. The general contractor is responsible for constructing the main structure of the project, while certain specialized works are subcontracted to specialized subcontractors or labor teams, all of which fall under the management scope of the general contractor. How to effectively manage general contracting and subcontracting in construction? Based on an analysis of current circumstances and reasons, as well as practical experience in the management process, methods and measures are proposed. I. Problems existing in the current management of subcontracting in construction projects. First: Subcontracting management is not standardized, and there is a lack of basic market supervision. For instance, the project owner directly awards contracts or designates subcontractors, resulting in the general contractor having no authority to manage them. Subcontractors focus solely on their own construction management, disregarding the coordination with other project constructions; this often results in schedule delays ； Poor construction quality, safety accidents, and other such issues occur. Secondly, the subcontracting management system is not sufficiently perfected. Due to the low quality and level of management among some subcontractors, they fail to assign subcontract management personnel as required by regulations ； Subcontractors pursue only their own interests, neglecting communication and coordination with the general contractor. As a result, the project quality fails to meet construction specifications and relevant standard requirements. Third: The general contractor lacks management systems related to subcontracting. The general contractor fails to manage subcontractors in an orderly manner; its measures are ineffective, and it does not fulfill its responsibilities as a general contractor. Consequently, subcontractors are poorly managed, leading to various safety and quality incidents. In response to the aforementioned problems, the Ministry of Construction and local authorities have issued multiple documents and taken stringent measures to strengthen the regulation and management of the construction market. Construction companies need to take proactive actions and implement effective risk prevention measures for projects. II. Methods and measures for the management of subcontracting in construction projects
In light of the aforementioned problems, some effective management countermeasures are proposed, with the hope of avoiding or mitigating the risks associated with subcontracting management in construction projects. 1. Standardize the management of the subcontracting market 1.1 Strictly enforce the market access system: Enterprises shall establish a list of qualified subcontractors, and conduct subcontracting bidding processes within this list in strict accordance with relevant policies and regulations as well as the internal procedures set by the enterprise for managing subcontracting. A comprehensive and integrated assessment should be conducted on aspects such as the subcontractor’s corporate qualifications, financial status, system certifications, integrity, technical capabilities, equipment configuration, past performance and experience, and management quality; ultimately, a qualified subcontracting team is selected. 1.2 Signing of general and subcontracts: The subcontractor shall enter into a corresponding subcontract with the general contractor. In accordance with the regulations on work safety in construction projects, the rights, responsibilities, and obligations of both the general contractor and the subcontractor must be clearly defined. The contract terms must specify that the subcontractor must have a well-structured organization, along with the appropriate professional technical and construction management personnel. It is necessary to have the machinery and equipment required for construction, and a responsibility letter regarding comprehensive social order management must also be signed. Scientific and standardized supervision should be carried out during the construction process to ensure that the subcontracting team fulfills its contractual obligations in practice. 2. Improve the subcontract management system 2.1 Establish a project subcontract management organization The general contractor should set up a project subcontract management organization to carry out long-term planning and systematic formulation of strategies. Complying with the requirements of institutionalizing management processes and standardizing management methods, comprehensive and full-process management is carried out across various aspects such as the recruitment of subcontracting teams, process control of subcontracted construction, worker training and education, daily life management, and protection of rights and interests. Thus, a systematic and institutional framework for subcontract management is established, effectively promoting the standardization of subcontract management. 2.2 Assigning management personnel for subcontracted projects to carry out their duties: In accordance with the subcontract agreement and relevant regulations, the subcontractor must assign on-site management personnel such as a construction supervisor, full-time safety officer, quality inspector, and technician. The number of such personnel must be sufficient to meet the requirements of construction activities and those set by the main contractor, and they must remain at the construction site to carry out their responsibilities related to subcontract management. It is prohibited to replace equipment without the consent of the general contractor or to leave the construction site arbitrarily; those working in special roles must hold relevant certificates to be employed. In the event of an emergency or accident at the site, the on-site supervisor of the subcontractor and other management personnel must follow the emergency response plan organized by the main contractor and handle the subsequent matters accordingly. 3. Formulate and implement relevant subcontracting management systems ； The general contractor must establish relevant systems and requirements for the management of subcontractors. It should be specified in the subcontract agreement that the instructions will be provided upon the arrival of the subcontractor at the site. The subcontract management system includes: the subcontractor entry management system ； Subcontracting Organization Management System ； Letter Processing and Seal Application Management System ； Management systems for meeting, office, and living areas ； General and Subcontractor Briefing and Training Management System ； Management systems for on-site quality, safety and civilization, as well as progress ； Subcontracting Document Management System ； Management systems for real-name labor registration, assessment systems for rewards and penalties related to subcontracting, etc. Through various management systems, project management between the main contractor and subcontractors is standardized, and orderly on-site management is achieved through coordinated management by both parties, thereby ensuring the fulfillment of the goals specified in the contract. 4. Provide proper briefings and training to subcontractors ； To implement the principle of \"safety first, prevention foremost, and comprehensive management,\" ensure the life safety and physical health of employees, and guarantee the smooth progress of construction work, the general contractor must provide a comprehensive briefing to subcontractors prior to their entry on site. This briefing covers aspects such as an overview of the project, on-site safety measures, technical and quality requirements, schedule deadlines, and comprehensive management requirements. The instructions are provided in written form, and both the general contractor who gives the instructions and the subcontractor teams who receive them must sign them respectively, with copies to be kept for archiving. Improve the overall quality and work skills of subcontracted construction workers through training and education, and enhance their awareness of safety and quality. 5. Strengthen on-site inspection and supervision of subcontractor teams: Managing the construction sites of subcontractor teams is a very important aspect; the main contractor’s project team must provide effective comprehensive supervision and management of all aspects of their work, from the time they arrive at the site until they leave after completion. 5.1 The construction drawings for subcontracted teams must be uniformly distributed and managed by the main contractor’s project department, with records of documents received and sent kept ； The professional subcontracting construction organization design and specific construction plans must be approved by the technical supervisor of the general contractor and the chief supervision engineer before they can be put into practice ； The surveying and setting out work carried out by the subcontracted teams must be reviewed by the technical personnel of the main contractor before it can be submitted to the supervision engineer for approval, after which construction can proceed. 5.2 The subcontractor shall establish a safety assurance management system and a safety production responsibility system, define the safety management responsibilities at all levels as well as those of the main contractor and subcontractors. The subcontractor’s work teams shall be placed under the unified management of the general construction contractor and shall comply with the leadership of the general contractor, the project owner, and the supervision engineer. They must carry out standardized management of the construction site in accordance with the overall management requirements of the general construction contract, the layout plan of the construction site, and the rules regarding civilized construction on site. 5.3 The subcontractor shall establish a quality management system and quality management responsibilities, and carry out construction in strict accordance with the design documents, specifications and standards, as well as the quality requirements stipulated in the main contract and subcontract ； Strict control is exercised over the equipment and raw materials brought in as part of subcontracting, with proper inspection and testing carried out ； And inspect each construction step carried out by the subcontracted teams. 5.4 Subcontractors must strictly follow the overall construction schedule set by the main contractor’s project team, and under the guidance of the overall construction control network plan, they should arrange various construction tasks in a scientific manner to enable simultaneous execution of different tasks and spatially organized sequential work. 5.5 The project manager organizes each subcontracted team to conduct a comprehensive inspection of site safety and civilization, project quality, construction progress, etc., on a weekly basis; through these inspections, potential safety hazards are eliminated in a timely manner to ensure that the project quality and construction progress targets are achieved. 5.6 The project documents of each subcontractor shall be incorporated into the general contractor’s management. The documentation related to the subcontracted work should be prepared in line with the progress of the project; once the project documents generated by this subcontractor are organized and filed, they should be promptly handed over to the main contractor ； The general contractor is responsible for collecting, summarizing, and archiving the materials. 6. Implement real-name management for labor forces. This is to ensure that the identities of subcontracted workers are legitimate and valid, to ensure that training and education requirements are met, as well as to ensure the accuracy of attendance records and wage payments, thereby reducing the occurrence of labor disputes. A real-name system is implemented at the project construction site. Pay close attention to the management of real-name registration, contract signing, work attendance, and salary disbursement. 6.1 Establish a labor management agency: The general contractor shall set up a labor management agency and assign labor management personnel to strengthen supervision and coordination across various specialties and among the workforce ； The project department establishes a labor management team headed by the project manager, and assigns full-time or part-time labor supervisors as required to handle daily labor management tasks; in addition, an emergency response team for labor management is also set up. Each subcontracting team should appoint a full-time labor manager to assist the general contractor in the daily management of labor affairs. 6.2 Implement proper real-name management for on-site labor forces. The process for real-name management of labor forces is as follows: Subcontractors report to the project department upon arriving at the site → The project department verifies the basic information and job details of these workers → Those who pass the initial review proceed to safety education and training tests → Labor contracts are signed with the labor service companies → These contracts are submitted to the project department for record-keeping → The project department carries out real-name registration for the newly arrived workers → Workers enter the construction site through the access control system → Subcontractors collect and organize the workers’ attendance data, sign it off, and submit it to the project department for record-keeping → Subcontractors handle the payment of workers’ salaries and submit the relevant records to the project department → When workers leave the site, they go through the exit procedures and inform the project department accordingly. 6.3 Supervision of the real-name system for subcontracted labor: A access control system is used on site to implement closed management; those who have not completed the required procedures are not allowed to enter the construction site. This ensures that the attendance records of labor workers are accurate, reliable, and valid. The subcontractor must collect and organize the attendance data of the workers in its subcontracted teams on a monthly basis, submit it for approval to the project department for record-keeping, and pay the laborers’ wages on a monthly basis as agreed. The project department oversees the payment of wages to subcontracted laborers and keeps photographic evidence. The subcontractor shall submit to the project department, on a monthly basis, wage payment slips signed and approved by the labor workers themselves; the project department shall review these slips and keep them on file. 7. Regularly implement assessment, rewards, and penalties for subcontractors: The main contractor’s project team should establish corresponding assessment, reward, and penalty measures for subcontractors in order to enhance the management of the construction site. 7.1 The project management team conducts a weekly inspection of the management of subcontracted teams ； The general contractor conducts a monthly verification of the real names of workers employed by the subcontracting teams, as well as a comprehensive on-site inspection. 7.2 Inspection method: Random on-site inspections are conducted to comprehensively assess aspects such as safety and civilization, project quality, construction progress, and comprehensive management. The maximum score for this assessment is 100 points; points are deducted according to the scoring criteria in case of any non-compliances, and rankings are determined based on the final total score obtained from the inspections. 7.3 Rewards and penalties: Penalties are imposed on the teams with the lowest scores in the monthly assessments, and discussions are held with them; they are also given a deadline to make improvements ； Subcontracting teams that achieve the highest scores in the monthly assessments are awarded a mobile red flag, as well as certain rewards and recognition. 7.4 The general contractor conducts an annual comprehensive evaluation of each subcontractor’s construction organization and management capabilities, reputation, and the quality of its management staff. For those subcontractors that perform poorly in terms of comprehensive management, and whose total scores are the lowest on three consecutive months or six times in total during the monthly evaluations, the general contractor shall submit a request to the company to include them in the list of unqualified subcontractors. III. Conclusion: To achieve growth in an intensely competitive construction market, we must standardize the management of this market, continuously improve the subcontracting system, establish effective management mechanisms, enhance the training and supervision of subcontractor teams on site, raise professional technical skills and management capabilities, and fully leverage the potential of subcontractor teams. Only in this way can we remain competitive in such a fierce market environment; it is also the only path for general contracting companies to achieve sustainable development.