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Knights and Squires
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| Kevin Lange explains his thoughts on the relationship
between subs and general contractors. |
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The construction industry is just as much about machines and jobsites as it is about people relations and industry kinship. Perhaps one of the most important relationships on the jobsite is between the general contractor and his subcontractor. General contractors are often weighed down like a champion knight going to battle (in an 100-lb suit of medieval plate-armor) when dealing with the enormity of a project. Subcontractors are trying to become nobility themselves, carving out their own name in the industry. It’s a delicate balance that is often mishandled.
“If you are a sub, you get all the blame,” Dillon says with a chuckle. It’s a laugh that makes its way around the table.
“Level one, two, three indemnification is the hot item in our state. As a subcontractor, if we are 1 percent responsible, we have to defend the general contractor. We’re looking to get the legislation changed in our state. That wording is so incredibly important,” Fortin explains. “The other part is that it’s a relationship thing. If you have good subs, then you know what the relationship is. In 22 years I’ve never had a sub I couldn’t resolve the issues with one-on-one. With general contractors it’s a lot more complicated. They don’t know what they are doing — you better e-mail and you better document. It’s not as much fun, but it’s important.”
“Documentation is a huge, huge item,” East says, continuing the thought. “You have to document all the time — everything. It’s an unfortunate side of it, but it’s back to your relationships: How do you manage them and what’s in the book? That’s what we have to do.”
“Usually a subcontractor is a new business,” Dillon says. “They are trying their hardest to make a living and sometimes they step into something they probably shouldn’t have gotten into. Instead of being honest with the general that they need help, they screw things up so bad that it becomes unrepairable.”
“You have to pay attention to that before you go in,” East rebuts. “We have several subcontractors that we use all the time that are larger in volume than we are, yet we have the same problem.”
“It definitely at starts bid time — picking the right sub when you can,” chimes Fuglevand. “Projects tend to go smoother when it’s with a sub who we have a good relationship with. If it’s someone new, then you are spending a lot of time up front making sure they are on the ball.”
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| Dan East stresses the importance of documentation within
the general and subcontractor relationship. |
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“Most of our work has been sub-contracting thus far,” Lange says. “The only philosophy that I use is to look at ourselves as an extension of the contractor. Basically, work with them, keep contact on a daily basis and if you run into a problem make sure you communicate and press forward.”
Though subcontractors are mostly budding operations, communication is a two-way street. Through a healthy give-and-take, sub- and general contractors can build a working relationship.
“What I would suggest to any subcontractor is to focus on being honest and invisible,” says Dillon. “If you are invisible, that means you’re painless to my operation, you’re going to make money and you’ll be back and you’ve earned it. When you become visible, you have problems.”
“It depends on your definition of visibility,” East says. “I find the best subcontractors we have are the ones that are pushing us saying, ‘You’re in the way. You need to get your act together and get out of here.’ Those are the guys I like working for us. Again, it goes back to documentation. We all still like working with handshakes, but when y’all quit talking, this [East picks up a piece of paper] comes into play. If you don’t have it documented, you’re done.”
“It’s a lot about relationships and maintaining them or else you’ll have issues,” Gregorio adds. “You’re still going to have issues. I’ll use the word ‘issues,’ as a more positive word than ‘problems.’ It’s construction and you’re going to have issues; that’s why you are there. You are there fixing something that has a problem, therefore you’re going to have issues. Expect to have issues and deal with them. If you expect everything to be perfect, well…This is construction.”
Continuing the Quest
As 2008 unfolds, the fight for (or against) immigration will continue, as will the shortage of workers and difficulties in relationships between company owners and the crews that keep them afloat. Like our six crusaders of industry, there are many more knights of contracting across the land and many are NUCA members. Sharing information and experiences is a crucial step in elevating the importance and awareness of the industry, as the knights continue their quest for an informed and active-in-government construction industry. |
Jason Morgan is associate editor of Utility Contractor.
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