How to better manage relationships with your subcontractors
This article will list some ideas to help you manage the flow of timely information and ensure your team is getting paid on payday.
May 17, 2023
How to Better Manage Relationships with Your Subcontractors
By Wally Roderick
Every business is built on relationships and the strength of those relationships will determine its ultimate success. Running a construction company is no different. Your subs are dependent on you for the information they need to do their job properly and more importantly, to provide them with paychecks on time. When communications are weak or pay is slow, strained relationships are the usual result.
This can eventually lead to the end of your business if not corrected quickly. This article will list some ideas to help you manage the flow of timely information and ensure your team is getting paid on payday.
Maintain Clear Communication
At the outset of any project, you need to establish how you will communicate with your subs. The form of the communication is just as important as the content. If you prefer texting to phone calls, make sure they know that. Without question, our cell phones are the primary channel for most business communications today, and construction companies are no different.
We can receive voice communications, texts, emails, and videos on our devices, but establishing a standard way of passing information among the team will produce the best results. Apps like Flume can help smooth out the process.
Provide Steady Work
The construction industry is known for incredible employee turnover. If you are experiencing this problem, it can eventually lead to poor reviews or worse. One of the best ways to make sure your subs keep showing up on time is by keeping them busy. If you can't provide steady work, they will go where they can find it.
Solid relationships with your subs begin with good relationships with those from whom you contract your work: other contractors, architects and property management firms. The lines of communication with the top of your work funnel need to be as open as those to your subs and employees. Be sure you understand how those who give you work like to communicate.
Allow Reasonable Timelines
Planning the work on a job requires an intimate knowledge of the project itself as well as which subcontractors will be performing the work. If you force your trades to rush their tasks in order to meet a timeline that is not reasonable, the results will always be less than favorable, and this will dampen any good feelings that may have developed between you and them. Before assigning the work, be sure to involve your subs in the planning process.
That way, you can get their input and everyone will know in advance what is expected of them in terms of timelines. This kind of advance thinking will result in your subs being able to better plan their schedules as well.
Ensure Prompt Payments
Most of us show up to work week after week for one reason - to get paid! You need the bank to provide your draw on time and your subs need their paychecks on time. Nothing will destroy a relationship faster in a construction business than slow pay. The subs you hire depend on a steady cash flow to operate their businesses because they have employees to pay as well. Fast payments from you will make sure the subs are happy and wanting to come back to you for the next job.
Provide Feedback and Encourage Open Dialogue
It can be disheartening for your employees and subcontractors to discover that they made mistakes unknowingly. If they understand what is required of them, they will strive to deliver excellent work and meet your expectations. Providing regular feedback to your team will keep the relationships strong and allow your subs to grow in their skill level. Let your team know that you are always open to ideas that will improve the overall efficiency of the operation.
Consider scheduling regular check-ins with your subcontractors to discuss project progress, address any issues, and exchange feedback. An open door policy is the foundation of strong construction relationships.
Flume Can Help Achieve Your Goals
Flume is a payment platform that caters to the construction industry. It offers a variety of payment solutions that are customized to suit the requirements of both general contractors and subcontractors. Using Flume can make your payment process more straightforward, enhance cash flow, and build stronger relationships with your subcontractors.
Flexible Payment Options
Flume offers a variety of payment methods to accommodate the preferences of your subcontractors, including physical checks, digital checks, and bank transfers. This flexibility ensures that your subcontractors receive their funds in a timely and convenient manner, reducing potential cash flow disruptions and promoting trust within your construction relationships.
Quick and Easy Setup
One of the key benefits of Flume is its quick and hassle-free integration process. You can have Flume fully set up and ready to transform your construction business in just 5 minutes. This ease of implementation allows you to focus on what matters most—building and maintaining strong relationships with your subcontractors.
Cost-Effective Solution for Small and Medium Businesses
Flume is an ideal payment solution for small and medium-sized businesses, delivering a robust set of features to help you grow and scale your construction business without the hefty price tag of competing payment platforms. By choosing Flume, you can invest in a platform that offers powerful payment capabilities tailored to the construction industry while staying within your budget.
Enhanced Security and Compliance
Flume prioritizes the security of your transactions and the protection of your sensitive financial data. By utilizing advanced encryption technologies and adhering to strict compliance standards, Flume ensures that your payments are processed securely and your business remains compliant with industry regulations.
Improved Cash Flow Management
By streamlining the payment process and offering flexible payment options, Flume can help improve cash flow management for both general contractors and subcontractors. Faster payments and reduced disruptions in cash flow contribute to the financial stability of your construction business and that of your subcontractors, paving the way for lasting, mutually beneficial relationships.
Check us out today to find out how Flume can make your communications better and your day-to-day operations less stressful.