Do not ignore Risk Identification, opt for Multi-Tier Contracting Audits for a Successful Project in all aspects
With construction projects becoming increasingly complex, requiring specialized and niche services and thus multiple levels of sub contractors, have you given a though to the risks of multi-tier contracting?
Have you ever considered auditing the performance of your sub contractors by doing a Multi-Tier Contracting Audits?
The Contractor you hire for your project has an immense task of seamless execution. They do this with the help of subcontractors for specific tasks. The timely auditing of subcontractors’ work becomes important to keep processes and quality of work in check.
While you as a Developer might set stringent health, safety, environment, quality controls and other compliances at your site, the multiple chains of subcontractors might not be adhering to these best practices. Unless you have a multi-tier subcontractor auditing in place, identifying sub contractor issues like poor skills, compromise on construction quality, non compliance of protocol can be an uphill task. Not only this, if such issues are not brought to fore, the project faces significant risks caused by a weak chain of poorly performing work force.
What Are These Risks That You Expose Your Project To Without Multi-Tier Subcontractor Audits?
Performance And Skill Risk – Sub contractors must have the necessary expertise to perform their jobs or specialized tasks. There should be performance checks to ensure that the works are being executed as per design and high level of workmanship.
Quality Risk – Construction quality is the lynchpin that holds the project’s brand value in place. Checking that all the workers across all levels of contracting follow the project’s quality protocols assumes great importance.
Financial Risk – A sub contractor with weak financials due to various reasons like loans might run out of funds and lose labor during the course of the project, thus hampering the smooth flow and also posing a significant financial risk to Developers. Auditing covers assessment of the financial health of sub contractors, thus shielding your project from such risks.
Legal and HSE Risk – Sub contractors must be abreast with the health and safety practices of workers on site and follow the same. Safety risks pose a major threat to construction companies leading to legal hassles that waste time and resources.
Timeline Risk – A sub contractor with a less than desired competence may not be able to complete assigned jobs in the given time due to labor, financial or other issues. Skewed project timelines have a cascading effect on the entire project workflow, also hampering other related functions and consultant works.
The Solution? Multi-Tier Contracting Audits
Multiple levels of contracting personnel at the site means increased chances of risks developing along the supply chain. These risks are especially enhanced with the sub contractors working at the lowest tiers and there arises a need to vet their performance against set parameters. In such cases, auditing of Multi-Tier Contracting assumes great importance.
Secure your project by roping in Third Party Auditors like CQRA to carry out systematic checks by experts and safeguard your project from sub contractor related risks.
