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A third of Fortune 500 companies have turned to independent contractors to help fill various roles, recognizing the value they bring to the table. However, even smaller businesses can reap the benefits of embracing contract work.
With subcontracting, independent contractors execute some portion of your current project, which can help you accomplish goals like getting the job done faster, bringing in expertise for particular parts, or taking monotonous steps off your plate.
This article will help you assess opportunities for subcontracting work and manage subcontracting relationships successfully if you choose to hire someone to complete an aspect of your project.
What is subcontracting and how could it help?
Subcontracting is when you hire another professional to manage a certain part of a project you or your business has been hired to do. Perhaps one of the best examples of subcontracting is when a homeowner hires a general contractor to remodel their house. The contractor will often hire others—such as a plumber or electrician—to handle certain specialized tasks.
Subcontracting can be an excellent option in a variety of different situations, depending on the project and the circumstances surrounding it. You will want to first make sure that your client is OK with you subcontracting out work under your project agreement. Here are some of the top benefits of hiring subcontractors.
- You’re better able to manage a temporary rush. If you find that you’re facing a sudden increase in work, subcontractors can help you manage the workload by handling the overflow for you. Adding subcontractors to your team allows you to scale up quickly to meet the increased demand and scale down just as easily once the rush subsides.
- You can have someone else manage administrative tasks. Every project has specific parts that don’t require specialized expertise. Hiring subcontractors to manage these tasks allows you and other members of your core team to focus on the more critical parts of the project.
- You can add specialized expertise. Subcontracting allows you to bring in unique expertise that your team might be lacking. For example, say you’re developing a marketing campaign for your client and need a website built. If you do not have a web developer on your team, you can subcontract the work by hiring a freelance web developer.
6 tips for subcontracting your work successfully
The key to successful subcontracting is finding the right professional. The person you hire is a part of your team as much as anyone else, and the work they produce can impact not only the success of the entire project but also your reputation or that of your business.
Here are a few tips you can use to help you get the most from your subcontracting experience.
1. Know how to source subcontractors
To find the best subcontractors for your project, start with a pool of professionals who’ve been vetted and have portfolios and ratings for you to review. This helps you better ascertain their professional skills and ability to meet your needs.
For those interested in hiring the top independent talent, start with Upwork. With the ability to search through profiles from around the world, read reviews, preview portfolios, and otherwise narrow down the search to the best possible professionals, it’s never been easier to find the right subcontractor for your project.
2. Make sure the math adds up
The subcontractor you find must fit within your budget. When outlining a project during the initial stages, make sure you add a line item for each task you’re looking to outsource.
You’ll want to take into account how much of the project you’re subcontracting and how much you can afford to spend. When determining how much you can afford to subcontract, consider the following:
- How much do you get paid for the total project
- The percentage of the project you want to subcontract
- How much time and effort you’ll need to find and hire a subcontractor and whether their work fits with the rest of the project
3. Regularly check-in and monitor quality
When you hire subcontractors, specify your expectations regarding check-ins, including when they will occur and what you want to see. Use these opportunities to provide helpful feedback to keep everyone on track and keep the lines of communication open.
Particularly when beginning with a new subcontractor, you may want to regularly check in with them regarding their work on the project. As you receive portions of their deliverable, you’ll want to take a look and make sure that it meets your expectations. You don’t want to receive the final deliverable from your contractor only to discover that the product falls tremendously short of your expectations or otherwise doesn’t meet your or your client’s standards.
4. Draft a clear subcontractor agreement
Create a written agreement that sets you up for a successful relationship with a subcontractor. The contract will lay out everyone’s expectations.
You want to make sure that your contract specifies important information, such as:
- The scope of work to be completed
- When the work will be delivered
- How revisions will be handled
- Fees for the work and how they are calculated
- When the contract will end
- How payments will be made and when
The more detailed the agreement, the better, so there’s no confusion. You may also want to have a lawyer review the agreement to ensure it is complete and enforceable.
5. Build a relationship with your subcontractors
A quality subcontractor who you can trust to deliver as expected is valuable to your business. You want to nurture that relationship so that you have someone to rely on when the need arises.
Get the relationship started on the right foot by having a thorough onboarding process. Help those you hire to get to know you and your project needs. This will help your subcontractors succeed by giving them the tools they need to meet or exceed your expectations. They will understand your style and the type of work you want to see.
Go into each contract to build a long-term relationship. Encourage this working relationship by speaking openly with the subcontractor about the project. Get their insights into its success and their impression of the work, letting them know you’d like to work together again in the future. Having the ability to work with the same contractors when a new project arises can be advantageous, as it relieves you from worrying about sourcing new contractors or working with untested professionals. This can help you see results faster.
Once you find subcontractors on Upwork, you can use the platform to easily communicate with them throughout the project, track progress, and pay them, helping you lay the foundation for a lasting relationship.
6. Start small and then grow
When getting started with subcontractors, it generally works best to start small. Select a smaller project that allows you to test the subcontractor’s work. Give yourself plenty of time to review their work before you need to turn it over to the client to allow for any unexpected back and forth.
As you identify independent professionals who appear to be a good fit, you can start scaling up.
When properly set up and organized, subcontracting can help your team excel with any project that comes your way.
