Art of Subcontracting
At The Art of Subcontracting we aim to support our Clients with their commercial aspects of their businesses, adding value with a vast range of commercial and procurement requirements, throughout the Construction, Oil & Gas, Renewables industries, utilising over fifteen years of industry experience.
The Concept, was developed to support Subcontractor's that are providing great service to its Customer's but cannot completely focus on the commercial aspects of the business, this is where The Art of Subcontracting provides its value.
Why would a Subcontractor not focus on the commercial aspects of its business you may believe to be an easy question, however the answer is not quite as simple. Most clients in all industries are looking for the most competitive solution to execute their projects, which is leading to Subcontractors reducing their margins considerably to such a point that often the proposals submitted are based 1-5% margins into order to be awarded the project, in the hope for variations and future project awards, creating various contractual and commercial risks.
This commercial strategy comes with several pitfalls without the commercial acumen and specialists within the business, however Subcontractors often do not have the margins or resources to perform the required commercial aspects of the business, which subjects them to large risks and commercial losses.
Most Subcontractor's have experienced the following contractual and commercial issues especially with the current market conditions:
1. Delayed payments,
2. Impacted cash-flow,
3. Delayed variation approval,
4. Withheld variations until the end of the project,
5. Stringent contract terms and conditions,
6. Unrealistic contract deliverable's,
7. Withheld retention, bonds and warranty certificates,
8. Lack of awards due to the focus of lowest cost solution.
Obviously the above list is only a few examples of the commercial issues that a Subcontractor can encounter with the current industry trends and market conditions, this is where The Art of Subcontracting aims to provide its support, knowledge and experience to Subcontractor's ensuring that not only the project is completed timely and with the quantity required but within the commercial budgets and not at the risk of the Subcontractor.
How it works, by now you will have realised that The Art of Subcontracting strives to add the commercial acumen, knowledge and experience to Subcontractor's in order to provide improved commercial performance and reduced contracting risks.
In order to achieve this we at The Art of Subcontracting understand that recruitment of commercial resources or contracting to commercial consultants throughout a project life cycle is not an option for most Subcontractor's, this is why our business model is based on a tailor made flexible solution to fit the Subcontractor.
Our flexible packages can be provided upon inquiry.
We look forward to hearing from you with regards to your inquiries.