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Steve MudgeAdvisory
Team & Subbies

Managing Subcontractors: Holding Standards and Timelines

24 March 20267 min read

Your subbies are your business, for better or worse

On a custom home build, your subcontractors are most of your cost and most of your risk. The chippies, brickies, sparkies, plumbers, plasterers, tilers and the rest do the bulk of the work, and when one of them runs late or does dodgy work, it is not contained to them. It cascades. The tiler who no-shows holds up the painter, who holds up the handover, which pushes your next job, which pushes your cash flow. A single unreliable trade can blow a program and quietly eat the margin you priced.

So managing subbies well is not a soft skill. It is core to whether your jobs run on time and make money. This is one of the pillars of building a team so you stop being the bottleneck, because even if every direct employee is sorted, unmanaged subbies will keep you firefighting forever.

It starts with who you let on the job

With an employee you can train and coach over months. With a subbie, most of your leverage is at the front: who you choose to let onto your build in the first place. Once they are on site, your ability to change their habits is limited, so the selection is where you win or lose.

The questions are the same ones you would ask of anyone you trust on a job. Can they be left alone without the quality dropping. Do they flag problems early or bury them. Do they respect the client's home and keep it tidy. Do they turn up when they say they will. A subbie can be a gun on the tools and still wreck your program because they over-book and treat your start date as a suggestion. I lay out the full trust lens in how to know if you can trust a subbie or employee, and it applies double to trades you cannot supervise all day.

Building a stable of good trades you can rely on is one of the most valuable assets a custom builder has. Look after the good ones, because the alternative is rolling the dice on a new mob every job.

Set expectations before they start, not after they slip

Most subbie problems are really expectation problems that were never set. The trade turns up with a different idea of the standard, the timeline, the site rules, or when they get paid, and now you are in conflict on the job.

The fix is to be clear up front. Before a trade starts, they should know what the standard is (the few things on this job that cannot be got wrong), when you need them on and off site, how the site runs, and how and when they get paid. Getting the scope and the program clear before they start a job is the single biggest thing that stops disputes mid-build. It is far easier to agree the rules before someone is standing on your slab than to renegotiate once the work is half done and you are over a barrel.

A note on the commercial side: I am an advisor, not a lawyer, so have your subcontract terms and any specific payment or licensing arrangements checked by your own professional. The principle holds either way: clarity before they start beats conflict after they slip.

Keep the program honest

A building program is only useful if it is real. The trap is letting small slips slide unspoken until they have stacked into a 3-week overrun nobody planned for. Hold the timeline honestly: when a trade is going to be late, you want to know early so you can re-sequence, not discover it when they fail to show.

That means staying close enough to the program to see slips coming, and making it normal for trades to tell you early if they are going to be late. The trades who give you honest notice are worth more than the slightly cheaper mob who go quiet and leave you scrambling. Reward the early heads-up. It is the same principle as everything else in running a team: bad news early is cheap, bad news late is expensive.

Have the hard conversation early

When a subbie's work is not up to standard or they keep slipping the program, the instinct is to avoid the awkward chat and hope it sorts itself out. It does not. The problem festers, the next trade covers up the bad work, and now you have a defect and a callback instead of a 5-minute conversation you could have had on the day.

Have the conversation early, on the spot, plainly. "This edge is not to standard, it needs to be redone before the next stage." Done early and matter-of-factly, it is just business, and good trades respect a builder who holds the line because it means the site is run properly. Done late, after you have let it slide 3 times, it turns into a blow-up and a damaged relationship. Holding standards early is not being the bad guy. It is being the builder people want to work for, because they know the job will be run right.

Pay well and pay on time

The builders who get the best trades, and get them back, are the ones who pay fairly and pay on time. Good subbies talk, and your reputation as a payer travels. If you are the builder who quibbles every invoice and pays 60 days late, the best trades quietly stop returning your calls and you are left with whoever is available. Looking after your cash flow so you can pay your trades on time is not just good ethics, it is how you keep the crew that protects your jobs.

Subbies and your site culture

Your subbies are on your site, in front of your client, carrying your reputation whether they are on your payroll or not. How they behave, talk to the owner, and leave the place is part of the site culture that protects your reputation. Holding subbies to a behaviour standard, not just a quality standard, is part of managing them well.

Get the read on your trades

If subbies are your biggest source of stress, start by getting clear on which ones you can actually rely on. The Can I Trust This Bloke? Scorecard runs each trade across reliability, quality, communication and how they treat the client, and gives you a score out of 35 in under 5 minutes. Grab it, and if you want help getting your program and cash flow tight enough to hold your trades to account and pay them on time, book a free numbers check.

Written by

Steve Mudge

1:1 business advisor for custom home builders. Ex-construction, led teams of 40+, MBA (Griffith). Central Coast, NSW.

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