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Subcontracting An option not to be ignored when tendering

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When writing a tender, companies are often faced with having to hire sub-contractors to have a chance at winning the contract. Not all companies are comfortable or willing to do this, as it increases the overall risk factor.

However, there are a lot of contracts out there, especially in the construction sector, that state you must sub-contract a percentage of the work locally, and this forms part of the scoring criteria.

If the contract is slightly out of your depth or you are producing a bid as a company outside of the local area, sub-contracting some of the work to local companies can be an effective and valuable way to improve your chances of producing a winning tender.

If you are one of these companies, I have put together a list of benefits here that will hopefully sway your judgement or even change your mind about incorporating smaller, like-minded contractors into your bid, and, more importantly, help you to secure a contract that your company needs to make that step change.

Shared Expertise – ‘Two minds are better than one’: by sharing the workload you gain extra tools, machinery, knowledge and expertise that you may not have in-house.

Specialism & Quality – Sub-contractors are often smaller companies and are specialists in their field: they may have that extra skill that you don’t have, or don’t have time to acquire.

Workforce – They will add to your current workforce to create a larger, more efficient and skilled team.

Shared risk – Even though there are risks in sub-contracting, having extra help will make sure that your company’s resources are not over-extended, and the risk that you may lack the capacity to get the work done is removed.

Locality – If you are applying for a contract outside your geographical area, local sub-contractors can give you the extra local knowledge you may need. They can also reduce your carbon footprint on things like travelling as they are already in the area – which will gain you extra points on sustainability.

Economic benefits – Sub-contracting to companies in the local area will direct money back into the local economy, which is often a requirement of the contract. This can also increase your company’s credibility locally.

Coverage – Expand your geographical coverage: this will able you to complete work in any area across the UK.

Price – Drive down the pricing in your Tender document by sourcing cheaper, local contractors.

Leadership – Sub-contracting still leaves you as the main contractor and decision maker – you are still in control.
When executed properly and dealt with thoroughly, sub-contracting can benefit your business considerably and in turn make the job easier for you whilst you are still in full control.

So, if you are in a sub-contracting predicament and have never had to think about it before, hopefully these benefits have helped you in some way and you will now be able to complete that PQQ and get on the route to winning that tender that you may otherwise not have considered.

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