Checking a subcontractor's capacity before you award
The lowest drywall quote is attractive, and the bidder says it can handle the job. A reference mentions three other projects due to peak in the same month as yours. The price comparison says nothing about where the promised crew will come from.
Check the bidder's committed workload, named supervision, available crews and ability to fund the proposed work before award. Test those facts against your peak dates and scope. A competitive price does not establish capacity. Ask for evidence relevant to the period when you need the trade, and distinguish a plan to recruit from workers already committed to the job.
- Show the bidder your likely sequence, peak areas and key constraints. Ask it to identify the labour and supervision needed rather than accepting a general assurance that the schedule is manageable.
- Review its current and committed jobs over the same period. Compare peak demands, available crews and the named foreman; ask which commitments may overlap.
- Check relevant references with focused questions about comparable scope, staffing reliability and supervision. Ask for dated examples rather than a simple yes or no recommendation.
- Have authorized commercial staff assess financial and credit information appropriate to the award. Treat it as confidential, obtain the necessary permission and avoid making a solvency judgement from rumours.
- Ask for a credible plan to cover identified gaps. Separate confirmed resources from hiring, subcontracting or financing assumptions, and identify how those assumptions will be checked.
- Document the award decision and any conditions before the subcontract is issued. Carry the agreed staffing milestones into the mobilisation review so prequalification does not stop at a folder entry.
Common mistakes
- Asking only whether the bidder has done this type of work before.
- Treating a long employee list as proof those people are available.
- Passing confidential financial documents around the site team.
- Using an old reference without discussing the current manager and workload.
Checklist
Before recommending the award
- Peak demand discussed
- Current commitments compared
- Foreman and crew plan identified
- Relevant references checked
- Commercial assessment authorized
- Unconfirmed assumptions visible in the decision
Check your understanding
A bidder has excellent references but plans to hire the entire crew for your start. What remains to be checked?
Show the answer
Check its recruitment plan, supervision coverage and the milestones that will demonstrate the crew is becoming available. Good past work supports capability but does not prove current capacity. Record the hiring assumption and decide how much risk the project can accept.
