Managing projects with subcontractors

[tedbellinger]

I am looking for tips on how best to set up and manage projects that include
subcontractors. Typically these subcontracts are fixed price, with progress
payments linked to milestones, and I need to be able to plan my oversight
work as well as manage task dependencies that impact the project schedule. I
don't typically have any visibility of the sub's personnel resources nor of
the sub's estimates of the hours required to do the work. I just know that
they must perform certain tasks as part of their subcontract, and that these
tasks must be completed for them to get the progress payment.

Are there common approaches to projects with subs? Are there things to
watch out for when setting up such a project? I suspect I am making my
project plans more complicated and less accurate than I could if I did it
right.

BTW, I am using Project Professional 2003.

 

[Rod Gill]

As the contract has already been signed, you've lost the best opportunity to
enforce suitable governance processes. You will need to focus on the interim
deliverables and especially the quality of the same. Communicate very
clearly what constitutes full compliance with your milestones. If this
wasn't stated in your contract then you had better hope your contractor is
trustworthy!

--

Rod Gill
Microsoft MVP for Project

Author of the only book on Project VBA, see:
http://www.projectvbabook.com

 

[Ted Bellinger]

Actually, the project for which I am looking for immediate help has not been
awarded, but the question has more universal interest for me. I would like
to better understand how people effectively use this tool to plan as well as
execute projects that use subs. It is more a question of the mechanics of
using MSP.

Thanks,

Ted

 

[Rod Gill]

Trevor has made some very good points. I basically focus first on working
with key stakeholders to agree what will make the project successful (time,
cost, happy customer quality etc. Then make sure measures for each are part
of the contract and then track and measure progress and quality by your key
measures of success.

--

Rod Gill
Microsoft MVP for Project

Author of the only book on Project VBA, see:
http://www.projectvbabook.com

 

[Ted Bellinger]

Trevor,

Thanks for the response, but that's not really the question I need answered.
I understand the benefits of more granular insight into the sub's estimates
and resources, but that is a different discussion.

Ok, bear with me. Here is a gross simplification of my project:

Project Doohickey
1 PM LOE
2 Design
3 Integration
4 Shipping to customer site
5 Install and configure
6 System Testing
7 Final Acceptance Testing

For each of summary tasks 2 – 7, there are three subs plus internal
resources performing some portion of the work, and the subs have provided a
cost breakdown that shows the labor, materials, and ODCs for each task. For
example:

2 Design
2.1 Design Management (me)
2.2 Design of subsystem 1 (sub 1)
2.3 Design of subsystem 2 (sub 2)
2.4 Design of subsystem 3 (sub 3)
2.5 Design of subsystem 4 (internal resources)
3 Integration
3.1 Integration of subsystem 1 (sub 1)

Etc.

Before I get to the point of tracking progress, I need to get the project
set up properly.

Are there generally recommended techniques for planning and scheduling work
done by subs? By this I mean, how is it done using Project? I am not
looking for PMBOK tips, but rather insight into how to make the best use of
the tool (MSP).

Thanks,

Ted

 

[vanita]

Hi

In working with contractors and sub-contractors, first the client/PM must
prepare a broad schedule with milestones and include it with the tender. Let
the bidders study it, study the asociated project documents and drawings (if
it is a const. project) and then they should submit a detailed schedule
alongwith the bids, because their project costing also depends on the time
they can take for the project. This schedule should adhere to the broad
schedule included in the tender.

Finally whichever bidder is selected for the work, would work in tandem with
the project managers for preparing a detailed final schedule for project
execution. This way he would be able to commit for the resources to be made
available by him during the project and the schedule should have consensus of
all.

A contractor's committed schedule has to be followed by his sub-contractors.
This should be included in the tender clauses. As far as cost is concerned,
that is a separate exercise, because once we finalise a project cost with the
contractors, we are not bothered about his internal costing.

I hope it helps.
Vanita

 

[UTVOL]

It seems that the question here is how to set up a subcontractor in Microsoft
Project vs setting up a standard "work" type employee. Since most
subcontractors in a construction/operations environment bid a price per
square foot, linear foot, piece, or other standard unit, you need to be able
to define the unique standard rate and let MSP calculate based on the number
of units. The only thing MSP will provide for setting up such a resource is a
"Material" resource in the "Resource Sheet"... under the assumption that
anything with a unit rate should be defined as material.

For a framing carpenter that charges by square foot of a framed space, for
example, you could name one resource "Framer Std/Rate", Type = "material",
and Material Label = "S/F" for square feet. If that Framer also charges an
hourly rate for changes to the original plan or for other "extra" work, you
could set it up another resource named, "Framer Hourly" and insert his
standard rate per hour in the Std. Rate column.

If Framing is a 4 day task and "Framing Hourly" only did hourly work on the
last day to fix some unforeseen problem with the blueprint, for example, then
you can go to the "Task Usage" screen and state exactly how many hours were
worked on which day .

Hope that is helpful.