Explain the importance of controlling changes with subcontractors.

Question

What will be an ideal response?

Answer 1

Control of changes with subcontractors is critical in subcontractor management. Official changes in the contract follow a specific procedure, requesting pricing information, followed by official notice to the contractor in the form of a change order. The contractor, then, needs to provide the subcontractor with written authority to proceed with additional work for the amount negotiated. This change to the subcontract agreement must be in writing. Technically, the work should not be done until formal notification is made; however, the work is often completed prior to completion of the paperwork. Payment is not made, though, until all of the paperwork is complete. Other changes occur during the work on an informal basis. It is often necessary to modify work procedures to accommodate all elements of the work. These changes are normally done at the moment, without regard for cost of the change. Careful communication needs to be accomplished between the contractor and subcontractors to avoid confusion about payment for work. As contracts become more complicated, the subcontract agreement may be explicit about the parties responsible for authorizing additional work.