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SubContracting SME a challenge a uncontrollable risk a benefit How to handle

Many have repeatedly and consistently commented that the subcontracting obligation is a real major concern and problem. Basics. What is not a subcontract. Materials (delivery). Material purchase (supply) as such is not a subcontract and follows different regulations. Workers as such are depende

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SubContracting SME a challenge a uncontrollable risk a benefit How to handle

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    1. SubContracting (SME) a challenge a uncontrollable risk a benefit? How to handle

    2. Many have repeatedly and consistently commented that the subcontracting obligation is a real major concern and problem

    3. Basics

    4. What is not a subcontract

    5. Materials (delivery) Material purchase (supply) as such is not a subcontract and follows different regulations

    6. Workers as such are dependent on the instructions, are not free to do how they like, hold no responsibility for the product and are therefore not (sub)-contractors Are not liable for the product/item Have a different legal status in terms of obligations and rights (laborer laws)

    7. Equipment are assets and follow other rules and laws such as the financial laws

    8. Conclusion: it needs a combination of several elements to create a subcontract One element is always: managing and decision making (creating responsibility) for the item is with the subcontractor

    9. Subcontract in terms of construction means that parts / elements of the project (product) are delivered by other contractors (such as SMEs) “employed” by the GC. A subcontractor is responsible to produce/deliver a (partial) product in terms of a measurable item in technical and legal terms according a ccontract (by defined: time, quality, costs etc…)

    10. Subcontracts Are identified and seen as serious risks and none beneficial to achieve the project and the objectives of a GC

    11. Subcontracts are unsuitable to deliver on time and delay and complicate the project process (loss of ability to instruct and take direct actions) risky in terms of budget impossible to be handled in legal terms a threat to the GC politically beneficially but eliminate/restrict profit for the GC

    12. Subcontractors Have no money, no material and no equipments Are short term companies and cannot be made responsible in future for defects and cannot guarantee Are on low professional grounds in technical administrative and managerial terms

    13. GTZ (We) disagree to such statements and challenge them We will therefore address directly ANY questions, problems and fears We like to find solutions jointly and provide answers needed

    14. GTZ will try to pave the way for successful subcontracting by providing solutions tailored to problems, addressing your concerns

    15. Lack of subcontractors available

    16. Data we need to understand and to find solutions to fulfill the 40% rate of the contract

    17. Labour % Material % Equipment % Site overhead % General overhead % Risk % Profit % Basic Cost distribution of a building by workmanship, material, equipment and overhead etc

    18. Common used Subcontracts Piece workers Some trades

    19. Subcontracting by trades

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