Subcontractor Like function

The "Like" function reduced the number of bad subcontractor agreements

The large heavy civil contractor on the US market procured every year subcontractors for billions. It was common to procure badly performing subcontractors over and over again. It was hard for the CFO to improve performance in this area.

In the role as the clients internal PM for developing common ways of working across the group we identified an idea in the company about how to transfer knowledge about subcontractor performance from project to project.

The outcome of this initiative was for all the PMs in the company to have access to a subcontracts system including a voting function where the PM gave a grade to the subcontractor across a small set of parameters. The grades were visibible to all. Gradually the procurement of badly performing subcontractors went down. And, in case a bad subcontractor still had to be used, contractural terms were strenghtened to reflect the risk of using that particular subcontractor.

The main challenge with implementing the tool was to convince PMs to use it even though the pay-off was not immidiate and would come over time. A follow-up procedure was needed to monitor compliance.

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