CONSTRUCTION

SUBCONTRACTOR
MANAGEMENT
Manajemen Subkontraktor Konstruksi

Seng Hansen
CONSTRUCTION COMPANIES Banyaknya Perusahaan Konstruksi
Kecil Menengah Besar Jumlah
Provinsi 2019 2020 2021 2019 2020 2021 2019 2020 2021 2019 2020 2021
ACEH 4180 4779 7668 706 651 925 27 18 21 4913 5448 8614
SUMATERA UTARA 6514 5853 8822 1233 1068 1360 38 35 24 7785 6956 10206
SUMATERA BARAT 4901 4909 5804 412 330 546 24 19 15 5337 5258 6365
RIAU 7310 6425 6466 1074 1324 1302 39 49 39 8423 7798 7807
JAMBI 2781 2628 3067 363 320 309 10 10 5 3154 2958 3381
SUMATERA SELATAN 2864 2819 4591 806 695 955 50 40 46 3720 3554 5592
BENGKULU 1321 1212 1348 162 131 146 6 3 3 1489 1346 1497
LAMPUNG 3216 3591 3895 427 471 436 15 11 5 3658 4073 4336
KEP. BANGKA BELITUNG 1090 841 863 107 85 92 2 2 3 1199 928 958
KEP. RIAU 1670 1598 1927 453 404 675 16 12 12 2139 2014 2614
DKI JAKARTA 1921 1819 3980 7317 7091 9501 854 804 1024 10092 9714 14505
JAWA BARAT 8649 8251 9786 3177 2765 3023 82 82 75 11908 11098 12884
JAWA TENGAH 10422 10186 14385 1433 1225 1540 40 42 36 11895 11453 15961
DI YOGYAKARTA 1441 1416 1518 238 368 375 4 7 7 1683 1791 1900
JAWA TIMUR 18530 17533 21800 2198 1796 2694 110 101 102 20838 19430 24596
BANTEN 2418 1991 5554 945 1117 1652 32 36 64 3395 3144 7270
BALI 1832 1588 1758 322 272 247 9 5 3 2163 1865 2008
NUSA TENGGARA BARAT 3553 3480 3869 254 205 214 15 13 10 3822 3698 4093
NUSA TENGGARA TIMUR 5631 5458 5656 395 403 400 9 10 17 6035 5871 6073
KALIMANTAN BARAT 5161 5137 7230 381 313 460 8 8 11 5550 5458 7701
KALIMANTAN TENGAH 1499 1596 1992 311 295 339 22 21 19 1832 1912 2350
KALIMANTAN SELATAN 3616 3327 3919 471 376 514 7 7 6 4094 3710 4439
KALIMANTAN TIMUR 3682 3330 5386 1187 1086 1391 67 52 47 4936 4468 6824
KALIMANTAN UTARA 1413 1167 1285 221 132 156 17 14 15 1651 1313 1456
SULAWESI UTARA 2273 1755 2074 289 232 398 12 8 7 2574 1995 2479
SULAWESI TENGAH 3189 2858 3681 298 221 317 9 9 10 3496 3088 4008
SULAWESI SELATAN 9698 9565 9954 1491 1424 1444 32 28 26 11221 11017 11424
SULAWESI TENGGARA 3203 2956 3257 335 320 334 10 11 10 3548 3287 3601
GORONTALO 658 589 756 138 130 120 3 2 2 799 721 878
SULAWESI BARAT 1195 1136 1301 49 61 94 1 1 1 1245 1198 1396
MALUKU 1956 1594 2030 267 221 308 13 8 9 2236 1823 2347
MALUKU UTARA 2168 1849 1975 331 267 258 7 6 5 2506 2122 2238
PAPUA BARAT 3162 2977 3035 516 414 393 24 26 25 3702 3417 3453
PAPUA 4900 4530 6973 891 811 1130 39 41 46 5830 5382 8149
INDONESIA 138017 130743 167605 29198 27024 34048 1653 1541 1750 168868 159308 203403
SUBCONTRACT AGREEMENT
Managing a subcontract begins with understanding the language of the contract.

EMPLOYER
Contract
Agreement

CONTRACTOR
Subcontract
Agreement
SUBCONTRACTOR
WHO ARE THEY?

(Holm, 2019)
RELATIONSHIP

(Michael, 2023)
SUBCONTRACT TYPES
Jenis Subkontraktor Domestik Named Nominasi

Dipilih oleh Kontraktor Dinominasi oleh Pemilik Dipilih oleh Pemilik

proyek, dan dipilih oleh proyek
Kontraktor
Kontrak Dengan Kontraktor Dengan Kontraktor Dengan Pemilik proyek

Kelebihan Proses tender dilakukan Proses tender akan Proses tender akan
oleh pihak kontraktor diawasi oleh pemilik dijalankan oleh Pemilik
secara langsung proyek, dan bisa proyek, dan kontraktor
dijadikan alternatif oleh berhak menolak
Kontraktor

(Michael, 2023)
PROBLEMS WITH SUBCONTRACTORS

What are some problems with

subcontract management?

➢ Small & family-owned businesses

➢ May suffer from underfinancing
➢ May suffer from understaffing
➢ Limited managerial and technical
skills
➢ Limited resources
➢ Lack of knowledge and experience
https://www.legalzoom.com/sites/lz.com/files/articles/what_is_your_liability_when_using_subcontractors.jpg
MANAGING THE WORK
➢ Major problem is scheduling
➢ Domino effect: delay by a
subcontractor may influence others
➢ Time is money

What are some causes of delays

by subcon?
Causes of delays:
➢ Lack of staff
➢ Lack of equipment and materials
➢ Out-of-sequence work
➢ Congestion
➢ Work changes
➢ Unforeseen conditions
➢ Unrealistic schedule
MANAGING THE PEOPLE
What are some issues when managing construction workers?

• Personalities
• Work culture/habits/ Unhealthy
practices relationship
Conflicts
• Trust issue & work
• Doubting information environment
• Inability to work together
 BEST PRACTICES

(Thomas & Ellis, 2017)

CLEAR SUBCONTRACTS
What does a contract cover?
A legally binding, written contract covering:

➢ The legal names of the parties

➢ The scope of the work
➢ The responsibilities and authorities of each party
➢ A clear definition of the services to be provided
➢ Any and all constraints imposed on the
subcontractor by the main contractor such as
schedule and budget constraints
➢ A clear statement of requirements for quality of
deliverables and services
➢ Appropriate terms and conditions
➢ The acceptance and payment procedures
WORK INTEGRATION
All subcons are coordinated by the main ➢ Scheduler plays an important role
contractor ➢ Master schedule should be developed that
establishes schedule constraints and
significant internal milestones
Why? ➢ Intermediate schedule should be
established to present key project
interfaces and interdependencies of the
To ensure that the efforts of all work efforts
parties are integrated into a cohesive ➢ Concurrent engineering meetings should be
whole through the process of conducted regularly to provide visibility of
concurrent engineering and top- work being performed and provide an
down project control opportunity for discussion among all parties
INTERFACES
Interfaces between main contractor and
subcontractors

➢ Each subcontractor organization will

have a single point of contact with the
main contractor for contractual matters
➢ The subcontractors are expected to
identify their own single point of
contact for contractual matters
➢ On a day-to-day basis, all subcontractor
personnel will be free to interact with
any main contractor personnel as
needed to fulfil the subcontract

https://images.sampleforms.com/wp-content/uploads/2019/03/Subcontractor-Warranty-Forms.jpg
INTERFACES
Interfaces Among the Subcontractors

➢ Each subcontractor organization will

identify the responsibilities and authorities
of the project staff
➢ This information will be published in a
project contact sheet
➢ Informal, mutually beneficial contact is
encouraged
➢ To avoid schedule slippage, the
interdependencies of subcontractor efforts
will be identified on the intermediate
schedules
➢ These intermediate schedules will make the
formal interfaces visible

https://www.federalmanagement.co.uk/wp-content/uploads/2019/07/debt-collection-for-subcontractors-1024x683.jpeg
PROGRESS REPORTING
➢ The main contractor must be kept aware of the
overall progress of the project
➢ This includes the progress of each subcontractor
➢ The subcontractors will report progress on a
weekly/monthly basis
➢ Based on the information contained in the
weekly/monthly reports, the main contractor will
prepare a monthly progress report to be submitted
to the employer
REVIEW PRACTICES
• Review is crucial to reduce the risk of
inappropriate work
• Review should be established at regular
periodic intervals and at key project
milestones

What are they?

Types of review:
➢ Progress reviews (as-needed basis)
➢ Regular meetings
➢ Milestone reviews
➢ Quality assurance reviews
ACCEPTANCE & PAYMENTS
All services provided by the subcontractors
are subject to approval by the main contractor
➢ Acceptance form is needed

For the accepted work completed,

subcontractors are entitled with payments
➢ Invoices prepared by subcontractors
➢ Presented in a format suitable for
submission to the main contractor
➢ Payments will be paid by the main
contractor for the approved work
completion by subcontractors
➢ It can be on a monthly basis or as per
payment terms
KNOWLEDGE BASED SYSTEM
DAFTAR REKANAN
Tahun ….....
Rev …...

Tanggal Evaluasi
No Nama Rekanan Jenis Jasa Contact Person Alamat Tel - Fax Email
Terakhir Berikutnya

Disetujui oleh Dibuat oleh

…...... …....
CASE STUDY
➢You are a general contractor working to build a 35 story apartment
in Jakarta.
➢You need to find subcontractors and suppliers to help completing
this work.
➢Find at least three subcontractors/suppliers for:
➢Heavy equipment rental
➢Scaffolding rental
➢MEP subcontractor
➢Facade subcontractor
➢Waterproofing subcontractor
➢Interior subcontractor
WOULD YOU LIKE TO ADD
SOME-THINKING?
ACTIVE LEARNING
➢ Self study
➢ Find and read the following articles:

Jazayeri, E, Liu, H, Dadi, GB. (2018). Assessing and Evaluating Subcontractor

Management Safety Policies. ASCE Construction Research Congress 2018, 251-261.
SENG HANSEN
@S e n g H a n s e n

@S e n g H a n s e n
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