Sub-contractors play a crucial role
towards achieving project objectives. The Project Management team needs
to ensure that sub-contractors will finish their work on time and on
budget with minimal changes. To achieve these goals a project-wide Code
of Accounts (COA) needs to be put in place which also applies to
sub-contractors. Sub-contracts should also be set up such that their
schedule of prices and schedule structure are aligned with project’s
COA. This will result in better sub-contract management, and more
accurate progress reporting, cost control and schedule forecasting. RFP
documents should prescribe the required milestones, schedule template,
schedule of prices and set clear progress reporting requirements. In
this paper, the process of subcontract management is examined from the
pre-award (RFP) stage to post-award subcontract administration, from the
perspective of project controls. The concept of Governing Quantities
for cost and Construction Work Packages for the schedule will be
introduced.