Lovell Partnerships
Lovell's approach to partnering with subcontractors is based on recognising expertise and rewarding effort. It still rates competition as a key factor when selecting subcontractors, but works from smaller approved lists, made up of businesses that have been through a pre-qualification process. Within partnering contracts subcontractor know-how is tapped into in value engineering workshops. Rewards for subcontractors come in several forms, from continuity of work to more direct incentives. The company has devised a model reserve account, where savings found through innovation are allocated and payment of the final balance of the account is shared between Lovell and the client team on completion. As an incentive, 20% of the value of any net savings which lead to a contribution to the reserve account are paid immediately to whoever is responsible for the idea.
Second<
Bowey Homes
"What would make you want to work for Bowey in preference to other companies?" Bowey has been putting this question to subcontractors to help build better relationships and maximise efficiency and quality. The company looked at US systems and UK best practice to formulate its strategy, which is based on workshops of related groups of contractors that work in sequence with each other. The company now tenders annually to smaller groups of trade contractors and is seeing improved relationships and work standards.
Equal third
D Campbell & Company
D Campbell has built up strategic alliances with a range of key subcontractors to mutual benefit. Key subcontractors are included in design team meetings, progress meetings, and meetings with clients to reinforce their position as essential players in the team. The contractor is gaining greater assurance of quality of service and commitment to successful project delivery.
Adopted a clear open-book approach and employed profit sharing techniques as a reward
Source
Building Homes