During project execution, subcontractor management is very critical to the project s success. Subcontractor management is effected with the help of vendor engineers, quality engineers, or purchasing agents who are mostly part-time members of the team. Controlling domestic and international subcontractors can be overwhelming. There can be many levels of subcontractor control, namely, from a simple weekly telephone call to get a task status, to implanting a full-time engineer at the subcontractor s facilities. Again, periodic face-to-face meetings with the critical subcontractor at his company s facilities are a must. Videoconferences or teleconferences always give you a rosy picture of how things are progressing at your subcontractor s site. You might be very surprised to see the actual progress of your task at your subcontractor s when you visit the latter s facilities. Some international subcontractors give a low bid and get the contract, but they cannot deliver on time and conform to all the specifications, standards, and certification requirements.

For example, it might be very appealing costwise to hand a subcontract to a casting house in China for a complicated piece of component. However, travel costs, inspection costs, misunderstandings in specifications and standards, reworks, and delivery delays will make that appealing cost balloon out of control very fast.

Face-to-face meetings with the subcontractor should go beyond a conference room. During the design, construction, and testing of the equipment, you should be able to enter a subcontractor s and his subsupplier s facilities for the purpose of inspecting documents, materials, workmanship, and testing related...