SUB-CONTRACTOR - a business or person that carries out work for a company as part of a

larger project.
WHAT ARE SUBCONTRACTORS FOR US? – Subcontractors are our partner as a builder. They
are the blood lines of our accomplishment and the mirror of our craftsmanship or
workmanship.
WHY WE GET SUBCONTRACTORS?
1. Creating a scalable business without additional overhead and handle our extra work.
2. Extend service offerings.
3. Grow your company
4. Navigate the peak and valleys
5. Perform lower value work.
6. Cut back hours
WHAT ARE THE QUALIFICATIONS OF A SUBCONTRACTOR?
1. Must know how to read and write.
2. Must know how to prepare his/her billings and expert in mathematical computation.
3. Must be honest, have a good attitude and cooperative.
4. Must have the knowledge and experience of a specific work to be contracted.
5. Must have sufficient skilled manpower and equipments.
6. Must have all government requirements of the business. (Optional for small and
common subcontractors.)

Kinds of sub-contracting.
1. Materials labor and equipment
2. Labor services

Process:
a. Submit Quotation of a specific work
b. The quotation must be evaluated at site by the project manager
and project engineer.
c. Evaluated quotation must be signed by the owner or project
manager.
d. Quotation must be submitted to the main office for final
evaluation including the plan and specification of a specific work.
e. Final evaluation must be approved by the operation manager and
owner prior to contract preparation.
3. Cost Plus
Process:
a. Submit specific details of work and Manpower list with approved
rates signed by Project manager and Owner.
 b. Submit the documents mention above to the Main office for final
evaluation to be approved by the operation manager prior to
contract preparation.

Total number of Subcontractors = 66 individual subcontractors.

Total number of Projects = 63 Subcontracted Projects

What are the contents of a Billing Document

Page 1. Request for Payment letter
a. Date of Submission
b. Project Name
c. Project Location
d. Project phase
e. Billing period Cover
f. Content of the request letter.
g. Signature of the Sub-Contractor
Page 2. Statement of Work Accomplish
a. Summary of quantities
b. Unit Prices
c. Amount per Item and Total amount.
Page 3. Back-up Computation and back-up Drawing
NOTE: Billing document must be computerized with font size 12 minimum.
Problem encountered:
1. Late billing Submission
2. Disorganize billing
3. Handwriting problem
4. Error of Mathematical Computation.
5. Short cut computation
6. Without back up drawing
7. Repeated billing
8. Overlapping billings
9. Billing out of scope – no contract
10. Sub-contractors billing complaints
11. Formula used on computation
12. No billing period
13. No billing Phase

Root Cause:
1. No Straight Line Diagram for monitoring
2. Disorganized subcontractors
3. Mathematical computation
4. Lack of knowledge of the contract especially the scope of work and
responsibilities of the subcontractors.
5. Reading and comprehension of the construction plan
6. Punctuality of submitting the billing