How Pros Are Handling a Shortage of Subcontractors
Pros share tips for finding quality subs and building relationships with them
As a residential remodeling or design professional, you may rely heavily on subcontractors to turn your remodeling plans into reality. But a lack of qualified construction workers has been plaguing many firms and delaying projects — so much so that 30% of firms said that a shortage of subcontractors was a top challenge for their businesses in 2018, according to the 2019 U.S. Houzz State of the Industry study.
“It’s frustrating when you’re trying to hit a deadline for a customer and the crews just can’t make it happen,” Jenny Sneller of Sneller Custom Homes and Remodeling in Spring, Texas, says. This problem most affects builders and contractors (42% of whom reported a shortage of subcontractors as a business problem in 2018), design-build firms (38%) and interior design firms (32%), according to the Houzz study. We spoke with five pros to learn how they find and retain the best subcontractors.
“It’s frustrating when you’re trying to hit a deadline for a customer and the crews just can’t make it happen,” Jenny Sneller of Sneller Custom Homes and Remodeling in Spring, Texas, says. This problem most affects builders and contractors (42% of whom reported a shortage of subcontractors as a business problem in 2018), design-build firms (38%) and interior design firms (32%), according to the Houzz study. We spoke with five pros to learn how they find and retain the best subcontractors.
2. Vet New Subcontractors Before You Need Them
These days, many firms are finding that their favorite subcontractors aren’t always available for jobs. “The only way we’ve found to cope with the reality of this is to always be looking out for new crews, even when we don’t need them right then,” Sneller says. “We want to always have two to three different crews for each trade.”
Sneller has found new potential subcontractors through events held by the local Greater Houston Builders Association; from recommendations from other subs, designers, architects and builders; from attending open house tours and getting referrals that way; and from asking materials suppliers for good installers.
When she discovers promising new potential subcontractors, Sneller likes to test them on small jobs to make sure they do quality work. That way, by the time she really needs them she knows their skill set. “You have to start that relationship before you’re desperate for someone.… When you’re desperate, you generally don’t make great decisions, and standards start to slip,” Sneller says.
Leavitt likes to interview would-be subcontractors to be sure they’ll have the crews required to get the job done. He asks them how many employees will be assigned to his project. “Before we sign the contract and send them the contract, we will have an interview to make sure they will have capacity to do what we ask of them,” he says. “We vet them to make sure that they can handle our workload, timelines and commitments.”
These days, many firms are finding that their favorite subcontractors aren’t always available for jobs. “The only way we’ve found to cope with the reality of this is to always be looking out for new crews, even when we don’t need them right then,” Sneller says. “We want to always have two to three different crews for each trade.”
Sneller has found new potential subcontractors through events held by the local Greater Houston Builders Association; from recommendations from other subs, designers, architects and builders; from attending open house tours and getting referrals that way; and from asking materials suppliers for good installers.
When she discovers promising new potential subcontractors, Sneller likes to test them on small jobs to make sure they do quality work. That way, by the time she really needs them she knows their skill set. “You have to start that relationship before you’re desperate for someone.… When you’re desperate, you generally don’t make great decisions, and standards start to slip,” Sneller says.
Leavitt likes to interview would-be subcontractors to be sure they’ll have the crews required to get the job done. He asks them how many employees will be assigned to his project. “Before we sign the contract and send them the contract, we will have an interview to make sure they will have capacity to do what we ask of them,” he says. “We vet them to make sure that they can handle our workload, timelines and commitments.”
3. Help People Get Their Businesses Started
Given that subcontractors — from carpenters to electricians to masons and more — are in demand, today’s market offers an opportunity for ambitious tradespeople to start their own businesses. Richard Ryder, general contractor and owner of design-build firm Clearcut Construction in Wake Forest, North Carolina, tries to build relationships by supporting the ambitions of these would-be entrepreneurs. In short, he gives them work outside of their day jobs. “I’m not going out trying to steal people’s employees,” Ryder says. “But these are people that I run into that I talk with that give me a hint that they would like to do something other than work 9 to 5.”
For instance, one tradesperson who now works for a company that refinishes furniture is currently putting together cabinets and finishing cabinet doors for Clearcut during his off-work hours. “It’s not just the sub cost, it’s [lack of] sub availability that we’re dealing with,” Ryder says. “This way we can create our subs and they’re going to be there for us.”
Given that subcontractors — from carpenters to electricians to masons and more — are in demand, today’s market offers an opportunity for ambitious tradespeople to start their own businesses. Richard Ryder, general contractor and owner of design-build firm Clearcut Construction in Wake Forest, North Carolina, tries to build relationships by supporting the ambitions of these would-be entrepreneurs. In short, he gives them work outside of their day jobs. “I’m not going out trying to steal people’s employees,” Ryder says. “But these are people that I run into that I talk with that give me a hint that they would like to do something other than work 9 to 5.”
For instance, one tradesperson who now works for a company that refinishes furniture is currently putting together cabinets and finishing cabinet doors for Clearcut during his off-work hours. “It’s not just the sub cost, it’s [lack of] sub availability that we’re dealing with,” Ryder says. “This way we can create our subs and they’re going to be there for us.”
4. Pay Well and Be Easy to Work With
It goes without saying that in a competitive labor market, your company needs to pay subcontractors on time, pay them well and be considered a good place to work and an easy group to work with. Appreciation, good communication and respect are all keys to incorporate as part of your company culture, Sneller says.
“Unfortunately, there’s no magic bullet that keeps all the good ones around, but good people do seem to attract good people,” Sneller says. “So we have to look at ourselves and go, ‘Are we the kind of people we’d want to work for?’ and if the answer is ‘Yes,’ then that’s all we can control.”
It goes without saying that in a competitive labor market, your company needs to pay subcontractors on time, pay them well and be considered a good place to work and an easy group to work with. Appreciation, good communication and respect are all keys to incorporate as part of your company culture, Sneller says.
“Unfortunately, there’s no magic bullet that keeps all the good ones around, but good people do seem to attract good people,” Sneller says. “So we have to look at ourselves and go, ‘Are we the kind of people we’d want to work for?’ and if the answer is ‘Yes,’ then that’s all we can control.”
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While companies may be able to find people willing to work, it can be a challenge to find those with the skills they need. “We are a small company, and with the shortage in quality skilled labor we can’t find a person qualified to even come on as part time,” says Nicole Salter, interior designer with Harris McClain Kitchen & Bath, a design-build firm in Monroe, Michigan. “The harder part is finding people that want to work and that will show up on time and not expect top pay for unskilled work.”
In the past, Judy Mozen, general contractor and owner of Handcrafted Homes, listed openings for permanent positions on online job and social media sites. But some people the company hired through these channels turned out not to have all the skills they claimed to. So Mozen decided to try a new tactic. “This year I said, ‘I’m going to go to my subs,’ ” she says.
Mozen called the subcontractors she works with regularly and asked them to pass along the names of anyone they knew who might be good as a project manager. “It worked,” Mozen says. “One of the very good people was doing freelance work for one of our subs. He had talked to our sub about permanent work and our sub wasn’t willing to hire somebody.” The candidate was already trained on the project management software that Mozen’s firm uses and has integrated well as a new project manager. Mozen calls him “an incredible find.”
While this approach resulted in a permanent hire for Mozen, your firm could employ the same strategy to find new subcontractors. “If we know that someone is high-caliber and will perform, there may be a premium to pay that firm to come in and join us on the project,” says general contractor Brad Leavitt, owner of AFT Construction in Scottsdale, Arizona.