The relationship between prime and subcontractors is a critical component of success in meeting project objectives. Tom Reid, CPCM

Subcontract management is a critical part of the contract lifecycle. What’s the big deal?

When a contract is created between a buyer and seller, it’s common for the seller (the prime contractor) to obtain the required supplies or services from other companies (subcontractors) in order to fulfill the contract. This is where subcontract management comes in.

What is subcontract management?

Subcontract management is in the post-award life cycle phase of contract management, and it is in the “Perform Contract” domain. It is the contract management of subcontracts, with the prime contractor being responsible for the performance of its supply chain. The value added by this process is in having a single point of contact responsible for:

  • Subcontract award,
  • Technical and financial performance,
  • Monitoring performance, and
  • Payment to the subcontractors and suppliers for the work accomplished under subcontract terms.

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