As Construction Claims Consultants, Holloway Consulting consults and advises contractor-clients on whether to subcontract all work, perform all work using direct-hire a labor force, or use a combination of direct-hire and subcontractors. Direct-hire craft personnel may be hired under either union or open shop rules. If all work is to be subcontracted, the contractor’s options are union, open or merit shop. These decisions are required very early in the operational planning and bidding processes. In some instances, the client will have dictated the approach in the bidding documents or the contractor may have union obligations that dictate his/her mode of operation. Once the approach is selected, job hiring and subcontracting plans should be formulated.
Construction Subcontractor Claims Consultant
SUBCONTRACTING
DIRECT-HIRE LABOR FORCE
With the possible exception of the contractor’s key supervisory personnel, the hiring of the direct-hire labor force will often be handled from the location of the site, although recruiting may extend elsewhere. If the contractor intends to perform the work under union conditions, the contractor should coordinate with all involved union locals to obtain local bargaining agreements that will govern pay and work rules for each craft.
Or, he/she may choose to seek a Project Labor Agreement rather than work under the separate craft agreements. Such an agreement should originate with the Building Trades, and AFL-CIO, at the international level and then be signed off at the local level. Either approach requires considerable time and effort and should be started very early in the bid preparation process, since the results may affect wage hour scales and work rules which relate to crew sizing, productivity and pricing.
If the project is direct-hire open shop, Holloway Consulting consults and advises contractor-clients to conduct a thorough area labor survey to determine availability of labor and assess area wage scales. If there is a labor shortage of any kind, Holloway Consulting has consulted with and advised contractor-clients to:
- Compensate for that shortage by recruiting from areas outside the project area;
- Establish special craft training programs; and,
- Compensate for shortages by scheduling extended work days or weeks, or otherwise developing attractive compensation packages.
In any case, plans should be made for personnel recruiting, screening, and training (if applicable) as part of operational planning.
RECENT CASE EXAMPLE
Holloway Consulting provided construction expert witness testimony in a recent power generation facility dispute wherein the general contractor failed to contact the local labor union and identify the shortage of certified pipe fitters and welders. The general contractor was then forced to use boilermaker welders at reduced productivity and greater inexcusable and non-compensable costs.
READ MORE ABOUT AVOIDING CLAIMS IN FIXED-PRICE CONSTRUCTION CONTRACTS
The Holloway Consulting Group, LLC
Construction Claims Consultants and Construction Experts
12081 W. Alameda Pkwy., #450
Lakewood, CO 80228-2701
Denver Phone: (303) 984-1941
International : (888) 545-0666
Fax: (303) 716-0432
Email: steve.holloway@disputesinconstruction.com
Blog: disputesinconstruction.com
Web: hcgexperts.com
