The Necessity of Subcontractors and Agents in Procurement

Buying Subcontractors

Subcontracting becomes necessary when you are part of a bigger picture. Despite the experience and efficiency, you may have, there are times when you might need outside help to get a specific task done. This may also become necessary when the work-load is high and the window is too small for you to get the entire project completed fruitfully. Such is in the case of procurement. It is a vast industry that is constantly changing and evolving, and getting goods from another land is a difficult task. You can get this job done effortlessly with the help of buying subcontractors.

Subcontractors are those who work under the main contractor. If and when a contractor lacks the resources or skills for a specific work, they have subcontractors take on that certain task. The main contractor/supplier takes the approval of the purchaser and contracts the necessary part of work/supplies to a third part – the subcontractor. However, the contractor is responsible for the subcontractor and must see that they abide by the duties, liability and obligations listed under the contract.

Procurement Agents

Procurement agents are administrators in a business who is responsible for the selection and buying of materials and services. They do this by accumulating and evaluating information regarding suppliers, products and prices. They get in touch with different manufacturers and/or suppliers to source what you need. These agents deal with a much larger area of expertise than subcontractors. They specialize in overseeing all sorts of procurement activities, which involves supervising staff, monitoring the budgets and handling the suppliers’ contract negotiations.

On the other hand, buying subcontractors may be a business or an individual. Often, they are not employed by the contractor but are independent contractors themselves. Based on the agreement, they may provide own equipment or methods to get the job done. Their work includes finding and procuring raw materials, services and products from farmers, suppliers and service providers. In simple terms, they are businesses that excel in the purchase of goods on behalf of other companies.

Subcontracts are only handed to subcontractors who are responsible and have the ability to successfully perform under the T&C of procurement in process. Such contracts are comprised of specified scheduled deliveries, according to which certain products or tasks are to be finished, reviewed and approved by the agency. By working together with the subcontractor, the lead agency plays an important role in establishing key tasks and directions and monitors the methods, quality and output of the performed task. Buying subcontractors often need to report on scheduled timetables, mostly every month, and certain dates if specified. They are responsible for the activities as well as the cost reimbursement invoices.

Both procurement agents and subcontractors work together to catapult an organization and improve their performance through efficiency in the procurement of services and goods. One of the toughest yet rewarding work is to build and maintain a relationship with product manufacturers and vendors to encourage positive working bonds.