Collaboration with partners and subcontractors is a very effective way for a business to extend its capabilities, improve efficiency, and improve its chances of winning government tenders.
Collaboration in both the public and private sectors helps an organisation fill gaps in expertise, scale its operations, and increase the efficiency of project delivery.
- Broadening knowledge and competence
Among the major benefits of working with partners and subcontractors lies the centralisation of diverse skills and expertise.
For example, in large and complex projects such as infrastructural developments or government contracts, a single firm may not possess certain skills that are required in some areas. Working with subcontractors that possess such skills saves companies from the hassle of employing full-time experts, helping reduce time and money.
With specialised skills, subcontractors may help meet the technical or regulatory requirements of the tender document, making the tender writing process more robust. Companies can demonstrate a comprehensive skill set through partnerships, gaining a competitive advantage when seeking government tenders. Partnering with the subcontractor can lead to further knowledge transfer, which will upscale the team’s skillset for subsequent projects.
- Increased flexibility and scalability
When dealing with large projects, having more resources on demand means that these companies can meet deadlines and take on bigger volumes of work without the liability of maintaining a large permanent staff.
For example, the flexibility that comes with subcontracting arrangements can greatly benefit companies whose businesses are seasonal or cyclical. They will find it easy to bring in extra hands for high-demand periods and wind down operations once the project is completed. This scalability is one of the major competencies in winning tenders, where project size and time frame usually demand effective resource management.
- Effective project management
Another advantage is simplifying project management. Partners can concentrate on core competencies, streamlining projects and ensuring timelines are maintained. A project manager could devote more time to supervision and coordination since each subcontractor had a given responsibility, enhancing work outcomes. Companies could even hire subcontractors who have worked together in the past, making them more efficient. Since such subcontractors would already have a rapport and understand how each other operates, there is generally more cohesion and less time spent on integration and communication.
- Economy of scale and risk sharing
Partnering with subcontractors is often a cost-effective strategy as it can reduce the need to hire and train full-time employees. A collaborative relationship with specialised providers also lowers investment in the infrastructure or technology that would otherwise be required to deal with some parts of the projects.
Beyond cost efficiency, collaborations also enable the firms to share the risks involved in the projects. In complex tenders, especially government tenders, where the scope can be extensive and requirements tight, a consortium could help to shoulder some of the operational and financial risks associated with the project. By spreading responsibility across several parties, a main contractor might reduce risks that otherwise compromise the project’s success.
- Building a stronger reputation and increasing client relationships
A good partnership will help the company build its goodwill and client relationships. For a business to present a much stronger image to clients and stakeholders, it has to collaborate with credible and experienced subcontractors, showing its commitment to quality and expertise. This may result in a better possibility of winning tenders for government contracts and longer-term engagements as the client gains more confidence in the team’s reliability and performance.
Above all, good performance regarding partnership might be the key to future opportunities with the same client. Even government and private sector clients tend to show preference toward contractors with whom they share a successful experience.
A good reputation in terms of collaboration could be seen as an approach toward future business from them or via recommendations.
Critical success factors for collaborative working
Ensure that all guidelines and expectations are established from the very beginning to maximise collaboration with partners and subcontractors.
Here are some best practices:
- Define roles and responsibilities. The contract should clearly state each partner’s role and responsibilities to avoid confusion and overlapping. This will bring accountability and clarity to the project’s life cycle.
- Ensure compatibility and alignment. It’s always easier to work with companies with similar work habits and business values. Ensure all collaborators align with project goals, timelines, and quality standards.
- Establish good communication channels. This becomes particularly important if there are many subcontractors. Set up regular meetings and provide a common outlet for storing and communicating documents to keep parties updated and on the same page.
- Risk and reward sharing. Agree on how the collaborators will share risks and rewards. This may involve detailing the liability for any delays, cost overruns, or quality problems. Once the subcontractors understand that they share in both the risks and rewards, they will be more inclined to commit themselves to seeing the project through to a successful outcome.
- Maintain transparency and trust. Transparency in collaboration is the basis for the development of trust. Be open with relevant information and establish trust by honouring contractual obligations and meeting commitments. This may prevent conflicts and ensure a smooth working relationship.
Collaboration with partners and subcontractors provides a company with an advantage in tender competitions, especially when winning tenders from governments. Good partnerships will help a firm leverage specialised expertise, scale up, manage risks, and eventually develop more compelling and competitive proposals.
