In complex projects, the number of subcontractors can be quite high. In addition, there can be several levels of subcontracting. For example, an owner/operator company may hire an EPC (engineering, procurement, and construction) company. This company might then hire a subcontractor for construction. The subcontractor might then hire a supplier company as a sub-subcontractor. Data from all the different companies must be managed in an efficient way.
Other reasons for managing subcontracting can be as follows:
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Construction subcontracts today account for a significant portion of project cost.
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Project liabilities and risks cannot be completely passed down to a subcontractor.
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Change management and schedule management are critical to project success.
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Technical and quality compliance are important, as is health, safety, security, and environmental risk management.