The Cost of Choosing the Wrong Subcontractor ~ Success Depends on Trusted Trade Partners
Did you know that it costs between $400 and $700 per square foot to build a hospital depending on the geographic location (Becker’s Hospital Review)? For example, in Los Vegas the cost to build a hospital is between $285 and $455 per square foot. While in New York City the cost is between $475 and $700 per square foot. When a health network spends this kind of money they want to make sure that it will be done on time and in budget. An operating room costs the health system around $2,200 per hour for direct and indirect cost (American Journal of Managed Care). Hospitals charge between $3200 per hour and $10,000 per hour per operating room (Journal of Clinical Anesthesia, Stanford). The sooner the health system can take occupancy the sooner they can start recouping that investment.
One of the most important decisions that General Contractors and Owners can make is the selection of subcontractors. What happens when the subcontractor does not have the capacity to complete the project in the schedule required? Usually the General Contractor will have to hustle to find another subcontractor to supplement the work that cannot be completed by the awarded sub. This is painful and a deduct change order ensues or worse the performance bond is engaged and a replacement subcontractor has to be contracted. After this the GC usually will have to explain why schedule is not going to be met to the owner.
Some of the questions that have to be answered for any successful General Contractor and owner are as follows: Does this subcontractor have experience with this type of work? Does this subcontractor have the capacity to handle this type of work? Does this subcontractor operate safely? Does this subcontractor provide the quality of work to meet and exceed the expectations of the owner? Is this subcontractor financially sound? If the answers to ALL of these questions are not a resounding YES then your project is at risk.
At ASST, we have been successfully providing millwork, casework and solid surfaces on large health care projects for 23 years. We have the capacity for large projects, the processes to keep schedule, we do it safely, we are financially sound and we have the Project Managers that know how to be successful. We look forward to Going Beyond for your exciting project! Contact us today at 717-630-1251/ info@asst.com or visit our website at www.asst.com.
