Subcontracting is standard practice in commercial construction, but has somehow gotten a bad rap in the Facilities and Loss Prevention world.  Managers and facilities directors worry about increased cost and loss of control.  While this may hold true for some trades, it doesn’t in the world of doors and locks.  For small, local businesses, self-performing locksmiths makes sense; but when managing a national chain of locations, the true loss of control lies in the inconsistency of using a different technician for each location. That’s not to say National Service Providers (NSPs) haven’t tried, but the one that once offered nationwide self-performing lock and door repair closed the division.

So how do you benefit from a NSP that subcontracts?

Think Buying Power – Not Labor Markup

A NSP retains a much higher buying power than local vendors.  When you work with a nationwide supplier, you leverage that buying power and get substantially better parts pricing than you would if you purchased parts from local providers.  Often times, you will save at least 30%.  If your average parts spend is $25,000, you would save at least $7,500 by working with a NSP.

Availability – National Service Providers Are Never Booked Full

When you work with a NSP, the only time you’ll hear “I’m sorry – we can’t get out there today” is when you need a technician to go to a location in the middle of a national park during the government shutdown (too soon?).  Quality local providers stay pretty busy and they’re schedules can be filled, often days in advance.  NSPs that subcontract have a database of vetted technicians, meaning there is always someone available.

Warranty Management – Hidden Savings with Subcontracting

Have you ever stopped to consider how much value lies in the warranty of the parts installed on your facilities?  Wait, let’s back up. Do you know which of your parts carry warranties? Do you have someone who manages the warranties of every part, of every location? Does your local service provider manage and honor the warranties of those parts? I’ll give you a hint – most of them don’t and most companies don’t have the man power that allows for that kind of tracking but for some of our customers, the value is as high as $4 million.  Yes – you read that correctly – $4 MILLION.  If you work with local providers, managing the parts warranty will fall in your lap, and trust me when I say it’s a cumbersome process.  NSPs should manage the warranty process for you.  Many parts carry a one year warranty, and higher end products tend to carry 5-year, 10-year and even lifetime warranties.  If you thought you were going to save money on purchasing parts, think about how much money you will save replacing parts.

Don’t Comply?  You’re Fired

Subcontracting doesn’t mean a loss of quality.  As a NSP, we’re not afraid to channel our inner Donald Trump if a subcontractor fails to meet expectations.  We work diligently with our techs to ensure that they understand your expectations including quality of work, insurance compliance, IVR performance, and timeliness.  We treat them much like we do our employees – we clearly communicate expectations, monitor performance, coach them up, and if they regularly fall short, we have to let them go.  So do we have less control? In some ways yes, but in many ways we have no more control over our subcontractors than a local provider has over its employees.

I told you the “s-word” isn’t so dirty after all.  I could bore you for three more pages on the benefits of subcontracting, but hopefully this will be enough to get your wheels turning.  Do you have any questions?  What concerns do you have about subcontracting?  Let’s debunk this myth once and for all in the comments!

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