Subcontractor Performance Management

Online Training Course

Effectively managing subcontractors is critical to the safety, quality, schedule and cost performance of industrial projects and operations.

This practical online course provides supervisors, engineers, contract administrators, package owners and operations managers with a structured approach to monitoring, measuring and improving subcontractor performance throughout the contract lifecycle — from mobilization through execution and final close-out.

Participants learn how to establish measurable performance expectations, develop subcontractor KPIs and scorecards, conduct performance reviews, identify underperformance early and implement corrective actions while maintaining professional and productive working relationships.

Delivery: Self-paced online training
Suitable for: Industrial construction, refineries, shutdowns, turnarounds, maintenance and operating facilities
Assessment: Scenario-based exercises and knowledge checks
Certificate: Certificate of completion

Why Subcontractor Performance Management Matters

Subcontractors carry out a significant proportion of the work on industrial construction projects, refineries and operating facilities.

Their performance can directly affect:

• Health and safety
• Project schedules
• Quality of work
• Productivity
• Project costs
• Regulatory and contractual compliance
• Client and contractor reputation

Effective subcontractor management therefore requires more than checking whether work has been completed. Organizations need clear expectations, measurable performance indicators, reliable monitoring and a consistent process for dealing with both strong and poor performance.

This course provides a practical framework that managers and supervisors can apply directly to subcontracted work.

Who Should Take This Course?

This course is suitable for professionals responsible for overseeing or interacting with subcontractors, including:

• Site supervisors
• Project engineers
• Construction managers
• Contract administrators
• Package administrators and package owners
• Procurement and contracts personnel
• HSE professionals
• Quality professionals
• Operations managers
• Maintenance managers

It is particularly relevant to organizations working in industrial construction, oil and gas, refining, petrochemicals, energy, manufacturing and other process industries.

What You Will Learn

By the end of the course, participants will be able to:

1. Explain how subcontractor performance affects safety, quality, schedule and cost objectives.
2. Translate contracts and scopes of work into measurable performance requirements and KPIs.
3. Assess subcontractor readiness before mobilization, including competence, resources, documentation and HSE requirements.
4. Monitor subcontractor performance through inspections, progress tracking, audits and performance data.
5. Develop and use subcontractor performance scorecards.
6. Conduct structured subcontractor performance review meetings.
7. Recognize early warning signs of underperformance.
8. Develop corrective action plans and apply appropriate escalation processes.
9. Communicate performance concerns professionally and constructively.
10. Use performance history and lessons learned to improve future subcontractor selection and contract awards.

Course Content

Part 1 – Setting the Foundation

Participants begin by learning how to establish clear expectations before subcontracted work starts.

Topics include:

• Why subcontractor performance management matters
• Impact on safety, quality, schedule, cost and reputation
• Client, main contractor, package owner and subcontractor responsibilities
• Translating contracts and scopes of work into performance requirements
• Selecting appropriate subcontractor KPIs
• Safety, quality, progress, productivity and workforce indicators
• Pre-mobilization readiness assessments
• Competence, manpower, equipment and documentation requirements
• HSE plans and site induction
• Kick-off meetings and aligning expectations

Part 2 – Monitoring and Measuring Subcontractor Performance

This part focuses on objectively measuring what is happening on site rather than relying on impressions or anecdotal information.

Topics include:

• Daily and weekly subcontractor supervision
• Site inspections and progress verification
• HSE performance monitoring
• Permit-to-work compliance
• Toolbox talks and near-miss reporting
• Leading and lagging HSE indicators
• Quality and schedule control
• Inspection and test plans
• Punch-list management
• Look-ahead planning
• Schedule variance tracking
• Productivity and manpower monitoring
• Interface risks between subcontractors
• Developing a subcontractor performance scorecard
• Performance data collection and reporting
• Maintaining records suitable for audits and contractual disputes

Practical exercise: Participants assess a subcontractor using a sample performance scorecard.

Part 3 – Managing Underperformance and Building Better Relationships

Participants learn how to respond when subcontractor performance begins to deteriorate and how to encourage continuous improvement among stronger contractors.

Topics include:

• Conducting periodic subcontractor performance reviews
• Preparing evidence and performance data
• Agreeing actions and following them through
• Recognizing early warning signs of underperformance
• Corrective and preventive action plans
• Root-cause analysis
• Assigning responsibility and deadlines
• Escalation procedures
• Formal notices and contractual remedies
• Managing difficult performance conversations
• Providing factual and professional feedback
• Recognition and incentives for strong performance
• Continuous improvement
• Final subcontractor evaluations
• Lessons learned
• Using performance history in future tendering and contract awards

Scenario-Based Final Assessment

Participants complete a realistic scenario involving a subcontractor experiencing performance problems during an industrial shutdown or construction package.

The assessment requires participants to identify the performance issues, evaluate available evidence and determine appropriate monitoring, corrective and escalation actions.

Practical Subcontractor Management Tools

Throughout the course, participants are introduced to practical approaches that can be adapted to their own organization, including:

• Subcontractor KPI frameworks
• Performance scorecards
• Performance review agendas
• Corrective action plans
• Performance monitoring records
• Escalation processes
• Close-out evaluations

Corporate Subcontractor Management Training

This course can be used as part of an organization’s training program for supervisors, project personnel, contract teams and other employees responsible for subcontracted work.

Online delivery allows employees to complete the training at their own pace while providing organizations with a consistent approach to subcontractor performance management across projects, sites and facilities.

Need training for multiple employees?

Contact us to discuss corporate access, group enrolment and online training options for your organization.

Frequently Asked Questions

What is subcontractor performance management?

Subcontractor performance management is the structured process of establishing performance expectations, monitoring subcontractor activities, measuring results against agreed requirements and taking appropriate action when performance falls below expectations.

What KPIs can be used to measure subcontractor performance?

Common indicators include HSE performance, quality, schedule adherence, productivity, workforce competence, documentation, responsiveness and compliance with contractual requirements.

Who is this course designed for?

The course is designed for supervisors, engineers, construction managers, contract and procurement personnel, HSE and quality professionals, and operations or maintenance managers responsible for subcontracted work.

Does the course cover subcontractor scorecards?

Yes. Participants learn how performance scorecards can be structured and used to evaluate subcontractors consistently across areas such as safety, quality, progress, productivity and compliance.

Is this course relevant to shutdowns and turnarounds?

Yes. The principles are particularly applicable to shutdowns, turnarounds and other projects where multiple subcontractors must work within demanding safety, quality and schedule requirements.

Is the course delivered online?

Yes. The course is delivered through self-paced online modules, allowing participants to complete the training according to their own schedule.