Guide 28 March 2024

Contractor Management Guide for Building Managers

How to effectively manage contractors in your building. From selection and compliance to work orders and performance tracking.

Contractors are essential to building maintenance, but managing them effectively can be challenging. Late arrivals, incomplete work, compliance issues, and communication breakdowns are common frustrations. Here’s how to build and manage a reliable contractor network.

Why Contractor Management Matters

Poor contractor management leads to:

  • Delayed repairs affecting residents
  • Cost overruns and surprise invoices
  • Compliance risks (uninsured workers, expired licences)
  • Repeated call-backs for incomplete work
  • Communication gaps and frustration

Effective management delivers:

  • Reliable, timely repairs
  • Predictable costs
  • Full compliance documentation
  • Quality work first time
  • Happy residents

Building Your Contractor Network

Finding Good Contractors

Sources for finding contractors:

  • Recommendations from other building managers
  • Strata manager networks
  • Industry associations
  • Local business directories
  • Existing contractor referrals

What to look for:

  • Experience with similar buildings
  • Appropriate licences for their trade
  • Adequate insurance coverage
  • Good communication
  • Reasonable response times
  • Fair, transparent pricing

Essential Documentation

Before engaging any contractor, collect:

DocumentWhy It’s NeededCheck Frequency
Public liability insuranceCovers accidents on your propertyAnnually
Workers compensationRequired if they have employeesAnnually
Trade licenceProves qualificationAs required
ABNFor payment and recordsOnce
Contact detailsCommunicationKeep current

Building Redundancy

Never rely on a single contractor for any trade. Aim for:

  • Primary: Your go-to contractor
  • Secondary: Backup when primary is unavailable
  • Emergency: After-hours or urgent situations

This ensures you’re never stuck waiting.

Work Order Best Practices

Creating Effective Work Orders

A good work order includes:

  1. Clear description of the issue
  2. Location (specific as possible)
  3. Photos of the problem
  4. Priority level (emergency, urgent, standard)
  5. Access instructions (keys needed, contact for access)
  6. Completion requirements (what “done” looks like)
  7. Budget approval if applicable

Work Order Example

Work Order #2024-0156

Issue: Water leak from ceiling in Level 3 corridor
Location: Building A, Level 3, outside Unit 305
Priority: Urgent

Description:
Water dripping from ceiling causing puddle. Appears to be
coming from above (possibly Unit 405 bathroom). Ceiling
plaster showing water damage.

Photos: [Attached]

Access: Building manager can provide access. Contact
John on 0400 XXX XXX.

Requirements:
- Identify source of leak
- Stop leak
- Quote for ceiling repair if needed

Budget: Up to $500 for investigation. Quote required
for repairs over this amount.

Assigned to: ABC Plumbing
Due: Within 24 hours

Sending Work Orders

Best practice is to send work orders through a system that:

  • Creates a record of when it was sent
  • Allows contractor to acknowledge receipt
  • Tracks progress updates
  • Stores completion photos
  • Keeps all communication in one place

ComtyLink’s contractor portal does exactly this.

Communication Protocols

Setting Expectations

When onboarding new contractors, clarify:

  • Response times: How quickly you expect acknowledgment
  • Updates: When and how to update you on progress
  • Completion: What to provide when finished (photos, report)
  • Invoicing: Your process and payment terms
  • Issues: Who to contact if problems arise

During Jobs

Establish communication checkpoints:

  1. Acknowledgment: Contractor confirms they’ve received the job
  2. Arrival: Notification when they’re on site
  3. Assessment: Update after initial inspection
  4. Progress: Updates on longer jobs
  5. Completion: Confirmation with photos

Response Time Expectations

Set clear expectations by priority:

PriorityAcknowledgmentOn-Site
Emergency30 minutes2-4 hours
Urgent2 hours24 hours
Standard24 hours3-5 days
Low48 hoursAs scheduled

Compliance Management

Insurance Tracking

Contractor insurance can lapse without you knowing. Implement a system to:

  • Record insurance expiry dates
  • Alert you 30 days before expiry
  • Request updated certificates
  • Block work orders to non-compliant contractors

Licence Verification

For licensed trades (electrical, plumbing, etc.):

  • Verify licence is current and appropriate
  • Record licence numbers
  • Check renewal dates
  • Confirm licence covers the type of work

Site Induction

Consider requiring contractors to complete a site induction covering:

  • Building access procedures
  • Safety requirements
  • Parking arrangements
  • Sign-in procedures
  • Emergency contacts
  • Building-specific rules

Performance Tracking

Metrics to Monitor

Track these for each contractor:

MetricWhat It Shows
Response timeHow quickly they acknowledge jobs
Completion timeTime from assignment to completion
First-time fix rateJobs completed without call-back
Quote accuracyActual cost vs quoted cost
CommunicationUpdates provided, responsiveness

Regular Reviews

Quarterly, review contractor performance:

  • Jobs completed
  • Average response and completion times
  • Any complaints or issues
  • Pricing competitiveness
  • Compliance status

Use this data to:

  • Identify top performers (give them more work)
  • Address issues with underperformers
  • Make decisions about continuing relationships

Handling Poor Performance

When a contractor underperforms:

  1. Document specific issues with dates and details
  2. Discuss concerns directly with them
  3. Set clear expectations for improvement
  4. Monitor closely for a defined period
  5. Make a decision to continue or replace

Cost Management

Getting Fair Pricing

For regular work:

  • Negotiate rates upfront for common jobs
  • Agree on hourly rates and call-out fees
  • Establish when quotes are required

For larger jobs:

  • Get multiple quotes
  • Compare scope (not just price)
  • Check references for larger projects

Budget Controls

Implement approval thresholds:

ValueApproval Required
Under $300Building manager
$300-$1,000Building manager (documented)
$1,000-$5,000Committee member sign-off
Over $5,000Committee approval

Invoice Management

Best practices:

  • Require itemised invoices
  • Match invoices to work orders
  • Check rates match agreements
  • Query discrepancies promptly
  • Pay on agreed terms

Using Technology

Contractor Portals

A contractor portal transforms contractor management:

For you:

  • Send work orders instantly
  • Track job status in real-time
  • Store all communications
  • Manage compliance documents
  • Generate performance reports

For contractors:

  • Receive jobs on their phone
  • Update status easily
  • Upload completion photos
  • Access job history
  • Submit invoices

Work Order Apps

Mobile apps allow:

  • Creating work orders on site
  • Attaching photos instantly
  • Sending to contractor immediately
  • Tracking without returning to office

Compliance Automation

Software can:

  • Alert when insurance expires
  • Block work orders to non-compliant contractors
  • Store certificates centrally
  • Generate compliance reports

Emergency Contractor Management

After-Hours Contacts

Maintain a list of emergency contractors for:

  • Plumbing (burst pipes, no water)
  • Electrical (safety issues, power failures)
  • Locksmith (lockouts, security)
  • Glass (break-ins, storm damage)
  • Security (alarm responses)

Emergency Protocols

Document your emergency process:

  1. Who can authorise emergency work?
  2. What’s the spending limit without approval?
  3. How to reach backup contacts?
  4. Documentation requirements?

Building Long-Term Relationships

Good contractors are valuable. Keep them by:

  • Paying on time: Nothing damages relationships like slow payment
  • Being reasonable: Don’t expect the impossible
  • Communicating clearly: Set them up for success
  • Providing feedback: Let them know when they do well
  • Being loyal: Give consistent work to reliable contractors

Conclusion

Effective contractor management is about building relationships, setting clear expectations, and using the right tools to track everything.

Key takeaways:

  • Build a network with redundancy for every trade
  • Maintain compliance documentation rigorously
  • Create clear, detailed work orders
  • Set and enforce communication expectations
  • Track performance and act on data
  • Use technology to streamline the process

Ready to transform your contractor management? ComtyLink’s contractor portal and work order system makes it easy. Start your free 3-month trial.

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