As much as we all wish we could, you can’t do everything yourself. This is especially true when it comes to business. While it would be nice to be self-reliant, there will come a time when you will need the assistance of subcontractors. Whether you need help with hauling, excavation, or project management, hiring reliable subcontractors will ensure your efforts and investments are a success.
Tips for Hiring the Best Oilfield Contractors
Knowing the best way to hire the right subcontractors for the job can help reduce turnover and reach your project goals.
Make Sure a Company is Properly Licensed, Bonded and Insured
Part of the screening process is to make sure the company you hire is properly licensed, bonded, and fully insured. While quality isn’t measured by these important factors, they do, however, go a long way towards ensuring a successful outcome. In the oilfield industry, licensing is especially important because companies are often involved in dangerous, accident-prone work.
Research the History of a Company
Like we mentioned before, quality can’t be measured by a company being licensed, bonded, and insured. The same goes for how long a company has been in business. However, it is a strong indicator. If a specific company you want to hire has been in operation for decades, serving the oilfield industry, it shows they have a solid foundation, helping others, and thus achieving their own success.
Get Multiple Official Bids
When hiring the right subcontractor in the oilfield industry, it’s crucial to obtain multiple official bids from different companies. Even more, it’s important to make sure they provide a detailed breakdown of the specific costs and items associated with their bid. This should include labor, equipment, and material costs, along with any foreseeable expenses that may be involved with the contract. Even more, it’s often advised to disregard the lowest bid because you don’t want to be stuck with low-quality services.
Obtain and Check References
When it comes to businesses of any kind, it’s important to receive and check references. During the bidding process, request references from all subcontractors that you are considering and follow up in a comprehensive manner. Good subcontractors won’t have anything to hide, so be cautious of any company that seems hesitant to provide you with references.
Even more, when you check through a company’s references, be sure to ask about their track record, including whether or not they met deadlines, arrived to work on time with the proper equipment, and completed tasks in a safe, appropriate manner. To further reduce on-site risk, make sure subcontractors also follow essential oilfield safety best practices. Understanding how they work can help you make the best hiring decision.
Meet with Company Leaders Face-to-Face
Before you sign a contract with any subcontractor, do your best to meet with company leaders face-to-face. If this sort of meeting isn’t possible, a phone conversation at the very least will do. However, meeting with people in person is your far best bet.
Having a face-to-face conversation will allow you to understand the personality and leadership of the company you are looking to hire. This can provide you with either final assurance or a needed warning. While it might always be possible to tell who you are dealing with, a face-to-face conversation can be a very effective way to read a company.
Ensure Everyone Gets Paid on Time
Keeping up with subcontractor payments can be challenging, especially when you’re stuck waiting weeks or months for the customer to pay. However, it’s one of the most important things you can do to ensure you have a strong reputation when hiring and to keep your subcontractors happy. Oilfield factoring helps with this by providing you with instant payment on your unpaid invoices, so you have working capital to pay subcontractors, cover other expenses, and grow.
It’s also worth noting that oilfield subcontractor factoring is often an option for the team you hire, too. This can be especially helpful if you’ve instituted longer payment cycles to keep pace with industry norms, and they need to accelerate cash flow to cover upfront costs and keep work on track.
Get the Financing You Need to Hire Subcontractors
With a decade of experience serving businesses like yours across the country, Oilfield Factoring offers same-day payments on your factored invoices and competitive rates. We’ll help you manage your cash flow so you can focus on growing your oilfield business. To learn more or get started, request a complimentary rate quote.
