Bad Hires Cost More Than Money  

Bad hires don’t just affect your payroll.  

They damage quality, reputation, client confidence, project timelines, and team morale. 

In manufacturing, processing, and construction contracting, a single bad subcontractor or third-party provider can destroy a profitable project.  

This is why every sub-contractor, consultant, or professional service provider must be selected, appointed, and managed using a structured evaluation process.

1. Before You Appoint Anyone  

 Before sourcing or appointing any subcontractor, supplier, or professional service provider, you must have: 

A Clearly Defined Scope of Work 

This should include:  

• Exactly what they are responsible for  

• What they must deliver  

• How their performance will be measured  

Detailed Specifications in Writing 

Contracts must include:  

• Quality standards  

• Output expectations  

• Compliance with regulations  

• Deadlines and milestones  

Clear expectations prevent disputes, delays, and underperformance. 

2. Role & Responsibility Clarity  

Every subcontractor or third party must have: 

• A clearly defined role  

• Specific tasks listed  

• One appointed Project / Job Manager  

All communication and instructions go through that manager – no exceptions.  

This prevents:  

• Confusion  

• Blame shifting  

• Scope creep  

• Cost overruns  

3. Standards & Compliance 

All subcontractors and third parties must meet:  

• Industry workmanship standards  

• Health & safety requirements  

• Regulatory compliance  

• Insurance and licensing requirements  

These standards must be communicated before any work starts, not after problems appear. 

SUBCONTRACTOR & THIRD-PARTY SELECTION FRAMEWORK  

1. Experience & Past Performance  

Never appoint based on price alone.  

Portfolio Evaluation  

Review:  

• Relevance to your type of work  

• Project size and complexity  

• Consistency of quality  

Reference Checks  

Ask previous clients:  

• Were they punctual?  

• Did they communicate well?  

• Did they meet quality expectations?  

• Would you use them again?  

Review Analysis  

Check:  

• Online reviews  

• Industry feedback  

• Reputational red flags  

2. Licensing, Insurance & Certification 

Never rely on verbal assurances.  

License Verification  

Confirm licenses with issuing authorities.  

Insurance  

Request certificates showing:  

• Public liability  

• Professional indemnity  

• Employer’s liability (if applicable)  

Certifications  

Ensure compliance with:  

• Safety standards  

• Industry regulations  

• Professional bodies  

3. Commercial Terms  

Every appointment must include:  

Time  

• Start date  

• Milestones  

• Completion date  

Budget  

• Agreed pricing  

• Payment stages  

• What is included  

• What is not included  

EVALUATING PROFESSIONAL SERVICES 

(Accountants, Solicitors, Recruitment Firms, Financial Advisors)  

The same discipline applies.  

Evaluating Accountants  

Experience & Expertise  

• Do they work with businesses your size?  

• Do they understand your industry?  

• Who will actually handle your account?  

Communication  

• Do they explain clearly?  

• Do they respond quickly?  

Services & Approach  

• Do they offer proactive advice?  

• Do they help with tax planning and cash flow?  

Fees  

• Hourly or fixed fee?  

• What is included?  

• What costs extra?  

Fit  

• Are they approachable?  

• Can you work with them long term?  

Evaluating Business Solicitors  

Specialisation  

• Contracts  

• Litigation  

• Property  

• Employment  

• Intellectual property  

Industry Knowledge  

Do they understand your regulatory environment?  

Communication  

How will they keep you informed?  

Fees  

• Hourly vs fixed  

• Disbursements  

• Potential extra charges  

Reputation  

• SRA registration  

• References  

• Track record  

Proactive Value  

A good solicitor prevents problems, not just reacts to them. 

 Bad Hire Checklist available, subscribe to receive PDF copy