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What exactly is a trade partner in construction, and why is everyone calling subcontractors “trade partners”? Is this just a new trend or something more meaningful? In this blog, we’ll explore the distinction between subcontractors and trade partners and what each should expect from us and what we can expect from them.

When we discuss subcontractors vs. trade partners, it’s important to understand that the way we think about them reflects how they operate on construction sites. Let’s kick this off with some Lean thinking concepts. In Lean thinking, there’s the idea of “optimizing the whole” versus “suboptimization.”

Suboptimization happens when one component of a system, process, or company is optimized, but others aren’t. For example, if one doctor in a hospital excels while others struggle, or if one piece of equipment in a factory runs efficiently while the rest don’t, that’s suboptimization. In construction, if one trade partner is performing well but the others aren’t, the whole project suffers.

We’re not aiming for suboptimization; we want to optimize the entire project. It’s not about how fast one trade partner is going, but how well the entire team is progressing. A project will only move as fast as the slowest trade partner, just as a leader’s success is limited by their most limiting belief. So, when you hear the term “subcontractors,” it often suggests suboptimization, which is something we want to avoid.

Common Behaviors of Subcontractors

Subcontractors often exhibit behaviors that lead to suboptimization. Here are some common traits:

1. Blaming Designers: Subcontractors may blame everything on the designers and refuse to learn from one project to the next. They often ask for numerous RFIs and delay work until they receive all the information, rather than working with what’s available.
2. Selfish Scheduling: They prioritize their own work without considering the overall project. For example, they might demand an entire floor to themselves or fill the job site with materials without regard for other trades.
3. Ignoring the Schedule: Subcontractors often don’t bother understanding the schedule. In their defense, many general contractors use confusing and overly complex CPM schedules, but subcontractors should still make an effort to understand how their work fits into the bigger picture.
4. Complaining: Subcontractors are quick to complain about everything — from not having the right materials to other trades being in their way — without taking initiative to solve problems.
5. Dependence on General Contractors: They rely on the general contractor to solve every problem, even when they could easily coordinate with other trades.
6. Minimal Effort in Learning: Subcontractors may only learn Lean practices out of necessity and rarely commit to making improvements.
7. Cleanliness Issues: They don’t maintain a clean workspace, leaving tools and materials scattered around, which negatively impacts other trades.
8. Breaking Rules: Subcontractors often look for loopholes in the rules, doing things their way regardless of the project’s overall success.

Trade Partners: A Different Approach

On the other hand, trade partners embody a more collaborative and team-focused approach. Here’s how a trade partner operates:

1. Proactive Problem Solvers: Trade partners understand that no design is perfect and work with engineers and architects to proactively find solutions and clear the path for work to flow smoothly.
2. Collaborative Scheduling: They work closely with other trades and foremen, using the last planner system to collaborate and commit to the schedule, ensuring that everyone is on the same page.
3. Ownership of the Whole Schedule: Trade partners take responsibility for the entire schedule, not just their part. They bring up concerns proactively and look for solutions to avoid delays.
4. Coordination with Other Trades: Instead of running to the general contractor for every issue, trade partners directly coordinate with other trades, making commitments to keep the project moving.
5. Accountability: Trade partners help hold other trades accountable, working together as a team to meet project goals and milestones.
6. Commitment to Lean Practices: Trade partners are deeply invested in Lean practices such as Takt time, the Last Planner System, or Scrum, and they strive to make continuous improvements in their workflow.
7. Cleanliness and Organization: They maintain clean, safe, and organized workspaces, which enhances productivity and safety for all trades involved.
8. Customer Service Mindset: Trade partners treat other trades and stakeholders as customers, ensuring that they deliver on their commitments and maintain a high standard of quality.
9. Rule Followers: They adhere to project rules and requirements, contributing to the success of the entire project.

What is a Lean System?

A Lean system in construction is one where everyone is aligned with safety, productivity, and continuous improvement. In a Lean system:

• Workers know exactly what they’re installing and how to do it safely.
• Improvements are made regularly.
• Job sites are clean, organized, and free of trash or clutter.
• Materials arrive just in time, and access ways are always clear.
• Trade partners clean up after themselves and create a smooth transition for the next trade.

In a Lean system, trade partners are not just subcontractors — they are key collaborators who help optimize the entire project. By fostering an environment of teamwork and accountability, we create a successful, efficient, and harmonious job site.

Final Thoughts

Understanding the difference between a subcontractor and a trade partner is crucial to creating a successful construction project. When we call someone a “trade partner,” it’s a compliment and a recognition of their commitment to the team and to the principles of Lean construction.