Subcontractors · Best Practice · Construction

Subcontractor Performance Review

A periodic review of subcontractor performance covering quality, programme adherence, and H&S compliance.

Last reviewed: 29 March 2026 — This guide reflects UK law as of this date. Contract Law / CDM 2015 remains current with no amendments enacted as of 29 March 2026. Next scheduled review: 29 March 2027.

Legal basis	Contract Law / CDM 2015
Purpose	Structured assessment against scope delivery, programme compliance, quality, H&S standards, commercial conduct, and communication.
When to conduct	Monthly for large packages; milestone-based for smaller; plus post-practical completion.
CDM link	The PC's CDM Reg 8 obligation is ongoing — if reviews reveal H&S failings, the PC must take action.
Approved list	Review outcomes should feed into future engagement decisions and approved subcontractor list management.

1. Subcontractor Performance Review — Managing the Relationship During the Project

The review is the formal mechanism for assessing whether a subcontractor is delivering as contracted. From a CDM perspective, it is the ongoing competence check. If the review reveals H&S performance is inadequate, the PC must act. Failing to act when deficiencies are identified creates significant liability.

Performance reviews are most effective when they are two-way conversations — subcontractors should also be able to raise issues with the PC

2. Performance Review — Assessment Criteria

The following table sets out the assessment criteria that a well-structured subcontractor performance review should cover.

Criteria	What to assess
Scope delivery	Work completed against contracted scope. Variations managed and documented.
Programme	Progress against programme. Milestones met. Delays flagged and mitigated.
Quality	Workmanship standards. Defects and rework. Compliance with specifications.
Health & Safety	Compliance with site rules, RAMS, permits. Incident record. Near miss reporting. Workforce behaviour.
Commercial	Valuations submitted on time. Variations properly notified. Payment conduct with own supply chain.
Communication	Responsiveness. Attendance at meetings. Quality of documentation submitted.
Workforce	Competence of operatives. Adequate resources deployed. Supervision quality.
Overall rating	Excellent / Good / Satisfactory / Poor.
Actions required	Specific improvements required, responsible person, and deadline for each action.
Future engagement	Retain on approved list / Conditional retention / Remove from approved list.
Signatures	PC representative and subcontractor representative. Date of review.

3. Common Mistakes

Not conducting formal reviews — only informal conversations

Informal feedback is not auditable. Formal documented reviews create the record needed to support commercial and safety decisions.

Reviews that are always positive — no real critical assessment

Reviews must be honest and evidence-based. Consistently positive reviews for underperforming subcontractors undermine the credibility of the entire system.

Not following up on identified H&S deficiencies

If a review identifies H&S failings and no action is taken, the PC is knowingly tolerating non-compliance. This creates significant CDM liability.

Not linking reviews to approved list decisions

The purpose of reviews is to inform future engagement. If review outcomes do not feed into the approved list, the review process has no consequence.

Not getting subcontractor sign-off on the review

Both parties should sign the review. Without subcontractor acknowledgement, they can later dispute the assessment or claim they were not informed of concerns.

4. Frequently Asked Questions

How often should reviews be conducted?▾

Major packages (£500k+) monthly; medium (£50k–£500k) monthly or milestone-based; smaller at midpoint and practical completion. Plus out-of-cycle reviews for significant H&S incidents.

Can a poor review support contract termination?▾

Yes — documented reviews showing persistent deficiencies provide a strong evidential basis for termination under the subcontract terms.

Should reviews be shared with the client?▾

Potentially — draft them as if they will be read by a third party. Clear, factual, evidence-based assessments protect all parties.

How should reviews be used after the project?▾

Archive and reference for future PQQ submissions and tender assessments. High performers receive preferred status; poor performers are removed from the approved list.

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