How to Handle Difficult Employees and Subcontractors Without Disrupting Your Custom Build Projects

Managing people is one of the trickiest yet most important aspects of running a custom home building business. From balancing tight deadlines to maintaining quality workmanship, the stakes are high when it comes to your team. In this article, I’ll explore a challenge many business owners face: dealing with difficult employees and subcontractors. I’ll also offer actionable strategies to address these issues without jeopardising your projects.

I’m Ashley Thomson, a builders business coach with over 20 years of experience helping businesses in the construction and trades industries thrive. Along with my team of business coaches at Tenfold, I’ve advised builders and tradespeople through challenges like these, helping them lead stronger teams and build more efficient businesses. The insights I’ve included here are backed by hands-on experience and proven methods for the construction industry.

Advice for Leading Employees and Subcontractors in Construction Businesses

If you’re running a growing custom home building business, you’ve likely encountered situations where an employee or subcontractor isn’t meeting expectations. Perhaps they’re missing deadlines, causing friction on-site, or delivering subpar work. These issues can be frustrating and, if not addressed, can disrupt your projects and impact your reputation.

The good news? You’re not alone in facing these challenges, and there are proven strategies to handle them effectively. Managing people is a skill that can be developed with the right approach.

The X key pieces of advice I have for leading employees and subcontractors in construction businesses are:

1. Address issues early

2. Provide support and training for the outcomes you want

3. Implement a performance improvement plan

4. Know when to part ways

5. Build a strong team culture

Addressing Issues Early

One of the most common mistakes business owners make is letting problems fester, hoping they’ll resolve themselves. Unfortunately, unresolved issues rarely disappear; they often grow and ripple through the project, creating bigger challenges for your team and timelines. Addressing concerns as soon as they arise is crucial for maintaining project momentum and team morale. When you notice signs of underperformance in an employee or subcontractor, taking immediate, thoughtful action can make all the difference.

A private conversation is often the best starting point. Schedule a one-on-one meeting in a neutral, distraction-free setting to discuss your concerns in detail. Be specific about the issues you’ve observed, providing concrete examples to clarify your points. During this conversation, make a concerted effort to listen actively. External factors such as personal challenges or misunderstandings about expectations might be contributing to the problem.

Once the concerns are laid out, establish clear expectations for what needs to change, including actionable steps and specific deadlines. By ensuring everyone is on the same page, you set the foundation for accountability and improvement moving forward.

Providing Support and Training

Investing in your team’s development is not just an effective way to address underperformance—it’s also a long-term strategy for building a stronger, more capable workforce. Often, underperformance stems from a lack of skills, knowledge, or confidence, which can prevent an employee or subcontractor from meeting expectations. By identifying these gaps and providing targeted support, you can empower your team to grow and thrive.

One effective approach is to offer additional training tailored to the specific challenges they’re facing. This could involve hands-on workshops, online courses, or shadowing opportunities. Pairing a struggling team member with a more experienced colleague can also be highly beneficial, allowing them to learn practical skills and build confidence through guided experience. Encouraging mentorship from senior employees not only enhances individual development but also fosters a collaborative and positive team culture.

Regular check-ins help you monitor progress, celebrate improvements, and provide constructive feedback. I recommend frequent check-ins (say weekly or fortnightly) in the early stages, then back them off to monthly or a couple of times a quarter once you’re comfortable that your team members or subbies are on track.

These consistent interactions demonstrate your commitment to their success while keeping everyone aligned with project goals.

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Implementing a Performance Improvement Plan

When issues persist despite your best efforts to address them informally, it may be time to implement a formal performance improvement plan (PIP). A well-structured PIP provides clarity and accountability, giving employees or subcontractors a concrete framework to address underperformance. Begin by defining the problem clearly, detailing the areas where the individual is falling short. For example, if deadlines are routinely missed or the quality of work doesn’t meet your standards, ensure these issues are explicitly identified and communicated. Be specific in your observations, as vague statements can lead to confusion and resistance.

Setting measurable goals is critical for ensuring the plan’s effectiveness. Clear benchmarks, such as completing 90% of tasks on time over the next month or improving error rates in completed projects, make expectations tangible and achievable. In addition to goals, providing resources like tools, training, or additional support increases the likelihood of success by addressing potential barriers to improvement.

Establishing a specific timeframe for progress – typically 30 to 60 days – ensures the process remains structured and focused. Regular check-ins during the plan are equally vital; these meetings allow you to review progress, offer constructive feedback, and make adjustments if necessary. By taking this methodical and collaborative approach, you set both the individual and your business up for a positive outcome.

Resolving The Root Cause of Problems

One of my clients as a builders business coach, a custom home builder in Melbourne, encountered a recurring issue with a leading hand who consistently missed deadlines. This challenge was creating strain across the project, impacting schedules and frustrating other site workers. Initially, the business owner felt unsure about how to address the situation without risking further disruption. Together, we developed a constructive approach to tackling the issue.

By addressing the problem early through an open and honest conversation, the business owner was able to identify the root cause of the delays and provide targeted support. We introduced additional training to close skill gaps and clarify expectations through clear and measurable goals. This proactive strategy didn’t just resolve the immediate issue; the leading hand’s performance improved significantly, and he ultimately became a valuable long-term employee. This transformation underscores the importance of turning challenges into learning opportunities, fostering growth for both individuals and the business as a whole. With the right approach, setbacks can pave the way for success and strengthen your team’s resilience.

Knowing When to Part Ways

Sometimes, despite your best efforts to provide support and opportunities for improvement, an employee or subcontractor may fail to meet the standards required for your business. In such cases, making the tough decision to let them go can ultimately be the best choice—not only for your team’s cohesion but also for your business’s overall health and reputation. While this decision is never easy, handling it thoughtfully and professionally ensures minimal disruption and fosters a sense of fairness.

It’s critical to approach this step with a clear understanding of your legal obligations. Ensure you follow all relevant procedures, including compliance with employment laws and contractual agreements. This protects your business while maintaining integrity in your professional relationships. When conducting the conversation, aim to be respectful and professional: focus on facts, not feelings.

Finally, planning for continuity is essential to avoid unnecessary delays in your projects. Whether it’s redistributing tasks among team members or onboarding a new hire, having a clear transition plan minimises disruption and allows your business to stay on track. By navigating this process with precision and patience, you can be confident that you are handling a challenging decision well.

Building a Strong Team Culture

Fostering a positive team culture is one of the most effective ways to minimise the likelihood of problems arising in the first place. A strong culture not only sets the tone for how your team operates but also creates an environment where collaboration and accountability thrive. From the very beginning, it’s important to communicate clear standards for quality, punctuality, and teamwork. When expectations are well-defined, team members know what is required of them and can strive to meet those standards consistently. These standards act as a guiding framework, ensuring that everyone is aligned in their approach to achieving project goals.

Equally important is recognising achievements and celebrating successes, whether big or small. Acknowledging hard work and accomplishments boosts morale, motivates team members, and reinforces the behaviours you want to see more of. Celebrations could be as simple as a verbal acknowledgment during a team meeting or as structured as an employee of the month program. Furthermore, creating an open and supportive atmosphere where team members feel comfortable sharing concerns or asking for help strengthens communication and collaboration. When individuals feel heard and supported, they are more likely to engage constructively and contribute positively to the team’s success. By building a culture rooted in trust, respect, and shared purpose, you lay the groundwork for long-term success in your business.

Final Thoughts: Onwards and Upwards

Managing difficult employees and subcontractors is never easy, but it’s a challenge that can be overcome with the right approach. At Tenfold Business Coaching, we specialise in helping custom builders and tradespeople navigate challenges and achieve their goals. Let’s work together to take your business to the next level. By implementing these strategies, you can set your business up for sustainable growth.

If you’d like to learn more about how custom home building business coaching can benefit your business, feel free to reach out. Let’s collaborate to elevate your business and unlock its full potential.