The subs who work for Marrokal Construction in Lakeside, Calif., can't complain that they don't get enough feedback. Every month, all five company superintendents and the director of production rate all subs on overall performance. Each gets a grade ranging from A to F, based on such standards as doing work properly, keeping the jobsite clean, and showing up on time.

Company president Gary Marrokal realizes the importance of high-quality subs. "We want to create a great stable of subs who are professional people," Marrokal says. "We need to bring anyone earning a C or D up to an A or B. If we can't, we need to look for another electrician or whatever."

Because subcontractors are not employees, a serious talk about problems or concerns is about all Marrokal can provide as a consequence to bad grades before taking them off his list.

The company began the rating system early last year. Of the 30 current subs, all but one are earning As or Bs. The ratings reflect standards spelled out in a four-page agreement that all subcontractors must sign. But Marrokal doesn't just use the stick of grades; he also offers the carrot of quick payment. Subs who complete work and bill by Wednesday are paid by Friday. --Diane Kittower is a freelance writer in Rockville, Md.