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In-House vs Subcontracted Metal Fabrication: What Project Teams Should Consider

In-House vs Subcontracted Metal Fabrication: What Project Teams Should Consider

8 September 2026

Very few manufacturing businesses perform every process themselves.

Subcontracting is normal across the fabrication industry and can provide access to specialist processes.

The important question for a project team is therefore not simply:

Does this fabricator subcontract anything?

It is:

How many interfaces will our project depend on, and who is responsible for coordinating them?


Why manufacturing interfaces matter

A fabrication package may involve:

  • engineering and detailing;

  • laser cutting;

  • forming;

  • welding;

  • assembly;

  • coating;

  • inspection;

  • documentation; and

  • delivery.

When these activities are distributed across several unrelated suppliers, information and materials must move between each organisation.

Every transfer becomes another coordination point.


Potential advantages of an integrated workflow

Where major fabrication processes are managed within a coordinated manufacturing environment, project teams can gain several advantages.

Fewer handovers

Reducing the number of organisations touching the work can reduce opportunities for information to be lost or interpreted differently.

Better production coordination

Cutting, bending, welding and assembly can be planned as parts of the same manufacturing sequence rather than independent activities.

Faster technical feedback

Where engineering and production teams work closely together, manufacturability questions can be resolved with the people actually making the component.

Greater visibility

Project teams have a clearer point of accountability for manufacturing progress and issues.

Better prefabrication opportunities

Integrated production can make it easier to manufacture complete assemblies rather than simply supplying individual fabricated parts.


When subcontracting makes sense

Subcontracting itself is not evidence of poor capability.

Specialist processes may reasonably be completed by an external provider.

What matters is whether:

  • responsibilities are clear;

  • required standards are maintained;

  • inspection requirements are controlled;

  • lead times are incorporated into the program; and

  • the primary supplier remains accountable for the finished scope.


Questions to ask a fabrication supplier

Before awarding work, consider asking:

  1. Which major manufacturing processes do you control directly?

  2. Which processes are performed externally?

  3. Who manages outsourced work?

  4. How are quality requirements maintained across external processes?

  5. Who is accountable for the finished assembly?

  6. How are changes communicated once production starts?

  7. Can engineering questions be resolved directly with the production team?

The objective is not to eliminate every subcontractor.

It is to understand the delivery architecture behind the quotation. 


KS Metal Fabrications' approach

KS Metal Fabrications combines design engineering directly with its production team and provides laser cutting, CNC forming, ISO 3834-certified welding and prefabrication assembly through its Western Sydney manufacturing operation.

This allows design and production decisions to be considered together and supports fabrication of both individual components and more complete assemblies.

Assessing fabrication suppliers for an upcoming package?


View KS Metal Fabrications' full manufacturing capabilities or send us your project drawings.


 

About the Author:KS Metal Fabrications
  • ISO 9001
  • Weld Australia