A combination of macroeconomic factors and a desire to drive top-line revenue continues to lead many subcontractors to underbid projects, sometimes unintentionally, ultimately contributing to financial distress. As more subcontractors succumb to the pressures of the environment, we may see a bubble form.
Savvy general contractors are already taking steps to protect themselves from the impact on their projects and bottom lines, but subcontractors need to seize this moment of uncertainty to right-size their operations for long-term success as well and prepare for the level of scrutiny they’ll face as leading general contractors vet future subcontractor partners.
