Subcontractor financial instability isn’t a distant threat — it’s a daily risk that general contractors (GCs) must actively manage. With escalating labor costs and the potential for new tariff policies injecting additional volatility into construction supply chains and project pricing, even well-established subcontractors are finding it harder to maintain solvency.
With the climbing rate of subcontractor default, the reasons run deeper than poor project management. This article explores the root causes behind subcontractor default and outlines how GCs can strengthen subcontractor vetting, implement safeguards, and proactively monitor warning signs to protect project performance and profitability.
Construction Financial Management Association subscribers can visit the link below to read more.
