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Money

How to Manage the Risk of Subcontractor Defaults

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How to Manage the Risk of Subcontractor Defaults

A defaulting subcontractor is bad news for everyone.

The project must be halted, money is lost on all fronts, including bonding companies and project owners, and others are less likely to work with the subcontractor in the future.

Managing subcontractor risk appropriately is key to preventing this bad news: General contractors do not need to take the full risk of a subcontractor default on themselves.

Proper default clauses, responses, and general risk management can help prevent defaults and mitigate any damage done.

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How to Gauge the Health of Your Contracting Company

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How to Gauge the Health of Your Contracting Company

The health of your contracting company relies on more than a bank balance.

Profitability, solvency and efficiency ratios tracked by computer software every month show the actual numbers guiding the financial health of the company. The employees and work site activities play a huge role in your company’s health through work ethics, honesty and devotion to a job’s completion. You can win more jobs or lose the company based on employee behaviors.

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The Importance of Setting Goals to Grow Your Contracting Company

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The Importance of Setting Goals to Grow Your Contracting Company

Regardless of a company’s growth-state, or whether it’s engaged in institutional, residential, commercial or industrial growth, scaling a contracting company requires advanced planning and preparation. Learning to grow your contracting company takes time and goal-making.

Within the construction industry, decision makers face demanding customers, intense pricing competitions, shortages of skilled workers and talent, fluctuations in material and labor costs, differing job-site opinions, cash flow crunches, low margins and increasing insurance premiums.

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Finding the Right Grant to Scale Your Contracting Company

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Finding the Right Grant to Scale Your Contracting Company

When you start a business, expanding and scaling your contracting company will always be one of your biggest priorities. As you naturally become more successful, your business will grow as a result. This is true in all types of businesses but especially with regards to contracting companies.

While trying to grow your company, you might begin to realize you have more jobs than employees to effectively and efficiently complete those tasks in a timely manner. But how can you continue to scale your company both financially and structurally? Many people don't realize that finding the right grant for your contracting company can help you do just that.

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