As a general contractor, you have to be selective when it comes to the subcontractors you work with. You want to choose companies that have a dependable skilled workforce, strong management, financial stability, and can perform quality work to your company’s standards. To do this, you need to have an established subcontractor prequalification process in place. As with any business decision, picking subcontractors to work with requires you to do your due diligence. You should be prequalifying every subcontractor you’re considering working with to reduce risks that could impact your business, such as subcontractor default or substandard work.
The construction industry is a dynamic and intricate sector that requires precise financial management to thrive in today's competitive landscape. Therefore, accurate accounting processes are not just necessary; they are a strategic advantage for construction companies looking to maximize profitability and comply with ever-evolving regulations.
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Thrive With the Information Advantage The speed, volume, and variety of digital data produced in the construction industry continue to advance as more technologies are used in the design, planning, and construction phases. The need for construction businesses to uncover insights from the vast universe of relevant project data is a mission-critical task for the industry to achieve better productivity and quality outcomes.
Are you looking to win more construction bids in 2023? Maybe you’re planning to grow and scale your construction business in the new year, or perhaps you’re just looking to be more efficient in your estimating and bidding process to improve your bid-hit ratio.
What is a Construction Contract While talking about construction contracts and their importance may seem like a repetitive topic, it is one of the most important aspects when considering the construction industry and the success of key players. A construction contract is the method by which terms, conditions, and the fine print of a project and agreement are legally bound together. The contract is a solidified deal made between the parties (usually two—the owner and the contractor) involved in the specified project.
The labor shortage in construction is something contractors have dealt with for decades. The pandemic certainly exaggerated the impact of shortages, but there were fewer and fewer recruits even before the Great Recession. With an aging labor force and a huge demand for labor, the shortage has reached an all-time high.
Running a successful construction company isn’t easy. The industry is full of risks and challenges that can lead to failure. According to data from the Bureau of Labor Statistics, of the 69,296 private construction firms that started operation in 2001, 56% were still around three years later, 26.6% made it to year 10, and only 17.2% were still in operation 20 years later. That’s a failure rate of nearly 82.8%. Let that sink in for a bit.
In 2020, the CDC found that the construction industry has the second-highest suicide rate in the country, and construction workers are 3.5 more likely to die by suicide. With the suicide rate in construction ranked as one of the highest by occupation, industry leaders and members must take the necessary steps to educate and support those at risk. In addition to spreading awareness and education around the topic, something more sustainable and lasting must be done to help prevent and reduce suicides in construction.
Construction Risk Management: What Contractors Should Know As a construction contractor, you likely contend with multiple risks each day. Every project on which you perform work is unique and likely involves both risks and potential benefits. To be more successful, you must understand how to identify and manage risks on construction projects to help avoid potentially detrimental issues.