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How to Financially Vet a Subcontractor Before Signing
Picture this: You're six weeks into a $4.2M commercial buildout when your mechanical sub stops showing up. By the time you find out they've been cash-strapped across three other jobs, you're behind schedule, facing liquidated damages, and their unpaid suppliers are filing mechanic's liens for materials you already paid for. The warning signs were there months earlier. Nobody asked for them. Most GCs vet subs on price, past relationships, and gut feel and that works fine, unti
Mar 175 min read
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The Working Capital Gap: Why 43% of Subcontractors Risk Failure
Here's the brutal truth: Your excavator breaks down mid-project. Repair cost: $15,000, due immediately. You're waiting on $80,000 in receivables. Can you cover it? If you're like 43% of subcontractors, the answer is no and that's a business-ending problem. I nsufficient working capital doesn't just delay one project. It creates a domino effect: missed payroll damages crew morale, stretched supplier relationships kill your credit terms, and delayed payments force you to turn d
Jan 296 min read
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Construction Subcontractor Management: Accounting & Tracking Guide
One missed invoice approval. One misplaced lien waiver. One poorly documented change order. That's all it takes to turn a profitable project into a financial headache. For construction owners, general contractors, and subcontractors, the difference between project success and costly disputes often comes down to how well you manage the financial side of subcontractor relationships. Managing subcontractors effectively requires more than scheduling crews and inspecting work qual
Dec 8, 20255 min read
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