Cian BrennanFounder, Quantum Contract Solutions · Founder

Why are subcontractors so vulnerable to unfair contract terms?

Name: Why are subcontractors so vulnerable to unfair contract terms?
Uploaded: 2025-12-21T04:00:17+00:00
Duration: 36 s
Channel: Cian Brennan
Description: Subcontractors work on 5% to 10% margins, so a retention clause that withholds 10% of the contract value for 12 to 18 months can wipe out their entire…

21 Dec 2025 · 1 min

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Subcontractors work on 5% to 10% margins, so a retention clause that withholds 10% of the contract value for 12 to 18 months can wipe out their entire profit. One defect during that period turns the whole job into a loss.

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Subcontractors are so vulnerable to unfair terms because one tiny clause can wipe out the entire margin. I mean, margins these days, it can be 5 to 10%, and then one tiny clause can just wipe out your entire margin. You know, you can see the defects liability clause, or whatever it's called in your country, where you get 10% of the whole contract back in a year's time, sometimes 18 months' time. That could be your whole margin, and you're just waiting for it. And then if something happens between now and then, you don't get it, that whole project's a write-off, and you should never have bothered doing it. You got to be able to negotiate these terms to set yourself up for wins.