Material shortages and soaring prices are crushing subcontractors in 2023. The old model of pushing all risk onto them doesn't work anymore. Owners and main contractors need to share risk, allow rate increases, and pay for material delays, or projects won't get built.
Chapters
In the current construction environment, this needs to happen. Okay, so there are delays for materials, there are prices going through the roof for absolutely everything. The risks on these things need to be shared between the owner, the main contractor, and the subcontractors. They can't push it all down onto the subcontractors, which is probably you, because the subcontractors need to actually go and do the work. They can't make money and not actually doing the work. In the whole chain of stuff happening, the owner doesn't do any work, obviously, other than financing it. They the head contractor is a finance company that subs out all of the work. He doesn't do it. So if the subcontractors can't actually make money to do the work, nothing is going to take place and the project is going to fall over. So you as a subcontractor need to explain this to them too. We need to be able to escalate our rates. We need to get paid for delays for our materials because they're just not out there. The environment is different. Instead of trying to save money on getting the lowest price, it's more important to be able to get the work done. Everyone needs to start working together. It's a different environment out there. We need to approach construction in a different way.