Why do subcontractors fail? Much of it has to do with a failure to address their pain points—real or perceived—which can lead to project failure in a number of ways. It’s a fact that internal and external challenges will arise during a project, but how these issues are handled can make or break a construction business. This two-part article will shed light on the unique challenges subcontractors face and offer some solutions to the problems. Skip ahead to part two to learn more.
It’s widely known that many subcontractors carry the greater risks associated with nonpayment on projects. Outside of an enjoyment for the work you do, getting paid in a reasonable time helps you to maintain that enjoyment. Minimizing the risks associated with nonpayment requires you to must put preventive measures into place. These measures include understanding your rights concerning payments and exercising those rights (i.e. securing lien rights) and keeping detailed and accurate records. Streamlining your invoice processes to increase the likelihood of prompt payment and contacting a Sarasota construction attorney to draft a strong contract with payment provisions are also proactive measures.
The labor shortage is a hot topic in the construction industry. The main reason for these shortages centers around the increasing number of retiring workers exiting without enough willing or skilled younger workers to replace them. Contractors who find themselves losing workers due to the lack of available work or having trouble recruiting qualified people will likely struggle to sustain their business. To learn more about how to combat labor shortages read our article 4 Hiring Strategies to Beat the Labor Shortage.
Regulations that affect the construction industry are constantly changing on the county, state, and federal level. Regulations can be confusing so it’s especially important to keep an eye on those that may directly impact your business. When it comes to safety on construction job sites, you want to be sure you are complying so that you can avoid violating OSHA standards. Visiting OSHA’s website regularly and reading industry-specific websites or newsletters are helpful ways to stay abreast of all safety regulations.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.