The challenge for subcontractors

Winning a commercial construction contract comes with the expectation that you outlay for materials & pay your workforce well in advance of receiving any money, with very little protection should things go wrong with your builder or developer.

Even frequently late or partial payments can result in businesses falling behind on their own bills & defaulting on suppliers. Cash flow issues can in turn prevent businesses from bidding on new projects due to the upfront costs associated with winning.

Late payments put Sub-Contractor businesses at risk however, withholding funds often works to the advantage of Developers & Builders.