Since 2010, more than 30 municipalities nationwide have filed for bankruptcy. Many states have experienced budget crises that have slowed payments or shelved projects, and the U.S. faced an operational shutdown that threatened the federal government's ability to pay its contractual commitments.Meanwhile, bankruptcies of major public companies remain near an all-time high. In the traditional paradigm for construction, the project owner worries about failure or default of its general contractor.In today's construction market, the reality is that the general contractor must pay close attention to the owner's ability to pay, regardless of how stable the owner appears to be.Tools From
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.