At the beginning of the year, I wrote that while no one liked the recession, some contractors and sureties were going to hate the recovery, too. A new set of risks will arise as contractors price their work aggressively, I wrote, and profit margins lag and some companies take on too much and burn through their capital.That’s pretty gloomy, but I didn’t give the complete picture about what can go wrong during the unfolding recovery. Because contractors will price their work aggressively and will be hungry for the cash needed for growth, financing will be essential.Unfortunately, the response from banks
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.