If a subcontractor fails to execute, it can spell disaster for the general contractor who can ultimately be held financially responsible. Couple this with the rising costs of materials, the ongoing supply chain issues and the widespread labor shortage, and contractors could face a variety of risks in today's market. (Credit: Vittaya_25/Adobe Stock)
With general contractors experiencing pressure on a variety of fronts, independent agents are playing an increasingly important role on the construction site. As general contractors work to complete jobs on schedule, within budget and according to specifications, they rely on subcontractors to do the same. Unfortunately, many subcontractors are having difficulty meeting commitments due to labor and supply shortages, and even the best can make scheduling errors, mismanage payments to employees and vendors, and more.
Given the prevailing market dynamics, independent agents increasingly are advising general contractors to require subcontractors to be bonded — minimizing general contractors' financial risks and bolstering their risk management programs.
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