“One of the biggest inherent risks general contractors and construction managers face as they build projects is the risk of a subcontractor default. A subcontractor’s failure to perform can add cost, delay a job, and damage the reputation of a contractor and owner. Not all defaults are preventable, but sound prequalification and management practices can reduce the risk of default and mitigate the severity of the defaults that happen.
First and foremost, selecting the right subcontractor for the work gives contractors the best chance for success. Selection involves prescreening subcontractors across a wide variety of criteria.”