Avoiding the Risk of Subcontractor Default

$149.00

SKU: 410752

Description

Learn best practice procedures for prequalifying subcontractors and managing subcontractor default risk.
Like a chain, a construction team is no stronger than its weakest link. In these uncertain times of increased demand for construction, stretched backlogs, labor shortages, and cost escalations, the risk of subcontractor default is at an alltime high. Subcontractor default is the weak link that can turn an otherwise successful project into an utter failure overnight.
This presentation will help people responsible for entering into and administering subcontracts to recognize the causes and telltale signs of highrisk subcontractors early in the constructive process. In some cases, default can be avoided by simply subcontracting with a different subcontractor. In other cases, proactive measures can be taken to avoid or mitigate the effect of terminating a highrisk subcontractor. This topic will explore some of the options available to general contractors, construction managers, and uppertier subcontractors to avoid the projectdestroying effect of subcontractor default.

Date: 2023-05-31 Start Time: 1:00 PM ET End Time: 2:05 PM ET

Learning Objectives

* You will be able to describe the common causes of subcontract defaults.

* You will be able to identify the signs of impending subcontractor default.

* You will be able to explain the available options to avoid subcontractor default.

* You will be able to discuss effective plans to avoid subcontractor default.

Introduction
• Overview
• What Is a Default?

Common Causes of Subcontractor Default
• Cash Flow Problems
• Too Much Work, Too Little Time
• Project Complexity and Inexperience
• Bid Busts and Defects
• Labor Shortages and Other Outside Factors

Early Warning Signs of High-Risk Subcontractors
• Effective Prequalification
• Performance Clues

Default Avoidance
• Effective Subcontract Terms
• Proactive Project Management
• Cure Notices
• Supplementation
• De-Scoping
• Mitigating Impact of Termination

Security
• Performance Bonds
• Default Insurance
• Other Forms of Security

Conclusion

CLE (Please check the Detailed Credit Information page for states that have already been approved) ,ENG ,CPE ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.

Scott D. Cahalan-Smith, Gambrell & Russell, LLP