Knowledge Center
Despite volatile conditions, contractors can continue thriving with thoughtful strategic planning. Our construction practice at The Baldwin Group can help protect your business, and keep your projects moving forward. Our team of expert SDI and Surety brokers can help de-risk projects and keep your business competitive.
Contact us today to discuss what matters most to your business and tailor a solution that best fits your needs.
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How contractors can flourish in a risky climate
Performance risks continue to be a challenge within the construction industry. But with caution and strategic planning, contractors can turn adversity into opportunity. We’ve created this guide to help you manage the many dynamics impacting performance while de-risking your business and optimizing your bottom line.
When approaching this uncertain business climate, contractors should:
LAYING THE GROUNDWORK:
Prepare for unexpected costs with strong cash flow
Brace for a dynamic market
Cover your bases when hiring subcontractors
Learn how to better manage performance risk
Get the insights provided in our Surety and Subcontractor Default Insurance Market Update from industry experts.
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Prepare For Unexpected Costs With Strong Cash Flow
Change orders and insufficient project financing can lead to cost overruns and payment issues. To prevent this, ensure that project financing is adequate to cover potential changes and include termination or default provisions for clause violations.
In addition, protect your firm by securing contractual rights to confirm financing during construction as well as for nonpayment. Even the best contract language can’t mitigate some situations, so a hyper-focus on maintaining a strong cash position will help weather unforeseen issues.
Brace for a Dynamic Market
2025 is shaping up to be a dynamic year for contractors with many experiencing significant swings in project opportunities. In this environment, it's essential to maintain flexible operations and scalable resources to capture high-value opportunities when they arise. Stay strategic and focus on building adaptable capabilities rather than committing to fixed overhead costs that could limit your ability to pivot in response to market shifts.
Cover Your Bases When Hiring Subcontractors
Subcontractor defaults are increasing. For the first time in many years the root cause is financial distress of subcontractors. Protect your project by choosing subcontractors carefully and request financial updates from them on an interim basis to avoid any issues. Further protect your balance sheet by utilizing a Subcontractor Default Insurance (SDI) Program.