Construction Insight: Managing Subcontractor Risk

By Jason P. Conte

About Construction

April 27, 2022 – America’s labor shortage is far from over and many construction firms are having a hard time finding qualified talent to fill their subcontracting needs. Faced with intensifying project demand, it is no surprise contractors may feel a loss of bargaining power when negotiating with subcontractors. But, while the industry is booming so are the risks.

Managing subcontractor risk remains one of the central challenges contractors must face, regardless of labor trends. With that, here are five tips for mitigating this risk in subcontracts:

Labor shortages do not change the fact that a contractor remains responsible to the owner for all work done on a project, so now is not the time to overlook important details in subcontracts. Experienced construction counsel can help you navigate this risk and address possible issues that may arise during the construction process.

Ulmer’s Construction Practice Group is made up of experienced attorneys who have been operating in the construction industry for decades. Our time-tested team has handled almost every kind of legal issue that arises in the construction industry and can help you anticipate and manage risk in construction projects. Please reach out to our attorneys if you have any questions.

The information provided in this insight speaks only to the information and guidance we have available as of the date of publication and is subject to change. We will continue to follow further issued guidance and regulations and endeavor to post those updates via our website. Please continue to follow these updates at This insight was created by Ulmer & Berne LLP, and is not intended as a substitute for professional legal advice. Receipt of this insight, by itself, does not create an attorney client relationship. For any questions, or for further information, please contact Jason P. Conte at