Every contract is a separate negotiation. We look at the whole portfolio.
Construction and development companies manage dozens of subcontractor agreements at once: auditing and renegotiating at the portfolio level delivers more impact than one-off fixes.
Typical challenges
- 01
Subcontractor agreements negotiated project by project, without using the scale of the whole company
- 02
The same subcontractor billed at different rates depending on the contract and the person negotiating
- 03
Rising material costs with no indexation clauses or renegotiation mechanisms in the contracts
- 04
Equipment hired ad hoc per project instead of under a framework agreement covering the year
- 05
Settlement processes generating payment delays, contractual penalties and disputes
- 06
Retention and performance guarantees tying up cash for longer than the contract requires
- 07
Payment terms to subcontractors out of step with the settlement cycle with the developer
- 08
No single register of commercial terms: nobody in the company knows which rate applies to which subcontractor
How we approach this industry
We begin by bringing every active subcontractor, material and equipment agreement together in one place — usually for the first time in the company's history, because day to day each contract lives inside its own project. We look for recurring patterns: the same subcontractor on several different rates, indexation clauses that work in one direction only, payment terms out of step with the settlement cycle with the developer, guarantees tying up cash for longer than the contract requires. We then renegotiate framework terms rather than individual contracts, because those set the cost for every project that follows. The conversations are built on the company's real annual order scale rather than the volume of a single contract — and that is usually the argument nobody has put on the table before.
Related services
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