We as small business owners have a big problem with large Construction firms who often outsource work on a project to a smaller subcontractors, to help with the overall project.

However, there seems to have been a major power imbalance between large construction firms and smaller subcontractors over the last few years.

There have been countless instances of subcontractors accusing some large construction companies of “dire” or even “shameful” practices. This issue is a growing concern for many in the industry. 

The main issue with this is that a lot of small companies get exploited during the process on construction sites and simply cannot afford to be bullied.

Another example of a clear power imbalance is the fact that large construction firms have the ability to force subcontractors into agreeing to unfair terms and conditions if they want to work on a project.

Some large construction firms will include odious terms and conditions that heavily favours them when outsourcing work to subcontractors, and subcontractors continue to agree because they aren’t going to have the kind of legal resources needed to argue these unfair contracts. These contracts can also act as a way of shifting the blame should something go wrong, and often include loopholes that mean the larger contractors are protected in these instances.

Contracting fairly should be a priority for all construction firms, as it benefits everyone involved – so why isn’t this the case?

Building healthy relationships between contractors and subcontractors is good for business, but some larger firms would rather exploit them to make them that bit richer.

One thing that these companies fail to realise is that these projects are heavily dependent on subcontractors, and their reputation is on the line with the client. Being fair with subcontractors will only result in better work, so it should surely be a no-brainer for all.

This kind of behaviour from some large construction companies clearly needs to stop, and they need to realise how much of a negative effect their actions are having on the construction industry.

The way forward
We need to create an environment where small and growing businesses in the sector are able to thrive without fear of going under, and the quality of work being carried out will improve across the board.