What’s the Skeleton in the Closet?

What’s hiding in the closet of the construction industry?
What’s the Skeleton in the Closet?

The construction industry has the highest level of insolvency…

Out of ANY industry.

1 in 4 construction companies goes out of business.

We do not want this to be your story.

To find out how to avoid getting into a sticky situation regarding contracts,  watch this quick video or continue reading.

In construction, there’s a hierarchy.

It goes…



And then usually quite a few TIER 2s

The goal of the owner is the finished product….

… So they go to tender and get Tier 1s to bid for the whole project.

One of these Tier 1s will win the bid and get the job…

…Their goal is to?


And although they may look like construction companies they are actually more like finance companies.

This is why they outsource the work to Tier 2s

Tier 2s are specialised construction businesses

The goal of the Tier 2s?

To get the job done, to maintain cash flow, and to make money.

HOWEVER… all too often Tier 2s come unstuck because of signing aggressive and risky contracts.

The Owner and the Tier 1 have a contract.

This is the main contract.

Both Owner and the Tier 1 are in good positions because they have in-house legal advisors to make sure they sign a contract that works for both of them.

And if there is any risk on the Tier 1 they know they can push it down to the Tier 2.

So what happens?

The Tier 1 will genuinely always give the Tier 2 the most aggressive version of the contract.

Typically Tier 2s don’t negotiate and therefore get tied up in risky contracts.


And if you don’t know where to start, luckily we’re here to help.

For more contractual advice, Quantum Contract Solutions is here to guide and assist you through everything contract related. Let’s reduce risk in your contracts and save time and money, just click this link to get our FREE case study to show you how clients just like you are doing it.

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