Why Proper Dispersion of Work Matters

In the pursuit of cost savings, Construction Managers and General Contractors (CM/GCs) are often tempted by the allure of bulk procurement—awarding large volumes of work to a single Subcontractor in exchange for lower per project pricing. While this bulk may yield short-term financial benefits, it often masks a much larger risk: strain on Subcontractor operational capacity and a long-term degradation of the Subcontractor pool. A disciplined strategy of dispersing work across multiple qualified firms not only stabilizes costs but also safeguards the health of the CM/GC’s bidding environment and industry relationships.

One of the leading contributors to Subcontractor default is overextension. Subcontractors—like any business—tend to say “yes” to more work, especially from valued clients, even when it strains their resources. When production capacity is exceeded, quality suffers, schedules slip, and ultimately, defaults occur. It is easy to cast blame on the Subcontractor, but the responsibility lies with the CM/GC to procure responsibly and support the long-term viability of their project partners. An overloaded Subcontractor is not an isolated problem—it is a systemic risk introduced by procurement decisions that ignored sustainability in favor of short-term savings.

Companies in any industry know when the deck is stacked against them. When one Subcontracting firm becomes the clear favorite for a CM/GC, the rest of the Subcontractor market takes notice—and adjusts. Rather than sharpening their pencils, they begin to disengage. They protect their bid data, build in inconvenience premiums, or stop bidding altogether. As bid participation declines, so does pricing leverage. In many cases, a CM/GC may then find themselves reliant on a single Subcontractor, receiving inflated proposals well above market rates as the Subcontractor now has a mostly captive audience. The market is no longer able to function as a pricing moderator. Meanwhile, the CM/GC’s competitors, who have maintained a competitive and fair procurement environment, continue to receive true market pricing—placing the original CM/GC at a lasting disadvantage.

Beyond pricing, the loss of a broad Subcontractor network diminishes project planning and estimating capabilities. Subcontractors bring technical knowledge and insight into emerging technologies, evolving methods, and real-time market conditions. Estimating teams depend on this input to deliver accurate, competitive, and value-generating bids. When work is thoughtfully dispersed, CM/GCs retain access to multiple expert voices. This collaborative approach strengthens the preconstruction process and positions the team to deliver superior outcomes to Owners and Developers.

Short-sighted strategies can erode long-term competitiveness. The benefits of proper dispersion go far beyond spreading risk—they ensure ongoing access to the market’s best ideas, pricing, and people. Rather than overloading a single Subcontractor, Construction Managers should aim to sustain a robust network of trusted partners. A deliberate and balanced procurement strategy is not just a defensive measure—it is a foundation for long-term success.

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Completely Unrelated Trivia Treasure: On the Great Lakes lakebeds, there are over 6,000 shipwrecks, with some dating back to the late 1700s. Most of these ships sank between 1850 and 1950, which indicates that, on average, one ship sank each week during this period.

Maple Insight supports proper dispersion of work in quantifying the financial impacts of each prospective award. We offer intelligence that helps CM/GCs make sound short and long-term decisions for each project.