If you’re blaming all the contractor and subcontractor defaults lately on the recession and how thin times lead to management mistakes, such as chasing unprofitable work, here’s yet another concern. Business in some sectors is picking up enough or may pick up soon and could create perils from recovery risk.
Contractors face recovery risk on the back end of a recession when they take on too much work after they’ve depleted their staff and cash resources during hard times and don’t have enough resources to finish projects.
