In AGC’s annual survey with FMI, the top risks identified included price increases in materials and equipment, lack of skilled/craft labor as well as lack of field supervisors. While most respondents reported moderately higher or significantly higher backlogs today compared to the end of 2021, 70 percent of them admitted having a low labor force relative to backlog demands. Furthermore, almost 40 percent of survey respondents reported an increase in subcontractor defaults compared to a year ago.
In light of these trends, contractors are increasingly trying to lock in pricing and add contingencies in contract language as well as increase the depth of financial and staffing reviews.
The 2023 AGC/FMI risk study provides key insights on industry trends from members of AGC’s Surety and Construction Risk Management Forum. Results are based on over 100 responses that were collected in December 2022. View AGC/FMI risk management reports over the last eight years – Learn More.