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Construction: The Margin Compression Problem Hidden Inside Subcontracting

Construction is one of the most commercially demanding industries in Australia. It is project-based, labour-intensive, cash-flow sensitive and exposed to cost movement. A contractor may have strong demand, a full pipeline and a busy workforce, yet still experience weak profitability. The reason is simple: revenue does not protect margin if the project controls are weak. One of the most common areas where margin disappears is subcontracting. Subcontractors are essential to the construction...