Subcontractors typically perform more than 80 percent of the work on any given project, adding urgency to the sobering statistic that more than 90,000 subcontractors fail every year. Indeed, during the course of a project, including the maintenance period, the General Contractor can anticipate that as many as 25 percent of its subcontractors will experience financial or operational difficulties leading to potential default. And a single subcontractor default, if not well managed, is a threat to the timely completion of the project.

The presenters will discuss the risks of subcontractor default and the key questions that hospital executives and project managers must ask themselves, including:

How have recent economic conditions affected the hospital's ability to construct new facilities "on time and in budget?"

How has the economy affected the contractors (General Contractor and Subcontractors) who build our new projects?

If a subcontractor defaults on our project, what will be the impacts on our timelines and costs?

Given current economic conditions, should projects slated for 2010 and beyond be bonded?

How will surety bonds protect the hospital in the event of a default?

What alternatives to bonding the subcontractors may be available?

The session will be in the lecture format. The speakers are:

Co-presenter: Jonathan Halloran, National Director - Subguard
Zurich Construction

Co-presenter: G. Christopher Beck Vice President & General Manager, Turner Construction