Construction Profit Fade

How Contractors Can Protect Against Unhindered Profit Fade

According to research covered by, poor communication, rework and bad data management costs contractors $177 billion every year in the U.S. This represents one of two causes of profit fade: unhindered.

What Is Profit Fade?

Profit fade means earning less than you expected on a project, which is a common problem for subcontractors because projects are time consuming and complex. Hindered profit fade is when your work is delayed by things outside of your control, which can be recouped if they are documented. Unhindered profit fade means it’s your fault.

eSUB CLOUD helps prevent the causes of unhindered profit fade by providing quick and easy access to project data, improving project productivity, and increasing the accuracy of project information.

Key Findings from the Research (Where Your Money Goes)

In the aforementioned research, 600 construction leaders were interviewed about how their teams spend time on construction sites, communicate during projects, and leverage their technology investments. Here is a summary of the key findings:

  • Time spent on fixing mistakes, looking for project data, and managing conflict resolution accounts for $177.5 billion in labor costs per year
  • Rework caused by miscommunication and inaccurate/inaccessible information costs the construction industry more than $31 billion per year
  • Each project team member spends more than 14 hours each week on average dealing with conflict, rework and other issues that take away from higher priority activities
  • Workers are not taking full advantage of mobile devices and other technology investments beyond email, text and calls

5 Ways eSUB Helps Protect Your Profits

  1. Giving you greater project management visibility for office and field workers so you can identify whether projects are on time or delayed
  2. Data driven daily reports: the most powerful documentation from workers in the field, especially when photos are uploaded
  3. Field productivity, including an hours lost report so you can capture how much labor you lost due to issues beyond your control (helps win change orders and avoid back charges)
  4. Office productivity, including integrations with accounting systems and drawing software to reduce data entry and errors
  5. Job costing so you can bid with confidence and be profitable on future projects

Watch the video to learn more:

Get Started with a Demo

Contact us and share your project management, bidding and invoicing challenges with us so we can develop a personalized demo for you that shows how you can avoid profit fade.