Learn best practice procedures for prequalifying subcontractors and managing subcontractor default risk.
Like a chain, a construction team is no stronger than its weakest link. In these uncertain times of increased demand for construction, stretched backlogs, labor shortages, and cost escalations, the risk of subcontractor default is at an all-time high. Subcontractor default is the weak link that can turn an otherwise successful project into an utter failure overnight. This course will help people responsible for entering into and administering subcontracts to recognize the causes and telltale signs of high-risk subcontractors early in the constructive process. In some cases, default can be avoided by simply subcontracting with a different subcontractor. In other cases, proactive measures can be taken to avoid or mitigate the effect of terminating a high-risk subcontractor. This topic will explore some of the options available to general contractors, construction managers, and upper-tier subcontractors to avoid the project-destroying effect of subcontractor default.
Learning Objectives
- You will be able to describe the common causes of subcontract defaults.
- You will be able to identify the signs of impending subcontractor default.
- You will be able to explain the available options to avoid subcontractor default.
- You will be able to discuss effective plans to avoid subcontractor default.
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Over 39 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Agenda
Introduction
- Overview
- What Is a Default?
Common Causes of Subcontractor Default
- Cash Flow Problems
- Too Much Work, Too Little Time
- Project Complexity and Inexperience
- Bid Busts and Defects
- Labor Shortages and Other Outside Factors
Early Warning Signs of High-Risk Subcontractors
- Effective Prequalification
- Performance Clues
Default Avoidance
- Effective Subcontract Terms
- Proactive Project Management
- Cure Notices
- Supplementation
- De-Scoping
- Mitigating Impact of Termination
Security
- Performance Bonds
- Default Insurance
- Other Forms of Security
Conclusion
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Why Lorman?
Over 39 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Credits
OnDemand Course
This course was last revised on September 23, 2026.
Call 1-866-352-9540 for further credit information.
- AK CLE 1.0
- Alaska attorneys may receive 1.0 hour(s) of continuing legal education for completing this program. Please contact the Alaska Bar Association or go to www.alaskabar.org for details regarding reciprocity with other states.
- AL CLE 1.1
- This course or a portion thereof has been approved by the Alabama State Mandatory Continuing Legal Education Commission for a maximum of 1.1 hour(s) credit.
- AR CLE 1.0
- This course has been approved for 1.0 hour(s) of CLE by the Arkansas CLE Board.
- Arizona CLE 1.0
- The Arizona State Bar does not pre-approve or pre-certify MCLE programs. However, records of this program and attendance will be maintained by Lorman Education Services/Noggin Guru for auditing purposes. This activity may qualify for up to 1.0 hour(s) toward your annual CLE requirement for the State Bar of Arizona.
- CA MCLE 1.0
- Lorman Education Services/Noggin Guru is a State Bar of California approved MCLE sponsor and this course qualifies for 1.0 CLE hour(s) of participatory credit.
- CT CLE 1.0
- Neither the Connecticut Judicial Branch nor the Commission on Minimum Continuing Legal Education approve or accredit CLE providers or activities. This course has been approved for CLE credit in jurisdictions aside from CT and therefore it automatically meets the content and delivery requirements in Connecticut. Credit is based on a 60 minute credit hour and shall be awarded as follows: 1.0 CLE credit(s).
- GA CLE 1.0
- This program has been approved by the Georgia Commission on Continuing Lawyer Competency for 1.0 CLE hour(s).
- HI CLE 1.0
- This program was approved by the Hawaii State Board of Continuing Legal Education for 1.0 CLE credit hour(s).
- IL CLE 1.0
- This course was approved for a total of 1.0 hour(s) of MCLE Credit by the Illinois MCLE Board.
- IN CLE 1.1
- This program has been approved by the Indiana Commission on Continuing Legal Education. Participating attorneys are eligible to receive up to 1.1 hour(s) of Distance Education credit.
- MO CLE 1.3
- This course qualifies for self-study CLE credit in Missouri.
- ND CLE 1.0
- North Dakota CLE policy does not allow for pre-approval of any self-study courses. This course may qualify for up to 1.0 hour(s) of CLE credit.
- NH MCLE 1.0
- NH MCLE does not approve or accredit CLE activities for the NH Minimum CLE requirement. Lorman Education Services/Noggin Guru believes this Ondemand course meets the requirement of NH Supreme Court Rule 53 and may qualify for CLE credit(s). Program Length: 63 Minutes.
- NJ CLE 1.3
- This program has been approved by the Board on Continuing Legal Education of the Supreme Court of New Jersey for 1.3 hour(s) of total CLE credit.
- NM CLE 1.0
- This program has been approved by the New Mexico Minimum Continuing Legal Education Board for 1.0 hour(s) of credit.
- NV CLE
- This program has been approved by the Nevada Board of Continuing Legal Education for 0.0 CLE hour(s).
- NY CLE 1.0 including Areas of Professional Practice 1
- This course has been approved in accordance with the requirements of the New York Continuing Legal Education Board for up to a maximum of 1.0 credit hour(s) in the area(s) of Areas of Professional Practice for 1.00 hour. Each hour may be counted only as satisfying one category of credit. Duplicate credit for the same hour of instruction is not permitted. This course qualifies for both established and newly admitted attorneys. Lorman Education- Noggin Guru, Inc. has a financial hardship guideline. Please contact customer service at 1.866.352.9539 for instructions on how to apply.
- OH CLE 1.0
- This course has been approved by the Ohio Supreme Court Commission on Continuing Legal Education for 1.0 CLE credit hour(s). To fulfill CLE requirements for self-study, web-based programs, you must complete 100% of the polling questions during the program. Your hours will be filed electronically within thirty (30) business days by Lorman Education Services provided you fulfilled 100% attendance and polling questions answered.
- PA CLE 1.0
- This Distance Learning program has been approved by the Pennsylvania Continuing Legal Education Board for 1.0 hour(s) of substantive law, practice and procedure CLE credit.
- VT CLE 1.0
- This self-study program has been approved by the Mandatory Continuing Legal Education Board of Vermont for 1.0 hour(s) of CLE credit. Please note: Attorneys may only claim 12 credits per compliance period in this format. This course is considered "Non-Moderated Programming without Interactivity".
- WI CLE 1.0
- This program qualifies for 1.0 hour(s) of ondemand CLE through the WI Board of Bar Examiners.
- WV MCLE 1.3
- This program has been approved by the West Virginia State Bar MCLE Commission for 1.3 MCLE hour(s).
- AK ENG 1.0
- This Ondemand program is applicable for professional development hours through the Alaska State Board of Registration for Architects, Engineers and Land Surveyors. Professional development hours: 1.0.
*Please check the rules and requirements in your state for compliance.
- AL ENG
- This Ondemand program is applicable for professional development hours through the Alabama Board of Licensure for Professional Engineers and Professional Land Surveyors.*
*Please check the rules and requirements in your state for compliance.
- AR ENG
- This Ondemand program is applicable for 1.0 professional development hour(s).*
*Please check the rules and requirements in your state for compliance.
- FL ENG 1.3
- This course has been approved for 1.3 PDH(s) by the Florida Board of Professional Engineers in the Areas of Practice.
- GA ENG
- This Ondemand program is applicable through the Georgia State Board of Registration for Professional Engineers.for 1.0 professional development hour(s).*
*Please check the rules and requirements in your state for compliance.
- IA ENG
- This Ondemand program is applicable for professional development hours for engineers. Please refer to Chapter 3, 193C IAC.*
- ID ENG 1.0
- This Ondemand program is applicable for 1.0 professional development hour(s) through the Idaho Board of Professional Engineers and Professional Land Surveyors.*
*Please check the rules and requirements in your state for compliance.
- IL ENG 1.0
- This program is applicable for 1.0 professional development hour(s) through the Illinois Society for Professional Engineers.*
*Please check the rules and regulations in your state for compliance.
- IN ENG 1.3
- This Ondemand program is applicable for 1.3 professional development hour(s) through the Indiana State Board for Professional Engineers.*
*Please check the rules and requirements in your state for compliance.
- KS ENG 1.0
- This program is applicable for 1.0 professional development hour(s) for engineers.*
*Please check the rules and regulations in your state for compliance.
- KY ENG 1.0
- This Ondemand program is applicable for 1.0 professional development hour(s) for engineers.*
*Please check the rules and requirements in your state for compliance.
- LA ENG
- The Louisiana Professional Engineering and Land Surveying Board (LAPELS) no longer approves providers or courses. Lorman Education Services/Noggin Guru, Inc. believes that this course is worth 1.0 PDH(s). According to LAPELS' rules, It will be the responsibility of the licensee to determine if a Course/Activity offered by an unapproved sponsor/provider is an Acceptable Activity.
- MD ENG 1.0
- Lorman Education Services/Noggin Guru, Inc. is a board approved sponsor with the Maryland Board of Professional Engineers. This course qualifies for 1.0 professional development hour(s).
- ME ENG 1.0
- This ondemand program is applicable for a maximum of 1.0 hour(s) toward the annual PDH requirement. Please note: The State of Maine Professional Engineers Registration Board does not pre-approve courses for professional development credit.*
*Please check the rules and requirements in your state for compliance.
- MN ENG 1.0
- This course is applicable for a maximum of 1.0 hour(s) toward the PDH requirement for engineers. Please note: The Minnesota State Board of Registration for Engineers has final authority on the acceptance of individual courses.
- MO ENG 1.0
- This ondemand course is applicable for 1.0 professional development hour(s) for engineers.*
*Please check the rules and requirements in your state for compliance.
- MS ENG
- This ondemand course is applicable for professional development hours through the Mississippi State Board of Registration for Professional Engineers.*
*Please check the rules and requirements in your state for compliance.
- MT ENG 1.0
- This ondemand course is applicable for 1.0 professional development hour(s) for engineers.*
*Please check the rules and requirements in your state for compliance.
- NC ENG 1.0
- This program may qualify for up to 1.0 professional development hour(s) for engineers. Please note: The North Carolina Board of Examiners for Engineers and Surveyors does not require that licensees take their CE from a Board approved Sponsor. The onus is on the licensee to make the determination of whether a course or activity has a purpose or objective which will maintain, improve, or expand the skills and knowledge relevant to the licensee's field of practice.
- ND ENG 1.0
- The North Dakota State Board of Registration for Engineers and Land Surveyors does not pre-approve courses or providers.
This course may be applicable for professional development hours in your state. Please check your rules and requirements for compliance.
- NE ENG
- This course is applicable for professional development hours for engineers if the course is continuing engineering education for you..*
*Please check the rules and requirements in your state for compliance.
- NH ENG 1.0
- This course is applicable for 1.0 professional development hour(s) for engineers.*
*Please check the rules and requirements in your state for compliance. The New Hampshire Board of Engineers has final authority on granting approval.
- NJ ENG 1.0
- Lorman Education Services/Noggin Guru, Inc. is authorized as a provider to offer courses through the New Jersey Board of Professional Engineers.
This course is applicable for 1.0 CPC credit(s) for engineers. *
*Please check the NJ State rules and requirements for compliance.
- NM ENG 1.0
- This course is applicable for 1.0 professional development hour(s) for engineers.*
*Please check the rules and requirements in your state for compliance.
- NV ENG 1.0
- This course is applicable for 1.0 professional development hour(s) through the Nevada State Board of Engineering and Land Surveyors.*
*Please check the rules and requirements in your state for compliance.
- OH ENG
- This ondemand course is applicable for continuing education credit for engineers through the Ohio State Board of Licensure for Professional Engineers provided it is a relevant managerial, ethical or technical topic relevant to the practice of engineering or surveying.*
*Please check the rules and requirements in your state for compliance
- OK ENG
- This course is applicable for professional development hours for engineers.*
*Please check the rules and requirements in your state for compliance.
- OR ENG
- This course is applicable toward engineering continuing education hours in Oregon, please refer to your rules and laws.
- PA ENG 1.3
- This program is applicable for 1.3 PDH(s) for engineers through the Pennsylvania State Board of Professional Engineers, Land Surveyors and Geologists.*
*Please check the rules and requirements in your state for compliance.
- SC ENG 1.0
- This course is applicable for 1.0 hour(s) toward the PDH requirement for engineers through the South Carolina Board of Registration for Professional Engineers.*
*Please check the rules and requirements in your state for compliance.
- SD ENG
- This course is applicable for professional development hours for engineers in South Dakota.*
*Please check the rules and requirements in your state for compliance.
- TN ENG
- This course is applicable for professional development hours for engineers.*
*Please check the rules and requirements in your state for compliance.
- TX ENG
- This Ondemand course is applicable for professional development hours for engineers.*
*Please check the rules and requirements in your state for compliance.
- UT ENG
- This course is applicable for professional development hours for engineers.*
*Please check the rules and requirements in your state for compliance.
- VA ENG 1.0
- This program is applicable for 1.0 hour(s) of continuing education through the Board for Architects, Professional Engineers, Land Surveyors, Certified Interior Designers and Landscape Architects (APELSCIDLA BOARD).*
*Please check the rules and requirements in your state for compliance.
- VT ENG
- This course is applicable for professional development hours for engineers.*
*Please check the rules and requirements in your state for compliance.
- WI ENG 1.0
- This course is applicable for a maximum of 1.0 hour(s) toward the PDH requirement for engineers.*
*The Wisconsin Engineer Section has final authority on the acceptance of individual courses and providers.
- WV ENG 1.0
- This course is applicable for 1.0 professional development hour(s) for engineers.*
*Please check the rules and requirements in your state for compliance.
- WY ENG 1.2
- This course is applicable for 1.2 professional development hour(s) for Wyoming engineers.*
*Please check the rules and requirements in your state for compliance.
To earn each credit Lorman offers through the OnDemand learning platform, you need to watch 100% of the program. Also, for certain credits you will need to fulfill additional requirements which will be displayed on the "credits" tab when viewing the course.
This program does NOT qualify, nor meet the National Standard for NASBA accreditation.
MP3 Download
- AK CLE 1.0
- Arizona CLE 1.0
- CA MCLE 1.0
- CT CLE 1.0
- HI CLE 1.0
- MO CLE 1.3
- NM CLE 1.0
- VT CLE 1.0
- WV MCLE 1.3
This program does NOT qualify, nor meet the National Standard for NASBA accreditation.
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Credit
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Why Lorman?
Over 39 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Faculty
Scott D. Cahalan
Smith, Gambrell & Russell, LLP
- Partner in the construction law and litigation section of Smith, Gambrell and Russell, LLP, an AmLaw 200 firm
- 30+ years of experience as a construction attorney
- Part time instructor of Construction law and Real Estate Development Law at the Georgia Institute of Technology
- General counsel to the Georgia Utility Contractor’s Association
- Drafted form construction contracts for the Associated Owners and Developers, a national organization
- Recognized by Chambers USA, The Best Lawyers in America, and Georgia Super Lawyers
- Frequent author and lecturer on construction law
- Contact information [email protected], [email protected], and (404) 815-3711
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Why Lorman?
Over 39 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
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