Is your company, like that of so many contractors, struggling to find profitable work and sell projects at levels that sustain profitability? As one of our clients says about the current market prices, "You can't compete with stupid!"rnConstruction put in place, down by more than 24% from market peak, accounts for the largest market driver that is pushing owners to focus excessively on price (See Exhibit I). Our industry has too much competition for the available work. Expect mergers, closures and failures in abundance over the next two years. Additionally, surety losses traditionally spike for two years following every recession. All combined, these market drivers are contributing to "stupid pricing" in a market already struggling to deal with the new normal.
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