Construction has always weathered its share of uncertainty, and 2025 has proven to be another trying year for the industry so far.
With material input costs up 41% since 2020 and trade and tariff uncertainty shaking up pricing models, contractors are facing tighter margins and longer lead times.
As developers hesitate and labor pressures rise, builders can't afford to rely on outdated strategies. But in today’s high-risk climate, how can contractors reduce overall project uncertainty and risk?
Economic uncertainty brings volatility that could challenge even the most experienced builders. Our advice? Focus on what you can influence.
You may not have a say on tariffs, inflation, or the supply chain, but you do control how accurately you bid, manage costs, and uphold quality standards during preconstruction.
Preconstruction is your chance to reduce risk, improve margins, and build with confidence. When you invest early in the preconstruction and "build" the project before you actually build it, you'll set the job up for success and limit costly issues down the line.
Consider the MacLeamy curve, which shows that design changes become exponentially more expensive once construction starts. If you want to limit rework and protect profits, preconstruction is the time to take action.
Forward-thinking contractors leverage digital tools like model coordination and connected takeoff to plan smarter, catch issues early, and keep teams aligned on a single source of truth.
Let's break down the levers you can adjust to stay competitive during this period.
Submitting an accurate bid the first time means less uncertainty (and unexpected costs) once construction begins. It builds trust with clients, streamlines approvals, and gives your team a stronger foundation to execute.
Digital bid management platforms enable you to come up with solid bids. Take, for example, Autodesk Construction Cloud (ACC), which centralizes construction bid management so teams can collaborate in real-time and access the most up-to-date information when bidding.
Features like version control reduce confusion around scope changes, so your estimates stay aligned with what's actually being built.
Beyond access to tools, digitizing your bid management workflows equips you with historical data so you can learn from past projects, identify trends, and refine your pricing strategy.
All of these result in competitive and realistic bids that protect profitability without undercutting.
In a time where profits are tighter than ever, having close control of your costs is essential for managing risk. Knowing where every dollar is going before you break ground helps you bid smarter, allocate resources more efficiently, and avoid surprises later on.
Doing that starts with having a connected cost management system. Leverage construction tech to connect preconstruction estimates to live project budgets. That way, your field and office teams stay aligned as the project evolves.
Having the right cost figures during preconstruction also enables you to flag risks earlier. When you can track variances in real time, you're better equipped to catch budget drift and scope creep before they become major issues.
It's tempting to take on every project that comes your way (especially during market volatility), but this can often do more harm than good.
Remember: not every opportunity is worth the risk. Some jobs can drain your resources or leave you exposed to unpredictable costs.
For example, projects with vague scopes, long payment cycles, or unreliable owners and partners can cause headaches and drain profitability.
So, rather than chasing volume, shift to a margin-first mindset. The goal isn't to win every bid—it's to win the right ones. When you pursue high-fit projects, you reduce risk, improve delivery outcomes, and make your team's time count where it matters most.
Ask yourself: What projects will help maximize your margins? Which ones aren't worth the risk?
Some of the factors to evaluate include:
In addition to evaluating owner risk, manage the subcontractor side using prequalifi cation tools to surface red flags early. Consider ACC, which offers subcontractor qualification tools via TradeTapp. Using these tools, you can:
Ultimately, qualification isn't just about checking boxes, it's about building confidence in your partnerships and making better-informed decisions from day one.
In today's unpredictable market, the contractors who thrive won't be the ones who work harder—they'll be the ones who plan smarter. GCs who invest in connected tools and streamlined preconstruction processes will be best positioned to win high-quality work, reduce risk, and protect their margins.
The bottom line: when uncertainty is the norm, precision isn't just a nice-to-have—it's your competitive edge.
Looking to build out a better preconstruction technology stack? Check out: 15+ Preconstruction Tools to Save Time, Money, and Headaches
