Is Buyout Just a Nicer Word for Shorting Your Subs?

Is buyout just a nicer word for shorting your subs? Sometimes, but it doesn’t have to be. Buying the work competitively is the job, and it crosses a line when a GC takes a project without enough money in it and pushes the shortfall down to the trades. If you are a subcontractor who has watched a buyout call land on your margin, or a project manager handed a fee that you cannot see a path to, this is the conversation both sides usually have separately.

In this episode, Greg Gorman, Adam Cooper, and Jeff Robertson react to the comments a clip on bidding drew, take the sub's side and the GC's side honestly, and get into contingency, scope, and why the worst job on your books is often the one you won and should not have.

Here is the TikTok video source for the comments:

‘Buyout and the Subs’: https://www.tiktok.com/@construction.hottakes/video/7664578504482163981

Build a business that runs without you: https://ascentconsults.com/build-it-better-ebook/

Chapters:

00:00 - Introduction & General Conditions Budgeting

01:46 - Reading Online Comments on Buyout Strategies

03:12 - Strategic Budgeting & Subcontractor Margins

06:50 - Market Dynamics & Sustainable Bidding Practices

03:26 - Closing Remarks & Producer Summary

Markup and Margin: The Math Matters: https://blog.ascentconsults.com/markup-and-margin