Contractors are a special group in the construction industry, most of them come from the grassroots, is the "disadvantaged group" in the construction industry, although their position on the construction site is embarrassing, the income is not low, but due to their own weak attributes, they have fallen into a bottleneck period of development. Although many construction graduates flock to the contract foreman industry every year, very few are able to undertake projects independently, and most of them eventually change careers actively or passively due to physical and mental exhaustion due to hard work. Now a phenomenon is that most contractors are burdened with huge debts, so why is this phenomenon happening?
1. The reason why the contractor is burdened with huge debts.
1.Advances, deposits, arrears and other phenomena are not uncommon.
The phenomenon of advances, deposits, and arrears in the construction industry has long been common, and the author has handled dozens of problems and contradictions between construction enterprises and contractors during his work in a municipal construction bureau. The phenomenon of advance capital is mainly due to the fact that the construction enterprise or contractor needs to pay a performance bond to the enterprise or owner before bidding, so as to ensure that he can fulfill the terms of the contract. However, the performance bond is not refundable after the performance of the contract, but can only be refunded after a certain period of inspection, which can be as little as three months and as long as half a year or more.
During this inspection, the contractor needs to advance funds for the construction of the project. In addition to the performance bond, the quality and safety supervision deposit and the migrant workers' wage deposit are also a piece of capital occupation that cannot be ignored. At the same time, some material manufacturers want to deduct a part of the project money as a warranty to ensure that the materials and equipment can be paid on time. In some construction projects, there are still some arrears that have not been resolved for a long time. This part of the funds occupies a large amount of the contractor's capital. In the case of such advances and arrears, the contractor had to borrow money from the bank to maintain the normal operation of the project.
2.The phenomenon of wage arrears for migrant workers is serious.
Due to the particularity of the construction industry, the uneven quality of the construction team, the weak legal awareness of the migrant workers employed by some contract foremen, and the difficulties of the contract foremen in the project settlement process, etc., lead to the lack of wages for migrant workers. Once this happens, these vulnerable groups have to petition everywhere to collect debts in order to survive, which not only affects social stability, but also brings great mental pressure and economic losses to the contractor. Therefore, in order to reduce the trouble, many contract foremen have to pay their own wages in advance.
3.Project quality disputes.
Construction engineering is a complex process, from the design to the procurement of materials and equipment to the input of labor, and finally to the completion and acceptance of the project needs to invest a lot of manpower, material and financial resources, but due to the uncertainty and variability of the quality of the project and the uneven quality of the construction team, the problem of engineering quality disputes occurs from time to time. However, it is difficult for the contractor, who is the first person responsible, to get the corresponding compensation, and sometimes it is difficult to get support even if he sues the court. This not only delays the completion date of the project and increases the loss of the contractor, but also affects the unforeseen losses such as corporate image and reputation. These uncertainties made the already physically and mentally exhausted contractor even worse.
4.Self-management ability is not strong.
At present, many contractors are still stuck in the traditional management mode, and there is no set of scientific and perfect management mode to guide the management of the construction team. Many contractors no longer ask about the specific matters of the project after they send the project to their relatives and friends, which will inevitably cause unforeseen losses such as management confusion and project quality problems;
In addition, due to their own limitations, some professional engineering and technical personnel cannot be put into the command and management of the construction site; There are even a small number of managers who do not have good moral character and professional ethics; In addition, some factors such as the imperfect and imperfect financial system of some enterprises have caused some unnecessary losses and waste.