Managing your construction budget is tough—but who’s got it tougher? Subs or GCs?”
Adam (former trade contractor) and Jeff (former GC) face off in this episode to settle a classic industry debate: whose project budget is actually harder to manage?
You’ll hear:
Why subcontractor budgets might actually be more complex.
Hidden pitfalls subs face daily that GCs rarely experience.
Real-world stories of budget management gone sideways (and lessons learned the hard way).
Think you know which side has it worse? You might be surprised.
Ready to end the argument? Hit play and decide for yourself.
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Episode 14 Transcript:
Whose Constrution Budget is Harder: Subs vs. GCs (and Why Subs Might Finally Win)
Adam Cooper:
All right, Jeff, I got one. Today we’re gonna talk about why my budget as a subcontractor is so much more difficult than your budget as a general contractor to manage. There’s no way your budget is anywhere near as complicated as mine.
Jeff Robertson:
How does that make your budget harder?
Adam Cooper:
There’s just more variables. It’s more complicated. I’ve finally won an argument with the GC. By the way, I’m Adam.
Jeff Robertson:
I’m Jeff.
Adam Cooper:
And we’re the principals at Ascent Consulting. We work with construction companies all over North America. I’m a former trade contractor, mostly.
Jeff Robertson:
And I’m a former general contractor.
Adam Cooper:
So, let’s start with this: my budget as a subcontractor is always harder to manage than yours as a general contractor.
Jeff Robertson:
I’ll give you the labor side of it. Traditionally, a general contractor doesn’t manage labor. I’ll grant you that upfront, but harder overall? I don’t know. I don’t think you appreciate what we have to go through to manage our budget.
Adam Cooper:
Well, I probably don’t. But do you appreciate what we have to do just to build our budget, much less manage it? Our budget typically has five different cost types: materials, subcontractors, labor, equipment, and operating costs.
Jeff Robertson:
I have subs, I have some equipment rental, and operating costs, sure. But labor—not nearly as much as you do.
Adam Cooper:
Exactly. I’ve got much more complicated materials and labor than you.
Jeff Robertson:
Say more about the materials.
Adam Cooper:
If I’m breaking down concrete, for example, I’m buying mud, rebar, form materials, and hiring separate crews—form setters, rod busters, finishers.
Jeff Robertson:
Okay, but as the GC, I manage all those scopes too. How is your budget harder?
Adam Cooper:
Because I have to buy all these different materials and pieces, then get people to assemble them. For example, I’ve got to run conduit, Smurf tube, PVC—then assemble it all within your tight schedule. You just roll in, asking if we’re ready for concrete in eight minutes.
Jeff Robertson:
Now you’re just bitching.
Adam Cooper:
That’s right, I’m a subcontractor—of course I’m going to bitch. My point is, the complexities are real.
Jeff Robertson:
Once you buy out the job, how difficult is it for you really to manage your budget?
Adam Cooper:
Realistically, my costs constantly fluctuate. Material prices go up. Labor gets more expensive. Productivity issues come up. If copper prices spike, or tariffs happen, I can’t come to you for more money—I’m locked into a lump sum.
Jeff Robertson:
Fair enough. I’ll grant you productivity tracking is probably harder for subs. For a GC, once we buy out the job, it’s locked, except for change orders.
Adam Cooper:
Exactly. And labor efficiency is everything. Even small productivity losses mean adding extra people or overtime, blowing up my labor budget. Tracking production rates and daily labor costs is relentless.
Jeff Robertson:
I see your point. As a GC, best practice is to buy the job fast, scope it thoroughly, lock commitments, and manage schedule. But I’ll admit, subs deal with more day-to-day volatility.
Adam Cooper:
Exactly. But I’m curious—when do you as the GC actually have to eat costs and can’t pass them to the owner?
Jeff Robertson:
Typically, scope gaps. Here’s a real example: I once forgot to include backfilling holes from removed light poles during a parking lot repave. That’s money out of my budget—I can’t pass it through.
Adam Cooper:
Great example. So, what about schedule delays or weather delays?
Jeff Robertson:
Schedule delays are usually on us unless proven otherwise. Weather delays depend—mostly you get time, rarely money.
Adam Cooper:
All right, so I think we’ve settled it. My budget’s harder. I finally won an argument with the general contractor!
Jeff Robertson:
Awesome. I’ll let you have this one.
Adam Cooper:
In all seriousness, if managing your budget feels this complicated—or if things keep going sideways—this is exactly what we’re here to help solve. Book a consult with us using the link below, and we’ll see you on the next episode of Construction Hot Takes.
