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Protect Your Business: The Game-Changing Contract System Every Subcontractor Needs

Discover How Quantum’s Scalable Solution Saves You From Costly Mistakes and Positions Your Company for Long-Term Success

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Updated: 8th January, 2025

Dear Owners & Leaders of Subcontracting Businesses,

If you’ve been a subcontractor for any length of time, I’m sure you know how frustrating it is to work harder and harder, only to see razor-thin margins eat away at your profits.

And you’ll know how risky it feels to sign contracts filled with hidden clauses, and how exhausting it is to chase down payments for months on end.

You might think this is just how the construction industry works—that it’s something you have to live with.

​But what you might not know is that you can actually do something about it.

My name is Cian Brennan, CEO & Founder of Quantum Contracts. Before starting Quantum in 2019. For almost two decades - I worked on the other side of the table to you.

And I saw firsthand how the Larger Contractors squeezed the Subcontractors.

If you've been in business long enough, perhaps you can remember when construction was all about relationships, handshakes, and doing a good job.

​That is not the case anymore...

Cian Brennan
​Founder & CEO

You see, in the 2000's something changed.

The big management consultancies realized that they could make the larger contractors a lot of money by changing how they managed their subcontractors.

​They changed their approach to be what is called
"hostile contracting."

This is where they push as much risk and as many difficult terms down onto the subcontractor as they can, and are very aggressive in their approach to NOT approving changes and delays and SLOW with payment.

They implemented contract teams into their business when they realized there was an additional 5- 15% profit up for grabs on every project through contracts.

Where does that 5 - 15% come from?

It comes from pushing all the risk down in the contract onto the subcontractors, making you foot the bill for what would be reasonable changes and unreasonable delays.

Subcontractors are financing these delays and changes - it comes from your pocket.

This hurts your profit, your cash flow, and ultimately, how long your business can survive.

I’m going to give you two pieces of evidence to demonstrate this:

​1. Case Law Showing Why You Need A Contracts System

There are two landmark cases globally:

1. CMA Asset Services v. John Holland (Australia) and;

2. Morrison Knudsen Corporation v. Fireman's Fund Insurance Company (US).


Both involved large disputes over simple contract details like notice periods & delay costs.

In both cases, the court ruled against the subcontractor for failing to comply with the contract.

These cases set a clear precedent:

If subcontractors don’t have a contract system, they are likely to lose in court. 

​2. Reports Showing Why You Need a Contract System

McKinsey & Company showed that Construction companies lose 5-10% of project value due to contract inefficiencies.

Source: McKinsey & Company, "Reinventing Construction: A Route to Higher Productivity,"

Construction Industry Institute showed that strong contract practices can improve profitability by up to 15%.

Source: Construction Industry Institute, "Benchmarking & Metrics Summary Report,"

The American Subcontractors Association reported that 40% of subcontractors face delayed payments, which erode profits by 5-15%.

Source: American Subcontractors Association, "The ASA Subcontractor's Negotiating Tips."

Every Subcontractor in modern-day construction needs a contract system.

Otherwise, you are at a constant disadvantage, giving up 5-15% and risking your company on each project.

Raine Gerber
​General Manager

What Is A Contract System? 

​It’s a comprehensive approach to managing every aspect of your contracts, ensuring your profit, cash flow, and business are protected at all times.

​​Think of a contract system as your safety net—working in the background to protect your business from risks, free up your time, and ensure you’re maximizing the value of every project.​

What is the best way to get a contract system in place?

Some might think hiring a full-time contracts team is the answer.

But let’s be real: it’s incredibly expensive.

And in between projects, you’re still paying for those staff members—even when you’re not generating any revenue.

It’s like renting equipment that’s just sitting there, draining your budget.

Unused Equipment Costing Money

Others might consider getting a project manager to handle contracts as a "side hustle."

But let’s face it—they’re already stretched thin with their day-to-day responsibilities.

They’re not experts in contracts, and
critical details often slip through the cracks which can lead to catastrophic results.

Project Manager Split Focused 

Or maybe you try to do it yourself?

Sure you might have some knowledge, but you’re not a contracts expert.

Plus, do you really want to spend your valuable time buried in paperwork instead of focusing on what matters—winning more work and delivering quality on-site?

I’ve seen these challenges firsthand.

After almost 2 decades being on the other side working for the Large Contractors and Owners.

"Quantum has freed up a lot of time for me personally & derisked a lot of aspects of our contracts"

Kelvin Andrijich

Managing Director

I realized that subcontractors needed a more affordable way to implement a complete contract system without the huge costs of hiring full-time staff or relying on overworked project managers.​

Quantum developed a Fractional Service to solve this problem.

Giving subcontractors access to a full contract system—strategic advice, real-time support, and all paperwork management you need—at an investment that works for your size of business.

​​​
With a fractionalized service you have the ability to scale up when work is coming in and scale down when you are waiting for new projects to come through.

A fractional service is the most effective and cost efficient way to implement a contract system into your business.

Moya Botes
Client Success Lead

Why Quantum? 

Quantum is the only company offering subcontractors a contract system through a fractional service model.

To date, we’ve helped over
350 subcontractors, managing $20 billion in contracts and earning awards for Innovation and Outstanding Growth.

​Our expertise spans legal, engineering, quantity surveying, and project management, specializing in navigating contract traps.

Here Are Some Of The Results Subcontractors Just Like You Are Getting Right Now:

“We have found that this service drives a reduction in insurance costs, improves margins and we don’t leave money on the table – they pay for themselves!”

David Hopkins

General Manager

“Since using Quantum, our project profits have jumped six figures per project - Now, we feel confident that everything is on autopilot and we can concentrate on the project itself”

James Grundy

Operations Manager

“The value goes beyond the dollars we’ve saved; it’s about peace of mind, saving time, effort, and energy"


Jillian Samways

General Manager

If you’re like many of our best clients before they joined Quantum, you might be thinking:

"I can’t negotiate … or I don't want to seem too contractual."​

From working on the other side for so long - we’d often go out to 5 or 6 suppliers for a piece of work.

5 would come back trying to negotiate the terms and 1 wouldn't.

We didn't think the one that didn't try to negotiate was the best to work with.

In fact, we felt they didn't know what they were doing. 

Unprofessional.

​A Noise Wall contactor client of ours had these concerns as well and after trying a Contract System framework they got this response back from their client:​

"Thank you for your professionally worded negotiations. It gave us confidence in your expertise, and we’re excited to work with you”

The key is HOW you approach the negotiations.
There is a specific method to get results.
​​A method that we have perfected through over 6000 negotiations.

here are Just Some Negotiation results:

What We Tried To Negotiate V. What Was Accepted

82.5% Acceptance

100% Acceptance

100% Acceptance

92.5% Acceptance

87% Acceptance

91% Acceptance

We’ve been in this business for a long time, and one of the most common things we hear is:

“Now’s not the right time. We’ll look into it later, when we have a new contract”​​

But unfortunately, “later” often comes after something goes wrong:  ​

A dispute, a massive delay, or unexpected costs that eat into their profit.

​We’ve had clients come back to us after things went sideways, saying:

“We chatted 6 months ago. I'm now owed $758k from one Contractor and $1.48m from another. I wish I had engaged you back then"

Adam O'Connell

Director

“I wish I’d engaged Quantum earlier.”

​The reality is that waiting to take action often costs far more than being proactive.

​A contract system isn’t just about reviewing new contracts.

It’s about
managing the ones you already have, protecting your projects, and ensuring your business is secure - no matter what comes your way.

​And if cost is holding you back, ask yourself:

Can I really afford the risk of going out of business?

Let me show you what happens when subcontractors act Decisively:

62-day Extension of Time (EOT), avoiding liquidated damages.

90-day EOT and $282k in changes because we handled the paperwork.

$1.1 million in delay costs and secured 44 days of EOT.​

The cost of Quantum's service typically delivers a 3- 10x Return on our costs, not to mention the risk reduction which is going to keep you in business over the long term.

​​Or as Caledonia Scaffolding, put it:

"They pay for themselves"

Let Me Ask You A Few Questions?

Do you agree that subcontractors need a contract system in the modern construction industry?

Does a fractional service model, that you can scale up and down as needed seem like the best option to achieve that?

Can you see how acting now to implement the right system could help you avoid costly mistakes and ensure long-term success?

If yes, Then:

Click the button below to schedule a call with Quantum.

We’ll answer your questions, walk you through the system, and provide the investment details so you can make an informed decision. 

I wish you and your company the very best. 

Cian Brennan
Founder & CEO

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