Subcontractor Default Recovery Calculator

Sub defaults crash schedule. This calculator sizes loss and recovery.

Original sub contract

Replacement premium %

Bond amount

Delay weeks

Weekly schedule cost

Net loss after bond

Schedule loss

$288,000

Replacement premium $

$540,000

How the math works

Gross = replacement + schedule. Bond recovers up to bond amount. Net = gross − bond recovery.

Bond the trades on your critical path, not just the ones above a contract threshold. An unbonded sitework or MEP rough sub defaulting in month 3 of construction can blow $200-500k of schedule cost that no amount of contingency planning covers after the fact.

How to Use

Enter original sub contract.
Enter replacement sub premium %.
Enter bond amount.
Enter schedule delay weeks.
Enter weekly schedule cost.
Read net loss after bond.

Frequently Asked Questions

Replacement premium?

Emergency replacement subs charge 20-50% premium over original bid. Reason: no competitive bid, compressed schedule, risk of mid-project takeover. Bonded subs can force completion via surety, softening premium.

Schedule impact?

Default typically adds 4-12 weeks. Longer if trade is on critical path (sitework, structural, MEP rough). Schedule delay cascades into other trades and pushes CO. Most expensive element of sub default usually the schedule, not the direct cost.

Bond claims?

Bonded subs: claim on performance bond (1-3% of contract typical). Surety picks replacement contractor or funds completion. Unbonded: owner absorbs full replacement cost. Bonding requirements vary by contract size; $500k+ typical threshold.