Four predictions shaping subcontracting in 2026

The Onetrace 2026 Vision: four predictions shaping the next era of subcontracting

The subcontractor playbook that worked for the last decade won’t keep businesses competitive in the next one.

Labour is scarce, costs are rising, compliance is tightening, and GCs want clear, actionable information instantly, not at week’s end.

2026 will reward subcontractors who plan better, standardise their processes, and operate with streamlined information flows.

Here are our four predictions for how the coming year will play out for the industry. We’ve based them on a year of conversations we've had with our customers, themes from industry conferences we've attended, and the latest research and data from industry experts and analysts.

1. People planning will become one of subcontractors’ biggest operational pressures

The labour challenges subcontractors are facing today are likely to get worse in 2026, not better.

Deloitte notes labour shortages are expected to worsen as demand for skilled workers outpaces supply across global construction markets. As a result, labour is becoming more expensive.

If you’re looking to scale quickly or run multiple projects at once in 2026, you’ll need to watch out for workforce volatility. Operatives now move between sites more frequently, which means a single absence or delay can affect several schedules at the same time.

GCs are responding by demanding clearer labour governance. They want real-time visibility into who is on site, who is authorised to be there, and what progress their teams are making.

Traditional tools like spreadsheets, group chats, and manual sign-in processes simply can’t support this level of oversight.

As a result, workforce planning is shifting from a dull but necessary back-office task to a core operational discipline.

Subcontractors who move to software-based workforce planning in 2026 will put themselves at a clear advantage. They’ll protect margins, reduce scheduling errors, avoid compliance risk, and run multi-project workforces with far greater confidence.

2. Simplicity will become a competitive requirement for subcontractor software

Digital expectations in construction are rising quickly, but digital capability is not. The construction workforce has some of the lowest levels of essential digital skills of any major industry, according to FutureDotNow, which tracks national digital proficiency.

That mismatch means that if software isn’t simple, it won’t get used. Most tools are built for office-based users, not operatives working in noisy, dusty, high-pressure environments with little time to spare.

Yet general contractors now demand more frequent updates, clearer evidence of progress, tighter labour oversight, and faster responses to issues. Those demands require digital tools.

To square that circle, subcontractors are turning to platforms that require almost no training because they feel intuitive to operatives the moment they open them.

In 2026, ease of use will be a deciding factor in whether technology delivers value for subs or becomes another system nobody touches. The winners in construction technology will be the tools that strip away complexity and allow subcontractors to capture, share, and use the information they need with as little effort as possible.

3. Coordination will become a daily operational discipline

Coordination used to peak at certain moments in a project, like before a handover, during high-risk installations, or when multiple trades were squeezed into the same space at the same time.

Now, with more overlap between trades and projects, it’s a daily challenge. Sometimes workstreams run parallel, other times there is simply tighter sequencing. Regardless, subcontractors are getting pulled into coordination earlier and more often.

Rising project costs only add pressure to get coordination right. BCIS forecasts sustained inflation in labour and materials over the next five years, which reflects a structural trend rather than a temporary spike.

In an environment where inputs are more expensive, inefficiency has a direct and outsized financial impact. Materials that arrive too early tie up cash and create storage risk. If they arrive too late, they delay follow-on trades. 

General contractors have adapted accordingly. They now expect faster updates, clearer evidence of progress, and quicker resolution of on-site clashes. None of those expectations is unreasonable; they simply require subcontractors to work in a more structured, predictable way.

To keep projects moving and stay in sync with GCs, subs will need tools that make progress visible to all parties in real time, keep labour and materials aligned with the schedule, and provide clear, branded reporting without additional admin time.

4. Digital records will evolve from “compliance admin” to a competitive asset

Digital records are now a baseline expectation industrywide. The conversation is no longer about whether subcontractors have digital records—it’s about the quality of those records. General contractors want information they can rely on immediately. 

Regulation is accelerating that shift.

The Building Safety Act continues to reshape how information is created and maintained. Duty-holder roles, gateway processes, and “The Golden Thread” all place a new emphasis on accuracy and traceability.

Meanwhile, public sector work is undergoing its own digital transformation. The Procurement Act 2023, which went live in February, also introduces greater transparency and sets clearer audit expectations, all of which rely on structured, digital documentation.

Add to all that the digitisation push under CIS reforms, and more detailed evidence of materials and methods required by The Future Homes Standard.

Together, these regulatory shifts make one thing clear: In 2026, success depends on moving on from analogue record-keeping methods.

GCs will judge subs based on whether they can produce digital records that stand up to scrutiny, reduce their own exposure, speed up decision-making, and reinforce confidence in the quality and safety of the work.

Subcontractors who produce clear, consistent records will accelerate approvals, minimise disputes, and strengthen their reputation with customers.

2026 will reward subcontractors who build for clarity

The pressures shaping subcontractors in 2026 reinforce one another.

• Labour is harder to secure.

• Materials and delivery costs are rising.

• Coordination cycles are tightening.

• Regulation demands cleaner, more structured records.

• General contractors expect faster, clearer information from their supply chain.

Individually, each of these pressures is manageable. Together, they form a new operating environment where subcontractors can no longer rely on experience alone or patchwork processes to keep projects moving.

In short: 2026 belongs to the subcontractors who prioritise tools and processes that support your business amid these new pressures.

Onetrace is planning its 2026 product roadmap based on this assessment of the challenges subcontractors will face in the coming year. We believe those who build structured, repeatable systems now will find the next year easier, not harder. 

They’ll run projects more confidently, protect their margins, strengthen their relationships with main contractors, and put themselves in the strongest position to win work in an increasingly demanding market.