Software Investment Analysis: Where Subcontractors Are Really Putting Their Money in 2025
A practical analysis of how subcontractors are investing in software in 2025, based on Riffle’s Subcontractor Survey. Clear insights for firms of every size.
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If you’ve ever wondered whether other subcontractors are actually spending money on software, or just talking about it, you’re not alone. With margins tight and bid volume rising, most teams want to know the same thing: What’s worth investing in?
Our 2025 Subcontractor Survey gives a clear answer. Subs are investing in software, but spending patterns vary by company size. Here’s what the data shows and why it matters.
Small Firms Are Busy, Interested, and Under-Resourced
Firms with 1–10 employees want better tools but struggle with time and budget.
73% spend 0–2% of their annual budget on software today. Most aren’t avoiding tech — they’re overloaded and cautious about adding one more thing to manage.
For these shops, simple setup and clear workflows matter more than anything else.
The 11–30 Employee Group: The Industry’s Early-Adopter Engine
The most tech-forward segment in the survey? The 11–30 employee firms.
- 94% consider themselves early adopters
- 83% spend 3%+ of their annual budget on software
- Most expect their investment to keep rising
This group is growing quickly and feels the pain of outdated systems first. They want structure, automation, and cleaner workflows, and they’re willing to pay for it.
31–60 Employees: The Swing Group With the Most to Gain
This segment is evenly split:
- 40% spend 0–2%
- 37% already invest 3%+
These firms handle real complexity involving multiple PMs, dedicated estimators, bigger bid volume. Many submit 16–30 bids per week, which makes manual systems inefficient fast.
They’re open to investing, and they just need solutions that won’t disrupt already hectic schedules.
Large Firms: Open, but Slowed by Scale
Larger subcontractors (61+) aren’t resistant. They just move slower because change affects dozens of people.
- 60% spend 0–2%
- 38% are high investors
Training, rollout, compliance, and multiple offices make change harder, but also make the payoff bigger. External industry data backs this up: McKinsey reports that digitization reduces rework by 30–50% on average for construction teams. Large firms feel that impact immediately.
Why Software Spending Keeps Rising
A few industry forces are pushing subs to invest:
- More bid invites and shorter deadlines
- Labor shortages that demand efficiency
- Margin pressure that requires better filtering
- GCs expecting faster, clearer communication
Subs aren’t buying “tech.” They’re buying ways to protect profit and reduce chaos.
What This Means for Subcontractors
If you’re unsure whether you’re investing enough, or in the right tools, here’s the takeaway:
- You don’t need more tools; you need one that fits subcontractor workflows
- Mid-size firms are adopting fast, especially 11–30 employee contractors
- Smaller shops benefit from even small improvements in organization
- Larger teams see big gains from standardizing processes
Across every size bracket, the goal is the same: clarity on bids, workloads, and margins.
That’s what we’re building with RiffleCM: purpose-built software that cuts wasted time and helps subs win the right work.
Join the waitlist at rifflecm.com.
Eliminating Manual Errors in Construction Bids
Common questions about reducing errors and improving accuracy
What causes most manual errors in subcontractor bids?
Manual errors usually come from disconnected workflows — things like outdated spreadsheets, inconsistent templates, or rekeying the same data multiple times. When project info lives across emails, texts, and PDFs, small mistakes add up fast.
How can software help reduce bidding mistakes?
Purpose-built estimating software automates repetitive tasks like data entry, quantity takeoffs, and revision tracking. Instead of chasing down the latest drawings or retyping costs, your team works from one centralized, accurate system — cutting errors before they happen.
Is automation complicated to set up for small subcontractors?
Not with modern tools like Riffle. You can connect your email or ITB inbox in minutes, and automation starts working behind the scenes — identifying bid invites, tracking updates, and helping you prioritize the right opportunities. No IT department required.
How much time can automation actually save?
Most subcontractors save 6–10 hours per week just by eliminating manual re-entry and version confusion. That’s more time for estimating the next job, reviewing margins, or simply getting home on time.
Does automating bids mean losing control over pricing?
Not at all. Automation handles the busywork — you keep full control over pricing, scope, and judgment calls. Think of it as an assistant that gets the numbers right so you can focus on strategy.
How do I know if my team is underspending or overspending on software?
A good rule of thumb: most subcontractors invest 1–3% of annual revenue in digital tools. If you’re still running bids manually or using outdated systems, the real cost might be hidden in lost time and missed opportunities.
Why does accuracy matter so much in bidding?
Every error compounds — one missed line item or miscalculated rate can erase your entire profit margin. Accuracy doesn’t just win jobs; it protects your business from losses you don’t see coming.
How does Riffle help subcontractors eliminate manual work?
Riffle automates your bidding and project workflows from start to finish. It finds ITBs in your inbox, organizes bid invites, fills in estimating data, and tracks updates — helping subcontractors bid smarter, reduce errors, and grow revenue.
We Understand the Bottlenecks for Subs
My biggest weakness has always been follow-ups—I’m just not great at it. If I had a built-in reminder feature to follow up on projects automatically, that would be a game-changer. I’ve gotten better, but I could still use that extra nudge.
Quoting can be chaotic. You have five different contractors sending out the same bid invite, each named differently. We end up with duplicate bids on the board or miss one entirely because it was labeled another way. There is no clear procedure when invites come in from multiple people.
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