Tough Leaf today released “The State of Certified Subcontractor Sourcing & Compliance 2026,” a comprehensive industry report examining the evolving challenges and opportunities in small-, local-, minority-, women-owned and other certified subcontractor participation across the country.
The report comes as Tough Leaf expands from pre-construction sourcing into managing certified subcontractor compliance across the entire project lifecycle — from sourcing and participation planning through ongoing tracking and validation during construction.
Based on data from active projects and interviews with general contractors, agencies, and certified subcontractors, the report highlights a fundamental shift: compliance is no longer confined to bid day or project closeout. Teams are increasingly expected to maintain accurate participation tracking, certification verification, and documentation continuously throughout project execution.
“Compliance has fundamentally changed,” said Wissam Akra, CEO of Tough Leaf. “What used to happen at bid day or closeout now lives inside daily project operations. The teams that embed compliance into how they source, plan, and deliver projects are protecting revenue, reducing risk, and seeing better outcomes.”
Key findings include:
- Compliance has shifted from periodic verification to continuous tracking throughout the project lifecycle.
- Pre-construction sourcing decisions directly impact compliance success months later.
- Structured workflows drive 3.5× more competitive bids and recover an average of 55 project management hours per month.
- Changing regulatory requirements continue to create complexity across federal, state, and local jurisdictions.
Industry Leaders Convene to Address the Future of Sourcing and Compliance
The report release follows an industry sourcing and compliance forum hosted by Tough Leaf alongside partners WithCoverage and Contech Alliance in New York City earlier in February. The event convened private owners, general contractors, and certified subcontractors to discuss the operational realities of managing participation goals in today’s evolving regulatory environment.
Discussions focused on how pre-construction sourcing decisions influence downstream compliance performance, the growing administrative burden placed on project teams, and the increasing expectation for real-time validation of certified participation during construction.
“We wanted to create a space where the people actually navigating these challenges every day could speak candidly about what’s working, and where friction still exists,” said Akra. “These types of real-world insights directly informed the findings in this report.”
The 2026 Outlook: What’s Ahead
The report identifies three key factors shaping the future of certified subcontractor compliance: increasing fragmentation across federal, state, and local programs; the shift from optional to expected digital tools and AI-powered verification; and the transition from periodic audits to continuous oversight throughout project execution.
Upcoming Webinar: Deep Dive into the 2026 Compliance Outlook
To further explore the report’s findings, Tough Leaf will host a live webinar on March 18, 2026, focused on how sourcing strategy, compliance workflows, and real-time tracking are reshaping project delivery.
The session will offer practical insight for general contractors, owners, and compliance teams navigating today’s evolving participation requirements.
Registration is available here.
About the report
“The State of Certified Subcontractor Sourcing & Compliance 2026” examines compliance from multiple perspectives — general contractors, agencies, certified subcontractors, and private owners — based on observations from active construction projects and industry interviews.
The full report is available for download here.
About Tough Leaf
Tough Leaf is a subcontractor sourcing and compliance platform built for prime contractors. It enables teams to find qualified small and certified subcontractors, manage compliance requirements, and track participation and spend from bid through construction. Whether used as a self-service platform or paired with Tough Leaf’s managed services, the system simplifies sourcing and compliance in one connected workflow — helping teams win more work, reduce manual effort, and avoid compliance risk. For more information, visit toughleaf.com.
Media Contact
Stephanie Seril
VP of Growth, Tough Leaf
stephanie@toughleaf.com
+1 650-776-2074
