North Carolina contractors face escalating cybersecurity threats including bid data theft, ransomware attacks, and unauthorized document exposure that can cost hundreds of thousands of dollars per incident. Construction companies are particularly vulnerable because they operate distributed teams across multiple jobsites, share sensitive data with dozens of subcontractors, and often lack dedicated IT security staff.
Key takeaway: Ransomware was involved in 88% of small business breaches in 2025, and the average cost of recovery even without paying the ransom was $5.08 million. Construction and property ranks among the most targeted industries for ransomware attacks, with the average manufacturing and construction breach costing $5.56 million according to IBM's 2024 data.
Is your construction company protected against modern cyber threats? Preferred Data Corporation provides cybersecurity services for North Carolina contractors and construction firms. BBB A+ rated with 37+ years of experience. Call (336) 886-3282 or request a security assessment.
Why Construction Companies Are Prime Targets
Cybercriminals increasingly target construction companies for specific reasons that make the industry uniquely vulnerable.
Valuable Data Assets
Construction companies maintain data that attackers find extremely valuable:
- Bid information: Knowing a competitor's pricing enables underbidding
- Project financials: Payment schedules, retainage, and cash flow details
- Personal employee data: Social Security numbers, banking information for payroll
- Client information: Property details, budgets, and contact information
- Subcontractor data: Insurance certificates, bonding information, financial records
- Engineering documents: Proprietary designs, specifications, and intellectual property
Operational Vulnerabilities
The nature of construction operations creates security gaps:
- Multiple jobsites without centralized IT infrastructure
- High employee turnover with rapid onboarding/offboarding
- Subcontractor access to shared systems and documents
- Mobile devices used in uncontrolled environments
- Limited IT budgets and security expertise
- Urgency-driven culture that prioritizes speed over verification
Threat 1: Bid Data Theft
For Piedmont Triad and Charlotte general contractors, bid information is among the most competitively sensitive data they possess.
How Bid Theft Occurs
- Email compromise: Attackers gain access to estimating staff email accounts and monitor incoming bid communications
- File share infiltration: Unsecured or poorly protected bid document storage accessed by unauthorized parties
- Insider threats: Departing employees taking bid data to competitors
- Phishing targeting estimators: Fake plan room notifications or subcontractor bid submissions containing malware
Protection Measures
- Encrypt all bid files at rest and in transit
- Use dedicated, access-controlled bid management systems rather than general file shares
- Implement email security monitoring for bid-related communications
- Restrict bid access to only the specific employees who need it
- Audit bid file access logs regularly for unusual activity
- Revoke access immediately when employees leave or change roles
Threat 2: Document Exposure and Data Leakage
Construction projects generate thousands of documents shared across dozens of parties.
Common Exposure Scenarios
- Plans uploaded to personal cloud storage (Dropbox, Google Drive) without encryption
- Project documents emailed to incorrect recipients
- Former subcontractor access remaining active after project completion
- Unsecured file sharing links distributed beyond intended recipients
- Unencrypted USB drives lost at jobsites
- Public WiFi usage when accessing project management platforms
Impact for NC Contractors
A Greensboro contractor who inadvertently exposes client architectural drawings could face breach notification requirements, client lawsuits, and competitive damage. For defense-related construction in the Research Triangle, unauthorized disclosure of sensitive project information can result in loss of security clearances and future contract eligibility.
Protection Measures
- Deploy enterprise cloud file sharing with access controls and audit logging
- Implement Data Loss Prevention (DLP) policies that prevent unauthorized sharing
- Use link expiration and password protection on shared documents
- Require company-managed accounts for all project management platforms
- Conduct quarterly access reviews revoking expired permissions
- Train all employees on proper document handling procedures
Threat 3: Subcontractor Access Risks
The average commercial project involves 20-50 subcontractors, each representing a potential security vulnerability.
Subcontractor Security Challenges
- Subcontractors often use personal devices with no security management
- Small subcontractors rarely have cybersecurity policies or training
- Shared credentials (one login for entire sub company) are common
- Subcontractors work on multiple GC projects simultaneously, creating cross-contamination risk
- Access often persists long after the subcontractor's scope is complete
Attack Scenarios
According to 2025 cybersecurity data, third-party/supply chain compromise doubled in prevalence year-over-year, now accounting for approximately 15% of all breaches. An attacker who compromises a small subcontractor's email can:
- Send fraudulent payment change notices to the GC's accounting department
- Access project management platforms using the sub's credentials
- Deploy ransomware that spreads from the sub's compromised device to the GC's network
- Steal bid and project data accessible through the sub's authorized access
Protection Measures
- Require subcontractors to use unique individual credentials (no shared logins)
- Implement network segmentation separating sub access from internal systems
- Deploy multi-factor authentication on all shared platforms
- Automatically revoke access at subcontractor scope completion
- Include cybersecurity requirements in subcontractor agreements
- Monitor subcontractor account activity for anomalies
- Require minimum security standards (antivirus, device encryption) for sub devices accessing your systems
Threat 4: Device Theft and Physical Security
Construction jobsites in Charlotte, Raleigh, and across the Piedmont Triad are inherently unsecured physical environments.
High-Risk Scenarios
- Laptops stolen from unlocked jobsite trailers
- Tablets and phones left in work vehicles
- Company devices lost during employee turnover
- Hard drives in retired desktop computers not properly wiped
- Stolen equipment containing cached credentials
Data at Risk on a Stolen Device
A superintendent's stolen laptop may contain:
- Saved passwords for project management platforms
- Downloaded project documents and specifications
- Email archives with contract negotiations
- VPN credentials providing network access
- Personal employee information in locally saved files
Protection Measures
- Enable full-disk encryption on all company devices (BitLocker for Windows, FileVault for Mac)
- Deploy Mobile Device Management (MDM) for remote wipe capability
- Require screen locks with short timeout periods (2 minutes maximum)
- Never save passwords in browsers; use enterprise password managers
- Implement managed endpoint protection with device tracking
- Train employees to never leave devices unattended in vehicles or trailers
- Use cable locks for laptops in trailer offices
Threat 5: Ransomware and Business Disruption
Ransomware represents the most severe cybersecurity threat to North Carolina construction companies.
Construction-Specific Ransomware Impact
A ransomware attack on a construction company can:
- Lock all project management data during critical milestones
- Encrypt estimating databases, preventing new bids
- Destroy accounting records, halting payments to subcontractors
- Disable email communication with owners, architects, and inspectors
- Expose stolen data publicly if ransom is not paid (double extortion)
- Trigger contract breach clauses for missed deadlines
Recovery Without Paying
According to industry research, 64% of ransomware victims refused to pay in 2025, but recovery still cost an average of $5.08 million in disruption. For a mid-size NC contractor, weeks of downtime during active projects can result in:
- Liquidated damages for schedule delays
- Lost subcontractor confidence and future bid participation
- Owner contract termination
- Surety bond claims
- Reputation damage affecting future project awards
Prevention Strategy
- Deploy endpoint detection and response (EDR) on all company devices
- Maintain offline backups that ransomware cannot encrypt
- Segment networks to contain the blast radius of infections
- Train employees to recognize phishing (the #1 ransomware entry point)
- Patch all systems within 48 hours of security updates
- Implement email filtering to block malicious attachments and links
- Develop and test an incident response plan before you need it
Security Architecture for Distributed Construction Operations
NC construction companies need security that works across offices, jobsites, and mobile workers.
Network Security
- VPN connections required for all remote access to company resources
- Separate guest WiFi from production networks at every location
- Firewall management at main office with cloud-managed protection for jobsites
- DNS filtering blocking known malicious domains on all networks
Identity and Access Management
- Centralized identity through Microsoft Entra ID (Azure AD)
- Multi-factor authentication on all business applications
- Role-based access control matching job responsibilities
- Automated deprovisioning when employees leave
- Privileged access management for IT and finance systems
Endpoint Protection
- Enterprise EDR/antivirus on every company device
- Mobile device management (MDM) for phones and tablets
- Full-disk encryption mandatory on all devices
- Automated patch management keeping software current
- USB device control preventing unauthorized data transfer
Data Protection
- Automated encrypted backup of all business-critical data
- Cloud-based file sharing with access controls and audit trails
- Email encryption for sensitive communications
- Data Loss Prevention policies preventing unauthorized sharing
Has your construction company experienced a cyber incident? Preferred Data Corporation provides emergency response and security remediation for North Carolina contractors. We help contain threats, recover operations, and build lasting protection for your distributed workforce. Call (336) 886-3282 or contact us immediately.
Building a Security Culture in Construction
Technology alone cannot protect your company. Your people must understand and support security practices.
Security Awareness for Construction Workers
Adapt training to construction audiences:
- Keep it brief: 5-10 minute modules, not hour-long presentations
- Make it relevant: Use construction-specific examples (fake RFI emails, fraudulent sub invoices)
- Repeat regularly: Monthly phishing simulations, quarterly training refreshers
- Reward participation: Recognize employees who report suspicious activity
- Address all levels: Executives need training on BEC; field staff on device security
Executive Responsibility
Leadership at NC construction firms must:
- Fund appropriate cybersecurity measures (typically 5-10% of IT budget)
- Approve and enforce security policies
- Participate in training alongside staff
- Include cybersecurity requirements in subcontractor agreements
- Ensure cyber insurance coverage matches business risk
- Support incident response planning and testing
Cyber Insurance for NC Contractors
Most construction companies need cyber insurance, but coverage varies significantly.
What to Look For
- Coverage for business interruption from cyber events
- Ransomware response and recovery costs
- Third-party liability (if your breach exposes client or sub data)
- Regulatory fines and penalties
- Forensic investigation costs
- Public relations and notification expenses
Requirements for Coverage
Most cyber insurance policies now require:
- Multi-factor authentication on all remote access and email
- Regular data backups tested for recovery
- Endpoint protection on all company devices
- Employee security awareness training
- Documented incident response plan
- Vulnerability management and patching program
Failure to maintain these controls may void your policy or result in denied claims.
For North Carolina contractors: The combination of high-value data, distributed operations, and extensive third-party access makes construction companies particularly attractive targets. Investing in cybersecurity now costs a fraction of a single ransomware recovery or bid theft incident. With projects across the Piedmont Triad, Charlotte, and Raleigh, your security posture is only as strong as your weakest connected party.
Frequently Asked Questions
How much should a construction company spend on cybersecurity?
Most IT security experts recommend 5-10% of your overall IT budget for cybersecurity, which typically translates to $50-$150 per employee per month for comprehensive managed security services. For a 30-employee NC contractor, that is $1,500-$4,500 monthly. This covers endpoint protection, email security, backup, monitoring, training, and incident response capabilities. Compare this to the average ransomware recovery cost of $5.08 million.
What cybersecurity requirements should we include in subcontractor agreements?
Key requirements include: mandatory antivirus/endpoint protection on all devices accessing your systems, full-disk encryption, unique user credentials (no shared logins), multi-factor authentication capability, notification obligation if the subcontractor experiences a breach, right to audit security practices, and mandatory security awareness training for their employees. Include data handling and deletion requirements for project completion.
Can ransomware encrypt our cloud-based project management data?
Traditional ransomware cannot directly encrypt cloud-hosted data in platforms like Procore or Autodesk Construction Cloud. However, attackers who compromise credentials can delete or corrupt cloud data, lock out legitimate users, and exfiltrate sensitive information. This is why MFA, access monitoring, and proper backup of cloud data are essential even for cloud-native platforms.
How do we secure devices for employees who work across multiple jobsites?
Implement Mobile Device Management (MDM) for centralized control, require full-disk encryption, deploy VPN connections for all access to company resources, enable remote wipe capability for lost or stolen devices, enforce screen lock policies, and install endpoint detection and response (EDR) software. Train employees to never leave devices in vehicles or unsecured trailers. Consider cellular-connected devices with always-on VPN for maximum security.
What should we do first if we suspect a cyber attack?
Immediately isolate affected systems by disconnecting them from the network (do not power them off, as this can destroy forensic evidence). Contact your managed IT provider or incident response team. Do not attempt to negotiate with attackers directly. Preserve all logs and evidence. Notify your cyber insurance carrier within the timeframe specified in your policy. Avoid communicating about the incident over potentially compromised email systems.
Related Resources
- Cybersecurity Services - Security solutions for NC contractors
- Construction Cybersecurity Essentials
- IT Setup for Construction Companies
- Managed IT Services - Comprehensive IT for construction
- Backup and Disaster Recovery - Protecting your project data