Subcontractor Screening Program
The construction industry inherently contains a high level of risk. Hiring a subcontractor who is experiencing financial distress, does not have a valid contractor license or proper insurance coverage can be devastating to the job and to the general contractor.
The GRMS Subcontractor Screening Program provides financial due diligence of subcontractor companies and their principals as well as the management of subcontractor licensing and insurance certificates on a job-by-job basis. With GRMS’ screening and ongoing management of subcontractors, property development companies and their general contractors can focus on managing projects with peace of mind and significantly reduce potential risks such as:
Replacing a prime subcontractor in the middle of the job creates lengthy delays in the job that may have a huge ripple effect among the other trades creating major issues and monetary losses for everyone involved.
Most contracts contain significant penalties for completion delays that could substantially erode the projected profits from the job.
- Bonding Company Issues
Any major delay or issues with a project may have an adverse effect on a general contactor's ability to bond for future projects.
- Improper or Expired Insurance Coverage
Should a subcontractor or worker be injured on the job or a have an accident that destroys all or part of the project under construction and be underinsured or uninsured, serious liabilities can result with losses across the board. In most cases, the general contractor’s insurance coverage will be the next in line to cover the loss which will result in deductibles to be met as well as potential increases in premiums going forward.
- Client Relationship
A major issue in the middle of a project such as a subcontractor bankruptcy or uninsured loss can have significant negative effects on the business relationship with a client and overall loss of reputation. A general contractor may not receive the opportunity to bid the next project due to past performance affected by the lack of quality subcontractors.
- Financial Capacity
GRMS and Contractor Score® have joined forces to provide a powerful subcontractor qualification service. Contractor Score is recognized as a leading resource for definitive financial analysis in the construction industry. Instantly understand a subcontractor’s current financial capacity. Liquidity, leverage, profitability, working capital, work-in-process, bank credit lines are all factors in the analysis and continually updated by Contractor Score.
Find out how the GRMS Vendor Screening Program helps many of the nation’s top general contractors and home builders manage these requirements on a global basis at no cost to your company. Contact GRMS for your no obligation online demonstration of our programs.