The construction industry inherently contains a high level of risk. Hiring a contractor 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 Risk Assessment Program can provide financial due diligence of prime contractor and subcontractor companies as well as the management of licensing and insurance certificates on a job-by-job basis. GRMS’ continuous monitoring of subcontractors allows property development companies and general contractors to focus on managing projects with peace of mind and significantly reduce potential risks such as:
Replacing a subcontractor in the middle of a job creates lengthy delays that may have a huge ripple effect among 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.
- Client Relationships
A major issue in the middle of a project such as a subcontractor bankruptcy or uninsured loss can have a significant negative affect on the business relationship with a client and an overall loss of reputation. As a result, the general contractor may not receive the opportunity to bid the next project.
- Inadequate Insurance Coverages
If an underinsured or uninsured subcontractor has a workers compensation claim or is responsible for an accident that destroys all or part of the project under construction, 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
Learn how the ContractorShield™ Risk Assessment Program helps many of the nation’s top general contractors mitigate these issues.