The rules and regulations are becoming stricter and the financial impact greater if you don’t pay enough attention to compliance issues such as assuring your subcontractors are fully insured and have provided signed lien waivers.
Compliance paperwork, however, can be an administration nightmare if done by hand. In addition to insurance certificates and lien waivers, there are other key documents that need to be tracked, including weekly certified reports, permits, licenses, W-9s, drug test results, notices to owners, close-out documents, and punch lists.
The result is many construction companies have to put in extra hours to keep up with all the details or put their businesses at risk. One Georgia contractor found out the hard way when an uninsured worker was injured on one of its jobs. The incident drove up the general contractor’s premiums for the next five years, costing the company hundreds of thousands of dollars and impacting the GC’s bidding competitiveness due to higher costs.
Construction software technology can address subcontractor and vendor compliance concerns, shaving off hours of work for employees. Before automating their subcontractor compliance management, Pinnacle Construction Support Group (CSG) had two to three people handling their risk management. Now only one person is needed to do the job.
To reduce work in this area for your company, look to improve processes and implement software that will allow you to:
- Easily set up the compliance items you want to track at the beginning of each job.
- Electronically store, track, and manage compliance documents for quick reference—including the ability to collect and scan documents in the field.
- Give project managers mobile access to view compliance information so they know who is cleared to work on the job site.
- Automatically block invoice payment if a subcontractor or vendor is non-compliant.
- Automate emails to subcontractors, notifying them, for example, that their insurance is about to expire.
- Create reports to let building owners and other clients know that you are staying in compliance and the job is moving smoothly.
- Receive a notification when insurance, a license, or other compliance items are about to expire.
How much time can technology save your company in compliance related work? We asked Andrea Mosher, Pinnacle/CSG’s compliance manager, that same question. “It (automated compliance tracking) has made a huge difference by saving us 20 to 30 hours a month,” she said. That adds up to 30 to 45 days each year—which not only reduces overall workload, but allows Mosher to focus her efforts on other important things for the company.
This post is part of a blog series focused on the top 10 time wasters often found in construction firms. To learn more about the other nine time wasters, download our new e-book.