Risk management in construction projects must account for a wide range of variables, many of which aren’t always in a general contractor’s control. Supply chain issues, labor issues, and commodity market pricing could add to the upfront costs of a project, and unforeseen changes in the work could impact both budgets and timelines. Health and safety issues could also arise unexpectedly, creating difficult (or even impossible) working conditions for those on-site.
In light of all these risks, the need for insurance during construction is clear. Although ensuring subcontractors have accurate and reliable insurance won’t protect the business from all elements of construction risk, it can help the general contractor mitigate risks associated with material failures, worker health and safety issues, overall quality, and subcontractor performance.
Even more important than simply making sure everyone on a project has the correct insurance, though, is tracking that coverage. That job falls to you — the contract administrator or project manager. Unfortunately, that job isn’t always easy.
Complications With Risk Management in Construction Projects
Your average construction company could work with hundreds of vendors and subcontractors over the course of a year, which means contract administrators and project managers might have to track thousands of insurance policies annually. If a policy isn’t renewed before its expiration date, a subcontractor might have to stop work on a project. And without the right information, a project manager might unknowingly permit an uninsured subcontractor on-site, putting the general contractor at risk.
Most construction companies still track subcontractor certificates of insurance — best known as COIs — with manual tools such as Excel, email, or legacy enterprise resource planning software. However, manual COI tracking can be extremely time-consuming and prone to human error. What’s more, this kind of tracking usually happens in an office far away from the job site, which could make it harder to relay accurate insurance information to your team members in the field
Fortunately, there’s a much better way to track COIs and protect your company from risk.
The Benefits of COI-Tracking Software
With the help of COI-tracking software like billy, you not only minimize construction risks, but also achieve massive efficiency gains. All information related to subcontractor insurance is stored in one place that’s easily accessible via phone, laptop, or any other internet-connected device used in the field, making it easy to stay compliant. In fact, billy has helped one company recognize it was only 17% compliant simply by using the billy platform. The company is now working toward 100% compliance — and that’s much better than 17%.
Plus, billy helps you save precious time by eliminating the need for manual data entry, allowing you to focus on higher-impact work. In the process, it also reduces the risk of human error that inevitably arises when you have to manually enter and edit information in spreadsheets. With all insurance data stored in a centralized digital database, your general contractor can gain more visibility into project risks.
Billy also streamlines communications by providing visibility to those in the field as well as you in the office, ensuring the right people have access to accurate information when they need it. The platform’s automatic email features and upcoming integrations with other project management tools enhance workflows in both the office and on-site spaces and eliminate the endless back-and-forth emails between you and subcontractors.
The billy app helps you save time and avoid headaches as well as allowing you to track and manage insurance proactively — which simply isn’t possible with Excel, Procore, and other commonly used tools. But billy is more than just an app. When you use our end-to-end insurance platform, you get the service that comes with it. We handle all COI tracking for you so you can rest assured that your team is protected and the general contractor is compliant.
Consider our app more than mere technology. Instead, billy is a service that tracks and verifies all the necessary insurance information to reduce construction risk. Visit our website or request a demo today to learn more!