Construction National

Risk management comes in multiple forms. For construction, risk exists at every step of the process; before, during, and even after a project is complete. Technology continues to take hold at all such stages, helping contractors and owners become better at risk management on a day-to-day basis.

For example, iSqFt, www.isqft.com, Cincinnati, Ohio, came to market late last year with a solution to help contractors and subcontractors seeking to be prequalified for new work, as well as manage information of prequalified companies. The company worked in conjunction with ConsensusDocs to offer online access to industry-standard documents associated with best practices for prequalifying contractors and subcontractors through use of the ConsensusDocs 721 Subcontractor Prequalification Statement.

With access to this prequalification form, the idea is to centralize information in an effort to become more dynamic.  For example, subs no longer need to be filling out forms from scratch each time for multiple projects. Instead, they fill out ConsensusDocs 721 once and are able to share it with multiple general contractors in which they have been granted access through the system.  That information is used by contractors and owners during the bid or negotiation process.

Textura, www.texturacorp.com, Deerfield, Ill., is another construction technology provider focused in the area of prequalification software. The company announced this week Tutor Perini, www.tutorperini.com, Sylmar, Calif., civil and building construction company, is adopting its PQM (Prequalification Management) system across its entire company. Being able to standardize the forms and processes associated with prequalification companywide will help across many areas, in particular reducing risk.

Bill Sparks, executive vice president, treasurer, and corporate secretary, Tutor Perini, points out one of the requirements of the company’s insurance program is that there remains an increased emphasis on the selection and management of the subcontracting process.  By establishing a uniform corporate guideline for the administration of this program, this helps to manage the on-going qualified status with the thousands of subcontractors the company works with in multiple markets across the United States.

Textura's tool creates a shared process for all business units while still allowing local offices to customize requirements to unique conditions in local markets. While the subcontractor selection process will still be made by the individual business units, the standardization of the process allows the company to spend more time reviewing qualifications and less time gathering data.

Speaking to the topic of reducing risk, Roger Donley, corporate director, risk management, Tutor Perini, says, the company’s requirements for a prequalification system included the ability to minimize labor and resource requirements within the business units; create a consistent process and workflow that can be used by all business units; and to have an online service that allows for secured and centralized access to data by all involved.

In the end, every technology investment comes down to the ability to better manage risk. Perhaps no greater risk exists than when working with unknown partners. Technology that helps standardize and control the prequalification process can be a contractor’s or owner’s best friend in the end.