mitigating risk

How are other construction firms avoiding claims and mitigating risk?

Subcontractors using eSUB Construction Software declare the platform surpasses other general contractor-based solutions by providing them the ability to actually manage their business and mitigate risks that effect their profitability. Only eSUB will give you the ability to monitor your actual progress against your estimate.

Document Control

Crucial questions and answers to protecting your business.

Are you on time or behind schedule? What was the cause of lost time? Are tasks being completed efficiently? What are your actual labor costs and actual material costs?  All of these questions are critical in protecting your profit margin and keeping your project on schedule.  By tracking your efficiency we can pinpoint what aspects of your labor are lacking and where they can be improved in order to save time and money.  Can you put a value on your reputation as a subcontractor that can complete quality work while meeting or beating deadlines?  Let eSUB keep you ahead of the curve.

 

Justin Wetherby, eSUB’s Director of Account Management, had the opportunity to poll the audience during the webinar “How to Avoid Claims and Mitigate Risk.” Below are the results and eSUB’s insights on the data.

 

Risk mitigation

eSUB Insights:

— Almost all respondents experience some form of risk within a given year.

Solution: 

eSUB’s Correspondence Toolbox has a variety of forms to protect against unexpected delays or project changes.

 Subcontractor data

eSUB Insights

— Project delays/ disruptions almost always have an impact on labor efficiency.

— Undocumented project delays/ disruptions put companies at risk of absorbing the additional costs.

Solution:

Imagine sending a letter to a general contractor on a large project reminding them of all the RFI’s you have sent to them that remain unanswered.  How long would it take you to look up the information?  Do you even have the ability to track them? eSUB’s Correspondence Toolbox comes loaded with numerous pre-formatted documents to ensure you are prepared for any situation.  Save time, drive results, shorten cycles, and increase profits.

 

Change Order data

undocumented work

eSUB Insights

— One Change Order can double the original contract.

— Extra work and favors including lost hours go largely undocumented and tend to cost over $10,000 a year.

— Proper documentation prevents the subcontractor from being held liable for additional costs associated with project changes.

Solution:

Subcontractors are not paid for the work they do, they are paid for the work they document. eSUB’s method for documenting everything from RFI’s, Submittals, Change Orders and Purchase Orders is so quick and easy that your team will embrace the process.  As a result you will have irrefutable documentation to support the work you have done and the money you are owed.  Our goal is to make sure that nothing remains undocumented.

 

The largest risk to your construction firm

eSUB Insights:

— The biggest risks construction subcontractors face are labor cost overruns, undocumented extra work, and project delays.

Solution:

When a conflict arises between a subcontractor and the general contractor, there is no better defense than to have a complete and well documented paper trail of all aspects of a job to back up your position.  Every document, notation, email, etc… is stored in our central repository and can be retrieved in seconds.  No more searching for documents, files, emails and other items that have long since been misplaced or lost. eSUB’s email integration will provide you with a complete record of all correspondences for a specific project.  Resolve conflicts before they even arise.

 file a claim for your construction firm

eSUB Insights :

— Majority of subcontractors will file a claim if payment is being withheld by the general contractor.

Solution:

We want you to get paid for everything that you do.  Our clients will tell you that using eSUB got them there.  If we can make it easy enough for you to document everything pertinent to the project and the work performed, we can help you to get paid for it.  Even the best teams struggle to gather every bit of information.  As deadlines begin to loom closer and closer, it can be more and more challenging to keep up with the documentation.  eSUB’s capturing of data is so simple that it becomes easy for subcontractors to always capture every detail of the work they are doing.

 

Sooner or later almost every subcontractor is put between a rock and hard place with their general contractor.  

The subcontractor is trying to get paid for work completed, and the general contractor’s priorities lay elsewhere.  As a subcontractor, sometimes you settle for a fraction of what you are owed because the work was not properly documented and approved.  Other times you might end up filing a claim in an attempt to get paid what you are due.  Either path can damage your relationship with the general contractor and have a significant negative impact on your profitability for that project.  eSUB has a long history of assisting subcontractors to get paid for the work that they do.

 

eSUB ensures subcontractors get paid for the work they do by incorporating processes and best practices into a software platform for you.  No more costly consultants need be hired.  Let eSUB help you to maximize your profits and mitigate risks.

Subcontractor Software Demo

Posted in Construction Software.