This document discusses mitigating risks from subcontractors and suppliers in the homebuilding industry. It notes that while not all risks can be eliminated, homebuilders can significantly reduce risks by contracting with the right subcontractors and suppliers. It then asks a series of questions about how companies currently vet and verify subcontractor information. The document explains that implementing an effective internal risk mitigation program can be costly, and introduces Assurance Screening as an alternative that can handle the process more cost-effectively.

1. Mitigating Risks with Subcontractors and Suppliers
Within today’s homebuilding environment, homebuilders face many day to day risks. Not all risks can be mitigated away.
However, you can significantly mitigate the risks your firm encounters when it comes to contracting to the right kinds of
subcontractors and suppliers.
Questions to answer about your subcontractor risk mitigation practices:
1. Who is responsible for the vetting of your subcontractors and suppliers?
2. Do you have a centralized location to house all of your organization’s subcontractor data?
3. How often is this information updated and verified and who is responsible for these tasks?
4. Who is verifying that the subcontractor’s insurance hasn’t changed throughout the job?
5. If an incident occurred, how do you currently show the due diligence on every subcontractor
hired by your firm?
If you can’t answer these questions with certainty, then you can’t rely on your own
system. From here you have two options: fix internally or work with Assurance
Screening to handle this for you.
Depending on the number of subcontractors in your system, implementing an effective
program internally can cost you well over a hundred thousand dollars. Between hiring
staff, paying for a software platform to house all the data, and covering the costs of
pulling the different types of business checks from public data to credit histories of your
subcontractors, implementing a program internally is not necessarily the best option.
With Assurance Screening, we handle all of the above at a fraction of the costs. With our
subcontractor notification system and document collection and verification team specially
trained to run the process for you, you can feel confident knowing that you have the
information your firm needs to make informed decisions when it comes to working with
quality subcontractors and suppliers. In addition, with our customizable screening
parameters, flexible pricing schedule, and bulk enrollment discounts, your organization
can have the peace of mind knowing that your subcontractors have the correct
insurance, supplier payment histories, licenses, or other types of credentials required to
work with your firm.
Meet with us today to see how we can help your firm Be Sure.
www.assurancescreening.com
©2011 Assurance Screening, LLC