To help contractors minimize subcontractor performance risks, the North America Construction insurance unit of XL Group plc (NYSE: XL) today announced two new subcontractor prequalification programs, through strategic partnerships with Houston-based SureTec Information Systems, Inc. and ConstructSecure, a Marlborough, Massachusetts-based construction technology firm. The programs provide independent evaluations of subcontractors’ financials and operations to help contractors make informative subcontract decisions.
“In this difficult economy, timely and accurate information about subcontractors’ financial health is more vital than ever to our customers’ business,” said Jason LaMonica, XL Group's Vice President of Construction Performance Risk, “The difference between a successful project and one that is late and/or loses money is often the quality of the subcontractors employed. Through our new partnerships with SureTec and ConstructSecure, we’re excited to provide our clients with access to high-quality tools that will help our customers make value based subcontractor selection decisions, and in the process, minimize their performance risks.”
A pioneer in construction safety assessment, ConstructSecure has now applied their patented technology to help automate the review of financial statements. XL Group’s Subcontractor Default Insurance (SDI) customers will now have complete access to ConstructSecure’s online system that allows subcontractor financial statements to be uploaded (via PDF) and reviewed in seconds. This system saves customers time and money by freeing up field or home office personnel who are currently doing this function and will have the added benefit of more consistent and timely reviews.
“Prequalifying subcontractors can be a time consuming process,” said Bern Bradstreet, CEO of ConstructSecure. “With the latest technology developed at Harvard University, we help contractors save time providing them with an instant financial analysis of their subcontractors to pinpoint any potential problems.”
XL Group’s SDI customers will also have access to subcontractor financial analysis performed by SureTec’s dedicated financial analysis team. The analysis and reports include an objective and confidential assessment of a subcontractor’s financial strength and capacity to perform its work. “We’re proud to be able to apply SureTec’s information gathering and analytic skills to provide a financial score card that can help contractors prequalify their subcontractors, minimize potential default risks and protect their own reputation and profitability,” said Steve Nelson, President of SureTec.
“Particularly in today’s construction market, our customers are looking for every opportunity to shore up their risk management practices,” Mr. LaMonica added. “ConstructSecure and SureTec provide an excellent resource to enhance our customer’s ongoing practices – allowing them to be more efficient in using their resources while at the same time allowing them to drill deeper and gain a better understanding of their subcontractors. Identifying the real risks associated with their subcontractors not only supports better contracting decisions, but will also allow our customers to implement the right risk mitigation practices when a subcontract is awarded. These financial prequalification tools are a tremendous addition to our customers’ toolbox.”
About SureTec Information Systems, Inc.
SureTec Information Systems, Inc., a division of SureTec Financial Corp., is a trusted provider of prequalification services for the construction industry.
The ConstructSecure Financial Analysis Program allows the Owners and General Contractors to objectively assess the performance of their contracting partners, and assists the project management community in making an informed decision. More information is available at constructsecure.com
About XL’s Insurance Operations
XL Group plc’s insurance companies offer property, casualty, professional and specialty insurance products globally. Businesses that are moving the world forward choose XL as their partner. To learn more, visit xlgroup.com/insurance. XL Group is the global brand used by XL Group plc’s insurance subsidiaries.
About XL Group plc
XL Group plc, through its subsidiaries, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. XL is the company clients look to for answers to their most complex risks and to help move their world forward. Its principal offices are located at No.1 Hatch Street Upper, 4th Floor, Dublin 2, Ireland. To learn more, visit xlgroup.com