The prequal process is getting an upgrade from the bottom up…Wenston DeSue
The new era of subcontractor-led prequalification…
With the increased adoption of prequalification technology supporting risk management, inefficiencies and inequalities are beginning to surface, particularly for subcontractors. This needs to be resolved by educating and empowering the subcontractor with digital tools that support their needs.
Traditionally, prequalification has focused solely on the needs of general contractors, and has only become more so, with the increasing pressure from owners and insurers to implement stronger risk management standards, along with increased data requirements (environmental, sustainability, diversity, corporate governance) being implemented down the supply chain.
The pressure to fulfill requirements intensifies during The Great Expiry, which occurs every April through June as the majority of prequalifications expire. With newly available financial data, a lack of standardization and the rise in volume creates the perfect storm of repetitive requests and the duplication of effort across the country.
Due to the increased workloads and deadlines, the quality (accuracy, timeliness and completeness) of the data provided suffers. In response, some general contractors implement stronger enforcement strategies by tying it to bid invitations, awarded contracts or payment, further increasing inequalities and lack of control on the part of the subcontractor.
Real Estate
Wenston DeSue is a realtor, organizational consultant, design, construct, build expert and developmental networker. Real estate is the business of exchange and affects every person on the planet. Real estate on all levels represents resources, access and ultimately, power. Knowledge is power…
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