XL Group’s North America Construction team has added a new pre-qualification benchmarking service for Subcontractor Default Insurance (SDI) clients to make sure contractors have the right process in place to select subcontractors wisely.
Pre-qualification of subcontractors is an important risk management strategy for any contractor, the company said in a statement. Additionally, as XL Group has a market-wide view of how so many contractors conduct a pre-qualification process, the company is able to offer clients insight on where they stand in subcontractor pre-qualification processes against their competitors and offer guidance on how they can do better.
Through the new Prequalification Benchmarking service, contractors will:
- Be scored on 80+ data points to measure against strong industry practices;
- Receive custom feedback identifying existing business practices and suggesting improvements;
- Gain access to resources and expertise to help improve subcontractor pre-qualification processes;
- Receive periodic reassessments to measure progress.
Performed by XL Group’s SDI risk engineering team, Subcontractor Prequalification Benchmarking looks at a contractor’s pre-qualification process including gathering information, setting subcontractor qualifications, and reviewing subcontractor financials. XL Group’s risk engineers also look at how contractors make decisions, mitigate potential default risks, use technology to their advantage and how well their pre-qualification process is implemented in the company.
Part of XL Group’s North America Construction group, the Subcontractor Default Insurance team, including underwriting, claims and loss control specialists, help meet the subcontractor default risk management needs of large commercial contractors.
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