In the construction business, compliance is not just about gathering documentation and signing a contract. Rather, it is about keeping your project afloat, protecting your company’s reputation, and hiring reputable subcontractors.
However, this can be a rather stressful task for the one in charge. One missed certificate or an outdated paper, and you can face fines. Fortunately, anyone handling big projects can leverage a reliable contractor compliance solution that gathers and checks all documentation automatically. Below, we will explain the main risks of non-compliance. Then, we’ll see how contractor compliance software helps minimize them.
Risks of Non-Compliance
Even the smallest non-compliance of one of your subcontractors comes with serious risks. Without licensing or insurance, the entire company can be liable in case of an inspection. If an accident happens, everyone will be responsible for working with and hiring the non-compliant party. While paying a fine doesn’t seem like a big deal, there’s more you have to be worried about when ignoring certification while onboarding.
Companies that cooperate with non-compliant employees can worsen their reputation in the industry, fail projects, and lose future contracts. Checking everything manually can take days for the project manager and always opens the door for errors. That is why services like Area are important to keep everything in check.
Automating Compliance Checks
Professional solutions for contractor compliance automate the manual processes. Project managers and GCs no longer have to collect papers in their offices, fill out spreadsheets for every subcontractor, and lose documentation at the most crucial moment. An online service keeps everything centralized. Once the potential hire is in touch, you can take control of the services to gather:
- SoS filings;
- trade licenses;
- M/WBE;
- CAGE;
- UEI;
- EMR;
- OSHA logs;
- litigations, and more.
You will be able to check the expiration dates on all documentation through the services, making the onboarding smooth and easy for both parties. Once it is set to expire, the service will send a notification in advance, giving your company enough time to update it without stalling the project progress.
Simplifying Audits
With the general picture of all subcontractors in one place, project managers can see which hires are approved, which need their documents updated or completed, and who may be at risk for non-compliance. Once the audits or inspections are in place, they won’t have to spend hours gathering vital documentation. Just get them from an accessible source and present them to a relevant party.
Protecting Business Reputation
Professionalism and compliance are expected from any construction company. It’s not just about pleasing the regulatory bodies — clients and investors want the projects to go smoothly, without any accidents or late submissions. Hiring compliant subcontractors, checked through reputable software, signals that your firm takes its job seriously.
Stay Safe — Be Compliant
In the construction industry, staying on top of compliance checks is crucial. Thankfully, software can help you automate daunting tasks, remove human error from the equation, and reduce risks on the construction sites.
