Over the last several years I have been compiling a list of the benefits technology provides construction industry companies and one of the main areas of benefit is construction prequalification.
I’ve been putting the list together for several reasons: First, on October 1st I’m having a webinar and sharing “The Benefits of Technology for Construction.” Second, I like to challenge myself to come up with innovative ways to help the construction industry. After helping construction companies with their IT for 12 years, I have witnessed their challenges with adopting technology and have seen them struggle with understanding how technology can truly benefit them in their day to day.
While reviewing my conversations with customers – reminding myself of what they were struggling with before they partnered with us, I came across some notes I wrote about prequalifications and the process most construction companies go through to gather the information needed for the prequalification.
The prequalification process can become extremely time-consuming as your jobs, contractors, subs and suppliers grow. With all the additional people you need to complete your projects, the task to gather all this information is almost impossible without a process.
And I am about to throw a wrench in the works by telling you to add more requests to your prequals. Additional requests that I think you will have to add in the future to be a successful construction company.
But before I go into that, let’s cover the foundations of construction prequalifications.
What is a Construction Prequalification?
It is simply the process of evaluating and determining whether potential bidders have the skill, judgment, integrity, sufficient financial resources, and ability necessary to faithfully perform a contract for construction or repair work.
You generally perform the prequalification process to determine:
- If the subcontractor has the financial ability to perform the job and has enough insurance to cover the job if there was an accident or site issue.
- If the subcontractor has a good safety record so the general contractor is protected against accidents on the site and has the ability to maintain a good record with OSHA.
- If the subcontractor has the ability to perform the job well and has the resources to keep the job from being delayed.
While this list covers the general areas and questions in a request for prequal, construction companies who want to continually see their bottom line grow, win more bids and stand apart from their competitors should require additional qualifications be met.
Why Construction Companies Should Add Technology to Their Request for Prequal
So, when you consider that the underlying reason for a prequalification is to ensure subs have the means and resources to complete the job on time, on budget and safely … and you consider that technology delivers a significant competitive advantage but is also inherently vulnerable to cyber attacks … you have to add technology to your prequal request.
Because your projects are more profitable when technology is used but insecure technology used by subcontractors opens you up to potentially devastating problems.
Let’s go into it.
Here’s what I believe you need to ask your subcontractors:
Real Time Data
You need to know that your contractors, subs and suppliers have the ability to provide real time data because real time data speeds up every process for the project and allows you to see problems quickly when they arise. Thus, saving time and money on every job, making you more efficient and profitable.
You must make sure that your contractors, subs and suppliers are protected against hackers and data loss. A project can lose millions of dollars if just one contractor or sub is hacked, data is lost and you are compromised.
Backup and Disaster Recovery
You need to know that your contractors, subs and suppliers have a plan in place in the event of data loss. You need to know where the data is backed up and how long it will take to recover in the event of a data breach.
I strongly believe the most successful construction companies of the future will know exactly how to leverage every dollar and how to keep themselves from being vulnerable in every area of a project, including technology.
The Benefits Of Technology for a Prequalification
These are just a few of the ways you can benefit and protect yourself by using technology in your construction company.
The benefits of technology trickle up to you from your subcontractors, but so do the issues.
If your subs are using construction technology, your bids and rebids can be completed quickly and with a lot less effort. Plus, since the technology gives them a faster process that saves time, that time savings can be passed on to you – which either can be used to make you more profitable, or more competitive.
When your subs and you are leveraging technology, the gains that can be achieved are maximized. But so are the downside risks – like cyber attacks, data theft, ransomware and more.
That’s why Construction Companies Should Add Technology to Their Request for Prequal.
As I mentioned earlier, Attain Technology focuses on the construction industry, so I understand what you are going through, what you struggle with, the questions you have, and the technology that works best for you and your specific requirements.
At Attain, our goal is to take care of your IT so you can take care of what you do best. I offer a free construction technology audit, you can sign up here to find out how technology can transform your company.
And again, I would like to invite you to my webinar on October 1, 2021 @ 1:30 “The Benefits of Technology for Construction” you will walk away with some good ideas on how technology can help you achieve more with less.
For additional resources designed specifically for the construction industry to get a jump on the competition, read our Definitive Guide to Construction Technology or download your copy of the Construction Technology Prequal Checklist.