SDI Risk Management Assessment
”SDI Risk Management Assessment” is a complete evaluation of how you manage the risk of subcontractor default. After evaluating the various business activities that impact this risk, 4Sight RMS will provide you with an analysis of your SDI risk management practices pertaining to how you manage the risk of subcontractor failure. This will include alternative methodologies for you to consider, inSight as to what your peers are doing, in addition to what we see as your strengths.
The assessment is tailored to, and facilitated specific to your interests and needs. 4Sight RMS will consider performing modules of the assessment on an a-la-carte basis.
The SDI Risk Management Assessment will improve your likelihood of avoiding a default, and provide you with inSightful and innovative alternatives to your current program(s) for your consideration.
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SDI Risk Management Assessment Program – Areas of Evaluation |
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1 |
Subcontractor/Supplier Qualification |
What information is used, Financials? Subcontractor bid scope review process, reference checks, decision tree,… We prefer to also interview some subcontractors. |
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2 |
Job Site Management of Subcontractors |
Subcontractor Communications, subcontractor payment process, scheduling, job team logs, material tracking, ability of your job teams to identify subcontractor issues when they are minor and fix them before they become a default. |
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3 |
SDI Accounting |
Management of and tracking of “loss funds”, loss reserving practices, tax treatment of program, flow of monies between owner, you and SDI provider. |
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4 |
Contract Documents |
Subcontract, Owner Contract, Contracts with Insurance Providers, Lien releases,… |
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5 |
SDI Coverage Form |
4Sight RMS has developed a long list of coverage clarifications and modifications specific to all three SDI providers. Those that are relevant will be included in our recommendations. |
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6 |
SDI Program Structure |
Do you have the optimal deductible retention, limits and aggregates considering the operation s of your company. |
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7 |
Claims |
Review of any historical and current claims. How they were managed. What is your plan for new claims? |
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8 |
Selling SDI to Owners and Lenders |
What is your approach? What materials do you use? How are these presented? How can this be improved? |
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9 |
Captive Insurance Companies |
If you currently utilize a Captive for your SDI program, how is it being used? What are other possible uses, structures? |
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10 |
FAR / CAS |
If applicable, we will evaluate compliance for SDI Job Cost Allocation under FAR. |