Construction companies must be aware of Potential Vendor Risks

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Most construction companies don’t effectively transfer risk to the right parties and are not protecting themselves or other required parties according to the contract.

Insights from the C-suite executives and subsequent survey results show that the industry overwhelmingly views geopolitical and regulatory risks as being of greatest concern. Construction companies operate in a global business environment where sudden cuts to government funding are not uncommon and unpredictable politics can transform an attractive new region for investment into a serious threat. This risk is also seen as the most difficult to manage and influence, thus making it harder to control.

Construction companies must be aware of potential exposures when working with third-party entities, such as subcontractors and suppliers; otherwise, the organization can be on the hook for a loss. An integral part of understanding and evaluating these exposures is developing a strong vendor management solution for the third parties involved and tracking their contracts, certificates and billing.

If risk transfer methods are not incorporated into a construction business’ day-to-day activities, the exposure could negatively impact its financial strength, as well as the company’s own insurance program and costs. Become proactive in minimizing liability exposures by creating a process to effectively transfer risk.

This new risk landscape also poses a challenge that requires a response from vendor management partners to bring better solutions to the industry that embraces a holistic approach to vendor management. Risk assessment can too easily become an exercise in setting up defensive measures to protect an enterprise.

LIMITLESS offers a fully managed solution to ensure you are “paying for what you are receiving”. Ensuring contract terms are met as well as compliance standards. Tracking any potential risks, optimizing your billing and managing all contract and agreements in one central software solution.

Outsourcing vendor management to a third party will also help standardize processes; and consistency helps enable the transparency essential to effective governance. This helps to alleviate flawed data, and costly mistakes.

Our software will not only house every contract, service agreement, warranty or renewal agreement, but we also manage negotiations for better rates and terms saving your business from unnecessary fees and costs while maintaining quality standards. If you have questions regarding how to manage vendor contracts/agreements or would like more information regarding our fully managed vendor management solution contact LIMITLESS at (866) 504-4050 or email us at info@limitlesstechnology.com.