Third-Party Builder Risk Management Program
Reducing Risk One Job at a Time
Third-Party Builder Risk Management Program
Uncover opportunities to reduce warranty costs and litigation risks while building a better home!
EnergyLogic took the frustrations that we heard from industry veterans and developed a Third-Party Builder Risk Management program designed to challenge the status quo. Our goal is to protect builders, subcontractors, and insurance carriers from mistakes that occur in home construction.
Quality Control & Quality Assurance Redefined
Our program focuses on four essential areas, each addressing the most common flaws and complications:
One of the most common pain points uncovered in our program development falls in the bucket of inconsistent inspections and observations. Inspector pet peeves, a heavy workload, or combative relationships can lead to inconsistency in inspections resulting in:
- Frustration and struggle for superintendents as they work to meet moving goalposts.
- Missed items and increased work.
EnergyLogic responds to this through standardized checklists to help ensure consistent experiences on-site. This helps to ensure:
- Consistent observations.
- A proactive approach so that superintendents are fully prepared for inspection expectations from the start.
- A greater focus on items that are ready for inspection to prevent observations on incomplete work.
Another common frustration we uncovered is slow turnaround times on observation reports. With tight timelines on a job site, even a two-day delay can lead to issues such as:
- Work continues by other trade professionals, often leading to correction areas being covered up, which turns making any corrections into a fire drill.
- Additional delays occur, often times completely preventing corrections from being addressed quickly and effectively.
EnergyLogic responds to this by guaranteeing that all observation reports will be delivered within 24 hours of the site visit. Our reports include:
- Property address.
- Detailed observation description.
- Image of any non-conforming items to visually identify the provided observation details.
To avoid liability, most third-party quality assurance programs provide little to no guidance on how to correct failed inspection items. This attempt to avoid liability can lead builders to:
- Struggle on how to approach and fix non-conforming inspection items.
- Spend countless hours trying to correct multiple failures, leading to unnecessary and increased time expense to the company.
EnergyLogic responds to this by providing technical bulletins on every inspection checkpoint. Our all-encompassing guidance will provide:
- Details on everything but the fix itself to outline what the inspector is looking for.
- References from building codes, industry standards and major manufacturer installation instructions.
- Best practices and example photos.
While Owner Controlled Insurance Programs (OCIPs) or Contractor Controller Insurance Programs (CCIPs) comes with many benefits for trades, contractors, and owners, all of them require some form of third-party oversight. Missed items and failed inspections can create conflict between the contractor, third-party inspector, and insurance carrier. Forgotten non-conforming items are an unfortunate part of the relationship causing:
- Possible policy cancellation.
- Missed and forgotten correction items with a scramble to avoid potential penalties.
EnergyLogic responds to this by an automated process ensured to give builders bi-weekly reminders. This helps to assure:
- Outstanding items do not slip through the cracks.
- Reduced probability that any given item will surpass the timeline, resulting in intervention from the insurance carrier.
Data That Fuels Action
Helping Builders to Make More Informed Decisions.
Many third-party firms offer reporting systems that may provide the builder with the information they need to fix non-conforming items, but very few focus on the data behind the scenes. Understanding long-term trade or superintendent performance enables guidance for improved training, specification, or scopes of work changes, helping to reduce overall risk.
EnergyLogic's Third-Party Builder Risk Management Program delivers the information you need right now to collect, organize, and analyze information from detailed field observations. This keeps jobs moving forward and provides data that fuels action and helps builders make more informed decisions!