Given the unprecedented times we live in, businesses need to meet the unforeseen challenges head-on and embrace risk management as an imperative tool while operating in a global environment. The same holds true for General Contractors and Owners wherein containing and managing risks across the full lifecycle of all active projects is a mighty tall order. Be it contractors, service providers, or suppliers, the lack of visibility and absence of a robust supplier risk management platform—for obtaining deeper insights and improving the ability to prevent incidents before they occur—leave GCs and Owners exposed to numerous risks. Yet, many organizations rely on utilizing spreadsheets to manage supplier data and that process is time-consuming and susceptible to errors. To top it off, the datapoints are often inconsistent and risk analysis becomes a challenge. Other firms choose to leverage the in-house IT department to build a custom solution that is costly to maintain and challenging to scale. Moreover, certain key studies indicate that understanding supplier gaps in safety management systems prior to bid enables firms to eliminate companies that pose the highest risk. Evidently, mitigating supplier risk lies in understanding how to ascertain and analyze the right information. This is where companies like ConstructSecure are moving the needle.
As a global SaaS company, ConstructSecure was born with a singular focus—helping clients go beyond just meeting compliance standards, and ensure safety is maximized and risk is managed for both client and supplier across the entire portfolio. The cloud and mobile-based platform offered by the company empowers clients to arrive at and make smarter and more informed risk management decisions. “We are a full supplier risk management platform, and we manage risk starting from pre-qualification all the way through construction or contract completion,” asserts Garrett Burke, CEO of ConstructSecure. In 2007, as Occupational and Construction Safety Director at Harvard University, Garrett recognized the software solutions available were inadequate. He observed that most of the pre-qualification tools in the market primarily focused on compliance, which did not provide a true measurement of risk. Under his direction, with the input of faculty and Certified Safety Professionals, the team developed a tool to understand what risk is and how to accurately measure the risk of a supplier. Among other positive results, the group achieved a significant decrease in loss rate, leading to major cost savings. The scoring system and risk mechanism was also validated by a study from Northeastern University over a five-year period of time with over 5,000 suppliers participating. ConstructSecure’s proprietary algorithms leverage the safety and financial indicators to pre-qualify vendors accurately. In doing so, ConstructSecure offers a vendor questionnaire and user interface that is fast and simple to complete. Results also educate the vendors and unlike other risk assessment tools, ConstructSecure’s safety profile highlights areas to improve and presents trending safety analysis by trade so vendors can see where they rank amongst their peers.
Today, ConstructSecure empowers some of the world’s largest corporations across diverse industries—construction, pharma, tech, higher-ed, insurance, and more. Catering to the specific requirements of each client has been possible for ConstructSecure by keeping itself abreast of the ongoing changes in the market and developing industry relevant solutions. Solutions to drive better business decisions.
To begin with, ConstructSecure is the only company to offer an end-to-end risk assessment and mitigation solution. Its single platform is a suite of solutions that work together to address risk and safety throughout the entire project—safety and financial prequalification, inspection and tracking, training, and contract closeout.
The suite includes CS Safety, CS Finance, CS Inspect, CS Tracker, CS Training, and CS On-Site. CS Safety is an automated vendor pre-qualification assessment solution that offers the most comprehensive and actionable analysis for both clients and vendors. Unlike other risk assessment services, ConstructSecure provides critical information identifying safety gaps that a vendor can use to address and rectify and as a result, improve their score. To ensure clients are obtaining the highest penetration rates and most vendors enrolled, ConstructSecure has a team of highly trained professionals who assist in the process. Burke informs, “The clients provide their list of potential suppliers, and our business development outreach team contacts each and every supplier to assist them enrolling and uploading the safety and financial data. This in turn facilitates our clients and they can review and compare an entire portfolio of vendors through easy-to-use dashboards and visual interfaces.” CS Finance uses client-specific criteria for assessment and verification of vendor financials to identify and reduce defaults. Developed by Certified Safety Professionals, CS Inspect is a cloud and mobile-based field, facility, and equipment inspection application designed to function as an integral part of an overall Safety Management System. Further, CS Tracker provides the ability to take immediate action and improve performance based on incident data. Also, through CS Training, ConstructSecure offers the most configurable training verification system in the industry. As all activities and processes cannot be performed through the web, CS On-Site brings in a team of consultants, certified safety professionals, and professional engineers that visits the clients to identify the risks and safety issues.
“We are a full supplier risk management platform, and we manage supplier risk starting from pre-qualification all the way through the construction or the contract.”
With experts customizing solutions to meet specific industry needs, ConstructSecure has evolved as the go-to solution provider for contractors and owners to manage supplier risk. It is also noteworthy that the application used by ConstructSecure was fundamentally established for Harvard University without any plans of commercializing it, and it became a viable commercial product when general contractors for Harvard repeatedly asked to lease the software. The company’s unique value proposition can be best explained with a client success story that involved one of its first global construction directors. The ConstructSecure platform helped reduce the company’s incident rate by 10 percent the very first year the solution was implemented. This saved close to $5 million in insurance costs across the company’s U.S. portfolio contract. Finally, a higher-ed client encountered a loss rate of 7.50 cents per $100 of payroll, but after 18 months of use, ConstructSecure was able to reduce the loss rate a staggering 84% from 7.50 cents to 1.19 cents per $100 of payroll.
Scripting similar success stories, ConstructSecure has proven its excellence in driving fulfilling results for its clients. For the future, the company looks forward to creating a more significant global presence, as they have experienced tremendous success in the EMEA and APAC region. In the same vein, the team at ConstructSecure is aiming at expansion with new offices in Europe and Singapore.