Cinium’s Subcontractor Risk Management Program

From bonds to books, we keep your subcontractors’ back office on track.

As the demand for skilled labor increases, and as project budgets grow, you’re likely looking for subcontractors who are:

  • Able to get a surety bond, even if they have never been bonded before.
  • Paying vendors promptly and properly completing paperwork at the end of the job.
  • Maintaining sufficient cash flow so that projects aren’t delayed due to a lack of funding.

In the past, if your preferred subcontractors couldn’t meet these standards, that might have kept them off the job site and affected your ability to get the job done.

Now, There’s Cinium’s Risk Management Program.

We help general contractors by providing their preferred subcontractors with the surety bonds, back-office support, and financing they need. We also help to ensure that payments to vendors and workers are made correctly and that at the end of the job, releases and paperwork are done right. Our stand-alone services can also be used with other insurance protections such as SubGuard© and Subcontractor Default Insurance (SDI).

Cinium does this by providing:

Surety Bonding:

  • Provides surety bonds for your preferred subcontractors, even if they’ve never been bonded
  • Offers a unique bonding process using evaluation by construction industry
  • Means there are no CPA Reviews or collateral required
  • Provide A-Rated bonds through a “T-Listed” surety

Project Accounting Services:

  • Helps manage project funds to ensure that they are fully accounted for
  • Provides invoice and payment support to ensure that vendors and labor are paid
  • Ensures your project completion goes smoothly by ensuring paperwork, including lien releases, are done correctly
  • Provides general contractors with financial oversight of their subcontractors
  • Is available even if your subcontractors aren’t bonded through Cinium

Requisition Cash Advances:

  • Provides funds for approved expenses, including labor and materials
  • Ensures your subcontractors avoid delays due to cash flow issues
  • Saves money by taking advantage of early payment discounts from vendors
  • Does not require UCC filings or other onerous requirements

To give you an idea of how these services can work for you, here are three challenges faced by general contractors, and how Cinium’s Subcontractor Bonding and Accounting Service helps them to meet each challenge.

Challenge #1: Bonding Fiscally Responsible Subcontractors

In order to keep pace with demand, general contractors need to recruit skilled contractors. If these contractors lack a bonding history, it’s harder for them to get bonded.

Solution: Surety Bonding for Subcontractors

Because of Cinium’s experience bonding contractors who are turned away by other surety providers, we can often get your subcontractors the bonds they need to get the job done.

We assess this risk by having our team of construction professionals perform a thorough review.

This entails:

  • A careful review of their work history by construction industry experts
  • A detailed review of their financial statements and accounting practices by our in-house underwriter
  • In-depth reference checks with past clients

In addition, your subcontractors don’t have to spend money on a CPA review of their finances. We do all the work using information that they can pull from their office bookkeeping software.

Challenge #2: Subcontractor Financial Management

In order to effectively manage their projects and deliver results for their clients, general contractors need to ensure that their subcontractors are effectively managing project funds. This includes:

  • Processing invoices and lien releases in a timely manner
  • Paying vendors and labor on schedule

Otherwise, they risk project delays, cash flow issues, and future project liens.

Solution: Project Accounting Services

We take responsibility for a subcontractor’s project funds and make sure that every project dollar is accounted for. This helps subcontractors to stay focused on the task at hand and provides general contractors with peace of mind, knowing that their project funds are being used appropriately.

In many cases, our industry experience has allowed us to:

  • Help subcontractors improve their back-office practices
  • Find solutions that can help them stay on schedule
  • Successfully close out their projects without facing liens or other damages

Claims Management

Cinium’s Claims Management service doesn’t simply pay claims; we troubleshoot problems. Our team of experienced construction professionals track potential issues and facilitate communication between subcontractors, project owners and general contractors. This helps you to avoid problems that can hurt your bottom line and allows you to take your projects across the finish line.

Subguard© Insurance/ Subcontractor Default Insurance (SDI)

If a general contractor is bonding their subcontractors using Subguard© or another Subcontractor Default Insurance, using Cinium’s Subcontractor Bonding and Accounting Service can provide additional assurances that the subcontractor will be fiscally responsible and will effectively manage their project funds.

Challenge #3: Subcontractor Cash Flow

For many general contractors, their subcontractor’s cash flow issues impact the success of a project. In the event that payment from an obligee is delayed or project funds aren’t effectively managed, subcontractors could be delayed by late payment for materials or delayed payroll for their team.

When one subcontractor is delayed, it can delay the project as a whole.

Solution: Requisition Cash Advances

That’s why we provide our Requisition Cash Advance service.

  • We can provide an advance on funds for approved labor and material expenses
  • No upfront cost to participate; we simply take a small percentage once the payment is made by the obligee
  • No UCC filings or other onerous requirements are involved

As an added benefit, subcontractors can use a Requisition Cash Advance to take advantage of early payment discounts from vendors; this saves money and also helps them to maintain a positive relationship with that vendor in the future.

Ready to get your preferred subcontractors the bonds they need?

Ready for the peace of mind that comes from working with Cinium?

Contact us today to learn more about Cinium’s Subcontractor Risk Management Program.


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