Hugh Wood Inc. recognizes the effect that Subcontractor Default can cause on the total budget and schedule of a project. Subcontractor Default Insurance is utilized by reputable and savvy general contractors to manage subcontractor default risk. The program is procured directly by the prime contractor to protect themselves against the financial effects of a subcontractor default. The prime contractors utilizing this coverage are in a much better position to select qualified subcontractors and settle a default in the best interest of the project. Moreover, it permits the prime contractor to preemptively manage subcontractor disputes without limiting coverage in the event of a default. The advantages of the SDI program for a prime contractor who already implements strong operational practices based on subcontractor prequalification, management, quality control programs, and subcontractor default loss control would be substantial.
For the SDI program to be successful it is imperative the operational practice are outlined and defined so all parties comprehend the implications and are capable of managing the program effectively. HWI understands our clients’ operations and work collaboratively to devise a customized approach that ensures efficient & effective subcontractor prequalification and management practices, while also ensuring the best coverage and program structure available in the marketplace.