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SURETY

SubSecure

Financial Credit Analysis Tool

SubSecure measures financial factors to identify subcontractors that present a high risk.

The analysis process consists of the following:

  • Evaluation of the subcontractors’ financial reports against standard financial reporting guidelines. The analysis includes a review of the opinion letter, financial statements, supplementary information, open and closed job schedules, and footnotes to the financial statement.
  • An analysis that scores the subcontractor’s balance sheet, work in progress, income statement, cash flow, working capital, and net worth by comparing them to ratios commonly used by sureties in their underwriting reviews.
  • A review of a subcontractor credit report to determine the existence of any liens, judgments, or lawsuits outstanding.
  • Z-Score for each subcontractor analyzed. This score is a measure of corporate financial distress and potential economic bankruptcy.
  • The Marsh Construction SubSecure Financial Benchmark Service separates each subcontractor’s risk score into four quartiles. Quarterly reports are provided reflecting the overall quality of your subcontractor portfolio.

Leading-Edge Technology

We have partnered with JBKnowledge to create an industry-leading automated process for subcontractor default analysis.

SubSecure is integrated into the SmartInsight platform, an online construction network that helps contractors find, qualify and connect with other contractors for construction projects and manage their subcontractor risk.

 Who it’s for:

  • General contractors, construction managers, specialty subcontractors, owners and lenders who have subcontractor default risk and realize the need to have critical support in analyzing subcontractors’ financial information prior to award.
  • General contractors or construction managers who have or are considering any kind of subcontractor default insurance product such as Subguard®.

What you get:

  • An individual subcontractor benchmark report that scores a subcontractor’s financial factors.
  • An individual subcontractor “Z Score” report that is widely recognized as an indicator of potential financial problems.