SUPPLIED BY JLT SPECIALTY USA
You’re sold on the Wrap Up concept. The economics make sense. The risk transfer makes sense. You have a solid loss prevention platform and your claims management team mitigates costs at a high level. From a coverage perspective, it all makes sense.
Then, your project team hears “Wrap Up” and cringes, right?
Traditionally, Wrap Ups have been administratively cumbersome – resulting in frustration from project teams. But when leveraged successfully, Wrap Ups offer increased efficiency and improved alignment across teams –they’re the benefit you have to work for.
So how can you streamline the Wrap Up process to minimize exasperation and maximize productivity?
Let’s start with bidding. Do the subcontractors understand the bid methodology? Clear and concise bid instructions are critical to getting the proper result from subcontractors. The Add Alternate method enables subcontractors to bid without insurance and identify their insurance as a line item option. This method provides the data to support bid reduction savings and reduces time spent by the team on negotiations, alleviating much of the frustration. It is clean and simple – and creates the opportunity to tally the savings for the owners that must have the data.
Next up – evaluation. Is evaluating each and every insurance deduction or add alternate the most efficient use of time? Evaluating against an expected credit range is a more efficient, streamlined way to arrive at the data needed for the owner that must have the data.
How about enrollments? Requiring paper enrollment applications from subcontractors is the traditional method. While an extra step, this method is widely accepted for the security it provides. However, there are more efficient methods that expedite enrollments – as specialists, we work with our clients to understand their business frameworks and develop methods for enrollments that help them produce maximum efficiency and seamless integration.
Another benefit of Wrap Ups – project team members likely no longer need to track insurance certificates from their subcontractors. This service is likely handled by the Wrap Up Administration provider – enabling the team to focus on the end goal, instead of chasing paperwork.
There is other documentation necessary to Wrap Up administration, particularly if the program includes Worker’s Compensation. But, do the project team members really need to focus on policies and payroll reporting? Or, are the required parties enrolled so they can move on to the business of building? A simplified report can give the team the tool to keep the project moving forward.
Now, onward to automation. In today’s digital age, software is essential. But, at the end of the day, it is just software. What is really important is the people behind the software – to be effective you need industry experts who can react and respond to your data in real time. For example, JLT utilizes our Foundations software, backed by knowledgeable, specialized administrators. Our system automates the processes to drive efficiencies – and ultimately, improve your bottom line.
So, at the end of the day, you have given thought to the Wrap Up model and feel confident about the decision to move forward. While Wrap Up administration is not really the most stimulating, it is an important consideration to the overall success of the project – and the efficiency of your project team. And trust me, your project teams will thank you.
Associated General Contractors of America