White Paper

Supply Chain Quality Management: Control It Before It Controls You

General contractors may be exposing themselves to increased risk, especially those posed by subcontractors and the construction supply chains.

White Paper Summary

For general contractors, subcontractor performance is everything. And with tighter project schedules more common across the construction industry,  rocuring and fabricating materials globally the new norm, and the growing need to use materials  that are sustainable and manufactured safely and to code, not managing your subcontractor’s supply chain can cost you.

In the push to deliver projects quicker, cheaper, faster, general contractors find themselves at an increased risk of default when making what seems like deals with the devil to deliver on such tight expectations. In fact, XL Catlin is seeing increased losses as it relates to construction supply chains.

Schedules are so tight, there is virtually no room for error. Add to that supply chains heavily taxed,  particularly those producing core products in the construction industry – think commercial glass and PVC piping, for example. Chances are there are only a  small, finite number of providers that can source/produce the materials you need, or that can step in adeptly at the last minute to get a project back on track quick when a component suffers a failure. Suffice it to say, rebounds to any errors, delays or defects in your orders can be lengthy and, therefore, expensive. And the time and headache of having to reprocure materials because of an issue that could have been avoided greatly impacts the project. It wastes  materials, can sacrifice overall project quality, hurts the client and, ultimately, can be a hit to your reputation. So taking control and assuring quality at key checkpoints along the way with your subcontractor is critical.


To learn more about AXA XL, please visit their website.

AXA XL, the property & casualty and specialty risk division of AXA, provides insurance and risk management products and services for mid-sized companies through to large multinationals, and reinsurance solutions to insurance companies globally. We partner with those who move the world forward. To learn more, visit www.axaxl.com.

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