Keys to Implementing a Successful Wrap-Up
The financing is in place and you’ve decided to implement a wrap-up. You understand the benefits and potential savings, but what are some of the keys to implementing a successful wrap-up?
A wrap-up is a unified, integrated risk management program in which everyone’s interests are aligned. The first key is to change your mindset. Too often, in construction it’s the downstream mentality. The owner dictates insurance and indemnification requirements to the general contractor/construction manager, which in turn dictates these requirements to its subcontractors. Subs dictate to sub-subs and so on and so on. The first key is to change your mindset. A sponsor that gets this is on its way to a successful wrap-up. More keys to successful wrap-up:
- Administration – Hire the right firm to handle the enrollment of your contractors. This can be a broker or a third party administration firm. These firms remove the burden from your team and provide streamlined systems for contractors to enroll and for you to review your financial results.
- Contract Review/Contractual Language – Where a number of projects go wrong is in the wording of the governing documents. Don’t try to amend a standard contract with wrap-up wording since a mistake in the contract could be in conflict with your program and the insurance secured.
- Orientation Meetings – Conduct these meetings with enrolled contractors prior to them starting. These meetings are conducted by your broker and administrator and are useful for outlining roles, responsibilities, reporting procedures, safety requirements and enrollment procedures to name a few. They also allow for your contractors to ask questions and voice any concerns.
- Project Safety – The benchmark for a successful wrap-up is its safety program, and therefore your safety requirements need to be a part of your contract and procedure manual. For large projects, a site safety director is critical to your success. This individual should have wrap-up experience. There should be regular orientation meetings, OSHA 10- and 30- hour trainings, drug testing, medical management, etc.
- Claims Management – All contractors should understand how and to whom to report claims. Return to work programs are essential. Regular claim reviews should take place and you need to invite your contractors to the review of their employees. Nothing gets their buy-in more than this and they know their employees better than you do.
- Communication – Regular and effective communication with all parties will help everyone change their downstream mentalities.
These are just a few keys to implementing a successful wrap-up and may sound simple enough, but a lot of times get lost in the production crunch. If you need assistance with implementing a wrap-up contact a member of the ‘A’ Team.
- Wrap-up Flyer
- The Scoop on Construction Contracts
- 6 Tips to Remember When Enrolling in a Wrap-Up
- Workers' Compensation E-Book
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