Engineer builders

3 Reasons Why You Need Vendor Cost Control for Construction Defect Claims

 

Unfortunately, too many contractors learn the hard way that mistakes can be costly. A large-scale risk study by Dodge Data & Analytics reported 75 percent of construction industry players experienced a claim or dispute in the last ­five years. The most common and costly claim? Construction defect litigation.

When it comes to comprehensive case management, Vendor Cost Control is the optimal way to ensure equitable distribution to all parties. Here are the three key reasons VCC creates a seamless litigation process, ensuring prompt payments from all carriers involved.

1. Comprehensive Case Management

From day one to the last reconciliation payment, a third-party VCC solution ensures your case is properly managed. The VCC team pays all vendors, experts, legal and defense costs. Your team will determine the current financial status among all participants and facilitate an allocation plan of action to secure funding.

Beyond process management, VCC provides an industry expert as the sole point of contact for the entire case. Your team will have access to a dedicated case manager to provide answers and support every step of the case.

2. Strategic Financial Tracking

Through the use of real-time reporting and analytics, VCC provides actionable live data at your team’s fingertips – including access to scheduled reporting for compliance, accounting, and risk.

The case manager will perform scheduled vendor reconciliations, monthly funding requests, budget presentations, and consistent communication to recalcitrant participants. The real-time reporting and dashboards assist the case manager in bridging the learning gap– big data and KPI analysis give the entire team a complete financial picture.

3. Managed Accounts Payable and Receivable

Transparency and real-time data availability are crucial aspects of properly managed accounts. Closely managed accounts payable and receivables provide share allocation, risk calculation, and funding cycles to ensure prompt payment from participating carriers. VCC also provides multiple forms of payments, including ACH, EFT, wire transfers, and checks to escalate the entire payment process. Vendors and clients are paid faster and more accurately with real-time financial portal visibility.

For over 20 years, JDi’s VCC has built strong business relationships with our clients, offering global solutions for internal controls and compliance. In fact, JDi’s recovery rate is 100%.

Reach out and connect with us today to learn more about how VCC can get you paid in full – fast.