10 Ideas for Brokers to Get Timely Financials from Contractors
You've had it. You’re fed up with contractors leaving their financials until the last minute. Creeping are: deadlines, Surety expectations, and the annoying vortex of copying and pasting the email you sent last month, just to resend this month.
Instead of whipping that dead horse, change the game and give contractors reasons to start.
Here are 10 actionable ideas for brokers to consistently get financials from their contractor clients.
You'll set expectations, teach why, and provide tools.
Set early expectations
Show your contractors the road. Less veering through the dark forest. Do this by:
setting clear expectations early. From your first meeting, help them understand reporting frequency, deadlines, and the documents you need. Have an onboarding package that outlines everything.
providing a standardized document checklist. Offer contractors an easy-to-follow checklist of all financial documents. Make the task less daunting.
pulling together a communication schedule. Establish a communication cadence with contractors, including gentle reminders (well in advance) of due dates. Automate these.
breaking down big requests. Instead of asking for all financials at once, ask for quarterly financials separate from yearly. Try not to overwhelm.
being proactive with financial reviews. Don't review financials when a bond's needed, schedule regular check-ins.
Now they know better, so they'll do better.
Educate contractors on why
Contractors sit in the dark.
Most don't understand the direct link between timely financials and their bonding capacity. Help them see how Sureties use financials to assess risk, and set limits. Delays will cost a contractor bids.
Best they learn the importance.
You've offered your contractors a set of standardized documents (you setting expectations).
Now, show them how these documents have a set format for the Surety. You've shared it, now ask them to use it. With today's integrated world (systems, formulas, AI), you need standards.
Consistency starts with repeatable templates.
Give tools to support them
Now they understand the why, give them tools to help.
Use technology.
Secure portals, shared drives, or specialized bond management software will allow your contractors to easily upload financials.
Reducing your dependence on email fixes version control, improves security, and saves time.
Hire a qualified CPA.
Connect your contractors with specialized construction CPAs. Firms that understand surety needs. Your contractors will love you for it.
Who's a good boy?
Praise good behaviour with subtle incentives for consistent, on-time submissions. It's not always feasible, but it highlights that proactive work leads to a smoother process for the broker.
Tools will shape the contractor and broker process. Invest in them.