
Maple Insight's article on the current landscape of Subcontract Default Risk was featured in Arthur J Gallagher's 2024 SDI Newsletter:
Over the last five years, the construction industry has felt the lingering effects of major market disruptions and volatility, project delays and subcontractor pool contractions. Developers and construction managers face the pressure of rising costs and interest rates while subcontractors are asked to do more with less. Common “prequalification” processes and tools often generate conclusions from outdated information and applicants are at the mercy of system-generated general risk scores and ranking schemes.
We believe that default risk is dynamic and rapidly evolving – each risk must be quantified and constantly reassessed.
Maple Insight uses predictive analytics to provide default risk measured in percentages, and exposure to losses measured in dollars, specific to each individual contract on each project. We have developed and employ a purely scientific and objective approach to default risk quantification that analyzes business health and key performance indicators, operational capacity, project appropriateness, corporate sophistication and market conditions as they change over time. Further, we calculate the primary, secondary and tertiary economic impacts that each contract’s default may have upon a project.
Users – carriers, brokers, sureties, captives, construction managers, developers and lenders – leverage this intelligence to discern the healthy risks from the unhealthy risks, monitor and quantify project/portfolio risk and assess pricing adequacy and policy exposures. We help clients identify and mitigate major risks before they affect budgets and schedules.
With new insights and visibility, we believe our industry can better promote the right partners for the right projects to reduce default losses and drive profitability.
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