XBRL Extension for Construction, Energy and Transportation  

Background

Owners (along with their lenders) and general contractors both share in the financial exposure that defaulting subcontractors have on their projects and while the general contractor bears the greatest burden, it is in the best interest of both to manage that risk as best as possible. 


The larger the project, the more likely significant defaults will cause material financial losses and could even undermine a general contractors ability to sustain the impact.  Given the economic recession that reduced construction activity and the strain a number of companies experienced, the risk of subcontractor default needs to be managed as efficiently and cost effectively as possible.

An historical weakness with subcontract bonds was the communication of the ongoing progress of the “risk” to the surety on the bond so they were aware of a potentially deteriorating situation that may result in default.  Previously, getting the information to the surety has been limited by the constraints of a paper based system.  The negative implications such communications have had on the general/subcontractor relationship often resulted in situations where the surety is the last to know a problem exists.  By the time the surety is notified the situation has often deteriorated to the point where the time required for the surety to understand the obligation is longer than the general/owner has with the delays adversely impacting the project and compounding the dispute.  A common criticism of surety bonds is that they are merely a right to sue, or a source of recovery after years of litigation, not an effective partner at a critical time.

Simply put, the surety based risk management program uses evolving technology to improve the communication to the surety so that they can be an effective partner at that critical time because they were involved instead of absent. 


Effective involvement by the sureties participating on a project and the shared objective of risk mitigation brings effective risk transfer. 

Mission Statement

To implement a collaborative communication system for efficient and cost effective management of project data to improve risk factor identification for project participants


To utilize internet communications to improve the underwriting and risk management environment for surety markets

To manage the surety relationship to achieve maximum risk mitigation for both the surety and the general contractor/developer/owner

Surety Based Risk Management

Company Profile Data Sets

Beginning the transition to Digital Data with a Common Data Set for Exchanging Data


Chico Common App
www.chico-commonapp-connection.com


Log in as username “sample” and password “sample”
      Go to the “Submit” Tab – Far right along the top
      Upper Left – View Completed Questionnaire
          That is the data ready for printing – Standard Questionnaire


     Middle left – Export an XML Format
          Creates an XML file that can be sent as an attachment.

     Lower left - XML Cross Reference
          That is the imbedded cross referenced spreadsheet.


     Lower left of imbedded spreadsheet
          Export the imbedded spreadsheet to excel
               That is the cross referenced spreadsheet in excel we are looking to complete.


               The application is designed to identify the data fields, which in turn are then part of this spreadsheet.


Project Monitoring
Performance Measurement / Predictive Analytics


Project Status Connection
www.projectstatusconnection.com

login
     view / all
     travelers / travelers
     liberty / liberty

This is the dashboard that monitors public Caltrans and VDOT data.


Surety Based Risk Management

Dashboard for Project Data - Construction


www.sample-connection.com
     login sample/sample

This is the dashboard that monitors private subcontractor data that gets uploaded to Project Status Connection for secure access by the surety.


Dashboard for Project Data - Interconnection

     US DOE Data By Design 



Financial Reporting Data Set
Examples of where contract performance data is already being made available on the internet.

     Virginia DOT Dashboard
          http://dashboard.virginiadot.org/Pages/Projects/ConstructionOriginal.aspx

     California DOT
          http://www.dot.ca.gov/hq/asc/oap/payments/public/ctnums.htm

     CALISO publicly posted excel spreadsheet
          www.caiso.com/Documents/ISOGeneratorInterconnectionQueueExcel.xls