In all fairness, some in-house systems work very well. Smaller companies that only deal with a limited number of contractors at one location are often successful. Large companies that are willing to invest the resources needed can also have successful systems. The challenge comes once a company has grown beyond the small in-house system and it’s no longer easy to verify the needed information.
Many companies view the cost of maintaining a prequalification department as too expensive for the benefit gained. They usually fall back to setting standards that contractors should meet and charging their project management, Safety and Purchasing teams with enforcing them.
The numbers listed below correspond to blocks of information on the sample ACORD Certificate of insurance.