The Commercial GC's Guide to Subcontractor Risk & Draw Readiness
ConstructQC replaces static paper COI tracking with an autonomous, continuous 7-layer compliance engine. This guide explains how project executives, controllers, and risk managers use ConstructQC to eliminate payment holds, audit trade partners, and sync directly with Procore.
01 Platform Overview & Mission
In commercial construction, an owner-draw pay application (AIA Document G702/G703) can be frozen by title companies or lenders if even one specialty subcontractor has an expired trade license, an unverified COI, or a corporate entity lapse with the Secretary of State.
Traditional compliance workflows rely on administrative staff manually emailing insurance brokers and collecting PDF certificates of insurance (COIs). This creates a massive regulatory blindspot:
A certificate of insurance only shows insurance coverage on the day it was printed. It does not check if the subcontractor's master electrical/plumbing license was suspended yesterday by the state board.
ConstructQC connects directly to state licensing databases (TX, CA, FL, CO), federal registries, OSHA safety enforcement, and Secretary of State APIs to verify live, real-time standing every 24 hours.
3-Minute Quickstart
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Step 1: Onboard a Trade Subcontractor
From the Roster tab, click
[ + Add Contractor ]. Enter the business name, trade type, state, and primary contact email. Alternatively, connect Procore to sync your entire directory with one click. -
Step 2: Instant 7-Layer Regulatory Verification
ConstructQC immediately queries official state registries (e.g. CSLB in CA, TDLR in TX), verifies corporate standing with the Secretary of State, scans OSHA citation logs, and checks SAM.gov federal exclusions.
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Step 3: Review First-Pass Draw Readiness
The dashboard issues an instant verdict: CLEAR (Draw Ready), FLAGGED, or MANUAL REVIEW.
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Step 4: Download Stamped PDF Certificate
Click the
[ PDF Certificate ]button to export an audited, publication-grade clearance sheet. Attach it directly to your pay app for the owner or title company.
User Roles & Permissions
02 The 7-Layer Regulatory Radar
Every contractor monitored in ConstructQC is evaluated across seven deterministic compliance layers. Unlike black-box AI tools, ConstructQC uses official government data APIs and verifiable registry records.
Live Multi-State Trade License Verification
Connects directly to licensing authorities across major commercial construction states:
- Texas (TDLR): Electrical, HVAC, Industrial, and Plumbing board registries.
- California (CSLB): Contractor State License Board Class A, B, and C specialty trade classifications.
- Florida (DBPR): Department of Business & Professional Regulation certified and registered contractor licenses.
- Colorado (DORA): Department of Regulatory Agencies Division of Professions and Occupations.
Checks include license status (Active, Suspended, Revoked, Expired), expiration dates, trade classifications, and workers' comp exemption filings.
Secretary of State (SOS) Good Standing
Verifies legal corporate entity existence, active legal standing, entity type (LLC, Inc., LP), and registered agent consistency. If a sub has been administratively dissolved for franchise tax forfeiture, ConstructQC immediately flags the risk before lien rights are compromised.
OSHA Enforcement History & Fatality Tracking
Queries the Department of Labor OSHA database for past inspections, willful violations, repeat citations, and fatal incident histories within the past 36 months to protect the GC from catastrophic site liability.
EPA Sanctions & SAM.gov Debarment Exclusions
Screens subcontractors against federal exclusion lists (SAM.gov Exclusions / OFAC / System for Award Management). Essential for GCs bidding on federally assisted, military, or municipal public works where hiring a debarred entity incurs massive civil penalties.
ACORD 25 COI Extraction & Workers' Comp Verification
Parses ACORD 25 certificates to verify minimum required coverages:
03 Draw Readiness & Verdicts
ConstructQC aggregates findings across all 7 layers into an actionable 3-tier traffic light verdict. Project controllers check this before approving subcontractor draw releases:
The subcontractor holds an active, unencumbered state trade license, good corporate standing, zero federal debarments, and valid current insurance matching project minimums. Safe for billing and immediate payment release.
Critical compliance failure detected (e.g. state license suspended, forfeited corporate charter, expired workers' comp, or SAM.gov exclusion). Subcontractor payment must be held pending remediation.
Subcontractor license or COI expires within the upcoming 30 days, or a legal name variance exists between the Procore vendor name and state registry. Requires project manager review before draw closing.
1-Page Stamped Audit Package
Every monitored contractor features an automated Publication-Grade PDF Certificate generated using ReportLab. The certificate includes the contractor's official state license number, entity standing, OSHA record summary, COI limits, and a cryptographic verification hash.
04 Procore Directory Integration
ConstructQC connects seamlessly with the Procore App Marketplace via standard OAuth2. Procore remains your single System of Record while ConstructQC acts as the automated compliance verification intelligence.
Tap [ Sync Procore Directory ] in the dashboard top bar or Roster tab. ConstructQC reads active specialty trades, addresses, and primary contacts from your Procore Company Directory.
Imported vendors are instantaneously evaluated against the 7-Layer Regulatory Radar without any manual data entry required.
Compliance tags (Clear / Flagged / Review) and 1-page stamped clearance certificates are synced back to Procore vendor records and the project Documents tool.
Continuous 90-Day Renewal Sentinel
ConstructQC runs a continuous background worker that monitors upcoming policy expirations and state license renewal dates 90, 60, and 30 days in advance.
Automated courtesy notification dispatched to trade contractor's compliance desk.
Status shifts to MANUAL REVIEW in GC draw radar; second reminder sent.
Automatic escalation to FLAGGED (Payment Hold) to prevent uninsured draw releases.
Bulk CSV Ingestion
For general contractors managing 50 to 200 subcontractors outside Procore, use the Batch CSV tool to onboard entire vendor rosters in seconds.
Data Security & Multi-Tenant Architecture
ConstructQC enforces strict enterprise multi-tenancy. All customer vendor data is logically partitioned by tenant ID (company_id) and encrypted at rest on AWS EBS using AES-256.
- Zero Data Commingling: Database queries strictly isolate records per tenant.
- HMAC-SHA256 Token Signing: OAuth sessions and access tokens are signed using high-entropy secrets.
- HTTPS / TLS 1.3: All inbound and outbound API traffic is secured through Cloudflare edge SSL.
- No Black-Box LLMs: Verification decisions are deterministic, reproducible, and verifiable against government sources.
Frequently Asked Questions
How frequently does ConstructQC re-verify state licenses?
Active subcontractors are monitored continuously with background sweeps every 24 hours. If a license status changes on the state registry, an alert is triggered immediately.
Can subcontractors upload their own renewal COIs?
Yes! The automated renewal email provides a secure, tokenized upload link allowing the subcontractor's broker to upload the new ACORD 25 directly without needing a full GC account.
How do title companies and lenders verify the clearance certificates?
Every 1-page clearance certificate features a unique verification URL and cryptographic checksum. Lenders can scan the QR code or visit the verification endpoint to verify the certificate's live authenticity.