Benefits
>Allows for competitive
use of MBE & WBE companies
Wrap Ups level the playing field so that smaller businesses,
like Women and Minority Business Enterprises (WBE & MBE),
have equal opportunity to get on the job. Some owner and government
run projects have built in incentive programs to encourage
the use of MBE and WBE companies. WBE/MBE contractors often
can't afford the kind of insurance needed to qualify for large
projects, so they don't have a chance to bid. But a Wrap Up
has the purchasing power to get the insurance needed at a
more reasonable price for everyone on the site. Umbrella coverage
for all contractors allows for competitive bidding among big
and small subcontractors equally. By providing coverage to
all contractors through a wrap-up, the cost of insurance can
be removed from the bid prices so that insurance costs are
no longer a factor in choosing the lowest or most qualified
bidder.
