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Understanding the COMPASS Q Score
Understanding the COMPASS Q Score
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Written by Martin Aronshtam
Updated over 3 weeks ago

Overview

The Q Score is COMPASS’s proprietary assessment of subcontractor risk, offering General Contractors (GCs) a standardized, data-driven tool to evaluate subcontractor performance. By consolidating key variables across Business, Finance, and Health & Safety, the Q Score delivers a clear benchmark for assessing risk levels and making confident decisions.

What is the Q Score?

The Q Score is a numeric risk rating ranging from 1.0 to 7.9 and is color-coded to indicate risk levels.

  • Green (Q1.0–Q3.9): Lowest Risk

  • Yellow (Q4.0–Q5.9): Medium Risk

  • Red (Q6.0–Q7.9): Highest Risk

Subcontractors with incomplete or outdated information may receive a capped score, signalling increased risk.

How General Contractors Use the Q Score

The Q Score is a benchmarking tool that supports risk assessment during prequalification and project planning. It does not replace a GC’s due diligence, rather it serves as an independent reference point to:

  • Assess a subcontractor’s overall risk level.

  • Identify areas of concern, such as missing data or weak performance ratios.

  • Streamline decisions on contract size and limits based on a subcontractor’s risk classification

Q Score Sections

The Q Score is calculated using ratios across three core sections, which roll up to a the final Q Score:

  • Business (50%): Includes factors such as past project experience, company longevity, and revenue concentration risk.

  • Finance (40%): Derived from financial statements, focusing on liquidity, debt ratios, and revenue stability.

  • Health & Safety (10%): Evaluates safety records, certifications, and incident history.

Trade Rank

In addition to the Q Score, COMPASS ranks subcontractors within their Primary Trade (e.g., Electrical, Concrete) based on their Q Score. This ranking helps GCs compare subcontractors directly within the same trade. The Primary Trade Rank is displayed in the subcontractor profile.

Benefits of the Q Score for General Contractors

The Q Score offers a transparent, rules-based framework for risk assessment, delivering key advantages:

  • Efficient Screening: Easily identify high-risk subcontractors using the color-coded Q Score.

  • Focused Effort: Direct due diligence to weak ratios or missing information.

  • Streamlined Evaluation: The Q Score consolidates complex data into a single benchmark, simplifying subcontractor assessments.

  • Data-Driven Decisions: Rely on standardized, back-tested metrics to inform prequalification and risk management processes.

Conclusion

The Q Score in COMPASS provides General Contractors with an objective, reliable measure of subcontractor risk based on Business, Finance, and Health & Safety data. By streamlining the evaluation process, the Q Score allows GCs to make faster, more informed decisions and mitigate risk when selecting subcontractors.

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