Customer Success Story: How SD Builders Reduced Fraudulent Claims to Zero and Enhanced Site Security with BiltOn
Outcomes
Zero fraudulent claims since using BiltOn platform.
Increased safety & reduced rate of potential incidents.
Streamlined site operations across multiple jobsites.
Case Study Overview
PROJECTS
A series of multiple affordable housing & development projects (6 total) under residential construction. Including three projects involved in the NYC DOB pilot program.
LOCATIONS
Multiple locations across New York City
NYC DOB PILOT PROJECTS FOR DIGITAL RECORD KEEPING
Additional, these projects were part of a pilot program for the NYC DOB to prove value and show the benefits of digital safety record keeping in comparison to manual workflows and processes on construction jobsite.
108 St. Edwards Street, Brooklyn (Fort Greene)
This location was formerly home to the historic Church of St. Michael and St. Edward, a Romanesque Revival structure built between 1891 and 1906. The church has been vacant since 2010 and is slated for demolition to make way for an 11-story residential development.
326 Rockaway Avenue, Brooklyn (Brownsville)
A 14-story affordable housing development at this site. The project will offer 215 units, with 130 designated for formerly homeless individuals. Designed to Passive House standards, the building will include amenities such as a community center, fitness room, and rooftop solar panels.
144-02 135th Avenue, Queens (South Ozone Park)
The existing hotel at this location is being converted into the Baisley Pond Park Residences, comprising 318 affordable apartments for low-income and formerly homeless New Yorkers. The adaptive reuse approach allows for a faster construction timeline compared to traditional ground-up developments.
CHALLENGES
Excessive fraudulent claim submissions with no support to verify
SD Builders faced challenges with fraudulent and exaggerated workers’ compensation claims. Without a reliable method to verify if workers were on-site during incidents, the company struggled to defend itself against such claims, leading to potential financial penalties.
Managing fraudulent claims was difficult without an effective tracking system. False claims led to potential $30k penalties when evidence was unavailable. This directly impacted SD Builders’ insurance premiums and complicated their ability to defend against claims.
SOLUTION
BiltOn 3D Facial Verification with access control & comprehensive solution
SD Builders implemented BiltOn’s construction operations & risk management platform, including 3D facial recognition & access control features to automate manual processes like tracking and verifying worker presence on-site. BiltOn’s platform ensured only authorized personnel could enter the job site using 3D facial verification paired with the access control system, helping to reduce fraudulent claims and accurately verify who was on-site, at what time and day. This system was part of a broader security strategy that also included installing security cameras and implementing additional safety measures.
OUTCOME
Zero fraudulent claims, streamlining operations, & reducing potential incident rates
After implementing the BiltOn platform, SD Builders saw a significant reduction in fraudulent claims down to zero. With the combination of BiltOn’s access control, 3D facial verification and operations & risk management software, SD Builders was able to streamline operations, manage their workforce, and saw a significant decrease of incidents across multiple jobsites. The platform has been rolled out across six active sites, and SD Builders now operates on an enterprise agreement rather than a project-by-project basis.
With the success of the pilot program BiltOn and SD Builders enabled the NYC DOB to confirm the benefits and outcomes of utilizing digital safety management solutions like BiltOn. This was a huge step forward for the industry and started in NYC. The pilot program’s success with the help of BiltOn led to the recent announcement by the NYC DOB that they now allow digital safety records as a valid source. Bulletin 2024
ESTIMATED SAVINGS
By implementing BiltOn’s access control system, SD Builders has significantly reduced fraudulent workers’ compensation claims. In New York, fraudulent claims can lead to penalties ranging from $25,000 to $50,000 per incident, depending on the severity and frequency of the offense. For instance, employers who intentionally misclassify employees or conceal payroll can face fines of $1,000 for every 10 days of non-compliance, with repeat violations escalating to fines between $10,000 and $25,000.
About SD Builders
SD Builders and Construction LLC is a NYC-based General Contractor and Construction Manager. SD specializes in the construction of mid-sized ground-up market-rate rental, affordable housing, and homeless shelter projects ranging in size from 50 units to over 500 units throughout New York City. SD and the principals of SD have built and developed over 10,000 units in New York City over the past 25 years.SD performs the majority of its work for Slate Property Group. Through strategic long-term partnerships with vendors and subcontractors, detailed pre-construction and value engineering process, and economies of scale SD continues to perform high-quality work at roughly 15%-25% less than its competitors.
