Why vendor compliance matters before the first payment
On a commercial project, paying a non-compliant sub isn't just an administrative slip — it's a financial and legal exposure. A lapsed COI means your GL policy may not cover their work. A missing W-9 means you could owe backup withholding to the IRS. An unverified bank account means a wire that lands somewhere it shouldn't.
Getting compliance locked down at the start of the relationship — not the first pay app — is the difference between smooth closeouts and frantic last-minute chasing.
The three compliance gates
Spandrel enforces three requirements before any vendor can receive a payment:
1. W-9 on file
Every vendor needs a current W-9. Spandrel tracks status per vendor and flags when one is missing or expired. Vendors can upload directly from their self-enrollment portal — no email ping required.
2. Active COI with your company as certificate holder
Spandrel monitors COI expiration dates and alerts your team before coverage lapses. If a COI expires mid-project, the payment gate closes automatically. You set the threshold (we recommend 30-day advance warnings).
3. Verified ACH bank account
Spandrel integrates with Moov for bank account verification. Vendors link their bank through the portal; once the account clears verification, they're eligible to receive ACH payments. Routing and account numbers never touch your server.
Sending a vendor the self-enrollment portal
When you add a new vendor, Spandrel generates a unique portal link. From there the vendor can:
- Upload their W-9 and COI
- Link their bank account for ACH
- Review and e-sign any pending subcontracts or lien waivers
You can send the portal link by email directly from Spandrel, or copy it and share it however you normally communicate with subs.
Bulk-onboarding an existing roster
If you're migrating from a spreadsheet, start by importing your vendor list via CSV. Spandrel will flag each vendor's compliance gaps on import. You can then send portal invitations in batch — one email per vendor, each with their own scoped link.
Handling vendors who are slow to respond
Set reminder schedules per vendor from the Compliance tab. Spandrel can send automated follow-up emails at intervals you define. If a COI expires before the vendor re-uploads, their pending invoices are automatically held — you don't have to remember to manually block them.
What "compliant" looks like in Spandrel
The Vendors list shows a compliance badge for each sub:
- **Green / Active** — W-9, COI, and bank account are all verified and current
- **Yellow / Pending** — One or more items are in review or awaiting upload
- **Red / Blocked** — A required document is missing or expired; payments are held
The Compliance tab gives you a global view across all projects and vendors so nothing slips through.