Prevent compliance gaps by tying vendor compliance to payment and renewal decisions
Procurement & Ops leaders
Responsible for vendors
Finance/AP teams
Who can enforce payment gating
Property/Facilities managers
Who onboard vendors to sites
Anyone
Who has dealt with expired COIs after an incident
Use this when:
Pilot with your top 10 service vendors:
Compliance has to be connected to the two moments vendors care about:
1) Getting paid
2) Getting renewed
If compliance is optional, it will drift.
Beginner rule: No valid COI, no payment (or at minimum, no payment for new work / non-critical services).
Minimum viable does not mean "everything." It means the few items that matter for risk and governance.
Beginner rule: Start with COI + site onboarding + W-9 and expand based on vendor risk.
Different vendors have different risk levels. Don't apply a 'one-size-fits-all' list. Start with categories like: HVAC/mechanical, Electrical, Janitorial, Landscaping, Security, Waste, Construction/GC, Professional services, Software (optional).
Done looks like: A one-page matrix that says what each category must provide.
Track: COI status, expiration dates, evidence links, owner, gating status (payable / hold).
Done looks like: One tracker used by Procurement + AP.
Within your contract repository, add: /Vendors/[Vendor]/01_Executed/Insurance_Compliance/ — Store COIs, endorsements (if needed), licenses, onboarding confirmations.
Done looks like: From the tracker you can click straight to evidence.
Gate A — Payment gate: If COI expired, invoice is held or partially approved. Gate B — Renewal gate: No renewal decision memo can be approved unless compliance is current.
Done looks like: AP and Procurement are aligned.
Compliance decays unless you run it on cadence. Monthly: review compliance expirations in next 60 days. Weekly (optional): review 'holds' and unblock critical vendors.
Done looks like: Regular review rhythm established.
| Vendor category | COI required | Min limits (internal policy) | Endorsements needed | License needed | Site onboarding required | Subcontractor disclosure | Notes | |---|---|---|---|---|---|---|---| | HVAC | Yes | Yes | If required | Often | Yes | Yes | | | Janitorial | Yes | Yes | Sometimes | No | Yes | Sometimes | | | Security | Yes | Yes | Often | Sometimes | Yes | Yes | | | Waste | Yes | Yes | Sometimes | No | Yes | Sometimes | | | Construction/GC | Yes | Yes | Often | Often | Yes | Yes | | | Professional services | Yes | Sometimes | Rare | No | No | No | | | Software (optional) | Maybe | N/A | N/A | No | No | No | Security requirements separate |
| Vendor | Category | Contract link | Compliance folder link | COI status (Valid/Expiring/Expired/Missing) | COI expiration date | Required endorsements received? | License status | Onboarding status | Payment status (OK/HOLD) | Owner | Next action | Due date | |---|---|---|---|---|---|---|---|---|---|---|---|---|
Subject: Request: current COI + endorsements for [Vendor] Hi [Name], To keep our vendor records current, please send your current Certificate of Insurance (COI) and any required endorsements for our file. Please ensure: - Legal entity name matches our agreement/invoices - Coverage dates are current - Any endorsements required by our agreement are included PDF is perfect. Thanks, [Name]
Subject: COI update needed — missing/expired documentation Hi [Name], We reviewed your insurance documentation and we are missing: - [missing item] OR your COI is expired as of [date] Please send an updated COI/endorsement by [date]. Until updated documentation is received, invoices may be held or partially approved per our policy. Thanks, [Name]
AP HOLD — Vendor Compliance Vendor: Issue: COI expired/missing or required compliance documentation missing Date identified: Owner: Action: - Hold invoices until updated COI received OR - Approve undisputed/critical items only (if exception approved) Evidence link: Notes:
Vendor Onboarding Compliance Checklist - Executed contract stored (MSA/SOW/pricing/amendments) - COI received and valid - Required endorsements received (if applicable) - W-9 received (if applicable) - License verified (if applicable) - Site access onboarding completed - Subcontractors disclosed (if any) - Billing rules communicated (change order ID requirements, documentation expectations)
Monthly Vendor Compliance Closeout (20 minutes) 1) Expiring in next 60 days (10 min) - Vendor / expiration / owner / next action 2) Current holds (5 min) - Which invoices/vendors are blocked? - Are exceptions needed? 3) Process fixes (5 min) - Any contract language missing? - Any vendors that need re-training?
% of top vendors with current COIs
On file
# of invoices held
Due to compliance gaps (early on may increase, then drop)
Reduction in "expired COI discovered after incident"
Events
% renewals blocked until compliance updated
Should drop over time
Assumptions: AP supports gating and procurement can request documentation.
Where this can fail: If enforcement is inconsistent or ownership is unclear.
v1.0 (2026-01): Latest release