The COMPASS Q Score is the Construction Credit Score that provides a standardized, independent assessment of a subcontractor. The Q Score reflects a subcontractor’s Credit Profile, ranging from Q1 (Outstanding) to Q7 (Poor). Green Q Scores (Q1–Q3) indicate Limited to Minimal Review, while Yellow Q Scores (Q4–Q7) indicate Moderate to Extensive Review. Together, the Q Score and its associated color coding distinguish subcontractor Credit Profiles and indicate the appropriate level of review.
By examining how subcontractor Q Scores and Credit Profiles change, the 2026 Default Study highlights two important takeaways:
1. Subcontractors with a Yellow Q Score were 3x more likely to file for bankruptcy.
The difference between Green and Yellow Q Scores is meaningful. Yellow Q Scores indicate a higher level of review during prequalification, aligning with the higher historical bankruptcy rate observed among Yellow subcontractors.
2. ~15% of subcontractors with a Green Q Score moved to a Yellow Q Score after one year.
Most subcontractors maintain their Q Score from one year to the next. But subcontractors change, their information changes, and their Q Scores can change with them. That’s why annual prequalification is a must: it helps ensure meaningful changes are identified and reflected in prequalification decisions.
