In the world of contractor management—especially in high-regulation industries like oil and gas—software solutions like ComplyWorks, ISN, and Avetta have become essential tools. These platforms promise streamlined compliance, centralized documentation, and seamless prequalification with clients.
But behind the clean interfaces and SaaS pitches lies a growing concern: cost escalation that defies logic, value, and transparency.
Recently, one of our clients raised a red flag. Their contractor management software costs had increased 240% over five years. And no, their business hadn’t changed in structure, size, or scope. The same employees, data, and connections—dramatically different prices.
Let’s break that down.
Reality vs. Reasonable Growth
According to the Bank of Canada, the average inflation rate is about 3.88% annually. Over five years, we’d expect roughly a 16% increase in costs—not 240%. This isn’t inflation. This is unchecked escalation.
We went undercover and called the top three providers. The responses?
- “We agree.”
- “We were bought out – the buyer increased the prices.”
- “It’s against our policy to discuss this.”
Our client, a typical mid-size company in the oil and gas sector, operates on a modest 20% profit margin. That margin shrinks fast when a compliance tool multiplies price with no change in service or value.
Contractor Management with Confusing Models
Originally, this client had four different software subscriptions. We reduced that to two in an effort to cut costs. But even then, the total spend still exceeded their budget.
Why?
Because the pricing models are opaque, dynamic, and unpredictable.
Here’s what we discovered:
These major providers do not publish their pricing. That’s common in the SaaS world. But it goes further. When you call, they still won’t disclose details. They’ll review your current setup and offer a single price, based on your employee count, number of connections, or any other account data (this varies based on your provider).
But if those metrics (and when we say metrics, we are talking about the data you upload into the system) change, so does your price.
You sign up for a year and pay upfront, which is fine. But there’s zero clarity about future pricing. During our covert operations and hours of back-and-forth with reps, we couldn’t get a single forecast, even three months out for the next fiscal year. We resorted to pretending to be a new client looking to sign up, and the revised number of employees and the data have been released.
Their explanation?
“It’s against our policy,” or “we don’t have access to that data.”
Seriously?
Locked In & No Way Out
Let’s walk through a real scenario:
- You sign up in January 2025 and pay $1,000.
- In December 2025, the renewal notice arrives. It’s now $3,000.
- You either pay up, or cancel – note that most small clients cannot cancel because they need this to do work for select clients.
Come December 2026, it will again jump to $6,000. This time, it’s based not just on current employees but also on your total connections over the past three years. You receive no notice of the pricing model change.
We did attempt to call for pricing to support clients with budgets, but we got the following response:
“We can’t release future pricing.”
“Now that I’ve given you your current tier, I can’t discuss other tiers.”
This is unsustainable and doesn’t fit businesses that budget or can’t spend over $20,000 per year on contractor management software at $5k. per system.
The Bigger Problem: Everyone Pays
Here’s where the ripple effect hits:
- The contractor eats the inflated cost.
- That cost is passed on to the client via higher bids or backcharges.
- The client passes it on to the consumer.
So a $100 one-time door repair becomes a $1,100 service call—because the software needed to be eligible for that work now costs thousands per year. Clients may not see these costs for a long time, or the work is spread over the year, and it’s a dollar here, $10 there! But imagine a big client absorbing the costs of over 1,000 vendors annually.
Where’s the Value?
Despite the steep price hikes, here’s the reality for small contractors:
- They still upload training records manually to the client “because the software isn’t on that particular job”
- They still submit prequal forms manually “because that site is excluded frm the contact”
- They still cannot expedite access to the site “because the variance was not approved”
- They cant review your data “because no one manages the software on their end”
These are just some of the items we hear, but the list is endless!
So the question is: What exactly are we paying for? The thought of due diligence for the client?
Final Thoughts: This Isn’t Sustainable
We’re not anti-compliance. We’re not anti-software. We use these platforms ourselves and understand their potential value. But when prices triple, then double again, with no explanation or warning—and no guarantee of future costs—this isn’t inflation. It’s exploitation.
Small and midsize businesses that fuel our energy sector are being squeezed with little insight, leverage, or recourse. Industry stakeholders must demand transparency, accountability, and fair pricing models from these providers or switch to providers that will offer clarity to subcontractors.
Because “cost of doing business” shouldn’t mean death by software.
