Don’t risk it! Check if your construction software is SOC-2 compliant.

Barry Chiu

CEO & Co-Founder

January 21, 2025

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3 min read

Is your construction software SOC-2 compliant? You should ask.

Our customers often ask us about how we deal with information security. The short answer? We’re SOC-2 compliant.

And you should 100% be asking your construction software vendors if they are too. It’s a simple question that carries meaningful implications for your team long-term.

In today’s increasingly digital landscape in construction, data security and trust have become mission-critical priorities. Contractors are now handling vast amounts of sensitive information, from proprietary project data to client contracts and financial records. Digitization in construction brings new opportunities but also introduces risks.

And that’s why you should check if your construction software vendors are SOC-2 compliant.SOC-2 (otherwise known as Service Organization Control 2) is a gold standard in information security that demonstrates a company’s commitment to safeguarding data.

Why should you care as a director of innovation or director of IT at a contractor? Let’s dive in.

What is SOC-2 compliance?

SOC-2 is a widely recognized auditing standard developed by the American Institute of Certified Public Accountants (AICPA). It focuses on how organizations manage customer data based on a selection of five Trust Service Criteria:

• Security: Protection of data from unauthorized access and breaches.
• Availability: Ensuring systems are operational and accessible when needed.
• Processing Integrity: Guaranteeing that systems process data accurately and reliably.
• Confidentiality: Safeguarding sensitive information from unauthorized disclosure.
• Privacy: Proper handling of personal data in compliance with privacy regulations.

Achieving SOC-2 compliance as a software vendor involves implementing rigorous controls, undergoing an external audit, and demonstrating adherence to these criteria.

Why SOC-2 compliance is important for the construction industry

There is a reason why industry-leading contractors like Suffolk Construction, AECOM, and Hourigan already have SOC-2 compliance as a vendor requirement. Here are the key considerations:

• Winning client trust & expanding business operations: If you’re looking to sign up clients in government, healthcare, and other sectors, they typically will want to see that their contractors adhere to strict data protection standards. Being SOC-2 compliant sends a clear message to potential clients that your company takes data security seriously. That can improve your chances of winning bids and diversify your business operations to cover new types of projects with new clients.
• Protecting sensitive data & mitigating regulatory risks: Construction companies deal with highly sensitive data, including project designs, customer details, and financial agreements. A breach could lead to potential financial losses, reputational damage, and operational disruption driven by cyberattacks. SOC-2 compliance helps you reduce the risk of fines, legal liabilities, and contractual disputes.
• Future-proofing operations: The construction industry is digitizing whether you like it or not. There is an increased reliance on cloud platforms, IoT devices, and AI-driven tools. SOC-2 compliance positions your company to seamlessly integrate with different tech providers, scale operations securely, and stay ahead of cybersecurity threats.

At Kroo, our team takes SOC-2 compliance seriously.

From day 1, our team has been focused on SOC-2 compliance. Our customers trust us with their data, and as the modern data management platform for construction, we owe it to them to provide that level of security. You can find more information about our security posture at https://trust.getkroo.com/.

We’re excited to continue helping the construction industry with our modern data management solution. Check out our website for case studies and more information on our capabilities, or schedule a time below with us!