5 Contractor Management Necessities

May 18, 2016

What is Contractor Management?

The world’s leading businesses are hiring third party contractor management services to pre-qualify and screen their contractors, suppliers and vendors. This contractor management process provides assurance that organizations are working with the safest members of their supply chain.

PREQUALIFICATION Qualifying contractors before the work begins is a two-phase process. First, your organization must determine and define the criteria for contractor selection that meets your organizational risk profile and safety standards. Experienced contractor management services like BROWZ can assist you in this process, by leveraging industry best practices and bench marking. Recommended assessments may include both regulatory standards as well as corporate mandates.

Common contractor management criteria include:

  • CSR/Sustainability
  • Quality Systems
  • Financial
  • Diversity
  • Legal
  • Business Continuity
  • Insurance
  • Health
  • Safety

 

MONITORING Managing contractor compliance is not a static state. Contractors hire new workers. Safety programs are updated. Insurance and licenses expire. Information changes constantly. Your contractor management service needs to monitor documents and information on an ongoing basis and alert contractors when they have information that is ready to expire. Out-of-date information can be just as detrimental as missing information. Only through ongoing monitoring of contractor information can you ensure that compliance requirements are consistently being met. Further, the contractor management service should alert all functional areas of your organization on a regular—or real-time—basis about the specific compliance status of any particular contractor and prohibit contractors who are non-compliant from accessing the work site.

REQUALIFICATION When information changes or is out-of-date your contractor management program should proactively notify contractors about any documentation that is required to remain compliant. Your program should build an auditable trail of notifications and communicate with the contractor on a regular basis about upcoming expiration dates. Contractors should also have a prescribed method to submit their updated information and receive notifications when they are once again compliant.

SELECTING A CONTRACTOR MANAGEMENT SERVICE When selecting a contractor management service there are several key considerations that must be made. First and foremost, never settle for a one size fits all solution. BROWZ provides a configurable contractor management solution where the software and service elements of the program are configured to your organizations unique challenges. BROWZ is the only contractor management service with a US patent, issued for our robust compliance engine which allows users to define program requirements for multiple risk levels within the supply chain as well as for individual sites and projects.

Additionally, a contractor management service should only be selected if they provide a dedicated service team as well as software to support you and your supply chain. Questions will come up in the contractor management process. Without proactive and dedicated support you may be left answering questions.

PRICING Finally, be sure to understand the fees you and your contractors will pay. Most contractor management services operate under a joint pay model, where the site operating client pays a fee to establish the program, then contractors and suppliers pay an annual subscription fee. Unfortunately there are contractor management services that offer deceptive pricing, offering first what appears to be a low cost contractor subscription fee, only to then recharges that fee for every site a contractor works at. A $99 solution can quickly become a $2,000 annual charge if contractors work at multiple sites for your business.

BROWZ offers transparent, easy to understand, affordable pricing to both site operating clients and their supply chain. To learn more about BROWZ pricing and creating a configurable solution, click here.