How To Create An Environment of Compliance
Jul 10, 2017
It’s no secret that owners, operators, and companies own the responsibility for ensuring compliance of contractors at their worksite. It remains your responsibility as the owner/operator to ensure that every contractor working for you adheres to regulatory safety standards.
To ensure contractor compliance, companies must have processes in place to prequalify, monitor, and requalify all contractors who work within the organization. Implementing a system of contractor compliance management not only improves the safety of the workplace, it also ensures that the organization is protected in the event of a lawsuit/investigation.
No two compliance management programs are alike, but there are 3 critical components that can set your program apart and ensure that your company is protected.
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.
Second, your compliance management program must incorporate processes to ensure that all contractors engaged by your organization meet your defined thresholds, prior to them being allowed to be hired or access your worksite.
MONITORING Compliance is not a static state. Contractors hire new workers. Safety programs are updated. Insurance and licenses expire. Information changes constantly.
Effective contractor compliance management programs 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 Out-of-date information can be just as detrimental as missing information.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.
Programs should also alert all functional areas of your organization on a regular, real-time basis about the specific compliance status of any contractor and prohibit contractors who are non-compliant from accessing the work site.
REQUALIFICATION When information changes or is out-of-date, your compliance management program should proactively notify contractors about any documentation that is required to remain compliant. Programs should have an auditable trail of notifications and communications 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.
Effectively managing contractor prequalification, monitoring, and requalification in-house can quickly spiral out of control for most companies. With limited time and resources, it can be best to use specialized vendors who offer solutions to manage contractor compliance across your entire supply chain.
To learn more about the direct and indirect costs associated with prequalifying, monitoring, and requalifying contractors, download the BROWZ whitepaper Pay Now or Pay Later here.
- corporate social responsibility
- safety compliance
- compliance management
- risk mitigation
- safety statistics
- supply chain management
- contractor safety
- contractor management
- Supplier Management
- contractor pre qualification
- supply chain management
- risk management
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