How to Hire Reliable Contractors
Feb 22, 2018
Although it seems like a time- and resource-saver for multinational companies to hire contracted professionals to efficiently work within their specific industries on a large project, there is plenty of legwork that is required for businesses to ensure their compliance standards are followed.
When companies utilize contractors, do they really save valuable resources like training time and money, or is more actually spent working to ensure all contractors are sufficiently trained for duty?
Businesses should take the following precautions when doing in-house contractor management:
- Receive several contractor bids, which should all detail costs, expected work, schedules and guarantees. Be wary of accepting the lowest bids, which may be an indication of a fraudulent or non-compliant contractor.
- Ask for proof of industry licenses and training, then keep a record of the license numbers. Check for proof that the business follows local laws and check resources if necessary.
- Keep copies of all signed documents and files, including payment scheduling, receipts and certificates of completion. Make sure that completion certificates are only signed when the job is finished to the hiring company's satisfaction.
- Set clear communication procedures; many supplier relationships have been eroded from simple misunderstandings due to a breakdown in communication. You can’t expect your suppliers to know the ins and outs of your business and vice versa. It’s your responsibility as the principal to set out clear expectations and define regular communication channels, be they face-to-face or electronic. Remember also that communication is a two-way street, collaboration with your suppliers may bring surprising insights into their business or yield greater innovation.
- Build rewards and penalties directly into contracts. Some penalties may include missed deadlines, number of incident/accidents, and poor quality of service or product. Once you have established KPI’s for the contract such as those just mentioned, working out rewards is just the opposite. For example, consistently exceeding deadlines may result in a financial bonus. Or you may provide a bonus for staying within reportable limits such as having less or no incidents.
- Help contractors understand specifically what’s in it for them. Unless there is value added benefit beyond maintaining your business, many contractors view third party qualification as an unnecessary expense.
Although some of this may sound like common knowledge for many large corporations that regularly employ contractors, the issue has been a hot topic in recent news and shows no signs of slowing down.
Businesses may do their part in spotting corruption and a disregard for compliance by being involved in every aspect of hiring and managing work contractors; however, that requires plenty of time, resources and attention on the corporation's part.
With the help of third-party companies like BROWZ, companies may spend their time managing other business aspects and leave time-consuming compliance management issue up to the experts.
BROWZ assures supply chain compliance through comprehensive assessments and patented, configurable technology, providing confidence of a safer work environment to clients and contractors around the world.
- safety statistics
- compliance management
- safety compliance
- Supplier Management
- contractor pre qualification
- risk mitigation
- supply chain management
- contractor management
- contractor safety
- corporate social responsibility
- supply chain management
- risk management
- Technology is Necessary to Prequalify Suppliers and Contractors
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- Top 10 Reasons Why Supplier Qualification Fails [Infographic]
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- How To Create An Environment of Compliance
- Reasons Why Leading Organizations Outsource Contractor Prequalification and Management [Infographic]
- Getting It Right: Solving Challenges of Contractor Qualification and Management
- 5 Ways to Manage Supplier Risk