Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Contractor Prequalification

By Robert Thompson Subscribe to RSS | December 17th 2011 | Views:
loading
 
  



Every day 10.3 million independent contractors go to work in the United States [1]. Fortune 1,000 Companies like L’Oreal, BASF, Shell, and Edison International, to name a few, rely on contractors to perform thousands of essential business functions. A mistake or miscommunication between the owner/operator and contractor can result in people, environment, and profit losses.

Establishing proper protocols is often the difference between a safely completed job and an unfortunate loss. It’s essential to ensure contractors are properly screened and safe to work at your facility.

To avoid accidents and select safe contractors, it’s important to focus on:

1. Setting and enforcing your safety expectations before awarding a contract.

2. Actively communicating all safety expectations stated in the contract to staff.

3. Frequently holding contractor safety meetings, with clearly communicated dates.

4. Establishing a Contractor Safety Council for facilities where contractors are present.

5. Taking contractors through any site-specific expectations, to ensure they’re up-to-date.

6. Yearly evaluating your process and progress, and benchmarking your efforts against other companies.

Use objective criteria when evaluating contractors. Determine loss history by collecting the last three years of safety statistics, e.g. Experience Modification Rates (EMR), Total Recordable Incidence Rates (TRIR), Lost Work Case Incidence Rates (LWCR) and fatalities. These benchmarks can assist the owner/operator in establishing expectations, measuring current performance and driving continuous improvement. Conduct audits to verify that the written policies your contractors have in place are compliant, based on the trade, craft and services they perform. High-risk trades should be monitored much more closely.

Don’t stop with quantifiable data. Be aware of subjective criteria like work history, written policies and past performance. On the consultation side of safety, OSHA’s Voluntary Protection Programs (VPP) requires that you have a comprehensive safety and health management system that is tailored to your worksite’s specific needs [2]. Other programs such as OSHA’s Process Safety Management (PSM) on the enforcement side also have specific contractor management elements to ensure compliance. Use OSHA’s guidelines to ensure that you are up-to-date with regulatory policies and consider a third-party contractor management company if you need more help, or require additional assistance to prescreen suppliers and contractors.

Create a standard prequalification form. Using a standardized form, that can be customized as needed; can help you to evaluate each contractor on the same level. Your form should deliver to the owner/operator specific contractor prequalification data that is important for determining safety history, sound hazard identification/mitigation techniques, company culture, and commercial details such as financial stability and insurance requirements. Conduct a detailed review. Check the prequalification form for inconsistencies among the contractor’s data, checking their references and verifying that their license, insurance requirements and incidence rates are correct and valid.

Perform an audit on your contractors whose services, craft or trade have the potential to expose you firm and put you at risk. Frequently requested audits are Safety Manual, Implementation and Field Audits. These audits simply allow you to identify the gap between your contractor’s safety program and your required protocols. You can do this by ensuring that the essential programs for the services the contractor will perform at your facility are addressed in their manual. If more detail is required to determine if the contractor’s written compliance programs are being implemented, an implementation audit can be used. Finally, a field audit helps to close the loop on compliance with adherence to all required programs.

Ensure proper inspection. Part of doing a proper audit is verifying that the inspection of mission critical pieces of equipment and tools is being performed. Take a look at the method being used to ensure that the conducted training is based on written programs, as it relates to equipment and the contractor themselves. Carefully note that job-site inspections and other hazard identification/mitigation techniques are being used and documented.

Select your contractors carefully. Choosing a contractor should only occur once you have done the research to make sure that once the contractor is on your property, everything that can be done to prevent an incident or injury has been implemented. Be clear with your final bidders that safety is just as important as other considerations when awarding the bid.

Look at all the facets involved. If you are only willing to consider cost you may run the risk of choosing the wrong contractor for the job, and this decision could end up costing more in the long run. Help your contractors to become preferred vendors or strengthen the relationship you already have with them. By showing that you’re vested in their safety procedures and future work opportunities at your facility, you are more likely to have a better outcome.

Be consistent in reviews. Audit and monitor the work that your contractors are doing as its being completed. Compare their actual performance to what was covered in the contract and be sure they are following the guidelines you have put in place. Record safety evaluations and keep them on file, this is an important measuring practice as well as a preventative effort. Finally, establish re-evaluation criteria with clear expectations of what needs to be improved and what is working.

Consider a consortium. The best way to manage the vendor data you have on file is to implement a database. When a database is created with a consortium model, user functionality is shared and kept fresh so that all permitted and licensed users have continual access to vendor data. The database ensures vendor data is reviewed and current, with compliance history tracked and kept up to regulatory standards. The data should be shared with all necessary users on a consistent basis, 24 hours a day and 7 days a week to eliminate redundancy between users. An internet interface is an easy way to access data that does not require complicated software to operate. It is paperless and allows easy user access by individual facilities and corporate offices alike.

References:

[1] Source: U.S. Bureau of Labor Statistics, as cited in the Statistical Abstract of the United States: 2010, Table 595

[2] Source: United States Department of Labor, Occupational Safety & Health Administration

Robert Thompson - About Author:
Robert B Thompson is a Senior Manager with over 17 years of experience in multiple aspects of the risk management field. His working experiences range from technical health and safety auditing, HAZMAT instruction, security assessments, facility licensing, critical incident investigations to legislative interpretation and advocacy.MR. Thompson currently holds the designations of Canadian Registered Safety Professional (CRSP).Robert B Thompson is expert writer of contractor prequalificationt and csupplier relationship management.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/management-articles/contractor-prequalification.htm

Related Management Articles Subscribe to RSS

Record management services - for bigger office space
Published by Jon Smith on March 21st 2012 | Management
Online records management is a new concept and technology that helps to upload and store your data s...
 
Efficient ship management - the biggest need of shipping business
Published by Saurabh Pandey on December 3rd 2011 | Business
If you are the owner of a ship then you might be looking for someone who can manage it so that you g...
 
Supply chain management is incomplete without pick and pack services
Published by Diego Hall on December 15th 2011 | Business
Pick and pack services are integral parts of a business. These services are so crucial that they can...
 
Arizona property management company excels in offering high standard services within reasonable price
Published by Rajeevdubey on June 20th 2012 | Management
Properties matters should be handled wisely. Be it related to renting your home or sell/purchase of ...
 
Real Estate Management Companies are Very Popular,Real estate management companies
Published by James Blee on April 23rd 2012 | Management
With the economy witnessing a turbulent recessionary trend, it has become very important to think ab...
 
Why Sales plus a better solution for Sales lead management software
Published by Elizabeth Cooper on May 21st 2012 | Management
With more diversification and expansion of the business, it becomes vital for any owner to have a st...
 
Outsourcing Payroll management services for small business in Delhi NCR
Published by Webin Lee on March 6th 2012 | Business
It is cheap to outsource the Accounting and Payroll services from the payroll management company rat...
 
UK supplier of Siat packaging machines including case sealers and pallet wrappers
Published by Holman on June 1st 2012 | Business
SIAT Stretch Wrapper, SIAT Case Sealers related work you can always get in touch with Holmes Man who...
 
Running qualified bestow info to realize unaffected cost management schemes
Published by Steve Rolling on December 1st 2011 | Management
While a great many agencies pass by the existing hypothesis where 'you be required to spend cash, to...
 
Zodiac Solutions Inc- Making effective management your criteria for growth
Published by Rahul on July 24th 2012 | Business
To help your organization’s success stay constant even in the times of economic slowdown, there ar...
 
Why is management training so important
Published by Julia Roger on March 22nd 2012 | Business
Dancing Lion are leading providers of Management Training, Call and Contact Centre Training and Cust...
 
The Katale Partnership are without question leading management consultants
Published by Julia Roger on March 23rd 2012 | Business
Are you looking to improve your business practices so that your business can function better as a wh...
 
Professional Strata companies offering Strata title management
Published by Chris Whelan on May 29th 2012 | Management
Professional strata management companies offer effective strata title management in order to deal wi...
 
The application of advanced beginner employ any data to fresh cost management chances
Published by Jason S Hues on December 2nd 2011 | Management
Creating a clients are 1 be successful (Nickels, McHugh, together with McHugh, 2008)....
 
A win-win situation for both an organisation as well as debt management companies by hiring a debt collector agency.
Published by Gabi William on March 27th 2012 | Business
We do all the hard work for you and approach each case very seriously - no matter what the size....
 
POS management system – helping businesses as well as its customers
Published by Diego Hall on December 2nd 2011 | Business
POS management system is a technology that helps not only businesses but its clients or customers as...
 
Make waste management easy with skip bins
Published by Matthew Arthur on August 6th 2012 | Business
Waste, trash or garbage is needed to be disposed in a proper way. There are many reputed companies w...
 
Building management services- Setting up new relations
Published by Julia Roger on May 9th 2012 | Business
The owners corporation management services are taxed on profits and are permitted deductions for sal...
 
Contractor Expenses – effective cost management
Published by Crowin Smith on April 3rd 2012 | Business
Managing a business is a hard task when the world economy is not creating the right condition that f...
 
About strata title management
Published by Chris Whelan on February 24th 2012 | Management
Strata title management legislation was introduced in 1961 and has gone through several new and upda...