Contractor-Supplier demand and compliance management analysis is moving up the value chain. Organisations now need to adhere to external best practices with a vision and strategy, as well as 1-3-5 year implementation plans. Having a Contractor Supplier Strategy has become vital to the success and smooth running of a project. Moreover, companies need to ensure alignment with the overall business Strategy Commercial intelligence and corporate social responsibility when it comes to managing suppliers and contractors efficiently. Performance measurement & value reporting plays a key role in effectively managing these relationships.
Some of our clients manage thousands of contractors across 100 plus sites. Imagine trying to store insurance certificates, work permits, SWMS, contract information on these companies and keep them up to date. Over 10,000 documents stored across a hundred site in filing cabinets? Impossible.
This post includes a Contractor Management Guide for employers on what their responsibility is in managing contractors according to Comcare, the ACT, and Safe Work Australia. Where employers engage contractors to perform work, effective contract management is essential to ensuring that they meet their OHS duties both to the contractors and to others, such as employees and third parties.
A proper contractor management system requires proper management of the safety and health of contractors. This approach protects contractors, employees, and members of the public from Health and Safety harm, and minimizes the risks a company faces. For this to be possible, each party should know and handle their responsibilities as required. An independent individual or organization engaged to perform some work in any trade or profession is a contractor, while a contract supervisor is the one in charge of the procedure.
Your management of workplace compliance is not complete without a proper Contractor Management System to manage contractor compliance. You may have a comprehensive and strong OHS management system but this won’t protect you if something happens and you have non-compliant, poorly trained contractors working on site. Your OHS management plan is incomplete without a compliant, reliable and efficient contractor management system.
Do you have a complete and effective contractor management system in place?
Often ignored by most companies in Australia, pre-qualification is an essential component of an effective contractor management system. Not only is pre-qualifying your contractors before they start work a great safety control measure, it can also prevent a very expensive lawsuit in-case an incident occurs. Most contractor companies are non-compliant. When one of Australia’s largest property developers implemented a contractor pre-qualification system, they were surprised to discover that 91% of their contractors were non-compliant.
If you are an experienced project manager, then you are familiar with concepts of contractor management and other processes related to project management. However, if you are new to site planning and project risk management, contractor management may sound new to you. You will need to understand this to work effectively with contractors.
Most companies fail to implement a proper contractor management system because they are not aware of, or underestimate, the consequences of poor contractor management. If an incident were to happen on site, the safety and legal repercussions of hiring non-compliant contractors can devastate a company. Unfortunately, most companies only discover that they have been working with non-compliant contractors when it is too late and they are facing a lawsuit.
Modern Health, Safety and Environment (HSE) practices are currently the best they have ever been. Unlike in the past, most people today know about workplace safety. It is also easy to create and manage a safe workplace with the aid of all the professional Health and Safety support systems that are in place, in conjunction with the many software solutions that are available to us.
Not only is a Health and Safety Software a central part of today’s HSE management systems, using an appropriate Health and Safety Software helps a company connect with its employees better. Most organizations have implemented a Health and Safety Software system to create a safer workplace. Those that haven’t are actively searching for an appropriate software solution.