Often ignored by most companies in Australia, pre-qualification is an essential component of an effective contractor management system. Not only is prequalifying your contractors before they start work a great safety control measure, it can 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.

Prequalifying contractors gives you a chance to check whether the contractor is compliant evaluate potential contractor’s insurance status, Work Cover registration and HSE compliance so you can make the right hiring decision or help the contractors comply with the requirements.

Pre-qualification Challenges Faced By Companies

Prequalification is not an easy task. No wonder most companies ignore this step. Where to get reliable information is the first challenge. Getting it from the contractor can take a lot of time and the information you get is still unreliable and unverified.

The Benefits of Prequalification

A reliable pre-qualification system acts as a gatekeeper giving your confidence and peace of mind when you have contractors working on site. It ensures that you are meeting your contractor obligations. With a good prequalification system in place, you should be able to check the following without a problem:

Insurance Check
A good system lets you keep a record of contractor insurance details and alerts you when the insurance details require updating so you can remind the contractors to update their insurance. This ensures that you don’t have contractors with expired insurance cover working on site at any time, as this poses a very expensive risk in case of an incident.

Work Cover Registration Check/span>
After checking and confirming a contractor’s work cover registration, a good system allows you to save the information and provides automatic tracking capabilities./span>

HSE Check

A good system should make it possible to create a questionnaire to determine whether contractors meet all the compliance and prequalification requirements.