China Labor Contract Service
Hotline: 86-755-82143422 Email: anitayao@citilinkia.com
Contractor management is the managing of outsourced work performed for an individual company. For a company that outsources work to contractors it's very important to have a system in place to manage those contractors' health and safety information, insurance information, training programs and specific documents that pertain to the contractor and the owner client.
Risk and control
Risk increases with the loss of control from outsourcing work. Keeping work in-house gives an Owner Client complete control over the production or services provided including quality, durability, and consistency. Outsourcing the work reduces the amount of control held over these aspects. While contracts and agreements can be set in place to control the end product, the Owner Client cannot have complete assurance that their requirements are being met.
With the continuing outsourcing of production, companies struggle to standardize their contractor management processes. Requirements and regulations from the U.S. Occupational Safety and Health Administration and other governing bodies are constantly changing. Companies need to have full visibility into the quality of work their hired contractors have performed in the past and are performing now, and this often proves difficult.
There are tools which may measure the contractor's level of performance. For example, many large refineries have integrated their gate access control system to a contractor management software. This provides real-time access to the performance of the contractor workforce within the refinery.
Components
Effective contractor management relies first on a standardized prequalification form (PQF).[citation needed] A quality prequalification form will also allow for customized functionality, as needed. The prequalification form ensures that the necessary steps are in place for a contractor to work safely and sustainably, prior to establishing an agreement, or allowing a vendor to come on-site.
Specifically, the prequalification form will allow the organization to track the most importance aspect of contractor management – contractor prequalification across these essential dynamics:
1) Financial stability
2) Regulatory citation history
3) Safety statistics and programs
4) Site-specific requirements (as needed)
5) Major projects performed, including references
6) The length of time the contractor has been in business
7) Services performed, and a risk ranking based on the contractor’s trade
8) Insurance coverage and limits, additional insured, and waiver of subrogation
Database
A database can be used to record and access the vendor data within a contractor management program. The database needs to be updated regularly, to ensure that all stakeholders are kept informed of any changes, particularly if the contractor management program is being used to eliminate subpar performers. The use of an online contractor management database facilitates the sharing of contractor data in a secure format with all necessary users, using 24-7/365 availability.
Benefits
The purpose of a contractor management program is to better centralize, qualify and monitor a contingent workforce. As a result of implementing a contractor management program, an organization can expect to experience some, or all, of the following advantages:
1. Cost savings
2. Better supplier/client relationships
3. Higher quality contractors and suppliers
4. Less paperwork for both owners and contractors
5. Instant information sharing & evergreen qualification
6. Reduced risk – continuous improvement in loss control
7. Moving towards using leading indicators vs. lagging indicators
8. Contractor awareness with regulatory and best practices such as VPP and PSM
There are two major considerations when managing contractors. First is deciding on the criteria for evaluation and second is developing an effective management process to evaluate these criteria. There are a number of criteria on which a contractor’s safety can be evaluated, such as historical and future trend information.
.jpg)
Contact us
ATAHK Group Limited is a professional consultation group experienced in contractor management, contract drafting, contract translation and many other related services. For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82143422, 86-755-82143512, or emailing to anitayao@citilinkia.com.