What is Contractor Management?
The high level definition of contractor management is – the management of outsourced work performed for an individual company. However, this definition is broad and does not provide an adequate illustration of contractor management at a ground level. It says nothing about how contractors are managed or what kind of information is managed.
The Campbell Institute, partnered with the National Safety Council published, what has become, the benchmark for contractor management in the workplace today. The white paper “summarizes the results of a Campbell Institute research project to aggregate the best practices of world-class organizations in EHS around the management of contractor and supplier safety.”(Campbell) The institute identified five distinct methods, or steps, of the contractor qualification life cycle.
- Pre-job task and risk assessment
- Contractor training and orientation
- Monitoring of job
- Post-job evaluation
The ISNetworld® and Avetta® supply chain risk management services fit within a similar framework. Where the process does not end with prequalification, rather prequalification is the first step in the qualification process. Hiring companies must continue to monitor contractors for ongoing compliance, reviewing both leading and lagging indicators to mitigate risk. Contractor prequalification, contractor vetting and contractor management are all used synonymously by those familiar with the practice. It is the process of qualifying your contractors using a standard set of key performance indicators and metrics. If you’ve ever dealt with ISNetworld®, Avetta®, Veriforce, Compliance Pro, Complyworks, etc. then you have experience with a contractor management platform.
Some hiring companies keep contractor management internal, but this can come at a high cost. Oftentimes, the benefits of outsourcing contractor qualification far outweighs the expense. You can’t even hire one entry level full-time employee for the nominal fee charged by companies like ISNetworld®. “While it is a rigorous and often drawn-out process, there are many benefits to the prequalification process that go beyond mere assurance of occupational safety.” (campbell institute)
Some benefits of outsourcing contractor management are:
- Saves time in the contractor selection process
- Staff has additional time for other tasks
- Hire higher quality contractors
- Possible insurance discounts
- Improve jobsite safety
- Mitigate liability
- Companies work safer with less workplace injury
The qualification process can be time consuming, as noted above by the Campbell Institute. Not just in the beginning, but even after initial compliance is reached, contractors must continue to submit ongoing training, new hire training, occasionally revise and update written policies, implement new policy requirements, and submit monthly and quarterly hours and incident information.
Many contractors are involved in non-routine tasks and must demonstrate their ability to protect employees and their clients from harmful situations. Most contractor management platforms will look at the written safety programs and provide a score based on a set of criteria set forth by the hiring company. OSHA 300 and 300A logs are normally requested for the last 3 years so that TRIR and DART can be calculated. Once all information has been reviewed, a score will be given to the contractor. Some platforms score on a green, yellow, red, scale, others use an A to F scale while others just use Approved or Not Approved. In short, the audit provides a third-party seal of approval that the information supplied by the contractor is both accurate and up to date.
As a contractor or supplier, you can expect to be rated based on the following:
- OSHA Logs
- Written Health & Safety Programs
- Proof of Insurance Coverage
- Copy of Experience Modification
- Training Documentation
- Background Checks
- Drug & Alcohol Programs
- Regulatory Citation Information, and any other specific requirements or documentation that would apply to the work they do.
Organizations like ISNetworld® and Avetta® have been leaders in the field for years and have been providing contractor management services for over 20 years now. And while these ‘vetting companies’ started out primarily in the Oil & Gas Industry they have expanded into construction, healthcare, auto, food and beverage, and manufacturing industries. Contractor management has gained popularity as hiring companies look for contractors with proven track records to get the job done safely.
The contractor will see benefits as well. Some contractor benefits include:
- Lower rate of work-related injuries
- Less hassle or confusion when submitting information
- More visibility through the hiring client networks – increased chance of additional work
- Better quality relationships with hiring clients
- Increased ability to manage documentation needed to qualify
If you are looking to outsource your contractor management, look no further. JJ Safety has helped thousands of contractors become prequalified on platforms like ISNetworld® , Avetta®, Veriforce and many others. We have the experience, knowledge and software needed to successfully manage your contractors.
Whether you are with a hiring company and need help vetting your contractor or you’re a contractor looking for help navigating an audit platform, JJ Safety can help.
We can be reached at 866-627-3850 or email at firstname.lastname@example.org.