5 Core Aspects of Successful Contractor Management

13 January 2017

For managers to effectively work with their next contractor, they must be sure that they have chosen the correct person for the job. A contractor management system is based on information and awareness. How much experience do they have in this form of work? Are their references suitable ones, providing positive feedback on their previous work?

If appropriate methods of communication are not used from the beginning, contractors could be left to get on with a job, without being completely sure what is involved. Along with an accurate job description, all the health and safety policies included should be agreed in writing.

1. Accurate Job Description in Advance

“When I’m pressed for time it’s easy to rush too quickly into getting someone in to do a job. In my opinion, the time I take in planning a job properly is time well spent” – Engineering Manager with chemical company employing a staff of 45 workers.

Information gathered by the International Association of Contract Management (IACCM) has confirmed that the most common reason for problems arising in contract management is due to the absence of clear goals and expectations identified in 40% of projects examined.

Before any contractors are interviewed or even considered for the job, all the tasks involved should be clearly recognized. The more dangers involved, the more research should be carried out into their suitability. Contractors should be aware of all these risks and their possibility in advance; as well as the best ways to prevent them through safer working conditions.

contractor management system

2. Choosing Well from the Beginning

Once all the responsibilities and any dangers involved have been determined, it is important to establish the level of experience, knowledge and vital skills required. It has been estimated that approximately 3.4 million employees in the US have been incorrectly identified as independent contractors instead of employees. Before work begins, documentation should be secured, recognizing their self-employed status.

Can any of your contacts in the same business recommend certain contractors who have carried out an impressive, similar job? Looking at informal networks used by others in the company, they may be aware of some of these contractors and perhaps observed their work.

It is important for all the right questions to be asked, deciding how much evidence is needed, e.g. how much experience they have in this kind of work and the number of references needed. A suitable number of inquiries should be made, depending on the complexity of the job and any dangers involved.

3. Communication and Inspection Over Time

If one contractor has been successful in a former position and is likely to be hired again, it is important to build a friendly and honest relationship over time. Establishing a form of trust makes it more likely that they will reveal any small accidents or problems that have occurred. Bullying is a problem that could make them unlikely to work there again. It is important to be available to contact most of the time to discuss any of these problems. It shouldn’t be expected that a friendly relationship can be built unless the contractor is valued and treated as part of a team.

How much important work has been done? If the job is not being performed in the style discussed, or not going as planned during the chosen time-period; there may be important changes to make or advice to be given. Relevant supervisors should be regularly consulted, mentioning any problems they might have detected and providing consistent information on the job involved.

4. Correct Use of Software

contractor management system

It is more expensive and labor intensive to monitor and examine any problems and their possible improvements through a paper-based contractor management system. One of the most important benefits of using contractor management system software is the ability to constantly record the work being carried out by each contractor.

Any e-mail alerts can be sent as a reminder of a certain contract milestone to everyone involved, days in advance. Over time, the contractor management system can create a record of different problems occurring and any warning signs, that will be recognized in the future. These records can be used to establish a history of ‘what if’ scenarios as well. Staff can be trained in reacting to specific problems raised to everyone online, knowing the important steps to take.

5. Learning from Mistakes

Any mistakes made in a current contract, especially through health and safety performance should be recorded and learnt from so that they can be considered in the next project. For example:

  • How successful was the created plan?
  • Problems occurring which could have been prevented with a change in planning.
  • Did the contractor manage to reach the requirements agreed upon?
  • Any health or safety problems occurring but not considered at the beginning.

It is important to keep a record of each contractor, their impressive work through experience and any problems that occurred; most successfully using software for your contractor management system. Would you provide them with a reference and would you hire them again?

Conclusion

“Failing to prepare is, generally speaking, preparing very well to do the wrong thing” – Sam Harris, Neuroscientist.

Once a complete job description has been created, the required skills and experience should be confirmed. The most important job involved in making the correct choice of contractor is to ensure that the information given is correct, contacting any references provided.

When a suitable contractor has been chosen, they may have all the relevant experience required but should still be inspected regularly, forming an honest relationship. The latest way of storing this information is using an online system, making it easier for all contractors to be compared with any problems discovered and corrected for later work.

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Jenny Snook

Jenny Snook is content executive at GoContractor with the job of researching the latest health and safety trends in the heavy industry. Her past-experience includes the research of large museum collections such as the Louth County Museum, many from the industrial age.

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