Peter Henderson
What Is Contractor Management?
At its core, contractor management means:
- Ensuring that contractors working on a client site have the required documentation and competencies to do the job
- Ensuring that contractors arriving on site are expected, approved and ready to work
- Ensuring that all contractors have the appropriate tools and access
- Being able to evaluate the quality of contractors' work
Many companies struggle with inefficient and fragmented contractor management processes.
This can lead to several critical challenges:
- Lack of Visibility: Limited oversight into contractor activities across numerous sites results in inconsistencies in safety protocols, performance, and compliance.
- Manual Processes: Time-consuming manual processes, such as paper-based inductions, documentation checks, and contractor evaluation, hinder efficiency and increase the risk of errors
- Siloed Information: Data fragmentation across various departments and systems makes it difficult to track key performance indicators (KPIs), identify trends, and make informed decisions
- Increased Risk: The lack of standardised procedures and inadequate risk assessments exposes the company to potential safety hazards, legal liabilities, and reputational damage
Implementing Contractor Management
Putting a cloud-based contractor management system in place, integrated with a company’s Permit to Work system has multiple time-saving and efficiency benefits.
Handling Documentation:
Many companies still have paper-based systems for managing permit to work processes and documentation which make it difficult to ensure that everything is in date at all times, since paperwork, such as insurances and certificates, has to be manually checked. This step takes a disproportionate amount of time and tends to be one of the most frustrating areas, especially when it is delaying a contractor who is on site to do an urgent task.
With a cloud-based system the team can log details of insurances etc and have the system automatically flag any issues - so when a contractor is assigned to a work task the system immediately lets them know if there is a problem so that they can address it before the contractor arrives. When that system is fully integrated with a Permit to Work system they are able to assign contractors to permits quickly and easily, and manage the process from start to end.
Ensuring Competence:
A key issue for any contractor management system is ensuring that the personnel arriving on site have the right competencies to do the job. A paper system requires contractors to carry their certificates for inspection when they first arrive on site, and at that point someone has to create a record of expiry date and check it on subsequent visits, as well as ensuring that the certificates are appropriate for the job.
An electronic system allows contractors to upload their documents so that when a task is organised the team already know which contractors are qualified to do it. They are also able to mark that site inductions have been completed so there's no time wasted.
Monitoring Performance:
With a paper-based system it’s not uncommon to find that the person signing off the work is busy, with the result that performance issues are not completed. For example, if managers file the paperwork to address it later, there is a high chance of little details slipping through the net. A cloud-based system allows a much more detailed record of performance to be kept, and the information is immediately available to everyone without having to consult a paper copy.
Integration With Permit To Work Systems:
When a contractor management system is integrated with a Permit system it’s easy to see contractor data at all stages of a permit. For example, when creating a permit, as soon as contractors are allocated to the task, individual certifications and also any company insurance details which are required, are immediately visible. Having access to individual certification is important for situations where, although a contractor may be able to perform a certain taks, e.g. hot work, not all their staff have the required qualifications. It is therefore vital to know about the competence of all specific staff members.
When permits have been issued the ability to see the location of the work helps to make sure that contractors are only working in permitted areas. It also makes it very easy for managers to contact a contractor’s employer if there are any issues during the completion of the work.