What is a Contractor Management Procedure?

A contractor management procedure documents the set of rules and guidelines that a company or person conducting a business (PCBU) will follow to select, hire, onboard, monitor and manage contractors.

When an organization has a contractor management procedure to follow, it is much easier to hold contractors accountable to the company’s standards.

The procedure can ensure that the company is using contractors who are best qualified and who will meet all the company’s needs. The procedure can also help protect the company’s interests and to minimize the risk of legal liabilities.

What is a Contractor and a Contract for Service?

In general terms:

A contractor means the vendor upon which a contract or an order has been placed for the completion of identified work(s), plus all levels of the subcontractor as engaged by the contractor for works in conjunction with the contract for service (or other binding agreement).

A contract for service means the:

• Nature of the engagement and work of the contractor (e.g. whether the contract involves a profession or trade).
• Contractor has the power to recruit and dismiss their employees.
• Contractor provides the equipment and material etc to complete their work.
• Contractor has the right to engage another person to undertake the work but must ensure that they are appropriately trained and instructed on the workplace tasks.
• Company (client) may not have direct control and/or supervision of the persons performing the work.

How to Manage Contractors Effectively

The contractor management process begins with the identification for the need of external services. Once the need is identified, the company or individual must then identify potential contractors who can provide the required services. The company or individual will then evaluate the potential contractors to determine which one is the best fit for their needs.

Before any contract is issued, a written process for a contractor management system should be undertaken, inclusive of, but not limited to:

• The scope of the work order and expectations.
• The responsibilities for the work and health and safety duties.
  

                    Overview of the Contractor Management Process

• General safety induction and site inductions.
• Any internal training required.
• Work health and safety procedures.
• The safety management system.
• Risk assessments (in particular for high-risk work).
• Materials and equipment.
• Site specific inspections and auditing procedures.
• Insurance requirements.
• Contractor safety and performance monitoring.
• Compliance with the work health and safety act and regulation.
• Monitoring of work processes.
• Final completion criteria.

The successful management of contractors is critical to the success of any organization. An organization’s ability to manage its contractors can have a significant impact on its bottom line.

In today’s economy, organizations are increasingly relying on effective contractors to provide services that are essential to an organization’s operations, so it is very important to get it right.

Contractor Non-Conformances

A contractor’s non-conformance is a failure to meet one or more of the contract requirements. Non-conformances can occur at any stage of the contract and can be major or minor.

There are a few things to keep in mind when it comes to contract non-conformances. First, it is important to understand what exactly the non-conformance is, and why it happened. Second, you need to be aware of the potential consequences of the non-conformance and take the necessary corrective actions. And finally, you need to know how to prevent a reoccurrence. In most instances, the contractor will be expected to rectify a non-conformance within a timeframe agreed upon by the client.

Contents of this Contractor Management Procedure

• Approval.
• Purpose.
• Scope.
• Terms and Definitions.
• Roles and Responsibilities.
• Procedures.
• Introduction.
• Authority to Engage.
• Pre-Engagement.
• Selection of Contractors.
• Induction.
• Permit to Work.
• Monitoring the Process.
• Non-conformances.
• Contractor Consultation and Communication.
• Related Procedures, Forms and Documents.
• Review Criteria.
• Record Management.
• References.

Why Choose to Buy this Contractor Management Procedure

• This 10-page contractor management procedure outlines all the requirements and processes associated with contractor risk management.
• The procedure can help you ensure that contractors are assessed and selected to perform work based on their capabilities and competencies and in accordance with legislative obligations.
• By following these requirements and processes you can ensure that risks associated with contracted activities are identified and effectively managed.
• The procedure can be applied to all contracted safe work activities and any sub-contractors engaged for work, who shall be performing work under a ‘contract for service’ arrangement.
• When managing contracted work, organizations must exercise due diligence by addressing hazards and risks and ensuring compliance with all contractor health and safety requirements.
• Effective contractor health and safety management helps meet the minimum requirements and fulfill health and safety obligations, ensuring that all health and safety matters are properly addressed.

Note: This contractor management procedure is not intended to apply to individuals engaged to provide consultancy services in an office environment, or to contracted and contingent workers (for example, labour hire and casual workers) where the employment relationship is covered under other approved procedures and processes.

After purchasing this contractor management procedure you will be able to:

• Very easily edit and customize the template to create your own contractor management procedure.
• Apply your own style, format and brand to the procedure.
• Use it in any industry or sector regardless of the size or type of organization.

Availability and Use of this Contractor Management Procedure

• This contractor management procedure is accessible to you right now by clicking the ‘Buy Now’ button.
• The procedure will be delivered to you in fully editable Microsoft Word format for immediate and full use in your business.
• There are no subscriptions, contracts or ongoing costs.

This contractor management procedure is 100% satisfaction guaranteed.

You may also require:

• Project Quality Deliverables
• Contractor Quality Checklist
• Non-Conformance Report Form
• Contractor Prequalification Form
• Contractor Quality Management Plan