This contractor management procedure can assist your business comply with AS/NZS ISO 9001, AS/NZS ISO 14001 and AS/NZS ISO 45001, Management Systems clauses:
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.
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:
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:
Overview of the Contractor Management Process
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.
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.
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.