What Is the Cost of Poor Contractor Management? Ask BP!
One of Australia largest property developers recently discovered that 91% of its
contractor companies were non compliant before entering its work sites. This was a staggering revelation regarding its contractor management but also presented a significant risk of becoming both a safety and legal liability.
Before entering individual work sites, each contractor was required to take an induction that consisted of a 20-minute DVD. They then simply signed a document saying they had viewed and understood the DVD - and walked onto the site. No further investigation or review was conducted.
While the dangers of poorly conducted them are clear, it is surprising how many companies that employ contractors - in many cases, thousands of contractors - have no system in place to guarantee contractor compliance.
The Challenge
The challenge is to develop an end-to-end system that provides relevant inductions for every contractor as well as reviews their personal and company compliance.
This may mean your first step is to reassess your induction system. While the area of these systems is relatively new, there are many robust induction systems on the market that enable you to deliver strong, company wide inductions. Online solutions tend to provide more flexibility - just make sure it gives you the ability to create and edit your own courses.
Unfortunately, systems that incorporate a contractor management feature are harder to find. But here is what to look for:
The Solution
An effective contractor management system will enable you to easily collect the following contractor information:
Company details
ABN
Whether they have appropriate and current insurance cover
If they are registered with Work cover
If their company has a compliant HSE system in place
Features should include:
ABN Check: Systems that are connected to ASIC in real time allow your contractor registered name to be returned when they enter their ABN.
Insurance Check: Look for the ability to enter or upload your contractors insurance certificates for your verification.
Work cover Registration Check: Like Insurance Check, contractors should be able to enter or upload their Work cover registration certificate. You can then enter the expiry date to be tracked.
Health Safety and Environment Check: This enables you to create a questionnaire for contractors in order to determine their compliance.
Where to look
A simple Google search with the following keywords should provide you the relevant solutions needed to build a strong contractor management system. "
Contractor management ABN check" or "contractor management Work cover check".
What Is the Cost of Poor Contractor Management? Ask BP!
By: markpakshie
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