What is a Contractor Management Procedure?
A contractor management procedure documents the set of rules and guidelines that a company 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 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?
The process of contractor management begins with the identification of the need for outside 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 contractor management should be undertaken, inclusive of, but not limited to:
- The scope of work and expectations.
- The responsibilities for the work.
- Any internal training required.
- Safe work procedures.
- Risk assessments.
- Materials and equipment.
- Inspections and auditing procedures.
- Performance monitoring.
- Insurance requirements.
- Competencies.
- 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 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 by the client.
Contents of this Contractor Management Procedure
- Approval.
- Purpose.
- Scope and Objectives.
- Terms and Definitions.
- Roles and Responsibilities.
- Procedures.
- Introduction.
- Authority to Engage.
- Pre-Engagement.
- Selection of Contractors.
- Induction and Protective Equipment.
- 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 template 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 work activities and any sub-contractors engaged for work, who shall be performing work under a ‘contract for service’ arrangement.
Note: This contractor management procedure template is not intended to apply to individuals engaged to provide consultancy services in an office environment, or to contracted and contingent workers (for example, labor hire and casual workers) where the employment relationship is covered under other approved procedures and processes.
After purchasing this template you will be able to:
- Very easily edit and customize the template to create your own 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 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.
