Managing the risks associated with contractors should be a top priority for any business. To do this efficiently, you need the right tools as well as an internal system to complete the task. Some companies are a few decades behind the curve and still attempting to manage their contractors with spreadsheets or, worse, ledger books.
There are full-fledged contractor management firms, but perhaps your company has been hesitant to use their services. There is also contractor management software, which may sound and appear intimidating. Whichever path you choose, it’s important that certain aspects of a contractor’s work be monitored because of compliance issues. Here are some of the areas that your company needs to monitor and how a compliance management solution can help.
The Necessity for Contractor Compliance Management
When you use external contractors, there are many different things that your company has to verify and monitor. Failure to keep certain items in check could result in financial, legal, and other regulatory issues for your company. Some of the items that you’ll need to check and keep ongoing track of include:
- Insurance policies, licenses, and permits
- Regulatory compliance including compliance with training
- Safety program adherence
- Existence and updating of operating manuals and emergency procedures
- Authorization to work on different job sites
- Attendance records for work on job sites
If you have working going on at a variety of worksites, this job becomes even more complicated. This is just one of the reasons why a compliance management solution for your contractor work is a useful investment.
Using a Compliance Management Solutions for External Contractors
Administrative tasks associated with having contractors work for your business can add up quickly. Contractors must be fully compliant with local, state, and federal laws as well as with your organization’s rules and regulations.
The ultimate goal is to have a safe and productive job site, which can be a tall order when managing multiple contractors. This is just one of the reasons why using a compliance management solution has become a popular choice. If you hire a company to manage your contractors, they can provide several key functions such as:
- Pre-qualify contractors before hiring
- Assess safety records and monitor compliance
- Request copies of insurance, licenses, and permits
- Follow-up on issues and address contractor shortcomings
- Requalify contractors who are non-compliant or fall below certain performance levels.
- Track contractor hours worked and register presence at different job sites.
A contractor management software solution can provide some relief to your company, but it won’t deliver quite as many services. A software program can help your company monitor and track such things as insurance policy renewal dates, accident rates, hours worked, and required licenses.
Keeping a business that uses external contractors organized and running efficiently can be a challenge. This is where compliance management solutions can provide a company with assistance, saving both time and money long-term.