Many organizations that use contractors have a pre-qualification process. The pre-qualification process can be as simple as looking at the potential contractor's accident frequency rate and insurance. Some organizations take a more in-depth approach to the pre-qualification process. These organizations require the contractor to conduct planned inspections, train their employees, conduct safety meetings, conduct preventive maintenance, investigate incidents, comply with rules and protect the environment. One weakness tends to exist in many organizations, regardless of the complexity of the pre-qualification process; the owner does not determine if the contractor is capable of complying with the owner's requirements. Signature on a contract by the contractor does not indicate to the owner that they are capable of complying, only that they will have a legal instrument that can be used to hold the contractor accountable for non-compliance. This does very little to ensure the owner that the contractor is capable of completing the project on time and within budget.
If pre-qualification is not enough; what does an organization do to ensure that the work covered in a contract is more likely to be completed on time and within budget? The work necessary to manage contractors can be divided into three segments:
Pre-selection process
Contractor selection
Post-selection/Contract finalization
If the proper activities are performed in each of these categories, the owner is more likely to hire the correct contractor, get the project completed with minimum disruptions.
The owner should develop a job plan for each project. The content of the job plan is commensurate with the level of risk presented by a specific project. Depending upon the level of risk, the job plan could include:
Inventories of loss exposures related to the specific project.
Risk assessment data and loss exposure prioritization.
Risk termination strategies.
Risk treatment plans to include:
Engineering controls
Purchasing controls
Inspections
Task analysis and procedures
Emergency preparedness plans
Specialized work rules
Specialized work permit systems and certifications/licenses
Personal protective equipment requirements
Health hazard monitoring procedures
Environmental monitoring procedures
Remedial action tracking systems for hazards identified during the contract period
Safety meeting requirements
Required records and reports.
Management performance standards delineating contractor and proprietor responsibilities regarding each work activity.
Minimum insurance and indemnity requirements of the contractor.
Required adjustments and additions to the owner's risk financing plan.
Contractor personnel orientation requirements.
Methods of monitoring contractor safety and health performance.
Reporting relationships and contractor /owner liaisons.
Procedures and conditions for satisfactory contract close-out and turnover.
Conditions or practices warranting contract termination.
The job plan once developed is used by the owner's project manager to manage the project. The job plan should also identify the methods to be used to implement and monitor contractor safety and health activity on the project. The prospective contractors should know that they are going to be measured prior to submitting a bid.
