Contractor Prequalification: Factors Worth Considering (Article 2 of 3)


2/1/2008

By Dave Remter (email)
Lead Safety Advisor, Safety Management Group

This is a series of three articles by Dave Remter on contractor prequalifications. Click here to view the first article.

A growing number of companies are recognizing the benefits of safety prequalification programs for outside contractors that perform work on their jobsites. In this series of articles, we’re examining what prequalification can do, the factors companies should consider when selecting contractors, and potential hurdles in the process. This installment looks at the factors that should be examined when evaluating companies through a prequalification program.

A contractor prequalification program can be a very effective tool for ensuring that everyone working on your site adheres to your company’s safety standards, and for protecting your hard-earned reputation and insurance rates.

A well-designed prequalification program will help you determine whether contractors have an effective safety program, and whether they’re actually living up to their own standards. It will also provide an incentive to encourage contractors that lack safety programs to develop their own efforts. In this article, we’ll examine some of the factors that should be included in a prequalification program.
 
 
Practicing what they preach
 
When trying to gain your business, any contractor can tell you that its supervisors and workers value safety, and that they will only follow safe practices on the worksite. It’s similar to the way that they promise they’ll meet all your deadlines and never ask for a change order – and by itself, about as credible.
 
So although your prequalification program should begin by verifying that the contractor has written safety policies (which is an OSHA requirement, too), your primary focus should be on determining whether those policies are actually followed in the course of the contractor’s operations.
 
 
Examining numbers

When we develop a prequalification process, we’ll typically look back at a contractor’s recordable incidents going back three years, and how that translates into incident rates and their EMR (experience modification ratio). That data provides a quick measurement of the effectiveness of the contractor’s safety program, and the deeper you dig, the clearer the picture will become.
One red flag is worksite fatalities. Even one fatality on a jobsite is a significant cause for concern. However, it’s important to investigate the details of the fatality and ensure that it was work-related before using it to rule a contractor as ineligible. For example, the fatality may have been an auto accident as a worker was leaving the jobsite for lunch, or it may have been a heart attack that had nothing to do with the work being performed.
 
 
Do programs measure up?
 
It’s not enough to ask whether a contractor has a safety program. Instead, it’s a good idea to ensure that the safety program is comprehensive and addresses all of the important aspects. Several of the areas that a prequalification program may address include:
 
Accident Investigation. Check into past accidents to identify patterns, as well as whether corrective actions were taken to prevent reoccurrences.
 
Safety Responsibilities. Who is responsible for ensuring that safety procedures are followed, and how well do all employees understand expectations?
 
Disciplinary Policy. Are there clear steps and progressive procedures for safety offenses? What happens to multiple offenders?
 
Drug/Alcohol Policy. Make sure the contractor has one and that it’s being enforced.
 
Emergency Preparedness. Is the contractor ready for a disaster? How will they account for their employees if something happens?
 
 • Hazard Communications. Is equipment properly labeled? Do employees who are handling non-routine tasks know the proper safety procedures?
 
New Hire Orientation. What kind of safety training do new hires receive, and how is it verified?
 
Self-Inspection Policy. What kind of formal procedures does the contractor use to verify that safety practices are being followed?
 
Personal Protective Equipment. Does the contractor perform hazard assessments to ensure that employees have the right equipment?
 
In addition, if the work the contractor will perform requires familiarity with a particular area of safety, the prequalification program should address it. As an example, if the contractor will be working in confined spaces, does the company have experience and know how to work safely in that environment?
 
 
Comprehensive equals effective
 
A prequalification program this thorough may seem complex at first, but it quickly becomes a familiar, regular practice for your company. Most important, it increases awareness of the importance of safety at your site and should lead to a reduction in incidents. That will keep all the workers on your site safer, and ensure that your insurance premiums stay as low as possible.
 
Next month’s installment will examine the potential hurdles companies may encounter when establishing a prequalification program.




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