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


3/1/2008


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 accomplish and the factors companies should consider when selecting contractors. This final installment looks at potential hurdles in the process and offers ideas for helping contractors overcome them.

In theory, implementing a contractor prequalification program should be a very easy process. You establish a set of standards, and then verify that each of the contractors working on your site satisfies those standards. Those who don’t are given the opportunity to improve, and if they choose not to do so, you’ll stop working with them.

Of course, real life and real workplaces are rarely as simple as theories, and our experience in establishing contractor prequalification processes bears that out. Fortunately, most of the hurdles that arise in the process are similar, so we’ve had the opportunity to find the most effective ways to deal with them. In this article, we’ll share the problems that seem to arise most often, along with techniques that can help you overcome them.

Lack of resources

One of the first issues that pops up in every contractor prequalification process is the panic on the part of smaller contractors who claim that they lack the resources or manpower to meet the standards you’ve established. For example, they might tell you that they can’t afford to develop written safety policies.

When we’ve encountered those situations, we’ve found that a friendly, collaborative approach works best. We’ll direct them to low-cost resources that will address their needs. In particular, the Internet offers a wealth of safety-related information and sample documents that contractors can easily adapt to their own situations.

By approaching contractors in a helpful, cooperative manner, you can overcome the fear and resentment that a stringent prequalification program might otherwise generate. You also make it clear to them that you’re willing to work together to achieved the desired safety standards. In the long run, that can actually strengthen your working relationship and encourage them to work harder on your projects.

What they don’t know

A key part of any contractor prequalification program is education. Many of your contractors are already familiar with the many facets of workplace safety, and will have no trouble supplying the information you request. Others will scratch their heads when asked about matters such as EMRs or hazard assessments.

By taking the time to educate them, you’re not only enhancing the safety of your worksites. You’re also helping them ensure the safety of their workers at all of their projects and improve their business practices. Becoming familiar with the state of the art in safety will help them meet the high standards of other customers, allowing them to land higher-quality projects and attract workers who appreciate the value of an employer who looks out for their well-being.

They already know us

“Oh, we’ve been doing work for them for years. They call us because they know we’re the only ones that can do what they need on their schedules. We don’t need to waste our time with all this paperwork.”

There always seems to be a contractor or two that has the supreme confidence that his past relationships with the company – or his level of technical expertise – somehow earn his business an automatic exemption from the prequalification process. When pressed, this type of contractor sometimes becomes hostile, but most often, he simply pushes the requirements aside and figures you’ll eventually forget about all that nonsense.

One of the most effective ways to encourage even the most hesitant or hostile contractor to comply with your prequalification effort is to link it with the process through which you issue purchase orders. If you set up your accounting system so that only prequalified contractors can receive POs, you’ll make it very clear that you’re not kidding about the importance of meeting your safety standards.

Not keeping pace with the times

Finally, as amazing as it may seem, some small contractors lack even the most basic business technology and procedures. For example, you’ll find some who have never purchased a computer or established an email account.

While it’s easy to empathize with technophobes, the well-being of your business and compliance with your safety effort make it difficult to accommodate companies that don’t (or won’t) keep up with the times. If the contractor refuses to buy a computer, suggest that they obtain a free email account and use the computers at a local library or Internet café. If they do not follow standard business practices, make them aware of the shortcomings, and explain that you can no longer do business with them unless the issue is remedied.

Pointing out these weaknesses may be difficult, but you’re actually doing a favor for them by helping them improve their business and encouraging them to meet standard practices. After all, if they want to stay in business, they need to evolve to meet their customers’ needs.

Cooperation is critical

You may have noticed a common theme throughout this article. Through experience, we’ve found that taking a cooperative approach is critical to implementation of a contractor prequalification program. While it’s certainly easier to set out a list of standards and demand compliance, that approach is more likely to create resentment and long-standing problems. It’s often been said that safety is everyone’s job, and keeping that in mind as you develop and implement your contractor prequalification program will go a long way toward ensuring its success.

 

For more information on contractor prequalifications services available from Safety Management Group, contact us at: (800) 435-8850 or at questions@safetymanagementgroup.com. 





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