More than 10 million independent contractors go to work in the U.S. every day. Given this massive amount of contractors and suppliers performing thousands of essential business functions each day, a mistake or miscommunication between the owner and contractor can result in catastrophic loss in profit, the environment or even human life, just to name a few.
Avoid accidents and select safe contractors by considering the following prequalification best practices:
• Use objective criteria — Before considering a contractor, determine loss history and collect the past three years of safety statistics. Look at Total Recordable Incidence Rates (TRIR), Lost Work Case Incidence Rates (LWCR), Experience Modification Rates (EMR) and fatalities. This criteria can help the owner measure current performance, establish expectations and drive continuous growth.
• Don’t forget about qualitative data — Looking at objective criteria is crucial, but subjective criteria is important too. On the safety consultation side, OSHA’s Voluntary Protection Programs (VPP) requires a comprehensive safety and health management system tailored to a worksite’s specific needs. Other programs on the enforcement side, like OSHA’s Process Safety Management (PSM), have specific contractor management elements to meet compliance. Use OSHA’s guidelines as a way to stay up-to-date with regulatory policies.
• Create a standard prequalification form — This can help owners evaluate each contractor and determine sound hazard identification techniques, safety history and commercial details like insurance needs and financial stability. Conduct a detailed review and check the prequalification form for discrepancies among the contractor’s data. Also, check their references and verify their license, insurance requirements and incidence rates are correct and valid.
• Perform an audit — Often requested audits such as Safety Manual, Implementation and Field Audits allow owners to identify the gap between required protocols and a contractor’s safety program. Use an implementation audit to determine whether the contractor’s written compliance programs are being implemented. Lastly, choose a field audit to close the loop on compliance with adherence to all required programs.
• Ensure proper inspection — For proper auditing, inspect the equipment and tools being used and ensure the conducted training is based on written programs. Carefully note jobsite inspections and other hazard identification/mitigation techniques are being utilized and documented.
• Consider a consortium — The best way to manage vendor data on file is to implement a database that tracks compliance history and meeting regulatory standards. Consider an easy-to-use online interface that does not require complicated software to operate.
• Be consistent in reviews — Closely review the work contractors are doing and compare their actual performance to what was covered in the contract to make sure they are following guidelines in place. Keep safety evaluations on file, as this is an important measuring practice and preventative effort. Lastly, establish criteria that clearly outlines what is working and what needs to be improved.
• Look at all sides involved — For owners only willing to consider cost, they may risk choosing the wrong contractor for the job, which could end up costing more in the long run. If you show investment in their safety procedures and opportunities for growth in the company, success is more likely.
For more information, visit www.avetta.com or email Avetta@hoffman.com.
