{"id":89992,"date":"2025-01-21T18:38:13","date_gmt":"2025-01-21T18:38:13","guid":{"rendered":"https:\/\/www.ecoonline.com\/?p=89992"},"modified":"2025-04-22T08:55:43","modified_gmt":"2025-04-22T08:55:43","slug":"7-key-principles-for-managing-contractors","status":"publish","type":"post","link":"https:\/\/www.ecoonline.com\/en-us\/blog\/seven-key-principles-for-managing-contractors\/","title":{"rendered":"7 key principles for managing contractors"},"content":{"rendered":"\n
\n\t \n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t \t\t\n\t\t\n\t\n\t\t\t
\n\n

Contractors form the backbone of many industries. They can be found in virtually every sector, though perhaps unsurprisingly, the construction sector had the second highest level of self-employed jobs<\/a> in the USA. The 2021 American Community Survey (ACS) reports that approximately 23% of construction workers<\/a>, around 2.5 million individuals, are self-employed.<\/p>\n\n\n\n

Contractors can provide a range of skilled and specialized services, but clients must be aware of the responsibilities they have to those they bring to a job site.<\/p>\n\n\n\n

Outsourcing work will always reduce the amount of control held over the production or services provided. While contracts and agreements can be set in place prior to work commencing, clients cannot have complete assurance that their requirements are being met.<\/p>\n\n\n\n

So what can you do? A great starting point is understanding what is expected of you. To help, we have listed our \u20187 Principles for Managing Contractors\u2019:<\/p>\n\n\n\n

<\/div>\n\n<\/div>\n\t\t\n\t <\/section>\n\n\n\n
\n\t \n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t \t\t\n\t\t\n\t\n\t\t\t
\n\n

You cannot buy off your accountability<\/h2>\n\n\n\n

In discussing contractors, clients sometimes express the (mistaken) belief that by contracting work out they are contracting out responsibility for the risk if something goes wrong. <\/p>\n\n\n\n

According to the law:<\/p>\n\n\n\n

\u201cWhile the duties of certain conducts are non-delegable, employers will remain vicariously liable. These conducts include: (a) inherently dangerous activities, (b) duties arising out of a relationship with a specific plaintiff or the public, (c) duties to keep premises opened to the public in a reasonably safe condition of storekeepers or landowners to invitees, and (d) duties to comply with state safety statutes in a minority of jurisdictions.<\/p>\n\n\n\n

In addition, employers may be liable for their own negligence in selecting independent contractors if they were negligent in hiring them. Employers are also liable for any physical harm caused by any act committed by independent contractors pursuant to orders or directions negligently given by employers.\u201d<\/p>\n\n\n\n

It\u2019s important to remember that you can\u2019t just buy off accountability when dealing with contractors. If you\u2019re going with a cheaper option, it\u2019s imperative to weigh the pros and cons first.<\/p>\n\n\n\n

<\/div>\n\n<\/div>\n\t\t\n\t <\/section>\n\n\n\n
\n\t \n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t \t\t\n\t\t\n\t\n\t\t\t
\n\n

Prequalification measures are useful, but are not foolproof<\/h2>\n\n\n\n

Prequalification is basically a way to gather info and assess whether a subcontractor has the skills, resources, and management chops to get the job done. It helps spot any potential safety or financial risks early on. A thorough prequalification process can save companies from headaches like project delays, budget overruns, and safety issues. While prequalifications in the US aren\u2019t required by law, it is highly recommended that businesses hiring contractors complete these, either via a third-party or through their own process. <\/p>\n\n\n\n

Prequalification is a great starting point, but it\u2019s not a crystal ball. A subcontractor might still fall short\u2014maybe they\u2019re not as skilled as they seemed, or their work quality doesn\u2019t quite hit the mark. Surprises can happen, even with a thorough screening process.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Know what you need<\/h2>\n\n\n\n

It will be impossible to assess the competence of a contractor to do a job if you are not clear on the job yourself. So be clear about what you want the contractor to do.<\/p>\n\n\n\n

If all you know at the moment is \u201csomething needs to be done about the yard\u201d then don\u2019t go out to bid until you\u2019ve invited a few possible contractors in to look at the yard, and to help you draw up a clear scope of work.<\/p>\n\n\n\n

This is an important step and you need to set clear expectations. This includes things like setting timelines for completion, outlining roles and responsibilities, and establishing how changes will be handled.<\/p>\n\n\n\n

You should also provide information about safety standards, such as what the contractor needs to do in case of an emergency, as well as any applicable laws or regulations that need to be followed. Having clear expectations from the start sets a strong foundation for successful management of contractors.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Know how risky the job is<\/h2>\n\n\n\n

Once you have your scope of work, you\u2019ll be better placed to consider the risk involved in the job.  If \u201cdo something about the yard\u201d turned into \u201cemploy a contract cleaner to come in and sweep up once a week on the day there are no vehicle movements\u201d you probably have a low risk; if it turned into \u201cresurface the yard and carry out the work in phases during normal operations\u201d there will be many more hazards to manage.<\/p>\n\n\n\n

Don\u2019t forget too that you have an obligation to the contractor to tell them what risks they will face in your workplace.  Do you have asbestos? Are there electrical hazards they will have to deal with?  What people, equipment or vehicles might they have to work around?<\/p>\n\n\n\n

It is their job to consider the hazards they bring, but yours to tell them what they might find. It is also important to make sure your contractors receive proper training before beginning work on a project.<\/p>\n\n\n\n

When the 10-hour training, which includes the OSHA 10 card, is recommended for all construction workers. For employees with supervisory or safety-related responsibilities, the 30-hour training, along with the OSHA 30 card, is advised.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Read the RAMS<\/h2>\n\n\n\n

Some contractors will provide risk assessments and method statements (RAMS). It is a wise idea to require these. Insist on seeing these BEFORE the contractor arrives on site. <\/p>\n\n\n\n

You are not expected to be an expert in the methods being used, but if you are managing a contractor you are expected to understand the basics \u2013 for example, that working on a fragile roof requires precautions.<\/p>\n\n\n\n

Check that the risks to your staff or members of the public have been considered and managed.  Look too for phrases that indicate the risk assessment is generic \u2013 like \u201cwhere required\u201d or \u201cas appropriate.\u201d If they are vague, ask for the documents to be tailored for the job.<\/p>\n\n\n\n

You will also have to have a management system in place to deal with contractor documentation and records. A dedicated contractor management solution <\/a>that stores all certificates, insurance coverage information and risk assessments can help to ensure traceability  \u2013 even before contractors arrive on site.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Be a good host<\/h2>\n\n\n\n

Leaving it to security to point a contractor in the general direction of their work is not good enough. <\/p>\n\n\n\n

Make sure someone competent welcomes the contractor to site, verifies their induction is complete (so, for example, they know about the fire alarm and assembly point), explains what welfare facilities they have access to, and checks they understand the job to be done.<\/p>\n\n\n\n

If the contractor is not going to be fully supervised, make sure they know how to get in touch with their host with any queries \u2013 and \u201cpop\u2011by\u201d at suitable intervals (as determined by your earlier assessment of the risk) to see that they are sticking to your site rules and their own method statements<\/p>\n\n\n\n

<\/div>\n\n\n\n

Regularly monitor progress<\/h2>\n\n\n\n

Once you have hired a contractor, it\u2019s important to regularly monitor their progress throughout the project. This includes making sure they are adhering to all safety guidelines, as well as checking in with them periodically to make sure they are meeting deadlines and staying on task.<\/p>\n\n\n\n

Regular monitoring will help ensure that the project runs smoothly without any unexpected surprises or delays.<\/p>\n\n\n\n

Managing contractors definitely presents challenges, but its not an impossible task if you follow these basic principles.<\/p>\n\n\n\n