Managing

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Managing the Contractor

No matter how well we have set up the contract and selected the contractor, it is still necessary for the client to maintain a watching brief to ensure that a good start is not followed by a mediocre middle and a disastrous end! Links are always important between the contractor management and the client management. The role of the client’s liaison contact or team is vital to ensure good communication, and monitoring of contractor performance.

In low risk contracts we may require very little monitoring, but a communication system must exist to ensure that the client can rapidly inform contractor employees of any hazards or changes of hazards related to client activity or site conditions. As the risk level of the contract rises, so the importance of the contractor’s safety management activities rise. Monitoring of these activities by the client is therefore of increasing importance. Ina medium risk contract it may well be sufficient for the client to receive and review monitoring reports, and make sure that problems identified are resolved. However, most client companies will not be satisfied only with paperwork review unless well into a long-term relationship. It is therefore normal to include second level monitoring activities, e.g. work site inspection to ensure that the first level inspections identify all they should!

In long-term relationships and high risk contracts clients often opt to carry out independent audits of the whole management system and it’s effectiveness. Ina long-term relationship this may be done on an annual basis. For high risk contracts this would normally be done early in the contract, but late enough for the whole safety management system to be working. Typically, 3 months into a 9 month contract would meet these needs. Sometimes, if the project duration is short, this may be done pre-contract by auditing the contractor at another work site, or at the contractor’s own premises. A comprehensive auditing technique is required for this duty, such as the ICSRS, which contains the following elements:-

Leadership and Administration
Job Planning and Risk Assessment
Employee Training
Emergency Preparedness
Planned Inspections
Management Training
Investigations and Analysis
Employee Communications and Promotions
Rules and Work Permits
Health and Hygiene Control
Hiring and Placement
Personal Protective Equipment
Environmental Management

Long Term Contractor Relationships

There are circumstances where a long term relationship with a contractor can pay significant dividends. In general, this is where the need for the contractor’s services is regular and predictable. Although competitive bidding for each separate piece of work may reduce contract costs, this can be an expensive and time consuming exercise for both parties. Once a contractor has been identified with the required skills and safety management systems, it can often save costs to set up a long term relationship. However, this will almost always move the contract into the high risk category, and therefore need regular monitoring and occasional auditing by or for the client.