PREQUALIFICATION SERVICES
Contractor Prequalification
Services = Supply Chain Assurance
It doesn’t matter the size of your business, your
industry or your business model, sooner or later your business will be exposed
to risk introduced by a third-party. Engaging a contractor prequalification
services is the first step in protecting your business. From the moment a
supplier, vendor, or contractor sets foot on your property, any actions – if
not performed according to your standards for safety and risk management –
could compromise your business. Further, if a particular supplier who is not
appropriately insured causes an incident, your organization may be liable for
these actions regardless of fault.
However, just ensuring that your suppliers and contractors are prequalified and
have adequate insurance is not enough.
What about the rest of their behaviors?
Are they
appropriately trained for the job at hand given your facility
requirements?
What does their
safety record mean to your business?
Do you have
current information about their training and compliance?
All of these questions and risk factors, plus many
more, can be addressed with an effective contractor management service
including a supplier risk mitigation program.No matter how your organization manages contractor
prequalification currently – either in-house or using an external partner – it
is critical to consider the dynamic nature of compliance information and the
myriad factors that drive compliance requirements. Information such as
insurance policy effective dates and coverage limits, professional licensing
status, training requirements, and annual safety statistics change regularly.
If your company fails to effectively manage and track this dynamic information
for existing suppliers – while simultaneously pre-qualifying contractors and
suppliers who are new – you could be relying on missing, expired, or inaccurate
information. This could result in your organization working with a supplier or
contractor that is putting your organization at risk.
Verifying supplier compliance isn’t merely a task that
must be completed once and subsequently forgotten about; rather, it is an
ongoing process that must be monitored, maintained, and managed consistently if
an organization wants to effectively mitigate risk within its supply chain.
Prequalification of contractors is an essential
component, but companies can’t assume that compliance management stops there.
Compliance must be managed on a regular basis, as requirements change, data
expires, and companies partner with new organizations. Failing to maintain
consistent, ongoing compliance data for all suppliers can be just as dangerous
as failing to initially pre-qualify a contractor and can eventually result in
serious consequences for an organization.