How to Manage Contractor Risks Before Work Begins

Integrating contractors into the workplace can pose potential threats to the organisation that require proper identification and mitigation prior to the commencement of the work. The contractor may not have any idea regarding the site, the procedures and the hazards related to the work he is supposed to do. If the proper planning and communication are not done, then the gap will pose some threats.

Effective contractor risk management involves planning, communication and control prior to the arrival of contractors on the site.

Why Contractor Risks Need to Be Managed

Contractors will often possess certain skills and expertise that companies depend on for specific projects or activities to be carried out. The work done by the contractors may also lead to the emergence of other risks that should be considered together with the existing risks within the workplace.

The risks include those emerging from differences in:

• Workplace policies and expectations regarding safety.
• Experience with hazards associated with the place.
• Training and competencies.
• Methods of doing work and tools used.
• Communication between contractors and workers.

Start With Contractor Selection

Risk management starts with making sure that the right contractors with the requisite skills, qualifications, capabilities, and management systems are chosen for the job.

This process entails taking into consideration whether the contractor is capable of carrying out the particular activity. Depending on the particular job, this will entail assessing their qualifications, licenses, previous experience, safety record, insurance, and pertinent management systems.

It is important to ensure that not only does the contractor have the capability to carry out the job but that he can do it in a safe manner in conformity with the requirements.

Assess the Risks Before Work Starts

Once a contractor has been selected, organisations should consider the risks associated with the work they will perform. This includes looking at how contractor activities may interact with existing workplace operations.

A risk assessment may consider:

• The nature and complexity of the work.
• Hazards associated with the task.
• Interaction with employees and other contractors.
• Plant, equipment, and materials being used.
• Site access and traffic movements.
• Emergency arrangements.
• Environmental conditions.

Understanding these risks before work begins allows appropriate controls to be established in advance.

Communicate Site Requirements Clearly

It would be unfair to expect contractors to meet requirements they were never aware of. Effective communication is thus a key aspect of contractor risk management.

Prior to commencing the work, contractors should be informed of the relevant workplace practices that relate to the work they will be performing. This may range from matters such as site access, emergencies, reporting, use of personal protective equipment, and hazards present at the site.

Effective communication is however a two-way process. Contractors may also come across matters that have never been considered before by the organisation.

Verify Competency and Qualifications

It is very important that contractors possess the required skillset and qualifications while carrying out specialized or risky operations. It is important that organizations ensure that contractors possess the required licenses, training, and qualifications to carry out assigned tasks.

This can be based upon:

• Relevant licences and certifications.
• Training records.
• Competency assessments.
• Experience with similar work.
• Specific high-risk work qualifications.

Keeping evidence of these checks also helps demonstrate that contractor capabilities have been considered as part of the organisation's broader safety processes.

Establish Clear Roles and Responsibilities

Unclear responsibilities can create gaps in safety management. Before work begins, organisations should establish who is responsible for key activities and how responsibilities will be shared between the business and the contractor.

This may include determining who will:

• Conduct site inductions.
• Monitor work activities.
• Report and investigate incidents.
• Manage changes to the scope of work.
• Communicate safety concerns.
• Review the effectiveness of controls.

Clear accountability helps reduce confusion and ensures important responsibilities are not overlooked.

Provide a Site-Specific Induction

Even if a contractor has had much experience in their line of work, they may not necessarily know everything there is to know about the working environment at a certain worksite.

An induction will give a contractor the necessary information regarding that specific workplace rather than just general safety information. In accordance with the nature of the workplace, this may include information such as emergency procedures, access points to the workplace, danger zones, reporting channels, hazards at the workplace, and so forth.

It is important for the contractor to have an opportunity to pose some queries before they start work.

Confirm Controls Before Work Commences

Risk identification becomes useful if controls are implemented in the right manner. At the beginning of the job, it is important for an organisation to ensure that the proposed controls are realistic and feasible to implement.

This would include checking the safe work documents for more risky jobs, verifying the presence of the necessary equipment, or ensuring that workers have had adequate training.

Another thing to consider at the start of work would be any change in conditions that was not considered during the initial risk assessment.

Maintain Clear Communication During the Work

Contractor risk management is not something that stops after the start of work. Situations can arise where contractors find themselves in danger due to some hazard that was not considered at the planning stage.

Communication will help to address any situation that arises much better. For example, toolbox talks and pre-starts could allow discussing issues. Effective communication will ensure that everybody knows about the new work procedures.

Monitor Contractor Performance

Organisations should monitor contractor activities to confirm that agreed requirements and controls are being followed. The level of monitoring should reflect the nature and risk of the work being performed.

Monitoring may include:

• Workplace inspections.
• Site observations.
• Review of incidents and near misses.
• Discussions with workers and supervisors.
• Checking compliance with agreed procedures.

The purpose of monitoring should not be limited to identifying non-compliance. It can also help organisations recognise good practices and identify opportunities to improve contractor management processes.

Review Contractor Performance After the Work

After the completion of any project or task, evaluation of contractor performance will give important information that can be used in the future.

An organization will determine whether the contractor complied with all safety and compliance requirements, whether communication was effective, whether tasks were performed according to plan, and how the contractor reacted to identified risks.

Building a Consistent Contractor Management Process

For successful management of risks posed by the contractor, a well-thought-out process is necessary, which needs to be conducted right from the beginning until the end of the contract. Processes like selection, competency evaluation, risk assessment, induction, communication, monitoring, and review are all important elements of this process.

In addition to helping organizations manage risks better, such a process can help ensure consistency of expectations among all the contractors working on different projects within an organization.

Conclusion

Contractor risks managed prior to the beginning of the work allows the organisation to identify any possible risk and verify competencies, determine responsibilities and introduce control measures. A proactive contractor management strategy helps in minimising uncertainties, ensuring proper communication and promoting safe practices by the contractor during the entire period of his work.

Organisations, which want to improve their contractor management procedures, can rely on SHEQ Management to provide assistance in evaluating contractor needs, developing systems and managing risks at the workplace related to the contractor.