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11 ways to jumpstart your contractor prequalification program
- 1. 11 Ways to Jumpstart your Contractor Qualification Program
- 3. What is contractor qualification?
- 4. You can’t manage what you can’t measure.
- 5. And now the ways to jumpstart…
- 6. Be Realistic
- 7. Task Hours per year Explaining Requirements 1 Answering questions specific to compliance / holding accountable 2 Collecting documentation 1.5 Entering data 1.5 Validating data 2 Monitoring data for expiration / change 2 Coordinating data requests with other departments 2 Total Hours/Year Per Contractor 12 2080 work hours per year / 12 = 173 contractors One full time employee needed for every 173 contractors
- 9. Procurement
- 10. Risk
- 11. Safety
- 12. Legal
- 13. Operations
- 14. Executive
- 17. Insurance Requirements Limits coordinated with legal counsel General Aggregate and Excess/Umbrella Liability Each Occurrence and Excess/Umbrella Liability **Named Certificate Holder
- 19. Risk
- 20. License
- 22. CSR + Business
- 23. Forward Thinking
- 24. 1. Be realistic 2. Know your stakeholders 3. Define contractor accountability 4. Know your stakeholders 5. Insurance requirements 6. Safety statistics 7. Risk 8. License 9. Financial Stability 10. CSR and your business 11. Be forward thinking
- 25. Special Offer Email brett.armstrong@browz.com Subject: Qualification Offer
- 26. Brett Armstrong Vice President, BROWZ brett.armstrong@browz.com www.BROWZ.com
- 27. QUESTIONS
Editor's Notes
- Definition Stakeholders Prequalification vs ongoing qualification Who should be qualified
- Client would provide data, found didn’t exist Story of Ameren 5 % compliant vs 85%
- Be realistic- what can you and your team currently manage Conservatively assume 1 FTE -300 contractors 1 hr a year explaining requirements 2 hrs a year answering questions specific to compliance / holding accountable 1.5 hrs a year collecting documentation 1.5 hrs a year entering data in spreadsheets/data 2 hrs a year validating data 2 Monitoring data for expiration 2 hrs a year coordinating with other departments unless able to share data
- Accounting for High, medium and low risk contractors and supplier (BROWZ RISK SPECTRUM) Why define programs Additional levels of qualification Complexity of requirements Need for specialized systems
- Carrot and the stick Protect your company Reward your partners
- Customer and Shareholder value
- Insurance requirements – (umbrella) Limits need to be coordinate with your legal counsel Commonly see : General Aggregate and Excess/Umbrella Liability Aggregate limits must be at least $1,000,000 OR Each Occurrence and Excess/Umbrella Liability Each Occurrence limits must be at least $1,000,000 | Open | Insurance Limit Under Minimum MUST BE CURRENT / HAVE A WAY TO MANAGE Strongly recommend being added as certificate holder An effective General Liability policy must be provided Must provide Additional Insured endorsement for General Liability policy The sum of the General Liability (policy # not available) Each Occurrence and Excess/Umbrella Liability Each Occurrence limits must be at least An effective Automobile Liability policy must be provided Automobile Liability policy (policy # not available) must have an expiration date entered and must not be expired Policy limit of x An effective Workers Compensation policy must be provided
- #6 Safety Statistics Minimum 4 years safety and historical data if available Safety Historical Statistics notifications must be sent for 2015 by March 31 (used for trending and forecasting) Total Lost Work Day Cases Total Recordable cases Total restricted cases Osha 300 Logs / 300 A Total Fatality Cases must not be more than 0 for the previous required statistics data year (Strongly consider)
- Do the services you provide require the use of a boom crane, cherry picker, mobile equipment, ladders, or scaffolds? Do the services you provide require the issuance of a high hazard permit (i.e., hot work, confined space, LOTO, etc), or do the services you provide require a permit or written Job Safety Analysis (JSA) or Job Hazard Analysis (JHA)?
- Require and monitor the following Contractor, Business, Professional/Occupational
- #9 Financial Stability If you are awarding work, you better know they’ll be around tomorrow A lot of great providers out there. BROWZ has integrated Experian’s financial stability indicator provides a view of the company’s overall financial health Experian works heavily with a lot of the smaller contractors
- Possibilities Voluntary employment Child labor Freedom of association Work Environment and conditions Anti-corruption Renumeration
- New Trends in supply chain qualification ELM Time and attendance tracking Audit Mobile
- PAT CUNNINGHAM SLIDE
- Seeded Questions We have our own program, what are the advantages to using a 3rd party. Will they have problems understanding our suppliers? If we brought on a 3rd party, we already have SAP how can a system like you described integrate? We work in a sector where confidentiality of data is essential. You don’t talk about this, why? We work with lots of small local companies, we do this as part of our corporate initiatives, can a 3rd party work with all sizes of companies I would hate to penalize the smaller companies? We are currently looking at a global supply chain solution, how do you manage cultural and global differences?
- In your opinion, which function is best to manage this program. Procurement, EHS, Quality? How do you overcome the issue of contractors not wanting to participate in a program or submit data? We have our own program, what are the advantages to using a 3rd party. Will they have problems understanding our suppliers? What are the 2-3 most important items you would recommend we track on contractors?