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11 Tips for Implementing a Contractor Management System
- 1. 11 Tips for Implementing a Contractor Management System
- 2. 11 Tips for Implementing a Contractor Management System
- 3. Presenters Brett Armstrong Vice President, BROWZ Dennis Robinson Business Development Specialist, BROWZ
- 4. What is contractor qualification?
- 5. You can’t manage what you can’t measure. 34% 48% 65%
- 6. And now the ways to jumpstart….
- 7. Be Realistic
- 8. 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
- 10. Procurement
- 11. Safety
- 12. Legal
- 13. Operations
- 14. Executive
- 17. Insurance Requirements Limits coordinated with legal counsel General Aggregate and Excess/Umbrella Liability EachOccurrence and Excess/Umbrella Liability **Named Certificate Holder
- 19. Risk
- 20. License
- 22. CSR + Business
- 23. Technology BROWZ for Clients BROWZ for Suppliers SURE Workforce
- 24. Forward Thinking
- 25. 1. Be realistic 2. Know your stakeholders 3. Define contractor accountability 4. Insurance requirements 5. Safety statistics 6. Risk 7. License 8. Financial Stability 9. CSR and your business 10. Technology 11. Be forward thinking
- 26. Making a case for your program www.browz.com/roi
- 27. QUESTIONS
Editor's Notes
- Brett Armstrong Bio- Brett Armstrong is Vice President at BROWZ. He's been with BROWZ for over ten years, and he's had experienced managing teams that have supported the world's leading organizations, during the implementation and ongoing management of supply chain qualification programs. Earlier at BROWZ, Brett led the operations team for more than 7 years, this experience provides him today with the foundation and understanding necessary to support the communication needs of our clients and contractors. Dennis Robinson Bio- Dennis Robinson has been with BROWZ for over 10 years and is currently working as Business Development Specialist. Prior to his current role, Dennis managed the Assessment Specialist team responsible for the validation of all contractor documentation. Mr. Robinson’s experience provides him with a first-hand knowledge of the details and documentation organization’s rely on to ensure they are working with safe, responsible contractors.
- 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
- Dennis Denniss - Advance Slide Conservatively plan for 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 12 hrs spent each year per contractor = 173 contractors If you can get it down to 7 1/300
- 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 Dennis - one particular situation, company hired a contractor involved in an active lawsuit.
- Dennis
- 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
- #11 Technology to support the demand Due to the Complexity of requirements you need a system that will allow you to apply these standards dynamically based on filters. Types of criteria may include Work type Country Site Role General vs sub By contract Need for specialized systems
- New Trends in supply chain qualification ELM Time and attendance tracking Audit Mobile
- Brett Armstrong Start with the end in mind. So why are we here? I think it is safe to say that everyone here, appreciates the need for prequalification and management program. The question that inevitably comes up is should we do this in house or work with a third party provider. We want to help you make a case for a supplier/vendor management at your company. There’s a lot of depth to thinking that goes into the creation of ROI. The most challenging aspect in this particular case is not the formula as much as the unknown resources necessary to create an effective contractor management solution. We wanted to build a calculator that accounted for all the nuances of a program. We’ll be showing you this towards the end of the presentation. This is important because we’re giving you foundational context and building blocks to do this. It’s not just a one-pager, by the end of this presentation you will have a tool to do this yourself and make adjustments based on the structure and culture of your own organization. We want to give you the tools and practical ways to communicate the ROI to other potential share holders
- 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? 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?