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5 Most Common Challenges of Contractor Qualification & Management

By Avetta Marketing
August 27, 2020
4 minutes
5 Most Common Challenges of Contractor Qualification & Management

Industry-leading companies are turning to contractor management software and services to save time and money and minimize risk. What are the most common challenges of contractor qualification and management? 

Managing contractor compliance on paper 

While most organizations appreciate the need for effective contractor compliance, too many still rely on old-fashioned tools to do so. Many businesses struggle to manage contractors by relying on staff to enter the appropriate data into a spreadsheet, verify its accuracy, and keep hard copies of documentation in a filing cabinet. 

Sophisticated software must be used in order to effectively manage contractor information. These systems provide an easy-to-use interface for supplier’s to complete assessments, display icons showing which contractors are compliant, provide notifications of expiring or missing data, and house all the required data and documentation. 

Inability to handle varying levels of risk 

Job types and risk levels vary widely throughout your contractor population across all your locations. Generic, one-size-fits-all questionnaires that don’t account for varying degrees of risk aren’t sustainable. They alienate contractors and thus drive up your costs and theirs, ultimately impacting business relationships. 

Contractor prequalification and management solutions should fit the way you and your contractors do business. They should allow you to manage thousands of supplier data points across multiple risk levels and locations and calculate and display real-time compliance information for your full supply chain. 

Lack of quality control 

Don’t risk the reputation of your company by relying on information that hasn’t been verified. Contractor compliance information needs to be gathered, maintained, assessed, and verified at the data and information level. 

Supplier information must be verified for accuracy, compliance, and completeness. This extra step of verification ensures that the contractor supplied information is accurate, meets industry and regulatory standards, and that contractors are being honest with owner/operators. 

Implementing new technology without industry best practices 

Without insight of what works and the best practices around implementing compliance technology and system, companies only realize a fraction of the benefits of new software. 

A comprehensive approach including benchmarking with industry peers will ensure that your organization is meeting industry safety standards, supporting unique business requirements, and addressing your particular risk thresholds. This must be done without setting extreme requirements that alienate a large portion of your suppliers. 

Putting undue burden on your contractors 

Suppliers and contractors are the lifeblood of many organizations. A common error in implementing compliance standards is to ask for everything you want and not just what you need. In addition, many organizations aren’t prepared to effectively communicate standards with contractors and support them through the process. 

Contractors want to know they’re competing on a level playing field. Standards must be fair and not place undue burden on your contractors. Those standards must be clearly communicated and support given to contractors throughout the entire process of prequalification and ongoing monitoring of compliance information. 

When it comes to contractor prequalification and management solutions, service is as important as software. A complete offering that meets these requirements is available today from Avetta, a leading provider of compliance management solutions to Fortune 500 companies in the mining, chemical, manufacturing, pharmaceutical, and other industries.  

To learn more about how Avetta can help you implement a contractor prequalification system, visit our website, call 844-633-3801, or email [email protected]

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