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Suppliers and Contractors Must Understand the Importance of the Prequalification Process

By Avetta Marketing
March 19, 2020
6 minutes
Suppliers and Contractors Must Understand the Importance of the Prequalification Process

If you have your internal team on board with the idea of a prequalification process for contractors and suppliers, you may still run into issues with the suppliers themselves. If contractors don’t understand the potential value of the prequalification process, and only see it as cumbersome, time-consuming and an unnecessary cost, the process is destined to fail from the beginning. 

Along with a straight refusal to accept the process, your contractors and suppliers may not totally understand what you are asking of them during the. They may be worried about the cost, confidentiality issues with bringing in a prequalification company, or delays on the project while they are screened. If your company comes to the table with well thought out solutions and answers to common problems, the process is less likely to fail. 

The Approach Is Key 

The first step in getting your suppliers and contractors onboard with the idea of prequalification is to plan out a solid approach that highlights the benefits to both companies

Answer these questions when planning your approach:

  • How does this process benefit the supplier or contractor? Does it ensure the project will wrap up faster so they can move on to the next job? Will the contractor better understand their job and role through the prequalification process? 

  • How does the prequalification process set the contractor apart from competitors? Point out that through the process, they will have a chance to highlight their strengths and the benefits of a lasting relationship with them. 

  • How will this simplify the job for the contractor? The prequalification process gives clear, concise expectations, and standards that both sides of the project can understand from the beginning. 

  • How does the process save the contractor money? With clearer expectations and a defined set of goals, the project is finished faster and both parties are happy. This makes for a lasting relationship for current and future projects.

How you approach the subject with your contractors and suppliers can make all the difference in whether they are hesitant to embrace the process or excited about it. 

Good Communication Must Exist

Good communication skills can’t be stressed enough throughout the entire process, but particularly when you approach your contractors and suppliers about the implementation of a prequalification process. Communicate clearly from the beginning to show the entire supply chain that the process is more about protecting both parties, rather than you not trusting the supplier to get the job done correctly. 

Individuals may bristle if the process is approached as a way to cover your company, rather than a way to benefit both sides of the operation. Highlight the opportunity for them to improve their customer approval ratings and overall business sense with a prequalification process. Openness and honesty are vital throughout every stage of the process. 

The Bottom Line

Suppliers and Contractors Must Understand the Importance of the Prequalification Process

The bottom line is that the ideal goal for your company and your suppliers is a project that is finished on time, under budget, without any big headaches. The best way to reach your goals is to ensure that your contractors are prequalified to handle your project. Prequalified companies are socially responsible, safe and able to handle the jobs you send their way.  

As an extension of your company, your contractors are part of your brand and your product. Whether it’s accurate or not, the public views a contractor working on your project as an extension of you. It benefits both you and the contractor if both parties know what to expect from the beginning. You get a supply chain that you are confident in that you know you can trust, and they get a solid reputation as a contractor that is prequalified to get the job done right and on time. 

How Avetta Can Help

Here at Avetta, we prequalify your contractors and suppliers for you, to ensure that you are paired with the right company to match your vision and meet your needs. We aid your company in minimizing risks by prequalifying contractors to work on your projects. We ensure that suppliers and contractors are safe, compliant and qualified to work with and represent your brand.

We can simplify the process of working with contractors on both ends of the spectrum. We ensure that you are confident in your suppliers, while suppliers gain the added trust that comes from being prequalified to work with your company. Working with Avetta makes it easy to find suppliers and contractors you can trust on any job.

Suppliers and contractors not understanding the importance of the prequalification process can be one of the main reasons why supplier qualification fails. Other reasons why are listed below.

Top 10 reasons why supplier qualification fails:

  1. Lack of leadership commitment. 

  2. Not understanding internal stakeholder needs. 

  3. Ineffective Communication. 

  4. Lack of supply chain buy-in. 

  5. Poorly defined or inappropriate standards. 

  6. Poor enforcement. 

  7. Contractor/Supplier refusal.  

  8. Lack of Sophisticated Technology. 

  9. Understanding the need for administrative support. 

  10. Static compliance management. 

Learn more about Avetta's supplier prequalification

For more information about Avetta's Contractor Management software, Contractor Prequalification or Supply Chain Risk Management, visit avetta.com, email [email protected] or call 844.633.3801.

 

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