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The Supply Chain Compliance Blog

10 pitfalls to avoid when outsourcing to construction contractors

Posted by Altius on Dec 22, 2014 10:16:12 AM


While many organisations have a firm grip on risk management within their own business, it's a different story when it comes to the wider supply chain, where effective monitoring of health and safety standards, and environmental and commercial performance, are all critical.

Complete supply chain visibility is the aim and this requires a robust system of standards and pre-qualification checks for both contractors and sub-contractors. It isn't sufficient to delegate this task entirely to your contractors. If the cracks start to show, your company could be exposed to risk and liability and the reputational damage that follows.

10 pitfalls to avoid

You should also introduce a 24/7/365 compliance system, rather than relying on periodic checks. Some of the key questions you should ask when assessing contractors and sub-contractors are:

1 - Working at heights

Do your contractors and sub-contractors have the necessary insurance for working at heights? (this is of course, no substitute for checks and supervision on your site).

2 - Training

Is your contractor's asbestos awareness training adequate? Have you checked the course content, or has it been approved by organisations such as UKATA or IATP? Is refresher training provided and are all new starters covered?

3 - Competent with electricity

Have you checked that your contractors are competent to work with electricity? Do you know if they are a member of a recognised group such as NICEIC or the ECA?

Discover the all-in-one contractor management software >

4 - Ethical sourcing

Does your contractor have a sustainable and ethical sourcing policy?

5 - Waste disposal

Is your contractor disposing of waste responsibly? Do they have the up to date licenses?

6 - Financial position

How financially solvent is your supplier? Do you continuously track their financial health to ensure that they can fulfil their work commitments?

7 - Insurance cover

If you are dealing with a large contracting business with multiple divisions, are you certain that their insurance cover applies to the individual business you are dealing with? Can you be certain that insurances are always up to date?

8 - Professional indemnity

Is professional indemnity insurance set at the right level for the risks your supplier might face?

9 - Comply to legislation

Do your contractors have the records to demonstrate they comply with applicable legislation?

10 - Staff competency

Do your contractors check their staff are competent to safely perform the work they are asked to do?

Get smart about your contractor compliance

To help you avoid these 10 pitfalls, and many more that comes with outsourcing to construction contractors and suppliers, here at Altius we've created Exigo Essentials, an all-in-one contractor management software that manages all of your compliance. Request your free demo of Exigo Essentials today and see how you can:

  • Create a compliance framework - ensuring your suppliers meet your requirements
  • Track your suppliers - with an in-built and automatic audit trail tool
  • Generate automated reports - to keep your management team up-to-date
  • Monitor your suppliers - with a real-time status tracking tool
  • Manage documents better - with the document control and versioning tool

 For more information, and to request your free demo on Exigo Essentials, take a look here.


Photo Credit: Pixabay

Tags: Health and Safety

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