contractor selection

Table of Contents

Introduction

To minimize accidents and incidents at the workplace, selecting a Contractor becomes an essential tool for managing contractor safety. It is a process to identify an appropriate and suitable contractor who is compatible with and conversant with the client’s safety management system.

The process of selecting the right contractor should include

  • Evaluating the contractor’s safety performance

  • Worker’s compensation, recorded injury rates

  • Periodic safety programs being conducted

  • Competency level of the contractor’s personnel.

Selection of Contractor in Health and Safety

Choosing the right contractor for your business is critical to ensuring the health and safety of your employees and the environment.

A contractor selection criteria checklist should include

  • Experience

  • Expertise

  • Certifications

  • Compliance with regulations

  • Ability to manage risks.

The selection process should be rigorous, including prequalification assessments, background checks, and interviews. By following a robust contractor selection process, businesses can ensure that they are hiring contractors who can provide safe and high-quality work.

The process for selecting contractors examines the contractor’s demonstrated ability to work safely, how effectively the contractor’s safety program is being implemented, and how safety competency assessment is being carried out to comply with workplace safety management needs.

Selection of contractors requires a thorough and effective review of contract safety specifications at the bid meetings and pre-award meetings. To prove their competence, contractors must undertake multiple pre-qualification processes depending on client preferences for safety management.

To get certified, qualified and to obtain competent personnel from the contractor, the process of pre-qualification of the contractor is a best practice that the client should opt for.

Pre-qualification of contractors helps create a pool of contractors with the desired quality, capacity, and ability to perform work on projects of a particular size and complexity. This also weeds out contractors with a history of litigation, claims, and performance-related failures. For any project work, a contractor must bid informal contracts for which safety pre-qualification is required.

Technical Criteria for pre-qualification of a contractor based on Safety Competency

  • The contractor should have experience providing services for at least three years in the respective field.

  • Details of company information with organization structure, list of manpower with the CVs of key personnel, plant, and machinery list mentioning the manufacturing year, support agencies, other facilities, and resources.

  • Details of completion of similar projects within the last three years indicating their brief scope of work, value of work, contractual duration, actual completion of project, client’s name, contact details of that client, safety appreciation or compliance certification or inspection of plant and machinery, HSE statistics, LTI graph, etc.

  • Details of typical project planning and execution methodology.

  • Details of past track record of similar works executed with the list of work orders, P.O. or LOI copies, and client completion certificates.

  • Details of current commitments – List of all the jobs under execution with the value of the job and percentage completion with particular emphasis on projects of similar magnitude carried out.

  • Details of experience of working on similar kind of project.

  • Details of HSE policy, safety manual, safety plan, and implementation procedures in line with internationally accepted practices, along with statistics for the last four years.

  • Details of quality assurance and quality control practices currently in place for executing similar work.

  • Details of the contractor’s financial performance documents (audited balance sheets with profit and loss statements) and audit reports for the last three preceding years.

  • Details of company registration, PAN card, service tax, and GST.

  • Details of documents in support of Health, Safety, Environment, and Quality [HSEQ] performance.

  • Details of insurance of employee policy, medical evaluation including drug testing policy.

  • Details of managing and monitoring sub-contractor performance.

  • Details of safety and security evaluation policy.

  • Copies of ISO 9001, 14001, OHSAS 18001, or any other accreditation and certification as applicable.

Financial Criteria for pre-qualification of contractor

  • Turnover in each of the financial year.

  • Positive net worth of financial year.

  • Liquidity ratio in each financial year.

The pre-bid and pre-award of contract meetings are to take place between the client and contractor representative to select a contractor.

  • The contractor representative should understand the financial implications to meet the client’s expectations and comply with safety management.

  • Contractor representatives should understand the technical impact while executing the contract, including managing safety.

  • Client and contractor representatives should have a clear understanding of safety competency and the effectiveness of implementing the safety program during work execution.

  • Periodic monitoring of the safety performance of contractors.

  • To meet value for money and quality assurance objectives, agencies must submit a performance report.

  • Contract information.

  • The contractor is to comply with the pre-qualification questionnaire process.

The advantage and effectiveness of the pre-qualification and selection process are the key to achieving contractor safety management.

  • It reduces variability during contract execution.

  • It improves project completion target effectiveness regarding cost, quality, and schedule.

  • It makes it possible to achieve alignment with the contractor before execution work starts.

  • The contractor provides knowledgeable, skilled, and experienced manpower with sufficient resources to comply with safety management.

  • Contractor review for statutory and regulatory requirements in advance.

  • The contractor discusses job-specific safety plants.

  • The contractor evaluates the effectiveness of orientation or trade-specific training periodically.

  • The contractor reviews plans and performs job safety analyses before the start of work.

  • The contractor conducts field audits, documenting the audit’s findings and demands corrective action from concerned executive personnel.

  • The contractor always communicates safety improvement progress.

  • The contractor does monitoring, introduces the changes required and changes metrics as per the requirement.

  • To improve safety management, the contractor investigates safety incidents, injuries, and near-misses.

Such detailed criteria can serve as a guide map for selecting contractors who can plan, implement, and develop the envisioned project in accordance with the organization’s specific requirements.

Remember, selecting the right contractor can help prevent accidents, reduce costs, and improve your business’s overall performance.

Frequently Asked Questions(FAQ)

Contractor evaluation must be based on several criteria including experience, expertise in the required field, financial stability, references, safety records, and compliance with legal and regulatory requirements.

Financial stability is crucial as it demonstrates the contractor’s ability to manage resources, handle unforeseen circumstances, and complete the project without financial difficulties.

Contractors must provide proof of compliance with all relevant laws and regulations. We also conduct regular audits and require contractors to stay updated on any changes in legal requirements.

5.2 min read Views: 78 Categories: EHS Manpower

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