20 Factors to be Considered Before Selecting a Contractor | Contractor's Selection
Introduction:
In this blog we are going to cover at least 20 factors or qualities that a contractor must have to earn a project.
Why is Careful Selection of Contractors In Terms Of Health and Safety Important?
Carefully selecting contractors for your project is important because of several reasons. It becomes crucial when it comes to the health and safety of employees and overall success of project. Firstly, it is important to hire a competent contractor to to ensure compliance with health and safety to prevent employees for accidents, injuries and illnesses on worksite. This action will not only protect the employees of the organisation but also prevent the organisation from the costs of legal liabilities such as fines, penalties due to safety violations. Competent and Committed contractors will not only complete the project on time, within the budget and without unnecessary delays and costs related to workplace accidents.
Moreover, a contractor who is committed to health and safety fosters a positive work environment which boosts worker's morale and will reduce the absenteeism. This enhances overall project efficiency, as a motivated worker become more productive and engaged. Selection of a competent contractor will also lead to positive perception of general public towards the organisation resulting in more customers and projects.
Factors to Be Considered Before Selecting A Contractors:
1) Health and Safety Policy:
Considering health and Safety policy of a contractor is a crucial step in order to check the competence of the contractor. Before hiring a contractor it is crucial to check his regulatory compliance, management of risk and financial interest to ensure that he is committed to health and safety. A contractor with a suitable and sufficient health and safety policy, are more likely to take each and every step according to health and safety to prevent accidents and injuries resulting in increase in insurance premiums, costly delays and legal liabilities. Health and Safety policy is a best method, in case if anyone want to check the commitment of contractor towards health and safety.
Overall, by reviewing health and safety policy, organisations can assess ability of identifying hazards, mitigating risks, and responding to incidents of the contractor. A robust health and safety policy can also impact the contractor's insurance costs, legal liability, and reputation, making it a critical factor in the selection process. By considering a contractor's health and safety policy, organisations can make an informed decision and ensure a safe working environment.
2) Risk Assessments:
Considering Risk Assessment is a very effective method the assess that contractor can identify the hazards, evaluate the risk and implement control measure to mitigate the risk from the workplace. A Suitable and Sufficient risk assessment indicates that the contractor has taken a proactive approach to safety in past. It also ensures that the contractor has a clear understanding of the potential dangers associated with the work, and has developed strategies to mitigate or eliminate them. By reviewing the contractor's risk assessments, organisations can measure their level of safety competence, compliance with regulatory requirements and also their commitment to protecting their employees, assets, and the public.
Moreover, a well-selected contractor can also bring in new safety ideas and best practices which enhances the overall safety culture of the organisation. Therefore, contractor selection is a critical step in maintaining a safe and healthy work environment in a workplace.
3) Method Statements:
Method statement is a document that contains the methods and procedure which the contractor will use to complete the project. Method statements will outline the specific procedures, tools, and precautions which are necessary for each phase of a project. It basically demonstrates the preparedness of the contractor with regards to health and safety.
If the method statement is prepared by prioritising health and safety, then it will play a vital role in minimising the risks of accidents. Moreover, it will ensure compliance with safety rules by clearly defining roles and responsibilities and processes as well. By evaluating method statements, you can assess the contractor's competence, his commitment to quality, and his ability to deliver the project on time and within budget, thereby keeping both the workforce and the overall success of the project in mind, therefore its always a good idea to go through the method statements of the contractor before choosing him for the project.
4) Health and Safety Procedures:
It is important to check health and safety procedures of the contractors before selecting a contractor. This is because health and safety procedures help us to assess the commitment of contractor towards health and safety easily and we can also check whether he is following health and safety rules or not. Robust health and safety procedures indicates that the contractor is prepared for dealing with potential hazards of the site. Health and Safety procedures also ensure that the contractor is able to prevent accidents and can respond to emergency procedures efficiently. By going through the safety procedures of the contractor, we can easily assess his commitment to maintaining a safe work environment, enhancing project efficiency and most importantly ensuring smooth and successful project completion while protecting your company's reputation.
Moreover, a contractor's safety procedures can also impact the organisation's own safety record, insurance costs, and reputation, making it important to consider them before hiring a contractor. By doing so, organisations can ensure a safe working environment and minimise the risk of accidents and injuries.
5) Record of their Previous Projects:
In order to assess the reliability, experience and ability of contractor, we must have to check his previous project records. Now the question is what the previous project records will say about contractor? So let me tell you that previous project records will say make you sure that the contractor has completed his past projects without any mistake and accident or not. If past projects are completed by the contractor efficiently then there are 80% chances that your project will also completed efficiently. This is why it is important to check previous projects records of the contractor before hiring them.
Moreover, Revision of past project records, will give you a sight about the expertise of contractor in specific projects (Like your project) and also about his problem solving skills. After that, you will be sure that this contractor is able to hire for your project or not.
6) 3rd Party Affiliations (Such as Aramco (KSA) Approval, Adnock (UAE) Approval etc)
A contractor with 3rd party affiliation is more likely to have the latest knowledge about the standards of health and safety, technical advancement and best practices. Therefore, you become more confident about the quality of work they will provide to your project, resulting in overall success of your project.
7) Health and Safety Qualifications of the Contractor:
I know that you are thinking about What are health and safety qualifications? Basically there are many organisation's and boards such as (OSHA, NEBOSH, OTHM, IOSH etc) which are offering these qualifications worldwide. The levels of these qualifications are similar to educational qualification. The more advance qualification you have the more you will be preferred.
Considering contractors level of qualification is important before hiring them because these qualification demonstrates his skills, knowledge and expertise of performing work safely. By verifying contractors qualifications, you can assess their technical capabilities, his past safety records and his compliance with health and safety, licenses, and training. You will become more confident about your project that it is handled by a qualified and competent contractor.
8) Records of Inspections:
It is important to ask contractor to show his past inspection records before hiring them, because inspection records will give you a valuable insight about his competency in health and safety. If he had conducted a lot of safety inspections in the past, it means that he is committed to health and safety. Conducting inspection is a crucial aspect of a positive health and safety culture. Inspection records will give you a thorough insight of the previous red flags of the contractors such as repeating mistakes, repeated violations and many other indicators that indicate lack of effectiveness of safety protocols and attention to details. This information enables you to make a quick decisions, mitigate risks of accidents by ensuring that your project is entrusted to a contractor with a proven track record of safety, compliance, and quality performance.
9) Maintenance records of tools and equipment:
As you know that your project is going to be done with the help of tools, machinery and other equipment's, therefore, good working condition of these equipment's is necessary for performing tasks of the project safely. You should must ask contractor to show his maintenance records to ensure that all the equipment's, he is going to use are good in condition. You also have to ensure that these records are recent, Old records means that maintenance is held longtime ago. A strong maintenance record of tools and equipment's suggests that the contractor priorities operational efficiency and safety, which minimises the risk of equipment failure, project delays because of accidents. This information of maintenance records will help you to evaluate, contractor's operational excellence and it's potential impact on your project's success.
10) Past Accident Records:
We often heard that "Sometime's history is repeat's". This quote is becomes more valuable when we talk about past accident. Because if past is full of accidents, it is likely to repeat of accidents in future.
You might thinking that why I am saying that, I'm saying this because if nobody had acted upon safety protocols, if no body had prioritised health and safety in the past, there are 70-80% chances that he will not prioritised health and safety in the future. This is why reviewing past accident records is crucial before hiring the contractor. Accident records provide a thorough insight about the safety history of contractor because it reveals the incidents occurred in the past which indicate inadequate training, poor safety protocols and lack of attention to hazardous conditions. This information enables you to evaluate the contractor's commitment to safety, potential risks to your project, ensuring that you have hired a contractor who priorities safety and minimises the risk of accidents and injuries.
11) Adequate Resources of contractor:
Adequate resources actually means a range of factors including personnel, equipment, funds and technological capabilities. By evaluating a contractor's resources, you can determine if they have the necessary things to handle the project problems, meet deadlines, and respond to unexpected challenges. A contractor with adequate resources is well-equipped to manage risks, maintain quality control, and ensure continuity of work, thereby reducing the likelihood of accidents, project delays resulting in good performance. By assessing resources, you can confidently trust your hired contractor with your project, knowing they have the necessary capabilities to deliver a successful outcomes of the project.
Additionally:
12) Previous Audits:
By reviewing previous audits of contractor, you can identify the weaknesses of safety management system, you can also assess the effectiveness of their control measures, and most importantly you can assess whether they have positive health and safety culture or negative.
13) HSE Department of Contractor:
A competent and well-structure HSE department of a contractor indicates his commitment to safety, environmental responsibility, and compliance with health and safety standards and regulations. If the contractor have no or incompetent safety department it means that they are not good for your project.
14) Training Records of the Contractor's Workforce:
Workforce is the most important factor because they are providing their roles and themselves directly in the project. The training records of the workforce demonstrate contractor's commitment of ensuring their employees have the necessary skills, knowledge easily assess the contractor's ability to deliver high-quality services, manage risks, and prevent accidents for the workplace, ensuring that the project is completed by a competent and skilled workforce.
15) Insurance Policy:
The insurance policy of a contractor is a crucial factor to be considered before hiring them. Insurance policy of contractor's provides financial protection to both the client and the contractor in case of unwanted and unexpected events such as accidents or property damage. Reviewing the insurance policy of contractor will help you to assess his level of financial risk management, financial stability, and commitment to protecting their workers and assets.
16) Emergency Response Plans (ERP) or Emergency Procedures:
By reviewing the Emergency procedures of contractor, clients can assess the contractor's ability to respond promptly in emergency situations which minimise damage and ensure business continuity in the face of an emergency.
17) Experience with similar projects:
It is important to check the experience of contractor with similar projects before hiring them. By doing this you can ensure that the contractor has done relevant projects in the past and he is familiar with difficulties and hazards of the current project.
18) Staff Turnover:
You should check the rate of employees resigning the company of contractor, if the rate is high it means that employees are not feeling safe and comfortable in this company. No Staff turnover is a crucial aspect of positive health and safety culture, however high staff turnover is the clear indication of negative health and safety culture.
19) Work Permits:
Reviewing work permits of the contractor is important before hiring them. You should check the template,effectiveness and suitability of the permits to ensure that contractor is committed in prioritising health and safety of employees.
20)Tool Box Talk Method:
Too Box Talk is the method of giving detail overview about site hazards and layout verbally. You should asses the tool box talk method of the contractor, whether it is effective or not?, Whether it is understandable or not?, Whether they are committed to conduct tool box talk on regular basis or not?
[Declaimer/Note: You can use this knowledge of 20 Factors to be Considered Before Selecting a Contractor | Contractor's Selection in your NEBOSH IGC exam, but make sure that you apply this knowledge in your scenario. Do not just copy and paste in your exam.]
This blog is written by HSEWALA.
Hope this blog finds you well and informative. Thanks for visiting HSEWALA.
Regards: Rehan Waseem
