To minimize accidents, incidents at workplace, selection of Contractor becomes an important tool for managing contractor safety. It is a process to identify an appropriate and suitable contractor who is compatible as well as conversant with client’s safety management system. The process of selection of right contractor should include evaluation of safety performance of the contractor, worker’s compensation, their recorded injury rates, periodic safety programs being conducted and the competency level of contractor’s personnel.
The process for selection of contractors examines 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 the safety management need at workplace. Selection of contractors calls for thorough and effective review of contract safety specifications at time of bid meeting 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 in order to obtain competent personnel from the contractor, process of pre-qualification of contractor is a best practice that the client should opt.
Pre-qualification of contractor helps to create a pool of contractors that have 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 is required to bid informal contracts for which safety pre-qualification is required.
Technical Criteria for pre-qualification of a contractor on the basis of Safety Competency:
- Contractor should have experience in providing services for a minimum of 3 years in respective field.
- Details of company information with organization structure, list of manpower with the CVs of key personnel, plant and machinery list mentioning year of manufacturing, support agencies, other facilities and resources.
- Details of completion of similar type of projects within 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 machineries, HSE statistics, LTI graph etc.
- Details of typical project planning and execution methodology.
- Details of past track record of similar works executed with list of work orders, P.O copies 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 project of similar magnitude carried out.
- Details of experience of working in similar kind of project.
- Details of HSE policy, safety manual, safety plan and implementation procedures in-line with internationally accepted practices along with the statistics for last four years.
- Details of quality assurance and quality control practices currently in place for the execution of similar work.
- Details of contractor’s financial performance documents (audited balance sheets with profit and loss statements) and audit reports for last 3 preceding years.
- Details of company’s 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 of financial year.
The pre-bid and pre-award of contract meetings are to take place between client and contractor representative for selection of a contractor.
- Contractor representative should understand the financial implications to meet expectations of the client to comply with safety management.
- Contractor representative should understand technical impact while execution of contract including managing safety.
- Client and contractor representatives should have clear understanding on safety competency and effectiveness of implementation of the safety program during execution of work.
- Periodic monitoring of the safety performance of contractors.
- To assist in meeting value for money and quality assurance objectives, agencies are to submit a performance report.
- Contract information.
- Contractor to comply pre-qualification questioner process.
The advantage and effectiveness of process of pre-qualification and selection of contractor is the key and a proper tool to achieve contractor safety management.
- It reduces variability during contract execution.
- It improves project completion target effectiveness in terms of cost, quality and project schedule.
- It makes it possible to achieve alignment with contractor before execution work starts.
- Contractor provides knowledgeable, skilled and experienced manpower with sufficient resources to comply with safety management.
- Contractor review for statutory and regulatory requirement in advance.
- Contractor discuss job-specific safety plants.
- Contractor evaluate effectiveness of orientation or trade specific training periodically.
- Contractor reviews plans and job safety analysis before start of work.
- Contractor conduct field audits, documenting the audit’s findings and demands corrective action from concerned executive personnel.
- Contractor always communicates safety improvement progress.
- Contractor does monitoring, introduces the changes required and changes metrics as per the requirement.
- Contractor investigates safety incidents, injuries and near-misses for improving safety management.
Such detailed criteria can serve as a guide map for selection of contractors that are able to plan, implement and develop the envisioned project in accordance with the specific requirements laid down by the organization.