Contractors form the backbone of many industries. They can be found in virtually every sector (there are for example 65,000 IT contractors currently working in the UK), though perhaps unsurprisingly, the construction sector had the highest level of self-employed jobs in Great Britain, with 674,000 self-employed construction workers as of 2022.
Contractors can provide a range of skilled and specialised services, but clients must be aware of the responsibilities they have to those they bring to a job site.
Outsourcing work will always reduce the amount of control held over the production or services provided. While contracts and agreements can be set in place prior to work commencing, clients cannot have complete assurance that their requirements are being met.
So what can you do? A great starting point understanding what is expected of you. To help, we have listed our ‘7 Principles for Managing Contractors’:
1. You cannot buy off your accountability
In discussing contractors, clients sometimes express the (mistaken) belief that by contracting work out they are contracting out responsibility for the risk if something goes wrong. The following examples show this not to be the case.
In 2012 for instance, when a Staffordshire-based animal feed producer chose a builder with no experience of fragile roofs to carry out repairs for them because he was £20,000 cheaper than the next bid, the woman carrying out the work fell through a roof light and fractured two vertebrae.
The fines and costs paid by the client were three times that paid by the contractor, as the court considered the client’s failure to appoint competent contractors the more serious crime.
Whilst the contractor above was a sole trader, a carpet factory contracted out the inspection of their pressure vessels to one of the biggest names in the inspection service industry. Surely they could be relied on?
But the inspection company omitted to inspect one of the vessels three years in a row – before it exploded in 2013 with such force that the vessel lid hit the roof six metres above and dented the girders. Both client and contractor were prosecuted under the Pressure Systems Safety Regulations – the client's fine was only a fraction less than the contractor's fine.
It’s important to remember that you can't just buy off accountability when dealing with contractors. If you're going with a cheaper option, it's imperative to weigh the pros and cons first.
2. Standard pre-qualification schemes might be useful, but are not sufficient
Pre-qualification schemes in the UK and Ireland are assessments by 3rd parties that ‘determine whether or not a contractor meets certain criteria required to work on a construction project’. They are usually health and safety focused but can also incorporate compliance and other potential risk areas.
The claimed benefit for contractors taking part in these schemes is usually that it simplifies the tendering process for contractors, once a contractor belongs to a scheme and has been assessed, this assessment can be used for multiple clients.
There are several pre-qualification schemes available, most now falling under the Safety Schemes in Procurement (SSIP) initiative.
However, some of these are geared towards particular industries (such as construction) or particular sectors (such as local authorities) so if you ask contractors to meet one, make sure it is relevant to your sector and the particular job at hand.
It is important to also consider whether such prequalification is necessary for every job – what are the risks? Over specifying might filter out a suitable contractor who didn’t want to spend time and money on a particular pre-qualification scheme.
Remember that accreditation to a scheme shows only that an organisation has been able to pull together the right paperwork to meet the requirements. It does not prove that the contractor can do a particular job.
Where appropriate, you might use a scheme as a filter, but you will need your own more rigorous process, tailored to the work being contracted out.
3. Know what you need
It will be impossible to assess the competence of a contractor to do a job if you are not clear on the job yourself. So be clear about what you want the contractor to do.
If all you know at the moment is “something needs to be done about the yard” then don’t go out to bid until you’ve invited a few possible contractors in to look at the yard, and to help you draw up a clear scope of work.
This is an important step and you need to set create clear expectations. This includes things like setting timelines for completion, outlining roles and responsibilities, and establishing how changes will be handled.
You should also provide information about safety standards, such as what the contractor needs to do in case of an emergency, as well as any applicable laws or regulations that need to be followed. Having clear expectations from the start sets a strong foundation for successful management of contractors.
4. Know how risky the job is
Once you have your scope of work, you’ll be better placed to consider the risk involved in the job. If “do something about the yard” turned into “employ a contract cleaner to come in and sweep up once a week on the day there are no vehicle movements” you probably have a low risk; if it turned into “resurface the yard and carry out the work in phases during normal operations” there will be many more hazards to manage.
Don’t forget too that you have an obligation to the contractor to tell them what risks they will face in your workplace. Do you have asbestos? Are there electrical hazards they will have to deal with? What people, equipment or vehicles might they have to work around?
It is their job to consider the hazards they bring, but yours to tell them what they might find. It is also important to make sure your contractors receive proper training before beginning work on a project.
In the UK according to the Health and Safety Executive (HSE), contractors or the self-employed “may be treated as your employee for health and safety purposes.”
In the EU, Council Directive 89/391/EEC states that: “The client shall also provide the contractor with adequate information and appropriate instructions regarding safety and health risks and safety measures during their activities in his undertaking”
For the most part, the legal framework for working with contractors is chiefly dealt with on an individual EU state level.
For example, in Ireland in accordance with the Safety, Health and Welfare at Work Act, employers must ensure that: “employees of another employer (for example, maintenance contractors at a manufacturing plant or specialised sub-contractors at a construction site) carrying out work at their place of work must receive appropriate instruction in any risks associated with that place of work.”
This includes both general safety training and specific training related to the tasks they will be performing. Skipping this step could result in mistakes being made or accidents occurring due to lack of knowledge or understanding of proper procedures. Therefore, it is essential for all contractors to receive proper training prior to beginning work on a project in order to avoid potential issues down the line.
5. Read the RAMS
Most contractors will provide risk assessments and method statements (RAMS). Insist on seeing these BEFORE the contractor arrives on site.
You are not expected to be an expert in the methods being used, but if you are managing a contractor you are expected to understand the basics - for example, that working on a fragile roof requires precautions.
Check that the risks to your staff or members of the public have been considered and managed. Look too for phrases that indicate the risk assessment is generic - like “where required” or “as appropriate.” If they are vague, ask for the documents to be tailored for the job.
You will also have to have a management system in place to deal with contractor documentation and records. A dedicated contractor management software that stores all certificates, insurance coverage information and risk assessments can help to ensure traceability - even before contractors arrive on site.
6. Be a good host
Leaving it to security to point a contractor in the general direction of their work is not good enough.
Make sure someone competent welcomes the contractor to site, verifies their induction is complete (so, for example, they know about the fire alarm and assembly point), explains what welfare facilities they have access to, and checks they understand the job to be done.
If the contractor is not going to be fully supervised, make sure they know how to get in touch with their host with any queries – and “pop‑by” at suitable intervals (as determined by your earlier assessment of the risk) to see that they are sticking to your site rules and their own method statements
7. Regularly monitor progress
Once you have hired a contractor, it’s important to regularly monitor their progress throughout the project. This includes making sure they are adhering to all safety guidelines, as well as checking in with them periodically to make sure they are meeting deadlines and staying on task.
Regular monitoring will help ensure that the project runs smoothly without any unexpected surprises or delays.
Managing contractors definitely presents challenges, but its not an impossible task if you follow these basic principles.
By:
- clearly communicating your expectations upfront,
- regularly monitoring progress, and
- ensuring all necessary training has been completed,
you can rest assured knowing that your projects are running smoothly and safely with minimal risk of accidents or delays.
Following these simple rules will go a long way towards keeping your business running efficiently while maintaining a safe workplace environment for everyone involved.
Of course, it doesn’t hurt to have some assistance along the way. A dedicated contractor management solution can make dealing with associated admin much less onerous, while making sure you remain compliant. Interested in learning more? Click the image below:
