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Prequalification of suppliers and contractors.
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PREQUALIFICATION SERVICES

 

Contractor Prequalification Services = Supply Chain Assurance

 

It doesn’t matter the size of your business, your industry or your business model, sooner or later your business will be exposed to risk introduced by a third-party. Engaging a contractor prequalification services is the first step in protecting your business. From the moment a supplier, vendor, or contractor sets foot on your property, any actions – if not performed according to your standards for safety and risk management – could compromise your business. Further, if a particular supplier who is not appropriately insured causes an incident, your organization may be liable for these actions regardless of fault.

 

However, just ensuring that your suppliers and contractors are prequalified and have adequate insurance is not enough.

           What about the rest of their behaviors?

  Are they appropriately trained for the job at hand given your facility requirements?

 What does their safety record mean to your business?

  Do you have current information about their training and compliance?

All of these questions and risk factors, plus many more, can be addressed with an effective contractor management service including a supplier risk mitigation program.No matter how your organization manages contractor prequalification currently – either in-house or using an external partner – it is critical to consider the dynamic nature of compliance information and the myriad factors that drive compliance requirements. Information such as insurance policy effective dates and coverage limits, professional licensing status, training requirements, and annual safety statistics change regularly. If your company fails to effectively manage and track this dynamic information for existing suppliers – while simultaneously pre-qualifying contractors and suppliers who are new – you could be relying on missing, expired, or inaccurate information. This could result in your organization working with a supplier or contractor that is putting your organization at risk.

Verifying supplier compliance isn’t merely a task that must be completed once and subsequently forgotten about; rather, it is an ongoing process that must be monitored, maintained, and managed consistently if an organization wants to effectively mitigate risk within its supply chain.


Prequalification of contractors is an essential component, but companies can’t assume that compliance management stops there. Compliance must be managed on a regular basis, as requirements change, data expires, and companies partner with new organizations. Failing to maintain consistent, ongoing compliance data for all suppliers can be just as dangerous as failing to initially pre-qualify a contractor and can eventually result in serious consequences for an organization.


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