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What is a contractor?Non-employees on company site?
What if they work off-site?
Suppliers of equipment? Servicers of equipment?
Long-term and embedded?Short-term vendors?
A Global Look
70% of organizations contract more than 5% of the workforce – KPMG study
45% of organizations struggle to attract qualified craft labor – KPMG study
15.5 million in U.S. are self-employed; 60 million by 2020 – BLS and Intuit studies
Have you ever heard?
“Don’t worry, our employees won’t be doing that kind of work.”
“It’s okay, the on-boarding training covered that.”
“They got the last job done without any injuries, and they’re way less expensive…”
Top Compromising Factors
Financial pressures that lead to shortcuts and unsafe behavior
Lax training and supervision, broken info flows, unclear work responsibilities
Insufficient safety standards and relaxed enforcement
What are the best practices in contractor management?
Interviews with 14 Campbell Institute organizations in 2014
Prequalification
Pre-job task & risk assessment
Training & orientationMonitoring of job
Post-job evaluation
Contractor Life Cycle
Prequalification Best Practices
Analysis of safety statistics (EMR, TRIR, DART, etc.)
Inclusion of records, logs, continuous improvement plans
Prequalification Best Practices
Use of third-party verification services
Fill performance gaps, ensure compliance for specific industries
Prequalification Best Practices
Use of internal scale, checklist, or rating system
Grade or rating based on policies, statistics, history
Assigns letter grades based on safety stats, leading indicators, performance evals
Assigns letter grades based on TRIR, safety questionnaire, field audits
Rating system based on rates, training, incident reporting, EHS meetings, inspections
Pre-job Task & Risk Assessment Best Practices
Risk rating of work to be performed
• Liability categories• Action levels
Rating based on risk matrix, additional safety programs
for high risk
Risk point values for severity, frequency, and probability
Risk assessed in terms of insurance liability
Higher liability projects vetted through third party
Pre-job Task & Risk Assessment Best Practices
General contractors responsible for holding subcontractors to safety standards
Subcontractors must meet same requirements, submit
pre-job hazard analysis
Training & Orientation Best Practices
Mandatory safety training before work begins
Required tests, documented pre-shift safety meetings
Training completed within one week of start of work
Safety video and test directly afterward
30-hour and 10-hour OSHA courses
Training & Orientation Best Practices
Specialized training offered • Hazard identification• PPE• Fall prevention
Annual refresher courses, badges to indicate
specialized training
Specialized area trainings completed through online program
Refresher courses held annually for long-term contractors
Job Monitoring Best Practices
Periodic assessments (e.g. daily, weekly, monthly, annual)
Compliance with pre-task safety plans
Job Monitoring Best Practices
Safety observations from contractors
Mobile apps to submit observations, quota per month
Contractors submit minimum of 2 observations per employee per month
Uses mobile app (Lifeguard®) to track reports of unsafe conditions
Job Monitoring Best Practices
Maintenance of incident & near miss report logs
Reports on incidents & corrective actions to evaluate performance
Quarterly reports on lost-time injuries and dollar losses for Quality Assurance Plans
Contractors maintain incident and near-miss report logs
Common Challenges
Lack of specific courses of action for contractor infractions
Action flow chart, levels of discipline, strict policy for
serious infractions
Consequences outlined for 1st-3rd
infractions; termination of contract on 4th
Flow chart of actions for contractor infractions ending in dismissal
IDLH infractions are grounds for immediate termination of contract
Common Challenges
No formal post-work evaluation of contractors
Guidelines for requalification, evaluate if work was done
safely & well
Post-work evaluations considered when bidding for future jobs
Safety & Operating Inspection completed for every process change
Periodic performance reviews capture contractor performance
Common Challenges
Lack of direct oversight of subcontractor safety
Host employer liability gap with prime contractors
vetting subs
for more information on Campbell Institute member contractor programs and to download the research white paper.
Visit thecampbellinstitute.org/research
Questions?
Joy InouyeResearch AssociateCampbell [email protected]
Find this research and much more atwww.thecampbellinstitute.org/research