The Importance of Contractor Compliance

 Businesses that outsource work to contractors need to have a solid understanding of contractor compliance requirements and issues as part of their broader contractor management activities. Too often, contractor compliance can seem confusing or too difficult and time consuming to chase up...and so it is left. No business wants to use contractors that have not met their obligations or have failed to keep these up to date and so it follows that compliance checks and verification should always occur.


In this day and age, where businesses increasingly use contractors in their work settings, there are significant risks if these businesses do not employ management methods to deal with the risks associated with using contractors. There is plenty of evidence to demonstrate that an ongoing commitment to risk reduction in the work place promotes successful working and pays dividends.

commercial contractors

Contractor compliance and contractor management specialist companies are increasingly used by businesses for the purposes of carrying out these checks and ensuring that a robust system for contract negotiation and management is in place. Such companies provide a host of useful functions for businesses, such as:


Accurate and rigorous contractor compliance data and records

Evidence that contractors used by your company are compliant with legislation and company standards

Support to identify areas of high risk that require attention and assistance

Strategies for reducing risk from the business' relationships with contractors

Pre-qualification of contractors to ensure compliance, including the gathering and verification of contractor insurance certificates

Management of the on-going compliance of contractors

Strategies for working with contractors to develop and enhance safety and compliance performance.

Many businesses are stretched to the limit and do not have the capacity to carry out such checks and processes at the level of detail required and having to devote precious funds and resources to these tasks can be costly for a business. When a specialist service is used, management efficiency will potentially increase significantly and a greater degree of contractor compliance can be enjoyed.


In summary, benefits for businesses that result from accessing the services of a contractor management and compliance specialist include:


The possibility of accessing information securely held about a contractor at any time

The ability to view contractor documentation online (this could include: insurance certificates, signed safety policies and procedures)

The option to quickly and succinctly view the compliance status of your current contractors

The ability to run compliance reports on contractors

Reduction in business administration costs

The potential for managers to enhance communication and their working relationships with contractors

Comprehensive fulfillment of legal requirements for contractor management

Reduced operational risk and improved performance for your business

The possibility of being notified when contractor compliance status changes

A simpler and more streamlined way of collecting, storing and accessing information

Information being constantly and thoroughly updated

Enhanced document management and online storage

Contractor management and contractor compliance need not be perceived as something that belongs in the 'too hard' basket for businesses. Contractor compliance and management are important areas that should be comprehensively addressed when a business outsources work to clients. Given the existence of specialist companies to fulfill these activities, both businesses and contractors would be foolish to leave themselves open to liability by failing to meet obligations and perform necessary checks.

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