Contractor Management: How clients and contractors should work together -An introduction

Contractor management implements a system that manages contractor’s H&S information, insurance information, training programs and specific documents that pertain to the contractor and the client.
(As per the HSW Act, the Act applies to all work activities. It requires employers to ensure, so far as is reasonably practicable, the H&S of:their employees; other people at work on their site, including contractors; members of the public who may be affected by their work.)

Ref: Www.hse.gov.uk, Managing contractors- HSG159, Construction (Design and Management) Regulations 2015. Guidance on Regulations

Who is client / Customer ?

A person or an organization that authorized/ engage vendor, service provider, suppliers/ out sourced for various work ,job, service, supply requirements is known as client. E.g. Consumer, buyer, purchaser

Who is contractor?

A person or an organization (as a vendor, service provider, supplier, or outsourcer) performs certain work , jobs, services, and supply requirements from time to time for the client (employer or organization).

E.g.:

Principal contractor,

Sub-contractor.

Construction Contractor,

Specialist Contractor,

Works contractor

A contractor can:

be self-employed
have the employment status of a worker
have the employment status of an employee if they work for a client and are employed by an agency

Steps of effective Contractor Management

Effective contractor management is critical to ensuring that work is carried out safely and efficiently, and that all legal and regulatory requirements are met. As per HSE (Health and Safety Executive) guidelines in the UK, the steps of contractor management are as follows:

Step1: Planning the work (Planning)
Step-2 Selecting the Contractor
Step-3 – Working at site
Step-4 Keeping a check
Step-5 Reviewing the work of the Contractor

Now we see these steps in more detail:

Step1: Planning the work (Planning)

(When Client pre-planning to involve contractors)

The following points should be considered when pre-planning to involve contractors:

H&S must be included in the contract document / tender document or in proposed scope of work specification (e.g. RFP-Request for proposal / EOI-Expression of Interest / RFQ-Request for tender / Tender notice etc.) ;
All significant hazards must be included in the contract specification/ documentation;
The contract documented should be prepared with safety and health in mind;
The contractor must be given basic site and H&S information of the workplace by the client, such as welfare, fire safety, emergency procedures, significant hazardous material storage, chemical storage , PPE requirement etc. in scope of the work

Step-2 Selection criteria of Contractor

(Factors of Selecting the Contractor)

Choosing a contractor

Things you should check:

H&S Policy --A copy of contractors’ H&S policy;
Employers’ Liability Insurance Certificate--Whether contractor done Employers’ liability insurance of his workers and provided insurance cover to all its employees.
Risk Assessment--Examples of Contractor’s quality risk assessments
SSW (Safe System of Work)–or similar Safe system of work like PTW/ SOP/ JSA/JHA etc.;
Contractor has Safety method statements
Qualification Records --Competency level - The qualifications and experience records of contractor’s staff/workers;
Experience of similar type of work – Contractor does the similar activity or not.
Skills– Contractor has the skill to perform that activity or not.
Training Records -A record of each contractor’s employees induction training, job-specific training , ongoing training and health surveillance.
Accreditations held by the Contractor
Membership of Trade Bodies or Membership of a professional organisation or certified body (License to carry out that type of work) (e.g. IOSH) ;
Membership of Contractor H&S assessment scheme
Contractors’ meeting legal compliance or not
Names of previous clients to be considered to assess the past performance of the contractor.
Current clients/customers to use as references (to check Contractor existing H&S performance);
Accident Rates / Accident Statistics -- Accident & Incident history records, (e.g. near miss records, LTI* records , First Aid Cases etc.) to be checked.
Enforcement Action--Records of enforcement action taken by enforcement authorities against them
Prosecution Action- Any Prosecution action taken against the Contractor or not.
Any H&S Formal order issued -- (HSE/ legal notices – improvement notices or prohibition notices issued against the contractor or not);
Available Resources--Proof of adequate resources( availability of all necessary PPEs, Safety Equipment etc.) to be checked.
Competence of H&S assistances– Contractor has access to specialist safety advice or not.
Selection procedure for sub-contractors to be checked.
Subcontractor management system to be checked.
HSE plan to carry out the work safely,
Emergency Procedure implementation or not ,
H&S Management System- whether Contractor is having OHSMS or not.
Equipment Maintenance Records- - Records of maintenance and test for plant and equipment (e.g. lifting equipment , crane , hoist);-
Equipment Inspection records--whether contractor having safe machines and equipment. ( Why- old / Defective machineries will lead to accident.)
Arrangement for managing work on site is done by the contractor or not.
Arrangement for consulting its workers is done by contractor or not.
Arrangement of Safety monitoring to be checked

Learning Outcome:

List the criteria that might be used to assess the suitability of a contractor to undertake work on behalf of a client.
What are the factors that should be considered when assessing the health and safety competence of a contractor?
When selecting the external contractors, what would you consider when assessing their competence?

Step-3 – Working at site

(Co-ordination of Work between client & contractor)

During “Working at Site” the following Information to be shared between client and contractor:

Prior to the start of work, H&S policies should be exchanged;
Exchange information with them about the job and go through any safe working methods before work begins i.e. Scope of work, Risk assessments, Method statements etc.
The contractor must be given basic site and H&S information of the workplace by the client, such as welfare, fire safety, the alarm , first-aid facilities, emergency procedures, significant hazardous material storage, chemical storage etc.
Hazards posed by the site and work carried out;
Hazards posed by the contractor’s activities;
To avoid any conflict between the client and contractors during stages of the work, coordination is mandatory and should be mutually resolved without affecting work and others.
Communication and co-operation are needed on both sides – something that requires active management.
any information and instruction relevant for a new contractor to carry out their work safely is provided to them
Regular planning meetings between the client and contractors
Ensuring activities don’t conflict; (Priority)
Permit-to-work system (PTWS) to control high risk activities;
Name a site contact (someone to get in touch with on a routine basis or if the jobs changes and there is uncertainty about what to do). (Key contacts from both sides , e.g. works foreman identified to ensure continuity.) e.g Contractor Representative & Owner Representative
Establish a timetable/timeschedule for formal and regular review of the contractors safety management system through inspections, audits and safety meetings.

Step-4 Keeping a check

(Managing the work Between client & contractors)

Clients must monitor the work to ensure safety. The client can stop the work if contractor involves unsafe practices (e.g. Unsafe Act/ Violation/mistakes / rule breaking etc.);

Following arrangement should be made between client and contractors for ensuring safe managing of the work.

Is the work being done as agreed in scope of work? ( is it going as planned?)
Ensure Site inductions are provided.
Reasonable steps are taken to prevent unauthorised access.
Follow ups as per risk assessment shared between both ;
Follow ups as per SSW / PTW / Methods statement shared & agreed between both ;
Client can go for Safety inspections & Safety Audit against agreed method statements to monitor the H&S performance of contractor.
Such inspections and audits should also be undertaken regularly on the companies own health and safety systems
Enforce use of PPEs & Safety Equipment being used at the workplace;
Reinforce H&S information,
Enforce site rules,
Follow instruction of the client
Signing in and out is important for all contractor, whenever they come & go.
Are the contractors H&S systems actually in place and are they being followed? Are they working safely?
Liasioning with the contractors
Have there been any incidents?
Are any other special arrangements necessary?
Contractors’ workers are consulted and engaged in securing their H&S
taking prompt action where necessary;
If any deviation identify, work should be stopped for review till mutually agreed again by both;
Effective supervision required of the contractor
Adequate welfare facilities ensured by contractor to its workers ;
Adequate resources availability;
ensure those engaged to carry out the work are capable/ competent of doing so;
Ensure effective, preventative and protective measures are put in place to control the risks by Contractor;
Ensure the right plant, equipment and tools are provided to carry out the work involved .
Time management (Sufficient time) and dead line;
Priority given to H&S;
Legal compliances are complied by the contractor ;
Emergency readiness and preparedness ensured by the contractor;

Step-5 Reviewing the work of the Contractor (Contractor Performance and Evaluation)

Once the job has been completed it is necessary to review the job. A review should be used to improve on future contracts and should include:

A review of the outcomes and achievements of the contractor.
Verification of the adequacy of procedures in place, which are followed by the Contractor .
During the review process, any Amendment or addition to the procedures required or not to be ensured.
Recording and rating the overall performance of the contractor against established criteria.
Provision for feedback to the contractor.
Closeout the contractor
Complete any necessary paperwork or documentation;
Ensure all H&S obligations have been met;
Conduct a final inspection and walk-through with the contractor;
Make final payment and release the contractor;
Keep records for future reference.

By continuously reviewing and improving the HSE management system, the Client and Contractor can ensure that their workplace remains safe for everyone involved.

These are some of the common steps involved in contractor management. It is important to note that the specific steps and requirements may vary depending on the project and industry. Effective contractor management can help ensure the safety of workers and the successful completion of the project.

What are the Client duties in relation to managing projects?

Following are the client duties in relation to manage the projects:

(1) A client must make suitable arrangements for managing a project, including the allocation of sufficient time and other resources.
(2) Arrangements are suitable if they ensure that—
(a) the construction work can be carried out, so far as is reasonably practicable, without risks to the health or safety of any person affected by the project; and
(b) the facilities required by Schedule 2 are provided in respect of any person carrying out construction work.
(3) A client must ensure that these arrangements are maintained and reviewed throughout the project.
(4) A client must provide pre-construction information as soon as is practicable to every designer and contractor appointed, or being considered for appointment, to the project.
(5) A client must ensure that—
(a) before the construction phase begins, a construction phase plan is drawn up by the contractor if there is only one contractor, or by the principal contractor; and
(b) the principal designer prepares a health and safety file for the project, which—
(i) complies with the requirements of regulation 12(5);
(ii) is revised from time to time as appropriate to incorporate any relevant new information; and
(iii) is kept available for inspection by any person who may need it to comply with the relevant legal requirements.
(6) A client must take reasonable steps to ensure that—
(a) the principal designer complies with any other principal designer duties in regulations 11 and 12; and
(b) the principal contractor complies with any other principal contractor duties in regulations 12 to 14;
(7) If a client disposes of the client’s interest in the structure, the client complies with the duty in paragraph (5)(b)(iii) by providing the health and safety file to the person who acquires the client’s interest in the structure and ensuring that that person is aware of the nature and purpose of the file.
(8) Where there is more than one client in relation to a project—
(a) one or more of the clients may agree in writing to be treated for the purposes of these Regulations as the only client or clients; and
(b) except for the duties specified in sub-paragraph (c) only the client or clients agreed in paragraph (a) are subject to the duties owed by a client under these Regulations;
(c) the duties in the following provisions are owed by all clients—

(Reference : www.hse.gov.uk , Construction (Design and Management) Regulations 2015. Guidance on Regulations )

Duties of Contractors

These are the duties of contractors in relation to managing projects:

The contractor must ensure that the client is aware of their duties under the regulations before carrying out any construction work on the project.
The contractor must plan, manage and monitor the construction work to ensure that it is carried out without risks to health and safety.
If there is more than one contractor working on the project, the contractor must comply with the directions given by the principal designer or principal contractor, and with the relevant parts of the construction phase plan.
If there is only one contractor working on the project, the contractor must take account of the general principles of prevention when deciding on the design, technical and organisational aspects of the work, and when estimating the time required to complete the work.
If there is only one contractor working on the project, the contractor must draw up a construction phase plan or make arrangements for one to be drawn up as soon as practicable before setting up the construction site.
The construction phase plan must fulfill the requirements of Regulation 12(2).
The contractor must not employ or appoint a person to work on the site unless they have or are in the process of obtaining the necessary skills, knowledge, training and experience to carry out their tasks safely.
The contractor must provide appropriate supervision, instructions and information to workers under their control to ensure that the work can be carried out safely.
The information provided must include a site induction, procedures to be followed in the event of serious and imminent danger, information on risks to health and safety, and any other necessary information to enable workers to comply with relevant statutory provisions.
The contractor must take reasonable steps to prevent unauthorized persons from accessing the construction site.
The contractor must ensure that Schedule 2 requirements are complied with, so far as they affect the contractor or any worker under their control.

Learning Outcome:

Q-1: How could the organization reduce the risk to contractors before the project starts and during the project?

Q-2 An organization has all of its maintenance work carried out by contractors. How can the organization help to ensure that this work is carried out safely?

Q-3-Contractors are carrying out a major building project for an organization. How could this organization reduce the risks to contractors carrying out the project?

Q-4 Discuss how effectively the contractors will be managed by the organization during any process vessel modification.

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