To achieve world class contractor management requires excelling in three key areas, safety, quality and productivity.
Safety
Using contractors used to be a technique used by companies to alleviate their responsibility for providing safety systems. Since then legislation has changed, legally contractors are effectively employees when it comes to safety ( in Australia see OH&S Act 2017 Part 1 Division 3 Subdivision 2 Item 7 Sub Item 1b)
This change in mindset requires a shift in approach as it is the company’s responsibility to ensure the contractors do risk assessments, safe work method statements, are involved in toolbox talks, are on training registers, and require supervision.
“legally contractors are effectively employees when it comes to safety”
Quality
” The basis of any good quality system is documentation and record keeping.“
Productivity
Similarly maintain operational standards is key to productivity. Six sigma manufacturing has taught us to reduce the variance in our process so we can use incremental change to drive lasting performance gains. Standards drive process stability and repeatability.
“Metrics can really help drive a culture of continuous improvement.“
Summary
The days of using contractors to simplify business process are gone. Contractors should be viewed as employees, and though this adds complexity it also presents opportunity. Contractors can add more value through improved quality and productivity while keeping safe.
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