For organizations that are looking at implementing a contractor management system, or upgrading their current one, the considerations and challenges are daunting. While the value of contractor pre-qualification seems self-evident it’s often times the how and with what tools questions that make choosing a corporate path more difficult. Even basic due diligence activities like verifying contractor insurance and workers compensation coverage can be time consuming and fraught with administrative impact. Further complications include more stringent legislation and industry practices that push the due diligence bar higher. In short, general contractors are expected to do more on the contractor management file and typically with fewer resources. As with many aspects of the work we do in the 21st century, technology can be an effective force multiplier that gives purchasing organizations a better business process for less cost.
9 Things to Consider
Contractors = Potential Risk
Whether you have a handful or hundreds contractors represent potential risk and liability to your company. Automation of contractor data and document management can ensure critical functions like verification of insurance, business licenses and qualifications are completed with accuracy and efficiency.
You may also enjoy: Best Practices in Contractor Prequalification Webinar
You Do Not Have a Contractor Pre-Qualification Process
Without a pre-qualification process critical risk factors can go unnoticed, hence unmanaged. Cloud-based software can provide a turnkey business solution that provides immediate structure and an effective contractor assessment process.
An Inefficient and / or Inaccurate Pre-Qualification Process
With an automated approach, the key value additions are a consistent process and efficiency. Web-based contractor management software effectively eliminates the inefficiency of paper files and manual tasks.
Contractor Information in Multiple Places
Data scattered through multiple manual and electronic storage systems compounds administrative effort and can lead to errors. Having data and documents in one secure online location, enables you to locate needed information at any time.
Your Pre-Qualification System Is Long and Complicated or Too Short Give Value
Contract development, negotiation, data and document collection, and approvals can get bogged down through the chain of departments and myriad processes. Automation can not only streamline your business processes but may also improve risk mitigation, efficiency and consistency.
Contractor Status Information Is Not Available 24 / 7 / 365
Many purchasing organizations have round the clock operations. With cloud access needed information is available any time it’s required. Effective automation means uninterrupted business support.
The Status of Your Contractor’s Documents Is Unknown or Unmanaged
It is common for contractors to submit documents and data only to be filed away or lost. The issue then becomes are those documents still valid? With an automated approach, all dated documents are tracked for expiry dates with notifications to you and the contractor.
Contractor Communications Could Use a Boost
Automation allows for clear lines of communication with your contractors. Completion status, document requirements and data submittal expectations are transparent and easily administered.
You Want to Change Any of the Above!
Contractor management automation does not have to be costly or administratively burdensome. Contractor management software with customizable features and modular design are available for as little as $20 a day.