How to Streamline Contractor Management in the Manufacturing Industry

By Addison Moore
Last updated: July 30, 2023
Key Takeaways

An effective contractor management program is going to improve productivity, minimize delays, and most importantly, keep everyone safe.

In the fast-paced and complex world of manufacturing, efficiency and precision are paramount to a company's success. Manufacturers striving to meet ever-increasing demands often hire external contractors to complement their workforce and enhance productivity. These contractors also bring specialized skills and expertise that may otherwise be missing from your team.


However, with the introduction of contractors comes the challenge of effectively integrating them into your organization's ecosystem. An effective contractor management program will help you achieve this, while ensuring safety and compliance on the worksite.

It is a manufacturer's responsibility to assess the potential risks and hazards associated with the tasks each contractor will be performing and implement stringent safety measures to cover all the bases. Conducting thorough background checks, verifying licenses and permits, insisting on insurance coverage for contractors, and other elements of a robust contractor management program are all vital steps to minimizing liability and maintaining a safe work environment.


In this article, we’ll look at a few things manufacturers should include in their contractor management program to ensure that the entire process is streamlined and allows them to get the most out of your external hires.

(Learn more in Solving the 5 Most Common Contractor Management Challenges)

Improving Operational Efficiency

Manufacturing facilities are fast-paced environments, with high efficiency processes geared to delivering goods and meeting customer demands. So, what does this entail for your contractor management program?

Production Uptime

To ensure operational efficiency, manufacturers would ideally remain in a constant state of production. Unfortunately, that's not always how it pans out.

With so many moving parts and things to account for, delays are practically inevitable. Your contractor management program should be focused on minimizing these delays as much as possible without compromising the safety of the workers and contractors on site.


Fulfilling Requirements

Ensuring that the contractors you hire have everything they need to complete their tasks is a responsibility you share with them. Be sure to provide contractors the paperwork, training, and any other requirement they need to fulfill before they start working for you. Doing this ahead of time will ensure they're ready to work as soon as they show up, avoiding costly and inconvenient delays.

Coordinating Ahead of Time

A superior contractor management program will not only ensure that the contractors are ready ahead of the start date, but that the worksite is prepped for them as well. This means having the appropriate PPE on hand, running maintenance on all machinery that will be used to ensure it is in full working order, and making sure sure that specialized equipment is available.

While this may seem slightly excessive, that kind of prudence can significantly benefit any manufacturer. Anyone in the industry knows that every aspect of production is intertwined and interconnected. If one piece of the puzzle is missing, it could cause a wider delay that ripples throughout the entire facility. Taking steps to ensure that all the pieces are in place will reduce the likelihood of this happening.

(Find out How to Create a Maintenance Program for Manufacturing Facilities)

Clear Communication and Expectations

Transparent communication with contractors will ensure that everyone is on the same page. Project objectives, outlines, and deliverables are all critical to the success of your operation, so it's important to take the time to verify that all your contractors understand what's expected of them. This can be achieved by holding regular meetings, sharing progress updates, and leading feedback sessions.

Integration of Technology

Unless you're making use of a contractor management software solution, it will be impossible to fully streamline your program. This type of software assists with project management, time tracking, and communication. It also provides real-time analytics to better monitor the work being done, safety metrics, and project progress.

Performance Evaluation and Continuous Improvement

Manufacturers should conduct objective performance evaluations based on predefined KPIs to accurately measure a contractor's contributions to the project. Doing so will enable you to identify areas for improvement, help you provide constructive feedback, and recognize outstanding performance. This allows you to get the best out of your external hires while keeping them motivated and fostering a positive work culture.

Closing Remarks

Contractor management in the manufacturing industry is a delicate balancing act that demands foresight, clear communication, and proactive measures. By emphasizing risk mitigation, compliance, and technological integration, manufacturers can ensure seamless collaboration with contractors while maintaining the highest standards of quality and safety.

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Written by Addison Moore | Director of Marketing

Addison Moore

Addison has spent the last four years learning from and engaging in the Health & Safety industry. He
has attended numerous EHS conferences, trade shows, and events with the intention of helping
organizations achieve safety and compliance through contractor management software.

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