Contractor screening

Contractor Screening is a system that companies use to examine and separate their outsourced workforce into qualified and unqualified categories. The method is used to segment contractors based on having the necessary qualifications to perform the work that the company needs.
Background
Every day 10.3 million independent contractors go to work in the United States . In addition, 6.5 million people work at approximately 252,000 construction sites on any given day across the United States . Contractor screening provides a reliable method to organizations to prequalify their outside workforce. The process allows the firm to see the contractors that perform at or above par, and which suppliers may need to make additional efforts prior to coming on-site.
Effective vendor management through contractor screening ensures that only qualified contractors are brought on-site and provides a solid direction on how to segment the workforce.
The following are examples of paperwork and data gathered to properly screen contractors:
# Prequalification Form (PQF)- The prequalification form is used in the contractor screening process to verify contractor licenses and ensure regulation compliance.
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# Insurance Form- The insurance form reviews insurance certification to verify that each certificate meets the organizations requirements with regards to coverage and duration.
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# Audit- The audit process is performed by a professional Auditor. It typically defines the guidelines and lists the process safety management elements that must be examined and provides a final report of the Auditor’s findings.
::According to the in Appendix C of the Regulations Standard §1910.119, an audit is a technique used to gather sufficient facts and information, including statistical information, to verify compliance with standards. Listed below are common contractor screening audits:
:::a. Field Audit - On-site monitoring and evaluation of work being done to ensure that the safety manual is being implemented at a site-specific level .
::::i. The system should provide regular objective feedback to management covering the full range of facilities and activities, including:
::::: 1. Detailed operations reviews.
::::: 2. Review of standards.
::::: 3. Audits of conformance.
::::ii. There is a system which ensures that recommendations are approved by management and implemented according to an agreed timetable.
::::iii. The company’s audit and inspection program includes the ability for management to observe the operation and conditions at work sites.
:::b. Manual Audit - A review of the company’s safety manual. In contractor screening, the manual audit verifies the following :
::::i. There are effective stewardship systems in place.
::::ii. An active and effective safely plan and program is in place.
::::iii. An accident reporting and classification system is in place which permits comparison of safety performance on an inter and intra-company basis.
::::iv. There is an effective professional safety group with direct access to senior management.
::::v. The safety department acts effectively as a support to line management.
::::vi. Line management is accountable for the safety of contractor’s operations, and has the necessary authority to ensure that safety requirements specified in the contracts are met.
:::c. Implementation Audit - Verifies that the guidelines outlined in the safety manual are implemented at an operations level. The implementation audit systematically identifies which operations require written procedures, including ensuring that :
::::i. Written procedures exit for all identified routine operations
:::::1. Compatible with the design intent.
:::::2. Easily understandable and usable.
:::::3. Readily available at the site where the operation will take place.
:::::4. Regularly reviewed and updated, including consultation with the staff using the procedure.
::::ii. There is an effective system in place for the identification, development and approval of procedures for non-routine operations.
::::iii. Safe working practices are:
:::::1. Defined
:::::2. Documented
:::::3. Followed
:::::4. Updated
::::iv. These practices should cover all aspects of the operation, such maintenance, inspection, corrosion control, production operations, etc.
::::v. There are effective work control systems in place e.g.:
:::::1. A permit to work.
:::::2. Equipment Inspection
:::::3. Radiation monitoring
::::vi. Adequate records are available
:4. Employee Background Checks- As a standard pre-employment measure, background checks are frequently performed during contractor screening to verify the following :
:::a. Credit History
:::b. Criminal Records
:::c. Medical Records
:::d. Military Service
:::e. Information Accuracy (Lie Detector Tests)
:::f. School Records
:::g. Worker’s Compensation Records
::: In the case of higher-risk trades, such as those associated with Mining, Oil & Gas, and Petrochemicals, it may be necessary to check for job competency in addition to standard pre-employment checks as part of a standardized contractor screening program. This can be done by screening contractors for the following:
::::i. Craft Training & Certifications-Background checks for high-risk trades like those mentioned above should be performed on each employee to ensure they hold the proper training and certification required to do the position. This is an important part of effective contractor screening.
::::ii. HSE Competencies- According to the International Association of Oil & Gas Producers, competence is a combination of knowledge, understanding and skill. It follows the following categories:
:::::1. The understanding and skill are acquired by experience.
:::::2. Verifying that a firm’s contractual workforce possesses the proper HSE competencies ensures that individuals are aware of the hazard associated with the work place.
:::::3. Requires personnel to conduct work with the appropriate level of safety and competency
::::iii. Operator Qualification-Operator Qualification requires an operator of equipment to pass a written assessment program for the qualification of individuals performing certain functions . It ensures that equipment operators have demonstrated competency in the trade they are performing.
::::iv. OSHA/ MSHA Training- The United States Department of Labor offers OSHA and MSHA training for occupational and mine safety. Employees who participate in higher-risk trades should be certified in OSHA and/or MSHA training so that employers can be certain they are prepared to deal with hazardous or emergency situations.
It is essential to ensure contractors are properly screened and safe to work at every facility, particularly when high-risk trades are involved. Establishing proper protocols is often the difference between a safely completed job and an unfortunate loss. To avoid accidents and select safe contractors, it is important to focus on objective criteria in performing contractor screening. Determine loss history by collecting the last three years of safety statistics, e.g.:
* Fatalities
* EMR- Experience Modification Rates
* LWCR- Lost Work Case Incidence Rates
* TRIR- Total Recordable Incidence Rates
Firms also need to be aware of work history, written policies and past performance for effective contractor screening. OSHA’s Voluntary Protection Programs (VPP) requires that companies have a comprehensive safety and health management system that is tailored to their worksite’s specific needs on the consulting side of safety . OSHA’s Process Safety Management (PSM) also offers specific contractor management elements to ensure compliance and allow companies to be up-to-date with regulatory policies.
These benchmarks can assist in establishing expectations, measuring current performance and driving continuous improvement. Third-party contractor management companies also exist to provide additional help for those firms that require additional assistance for contractor screening.

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