A successful business relies heavily on how well and how smoothly processes operate, including the processes that involve contractors. To ensure that processes flow smoothly, contractor management systems are often put into place. A contractor management system is defined by Safeopedia as “a collection of integrated management processes that is used to control the risks associated with contractor management on an ongoing, real-time basis.” These holistic systems support businesses in managing the risks involved with contractor work and is dependent on compliance with several safety standards. Oftentimes, contractor management systems and its management processes are outsourced to a third-party contractor management firm. But how important is it to have contractor management systems in place?
The Importance of Robust Contractor Management Systems
Contractor management systems serve as a centralised repository of important information and documentation about a contractor.
Having a contractor management system in place enables businesses to have a singular system for contractor selection and qualification, performance agreements and monitoring, training, management, and evaluation, and more.
Helps keep track of compliance documents and schedules.
Contractor management systems help businesses ensure that they meet compliance deadlines and avoid regulatory fines. When businesses miss expirations and renewals, these often result to liabilities and risks. Having such systems in place enables businesses to track contracts and be alerted of any upcoming expirations and renewals to ensure that deadlines are met, and fees are paid on time.
Facilitates the assessment of contractors.
Contractor management systems help expedite the process of searching for and selecting a provider. Not all providers are created equal and some of them may have strengths and skills that accurately fit your business’ requirements. Such systems can also aid businesses in comparing providers based on their scores and compliance certificates.
Reduces costs and saves time and valuable resources.
Selecting a provider that does not meet a business’ objective is associated with costs. When tasks are not completed and objectives are not met, this results in delays and delays mean costs. Because contractor management systems ensure that businesses select the most qualified and high performing provider, they are able to cut down on unnecessary costs caused by such delays. In addition, contractor management systems also often allow contractors to manage their own training records, permits, licenses, and ceritificates required for organisational and regulatory compliance, enabling both businesses and their providers to save time and effort in manually documenting and safekeeping such important documents.
Aids in managing the entire contractor life cycle in on holistic system.
An automated contractor management system has consolidation capabilities that lets businesses conveniently access it in any Internet-enabled location. According to CQN Advantage, having such systems in place allows businesses to document each step of the process, “from the first point of contact to prequalification, bidder selection to post-contract performance review.”
Supports better decision making through robust reporting capabilities.
Contractor management systems go beyond serving as a centralised repository to analyzing data to provide meaningful insights that support better decision making. According to the Agiloft blog, such systems can provide “company-specific KPI-driven reports” that allow management to identify and address issues before they cause greater risks and costs. Such reports can also provide insight on past performance and foresee future outcomes to help support the development of business strategies.
Improves the quality of providers a business interacts with.
Businesses may have had negative experiences with previous providers and may be apprehensive in opening up their business to new opportunities. Contractor management systems help ensure that the providers a business interacts with maintain the highest standards and are compliant to such global standards. This also results to better supplier/client relationships, as both parties are able to achieve their collective objectives.
Contractor Management Systems Software
As with most business processes, contractor management systems are also supported by software. From managing performance and productivity to monitoring risks, such software makes reporting easier and more accessible. G2 outlines some of the most popular contractor management software today, including ServiceChannel, which is a single platform to source, procure, manage, and pay for commercial contractors, Oracle Textura, which supports the pre-qualification process, and Avetta, which ensures supply chains are working sustainably. Choosing the right contractor management systems software for your business may be a daunting task, which is why it is best to consult with contractor management specialists. These specialists can assess a business’ current systems and set them up with an online contractor platform that meets the business’ needs. After all, not all software are created equal and every business has unique requirements and risks that must be addressed by contractor management systems.