Contractor management systems (or “prequalification schemes”) improve a business’ eligibility for contracts with vendors. There are a number of online contractor management systems through which contractors can register to become pre-approved to undertake work for large corporations and government agencies.
Contractor management systems such as Avetta, Pegasus, CM3, Browz or Rapid help companies monitor and manage their supply chains. They each deal with specific clients across a range of industries and take care of the vendor screening process, making sure that contractors meet the exact requirements of each job. This, ideally, makes supply chain management a less stressful process for contractors as well as customers.
Setting up contractor management systems can, sometimes, be a relatively time consuming process. This is often the case when contractors do not have a documented safety, environmental or quality management system in place. It is, however, important to note that gaining approval offers significant long-term benefits to the contractor – especially if it guarantees them preferred supplier status for larger ongoing contracts.
For more information on how contractor management systems can benefit your business, see our blog covering the topic.
The Process of Signing Up to a Contractor Management System
Step 1: Apply for registration on the website
Step 2: Most systems will have a dashboard that indicates questions to be answered and the format of documents that need to be uploaded. There is also support available in terms of live chat or email.
Step 3: Contractors are required to complete pre-qualification questions and supply documentation that will help the assessor measure their capability against specific criteria including technical ability, qualifications, QMS, WHS and EMS systems and financial controls.
Step 4: They may be required to submit evidence in support of statements made in the prequalification documents, such as proof of their activities, records as evidence of use of their system, and their competence and training qualifications. They might also need to have their business operations audited.
Step 5: Once all the documents are submitted, the application will be assessed and contractors will be notified of the outcome.
Step 6: There is normally an annual review requirement where some or all of the above will need to be done again.
In most cases, this is mainly a once off process. When you are successfully registered, your details become visible to all the other companies recruiting through that prequalification scheme and only need to be updated on an annual basis or as they change. There is then an opportunity to leverage the time and effort put into registration, by securing work with clients without further effort.
Contractor Management System Benefits For the Contractor
For the contractor, signing up with an online contractor management system is increasingly becoming a prerequisite to getting lucrative, ongoing work with Government or large corporates. This trend looks set to continue and increase in the coming years as more organisations are choosing to outsource aspects of their recruitment processes to third parties to save on time and resources.
While being prequalified doesn’t guarantee that you will win your tenders, it certainly positions you well to become known within the industry, to connect with important companies (the ones who regularly seek tenders) and to win the jobs you prefer.
For example, a client recently required registration with the Avetta contractor safety management system to be considered for any work with Metro Trains. Since going through the registration process with us, they have been pre-registered for several contracts, not all with Metro trains. Once on the database, they are visible to other clients who may want the same service and can find suitable people who already meet the minimum criteria. In Avetta, the average contractor ends up working with three unique hiring clients.
Contractor Management System Benefits For the Client
For the client, contractor prequalification schemes are part of supply chain management. They are designed to minimise an organisation’s exposure to risk when they seek contractors by ensuring that all applicants are screened first as part of the procurement process- particularly in terms of their safety requirements and records required. The client then knows that all contractors brought into their supply chain have met all the requirements for the role.
For example, if a company is looking for a crane operator that works in a specific region, they will be easily able to find them just by searching online via the contractor safety management database. But how do they know that the crane operator has the appropriate licenses, is carrying the appropriate insurance, has the appropriate health and safety training, has the appropriate corporate social responsibility practices, and maintains their fleet of cranes appropriately and safely?
Prequalification with the contractor safety management system, eliminates the risks and minimises the time and cost the client has to invest in recruiting the right service provider.
The Tasmanian Government website says “Prequalification is an assessment of a consultant’s or a contractor’s financial, managerial and technical resources and competence to execute and complete work required. Prequalification classifies the consultant/contractor according to their expertise and capability in specific work categories within a specific financial range.”
Contractor prequalification is intended to streamline the tender process, and make it easier for both parties to get on with the job.
Which Pre-Qualification Scheme is Right for Your Business?
There are a number of contractor management systems available, so before registering, you need to know which contractor management systems your ideal clients are working with. Those are the places you need to apply through.
For example, Pegasus is recognised for working within the mining industry, CM3 is a key player dealing with councils and shopping centres such as Westfield, while Avetta handles contractor management on a global level.
For more information about the individual schemes, see our comprehensive blog that covers this topic in detail.
Get in Touch With ICS Today
At ICS we can assist in a variety of ways including assessing your current systems, setting you up on any online contractor platform and or handling all the admin aspects of registering for you.
If you think your company could benefit from assistance with or a review of your Contractor Management Systems please get in contact with one of our compliance experts by calling 1300 132 745.