Best Practices in Contractor Safety Management

Joy InouyeResearch Associate

Campbell Institute

Pat CunninghamDirector, Safety & Auditing Services

BROWZ

BROWZ delivers assurance that businesses are working with safe, qualified, and socially responsible

contractors and suppliers.

Contractor Prequalification & Management

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Participants

As of 2/15/2016

Featured Organizations

What is a contractor?

Non-employees on company site?

What if they work off-site?

Suppliers of equipment? Servicers of equipment?

Long-term and embedded?Short-term vendors?

Who here uses contractors?

Does anyone here act as a contractor

for other companies?

A Global Look

70% of organizations contract more than 5% of the workforce – KPMG study

45% of organizations struggle to attract qualified craft labor – KPMG study

15.5 million in U.S. are self-employed; 60 million by 2020 –BLS and Intuit studies

Top Compromising Factors

Financial pressures that lead to shortcuts and unsafe behavior

Lax training and supervision, broken info flows, unclear work responsibilities

Insufficient safety standards and relaxed enforcement

Contractor Life Cycle

1. Prequalification

2. Pre-job task & risk assessment

3. Training & orientation

4. Monitoring of job

5. Post-job evaluation

1. Prequalification Best Practices

Analysis of safety statistics (EMR, TRIR, DART, etc.)

Inclusion of records, logs, continuous improvement plans

1. Prequalification Best Practices

Use of third-party verification services

Fill performance gaps, ensure compliance for specific industries

1. Prequalification Best Practices

Use of internal scale, checklist, or rating system

Grade or rating based on policies, statistics, history

WC claims, injury logs, environmental reports, regulatory citations

Citation records, fatalities

Continuous improvement plans

2. Pre-job Task & Risk Assessment Best Practices

Risk rating of work to be performed

• Liability categories• Action levels

Rating based on risk matrix, additional safety programs

for high risk

Risk point values for severity, frequency, and probability

Risk assessed in terms of insurance liability

Higher liability projects vetted through third party

2. Pre-job Task & Risk Assessment Best Practices

General contractors responsible for holding subcontractors to safety standards

Subcontractors must meet same requirements, submit

pre-job hazard analysis

3. Training & Orientation Best Practices

Mandatory safety training before work begins

Required tests, documented pre-shift safety meetings

Training completed within one week of start of work

Safety video and test directly afterward

30-hour and 10-hour OSHA courses

3. Training & Orientation Best Practices

Specialized training offered • Hazard identification• PPE• Fall prevention

Annual refresher courses, badges to indicate

specialized training

Specialized area trainings completed through online program

Refresher courses held annually for long-term contractors

4. Job Monitoring Best Practices

Periodic assessments (e.g. daily, weekly, monthly, annual)

Compliance with pre-task safety plans

4. Job Monitoring Best Practices

Safety observations from contractors

Mobile apps to submit observations, quota per month

Contractors submit minimum of 2 observations per employee per month

Uses mobile app (Lifeguard®) to track reports of unsafe conditions

4. Job Monitoring Best Practices

Maintenance of incident & near miss report logs

Reports on incidents & corrective actions to evaluate performance

Quarterly reports on lost-time injuries and dollar losses for Quality Assurance Plans

Contractors maintain incident and near-miss report logs

Common Challenges

Lack of specific courses of action for contractor infractions

Action flow chart, levels of discipline, strict policy for

serious infractions

Consequences outlined for 1st-3rd

infractions; termination of contract on 4th

Flow chart of actions for contractor infractions ending in dismissal

IDLH infractions are grounds for immediate termination of contract

Common Challenges

No integration of contractors into an organization’s safety statistics

Contractor injuries still tracked, even if not included

in company scorecard

Common Challenges

No formal post-work evaluation of contractors

Guidelines for requalification, evaluate if work was done

safely & well

Post-work evaluations considered when bidding for future jobs

Safety & Operating Inspection completed for every process change

Periodic performance reviews capture contractor performance

Common Challenges

Lack of direct oversight of subcontractor safety

Host employer liability gap with prime contractors

vetting subs

Summary of best practices and common challenges

for more information on Campbell Institute member contractor programs and to download the research white paper.

Visit thecampbellinstitute.org/research

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