Many companies choose to follow the outsourcing route, dealing daily with an array of contractors. The main reasons for using
contractors vary from the need for specialised expertise to supplementing an undersised work force.
Although the use of contractors has various advantages, there can be multiple difficulties that lead to disruptive and expensive
operations. The key to a successful client and contractor partnership is a suitable process and best practices supported
by the effective management of a comprehensive Service Level Agreement (SLA).
Pragma is involved with the full spectrum of contractor management. Once the required contractors have been sourced, evaluated and inducted, the next phase is contractor management. Contractor performance is measured continuously and monthly reports on their performance compared to their agreed targets are provided. A structured process is used to manage contractor underperformance.
Contractor suitability (which includes rates and geographical factors) is also regularly evaluated to determine whether the most suitable contractors are being used at each client site.
When should you seek help with contractor management?
From our experience, business partnership, such as outsourced services can be difficult to manage when they are not correctly contracted from the start. Proper service level agreements can help to eliminate performance issues, but there are a host of other challenges that must be addressed to secure a trusting win-win relationship. If you are unable to give a positive response to the questions below, you need to seek help with the management of your service providers:
- Do you have the best contractor for the job?
- Does the contractor perform his/her work in line with your business ethics and values?
- Is the contractor sufficiently trained to do the job according to health and safety requirements?
- Does the contractor complete the job within a reasonable time according to agreed service levels?
- Does the contractor perform the work at a competitive price and stay within agreed costing structure?
- What risks do you face in terms of business continuity if you lose this contractor?
- Do you have all the legal documentation in place to protect you in case of contract breach?
- Do you have performance measures in place to ensure that the contractor delivers work according to an agreed service level agreement?
- What is the cost and risk involved with recalls?
- Is the quality of the workmanship up to standard?