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?
Why is good contractor management important to your business?
Well managed outsourcing has many benefits. Through the years we have managed to consitently render the following benefits to our clients:
- The administrative burden of sourcing and managing contractors is removed.
- The contractor best suited for the job is appointed, ensuring optimal asset care and asset performance.
- Pragma has bargaining power and negotiates competitive rates to ensure cost efficiency.
- The client has the assurance that the appointed contractor complies with industry requirements and standards.
- Asset information is readily available for effective decision-making and followup.
- Long-term contracting ensures continuity and sustainability.
- Risk is reduced by documentation and sign-off being provided at relevant points.
- The client is ensured of the quality of contractor workmanship as it is actively managed.
- The burden of managing stock is removed or reduced.
- A client’s overhead costs are less as contractors are only used when required, giving a flexible and scalable workforce.
Pragma's contractor management solution
Contractor requirements are determined according to industry, type of assets and type of work necessary. We follow a strict and documented process of contractor recruitment, evaluation, appointment, training and do ongoing performance assessments. To ensure that our clients are satisfied with our selection, we involve them in the final stages of the evaluation process to give final approval before the contractor is appointed. As the appointed asset management service provider, we sign the agreement and Memorandum of Understanding with each contractor with an annual review thereafter.
We provide induction training to ensure that the contractor understands the client’s operation and asset management requirements. To maintain high levels of service delivery, the contractor’s performance is managed continuously and we also review the contractor’s suitability to still perform the work.
Pragma’s On Key Maintenance Manager, Work Manager App and Insights is the ideal toolset to manage and analyse the progress of work performed by contractors. Features of the toolset include:
- Assets with their related tasks are set up according to the agreed SLAs per asset type.
- Work is measured, monitored, and managed according to the SLA to ensure that work is completed within the expected timeframe.
- SLAs are measured by tracking factors such as status changes, and the received on, required by, start on and complete by dates of work orders.
- Notifications are sent via email or SMS when a trigger is activated.
- Notifications are set up in templates, saving time when repetitive messages are sent.
Make the call, today!
If you are considering to partially or fully outsource your asset management services you can speak to us for advice or to partner with you to manage your contractors. Call us today.
Projects and success stories
Client Reference | Distributed Facilities | Retail | Contract and Contractor Management | On Key
Improving contractor control and rates could result in a potential saving of more than 10% on the total repairs and maintenance spend.
Reference story | Retail | Costing Model
One costing model, applied across our 200+ contractors enables us to thoroughly manage/verify invoices.
Case Study | Distributed Facilities | Office Management | Curo Fund Services | Contractor Management and Work Processes
This is how we reduced our client's printing paper usage by 25% and reduced their monthly recycling costs by 308% while working with them to develop an FM strategy.