How to Conduct Contractor Performance Evaluations

A contractor’s safety is directly related to their overall performance on the job. An often overlooked aspect of contractor management is conducting performance reviews. They are important because they provide insight into how the quality of your contractors’ deliverables impacts your overall business performance.

Performance reviews can be used to scale your business, make changes to your organization, and proactively plan for the future. When evaluating the performance of your contractors, you need to consider a number of factors. These factors enable you to make data-driven decisions to keep business operations safer and more productive. Read on to learn more about what factors to consider when evaluating contractor performance.

Submission of the required documents

  • Can your contractors provide valid documentation upon request?
  • Have you received incomplete documentation from your contractors in the past?
  • How long does it take for your contractors to prove their credentials are valid?
  • Is one of your contractors missing the required documentation, causing a delay in operations?

operational assessment

  • Have your contractors had security incidents?
  • Has one of your contractors caused damage to your job site, equipment, or tools?
  • Have you ever had to report your contractors for non-compliance?
  • Were you or your stakeholders concerned about the provision of service providers by your vendors?
  • Have your contractors on your job site experienced work restrictions or suspended work orders?
  • Have there been any environmental incidents at your job site due to your contractors?
  • Did you have to distribute notices/alerts to your contractors?

progress assessment

  • Are your contractors making projects on time?
  • Is one of your contractors causing a delay in business operations?
  • Have your contractors improved in completing their tasks?
  • Are all project requirements met upon completion?
  • Do your contractors provide timely and accurate updates on project progress?
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  • Are your contractors able to work well with all of your internal employees?
  • Are they producing measurable results that contribute to organizational goals?
  • Do your contractors reflect your company’s security standards?
  • Are your contractors following company policy on health and safety?
  • Are your contractors following all guidelines specific to performing a task?

By providing yourself a detailed answer to each of these questions, you can gain valuable insight into how your third-party hired employees are performing in relation to the productivity they have demonstrated, as well as their security practices in relation to the needs of your organization and federal/state regulations. After gathering this information, the next logical step is to create a succession plan that details what actions you will take to move forward with new and existing contractors. To do this, you must first enter all the main reasons for your performance evaluation. A few reasons can be:

  • Decide which contractor(s) your organization will use
  • Keep records of all contractor activities at your job site(s)
  • Track the progress of your projects that contractors are working on
  • Identify gaps in your compliance caused by third parties
  • Get resources, money and time for projects
  • Gathering data on how to strengthen relationships with contractors

With this information, hiring organizations can then make informed decisions about how to move forward with their contractor management strategy. Depending on the outcome of your projects, you may want to adjust your onboarding process, re-evaluate your prequalification criteria, or allocate your time and resources to monitoring third-party activities using contractor management software. Either way, the best security plan is the one that gives you full visibility into your operations and adapts to adjustments and growth. Over time, evaluating your contractors’ performance will save you time and money, and make your workplace a safer and healthier environment for everyone. These effects allow you to refocus your business on its important operations with minimal disruption.

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Faris Badaro is Junior Marketing Specialist for Contractor Compliance, a SaaS software for contractor management.

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