4 Ways Outsourcing Contractor Prequalification Saves You Money | FIRST, VERIFY

Uma Moghe • December 1, 2020

Contractor prequalification is a complex and time-consuming process that needs a lot of commitment. You need to hire contractors that are licensed, qualified and insured; but on top of that, you need to collect all the documentation supporting their credentials. That means understanding how regulatory requirements affect your workplace while making sure that your contractors don’t introduce risk into your operations.


It can be tempting to keep the prequalification function in-house so you have control over the process and oversight of your approved contractors, with the goal of ensuring that everything is managed in line with your business requirements. However, building up internal expertise and committing to the prequalification function as your business grows can be a lot to take on. What’s more, by tackling contractor management in-house, you may not be using your staff resources effectively or to their full potential.


When to Consider Outsourcing Contractor Prequalification

If you already handle contractor management successfully in-house, you know how complex and time-consuming it is. You may not have thought of it this way, but this work probably comes at the expense of core business tasks. And if you’re struggling to manage your contractor services, then compliance issues can lead to project delays, increasing costs, and even the risk of financial penalties.

If you find that contractor management is taking too much time and pulling you away from your business priorities, or you are struggling to get your head around the rules and regulations, then it may well be time to consider outsourcing.


How Outsourcing Contractor Prequalification Can Save You Money

The cost of contractor prequalification is an important consideration. It’s the classic cost versus risk scenario. Fortunately, there are several ways that outsourcing can save you money:


1. It Saves You Time

Instead of staff spending time requesting and collecting documentation, reviewing ever-changing regulations, and verifying contractor compliance status, you can focus their attention on your core business priorities.


2. It Reduces the Risk of Working with Contractors

If your approved contractors aren’t compliant with your engagement requirements (safe work history, appropriate insurance coverage, no OSHA citations, required licenses, and other up-to-date documentation), then your business could be at considerable risk. By handing over the responsibility to a contractor management provider whosesole focus is to verify compliance, you can have confidence in the results they deliver while reducing your risk exposure and avoiding potential brand damage.


3. It Helps You to Maximize Your Resources

Even if you have an employee who knows their stuff regarding contractor management, what do you do when they are on vacation, out sick, or leave the company? By outsourcing, you don’t have to worry about gaps in compliance due to lack of resources and you don’t have to lose time retraining your workers.


4. It Supports Your Growing Business

If you decide to add a new location or have a new project that you need to get off the ground quickly, the last thing you want to do is encounter delays. By having a scalable solution in place for managing your contractors, you can quickly get new workers on board and safely grow your business at a moment’s notice.


A Cost-Effective, Customized Solution to Contractor Prequalification

If you take into account how outsourcing contractor management can save you money, especially in the long term, it makes sound business sense. To justify the spending, all you need to do is work out what your in-house process costs (staff time, software and platform costs). You are likely to spend a significant part of someone’s salary on managing supplier documents and liaising with your contractors. It’s important to make sure that the contractor management solution you choose meets your business requirements. By doing your research, you can find a contractor management company with the expertise and flexibility to deliver a cost-efficient solution that can grow with your business.


FIRST, VERIFY has helped organizations of different sizes across various industries overcome contractor prequalification challenges. We can help you develop a fully customized contractor management service that will not only be effective to suit your individual needs but will make your organization safer, while minimizing your overall risk. Request a demo now or visit the FIRST, VERIFY page to find out more.


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