Common Risks of Hiring Service Providers and Contractors

Hiring service providers can present unique challenges if compliance isn’t top of mind. Providers without the right insurance or credentials can create serious liabilities, from slip-and-fall accidents to costly errors during complex repairs. For example, an uninsured provider might make a simple mistake that results in unexpected expenses for your organization.

Using a facilities management platform that tracks compliance, sends reminders for expiring certifications, and blocks non-compliant providers from assignments can help. By proactively managing these risks, you ensure that only qualified, certified providers are working on-site, helping you avoid liability headaches down the line.

Additional Liabilities to Consider

Beyond the immediate risks of unqualified work or injuries, there are other potential liabilities to keep in mind when hiring providers:

• Unqualified Work: If a provider isn’t properly certified for tasks like electrical work, a small mistake could lead to serious damage or even jeopardize employee safety.
• Unauthorized Personnel: Without proper background checks or identification, unknown personnel on-site can present security threats, including the risk of theft or endangering staff.
• Cost Discrepancies: If work begins without a formal agreement in place, the final cost may exceed your budget. Disputes over charges can quickly escalate, with potential for costly legal disputes or even liens on your property.

How to Assess Provider Qualifications and Credentials

To make sure you’re working with qualified providers, establish a thorough vetting process. Here’s how:

• Reference and Background Checks: Ask for references, review licenses and certifications, and even check social media or the provider’s website to get a sense of their reputation.
• Terms and Conditions: Work with your legal team to outline terms that cover insurance requirements, payment terms, and more. Clear terms ensure compliance and set the foundation for a strong, accountable partnership.

The Importance of Clear Contracts

A detailed contract with each provider is essential for clarity and accountability. Key areas to define include:

• Standard Rates and Charges: Clarify rates for service calls, labor, and materials upfront to avoid surprises.
• Service Level Agreements (SLAs): SLAs establish benchmarks for response times, completion rates, and overall performance, giving you peace of mind that your provider can meet your needs.

With clear contracts in place, both sides know what to expect, fostering a relationship built on transparency and trust.

Effective Communication and Collaboration

Facilities managers often coordinate with multiple service providers, each with their own contacts and accounting departments. This can lead to communication overload, where vital details get missed. A centralized platform can simplify this process:

• Open Channels: Regular check-ins with your key providers help address issues before they escalate and prevent misunderstandings, like hidden fees or delays.
• Platform Familiarity: Ensure that your providers are comfortable using your management platform to avoid admin issues and miscommunication that could slow down the process.

Fexa’s Provider Performance Snapshot

Ongoing Monitoring and Evaluation of Contractor Performance

Regular reviews help ensure your providers continue to meet your standards. Establishing a consistent monitoring process also allows you to make data-driven decisions about ongoing partnerships. Key strategies include:

• Quarterly Business Reviews (QBRs): Conduct quarterly reviews to measure performance against key metrics, such as response times and adherence to budget.
• Key Performance Indicators (KPIs): Metrics like response time and first-time completion rates are essential in assessing a provider’s reliability, especially in high-stakes situations like HVAC repairs or plumbing issues.

With clear KPIs in place, you can confidently address any gaps in performance and make strategic choices for your organization. A modern Computerized Maintenance Management System (CMMS) platform should provide you with a sharable score card and flexible metrics to make business reviews easy so that you don’t have to be an analyst to raise the bar.

Building Success Through Proactive Provider Management

Say goodbye to the never-ending to-do list.