Building trusting relationships with contractors is crucial for sustaining business growth and mitigating the risks associated with outsourcing skills and labour. An evolving business landscape has seen several industries become increasingly reliant on contractors to deliver essential work and services, with the largest number of independent contractors seen in the construction, professional services and healthcare industries.
Understanding the importance of forming trusting relationships with contractors and suppliers helps to build a reliable network of contractors that can be engaged on an ongoing basis for specialised areas of work.
Why relationships matter in mitigating contractor risks
Contractors bring a variety of specialised skills and expertise to projects, allowing organisations to scale their level of engagement based on the capabilities of their permanent workforce. As reliance on contractors grows, to perform critical tasks, ensuring these relationships are built on trust and transparency is essential.
Contractors associated with your organisation pose several financial, reputational, and operational risks if managed incorrectly. Some key areas of risk involved include:
- Non-compliance resulting in incident or injury on site
- Financial implications for damaged equipment or fines
- Operational delays due to inefficient onboarding
- Reputational damage the actions of contractors
- Low output quality due to inexperience
Positive and transparent relationships between contractors and clients assist in reducing the risks associated with outsourcing work.
Strategies that build and maintain contractor-to-client relationships
Positive relationships between contractors and clients are beneficial for both parties, who can rely on one another for secure, high-quality work with transparent communications. Although contractor engagements are transient in nature, positive engagement can result in ongoing work across large projects.
Key principles to consider in building effective relationships with contractors include:
1. Setting and managing expectations
Outline clear expectations and requirements of contractors to ensure the work of outsourced labour reflects the values and goals of the client organisation. This may include expectations of project quality, and environmental and social practices.
3. Regular communication
Maintain open communication to address issues promptly and keep both parties informed of the progress, roadblocks and changes to the project scope.
2. Transparency and punctuality
Establish clear and defined terms and payment schedules to ensure the terms of contractors are met and payments are prompt, minimising potential disruptions or terminations of agreements
4. Efficient onboarding
Set clear expectations and deadlines of your compliance requirements so contractors can be prequalified for work quickly, reducing bottlenecks and operational inefficiency.
Managing contractors with the same respect and consideration as permanent staff fosters loyalty and commitment across long-term projects. Providing necessary resources and information helps them perform effectively.
How Cm3 facilitates safe and positive business relationships
A foundational aspect of effective contractor relationships lies in selecting the right contractor for the job. This means verifying that they hold the correct insurances and licenses to complete work safely, as well as assessing if they meet the unique requirements of the business. Cm3 plays a pivotal role in this process by facilitating safe and positive relationships with contractor businesses and organisations seeking their unique skills and capabilities. With Cm3, clients can confidently engage contractors that meet their defined requirements with Cm3’s prequalification service.
The Cm3 Marketplace is a powerful tool that streamlines the search and selection process of clients seeking the unique skills and experiences of Cm3 contractors. The expansive database of over 27,000 registered businesses is used by Cm3 clients to search and engage specialised contractors that meet the client’s defined compliance and ESG requirements.
Contact a Cm3 solutions specialist today to learn how Cm3 can enhance your contractor and supplier management processes.