Contractor Performance Rating – Empowering contractors to perform

contractor perform rating

Incidents & Accidents at work

History has not been kind to construction workers when it comes to incidents and accidents on the work site. Some startling statistics reveal that contractors continue to be the Achilles Heel while planning for any project. The graphic further reiterates this statement and reveals radical insights that would lead to safe work.


Image courtesy : IOGP

In the displayed graphic, the number of contractor fatalities far outweigh those of the company. But is it painting an accurate picture? History tells us that contractors have often been at the receiving end of a disaster, while the truth could be otherwise.

What is Contractor Performance Rating?

Organizations may have enough data to onboard a particular contractor, however, enough might not be in place while the contractor is working on site. Monitoring and managing contractors using data points can be hugely challenging – considering record keeping of safety observations, near misses, incidents, audits& inspections, non-compliances and the ensuing corrective actions as well as continual improvements that need to be manifested.

Organizations may already have a reliable system in place for collecting data, monitoring mechanisms and safety management. Often they need to work very hard to ensure that the established protocols and procedures are followed by contractors to the ‘T’. Yet, accurate metrics, transparency, real-time tracking and communication channels continue to be a huge challenge for organizations.

A case in point
A chemical plant planned to extend their existing resources and commenced work on building the swanky new administration building. A local contractor was engaged for the job. The contractor was on boarded after due diligence and in accordance with standard procedures. At an interim stage during the concrete construction, a section of the formwork collapsed. 2 workers who were directly underneath, bore the brunt of the collapse. One of them lost his life while the other suffered serious injuries.

How can it be done?

Vigilance can work up to a point, however, there is a clear role that data / accurate information plays as well. Taking the highlighted case study in consideration, a more proactive approach towards processes could have helped. Hindsight, of course, is a nasty teacher, but a better continual evaluation could have helped.

Why is Contractor Performance Rating so important and how does it encourage them to perform?

Essentially, organizations pay close attention towards contractor ratings BEFORE they are on boarded but it is also important to monitor contractors DURING their work as well. Recent strategies have focused on a more holistic performance evaluation criteria at work.

One of the biggest advantages of data, is when used cleverly, they provide great insights by giving trends that allow predictive analysis. Data needs to be recorded and reviewed by organizations for:

  • Evaluation of Contractor HSE performance
  • Cooperation / Behavior
  • Safety Awareness
  • HSE Compliances
  • Availability of resources
  • Safety violations
  • Safe work practices

Many more…

Obviously, this is a partial list of components that are factored for contractor performance ratings and evaluations. There are many other such ratings criteria that could be observed. Many of these are determined considering the nature of work, the industry served and cultural/geographical preferences as well. It is pretty clear though that these ratings could be a great way to encourage and empower contractors to perform better for the greater good.

The emergence of automation and digitalization

Contractor performance ratings deals with a lot of data. It, hence, became that much easier to digitalize a major portion of the parameters used for the ratings. So much so, that most the data and its subsequent analysis, are showing great (and accurate) evaluation numbers for organizations.

Maintaining Transparency across board for all contractors under the umbrella, treating everyone equitably, monitoring and judging all of them on a common established ground will give a better understanding of efficient contractors in comparison with the lesser efficient ones. In this manner, one can identify the gaps and devise corresponding strategies to improve the lesser efficient ones.

These digital platforms play an important part in motivating and influencing contractors and their workforces with the help of;

  • Recognition through digital display boards
  • Sharing of safe work practices

Building knowledge repositories

A closer look reveals that contractor performance ratings have become an integral and inevitable part of businesses. With changing definitions and fresh outlooks, technology is expected to play a huge role in bringing about accuracy, transparency and meaning to these ratings.

Do you think Contractor Performance Ratings are important – even critical – for a productive outcome? Leave your thoughts in the comments box.

Image source in blog – IOGP  & Construct-ED


1 thought on “Contractor Performance Rating – Empowering contractors to perform”

  1. Performance management is important in the construction industry because it allows managers to determine how (and if) employees are contributing to the overall business strategy and project success.

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