Contractor Pre-qualification in Australia

Creating value in the supply chain

Managing compliance of contracting companies, as well as individual subcontractors, can be a time consuming and frustrating process. It requires the collection, verification, and tracking of numerous company details, ABN’s, Insurance cover, Workcover registration, and their ability to understand and fulfill their Work Health and Safety obligations. However, the process of supply chain management can have far reaching benefits that make prequalification essential for both the hiring company and their contractors. Some of these benefits include; managing expectations, reduction in conflicts, cost saving, time saving, mitigation of risk, and reputation management. 

Most large companies won’t argue the need for prequalification. It allows for the setting of expectations in the form of well-documented contracts of service bound in common law. These contracts of service set out the site rules and responsibilities, minimum qualifications and skills required for the project and most importantly, the payment of their subcontractors. The contract will provide a reference point in the unlikely event of disputes and prevent potential legal matters down the track.

A thorough prequalification selection of contractors will assess contractor capabilities to match the right contractor and skills to the task and reduce issues with quality, safety, and project delivery. Contractor management reduces overall direct and indirect costs to the project, including a time saving from the reduction of unnecessarily red tape and potential legal issues.  A good prequalification programme will require the hiring company to collect, verify, and track contractor company details, ABN, appropriate Insurance cover such as workers compensation and public liability, equipment maintenance records, staff competency records, incident data and the contractors ability to understand and fulfil their Work Health and Safety obligations.

While this process may seem onerous on the hiring company, the use of online contractor management and prequalification systems such as BROWZ SURE Qualify will reduce the time and administrative burden on staff and organisations.

Large organisations are also extremely concerned with their reputations, after all brand name recognition and a good reputation can secure future work with little marketing capital. Engaging the wrong contractors with potentially poor work practices, unsafe behaviour, industrial disputes, and inappropriate insurance cover can create unnecessarily risk and leave the hiring company liable.

In some jurisdictions of Australia, particularly NSW, hiring companies can be liable for workers compensation premiums, pay-roll tax and remuneration payable by the contractor, if it’s found the contractor has been negligent in covering or remunerating its employees, this could be a significant unexpected cost to the project. As part of the prequalification process companies should review the financial stability of a contractor before awarding work. For example, using third-party credit information will give you insight on the potential of a business going bankrupt, defaulting on its obligations, or having a serious payment delinquency.

Select your contractors carefully, the potential unwanted costs, injuries, legal action and negative reputation can have a significant impact on your organisation and staff if you get it wrong. You should only select your contractors once a comprehensive and diligent prequalification has been conducted to ensure all has been done to assess the quality of the contractors being engaged on your site. Be clear with your contractors about your safety expectations, legal matters, and site rules prior to awarding the contract.

Look at all the aspects involved when you prequalify contractors. If you base your hiring decision on only one aspect, such as cost, you may run the risk of choosing the wrong contractor for the job, and this decision could end up costing more in the long run without appropriate contractor management. Ensure your hiring managers are competent and well versed in the prequalification policy and procedures. Assist your contractors to become preferred contractors by strengthening the relationship you already have with them and showing them that together you can comply with the prequalification requirements. After all you have a vested interest in seeing them succeed just as much as you need them to comply.

 

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THE FOUNDATION OF OUR SOLUTIONS

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Best Practices

For more than 16 years, BROWZ has worked with the world’s largest organizations across more than 35 industries to implement supply chain prequalification and compliance programs. We understand your industry standards, and we have the expertise to help you establish the appropriate compliance practices for your business.

Service

We understand that software alone doesn’t ensure the success of your compliance and prequalification program. That’s why we place equal emphasis on delivering personalized service. In other words, with BROWZ, you’re not just buying software—you’re getting a partner. We validate and score submitted data while supporting you and your suppliers every step of the way. We also assign a single point of contact to support you and every member of your supply chain, so you’ll always know who to talk to.

Technology

BROWZ functions as a web-based data exchange for all of your supply chain compliance information. Intuitive icons and scorecards provide a view into which suppliers meet your standards and which don’t, allowing you to make informed decisions and minimize supply chain risk.

Our Process

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    We consult, share industry best practices, and together define your supply chain requirements.

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    We configure our solutions and back office support to manage your compliance objectives.

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    Contractors complete online questionnaires and submit data you’ve requested.

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    We verify and score compliance data, generating icons and compliance percentages to indicate which suppliers currently meet YOUR standards.

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    We assist your supply chain in the compliance process, answering questions and proactively communicating deficiencies.

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    We continually monitor changing data points and report expiring documents and data to you and your suppliers.

BILL IS A CONTRACTOR
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Bill registers with BROWZ.

He submits his qualification data online.

Bill receives personal support from BROWZ.

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BROWZ validates Bill’s data and displays his qualification status using intuitive icons.

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Benefits of BROWZ

Reduced Risk

BROWZ offers an efficient means to exchange and evaluate supplier data. Your entire business will be able to access a single repository of compliance information for all suppliers and contractors to help you assess your risk exposure, monitor compliance, and make informed supply chain decisions. What’s more, we will independently assess the data submitted, and proactively work with your suppliers to update their information, as needed.

Better Safety Outcomes

Our research shows that the safety performance of suppliers will improve over time when compliance is measured and your supply chain is held accountable. BROWZ will work with you to develop the assessments and screening criteria that fit your business and are appropriate for each supplier, based on the level of potential risk they may present to your business.

Supply Chain Control

The more insight you have into your supply chain, the more consistently you can award business to the most qualified suppliers. BROWZ helps you create consistent global processes to source, qualify, and monitor suppliers using a single, verified source of data that’s available 24/7 from anywhere in the world. Real-time tools monitor supplier compliance at both the organizational and employee levels and offer integration with gate entry management and security systems. ERP integration ensures your management systems are in sync.

Efficiency and Cost Reduction

Although supply chain compliance is critical to any business, it’s a function that is seldom allocated enough resources to enable efficient and cost-effective “in-house” management. BROWZ allows you to efficiently create the right supply chain compliance program for your business. You’ll save money and free up your time and resources to focus on more strategic initiatives—without placing an undue burden on your suppliers. Our expert services team will support you and your suppliers every step of the way with best practices insight, solution support, information verification, audits, and proactive supplier outreach.

The Right Fit

A wide range of dynamic factors—your industry, applicable government and regulatory authorities, differing tiers of supplier risk, global operations, and multilingual requirements—all combine to create a unique compliance mandate for your business. BROWZ features enterprise technology that delivers a solution configured to the exact needs of your business. You don’t have to settle for a one-size-fits-all approach to compliance. BROWZ will partner with you to create a compliance program that’s as unique as your business requirements—and the supply chain you do business with.

Best Practices and Implementation Expertise

When you entrust your supply chain compliance to BROWZ, you get a partner who understands that your trust and confidence is earned each and every time we interact with you or your supply chain. For this reason, we focus relentlessly on current compliance issues and building the best team of compliance experts in the business. We continually improve our processes to ensure that your compliance program is right for your business and built on recognized best practices.

Administrative Support

BROWZ will always work as an extension of your team to communicate with and support your suppliers and the growth of their business. We will directly contact each of your suppliers on your behalf and invite them to participate in your compliance program. BROWZ assigns a single point of contact to every supplier to educate them about your requirements, help them become safer organizations, and provide the fastest path to compliance. Throughout the year, we proactively reach out to your suppliers to ensure that all data are kept current and compliant, ahead of any expirations.

Accurate Risk Assessment

BROWZ was awarded a U.S. patent (No. 805528) for its BROWZ SURE Patented Technology, which assures you of accurate risk assessment at the project level and even at multiple sites with differing requirements around the world.

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160,000+ users trust the integrity of their data to BROWZ.
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The Right Fit

for facilitating easy access to supplier evaluations.

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