Contractor Compliance Explained

It would seem obvious that all companies that outsource work to Concrete Contractor North Hollywood CA would want to be guaranteed of contractor compliance on all necessary levels. However, many companies vouch for the fact that contractor compliance cannot always be guaranteed. Effective approaches to contractor management show the importance of compliance checks prior to a contractor being engaged with a company. However, many people and organisations do not thoroughly understand what contractor compliance means or is concerned with.

What it is… Contractor compliance involves requirements for the proper and safe engagement of contractors in a workplace. Depending on the nature and context of the work as well as the tasks and responsibilities that it entails, this may include compliance with: safety practices, laws relating to the industry, legal certification and insurance. The importance of contractor compliance cannot be expressed strongly enough. If breached or found to be insufficient, a severe impact on risk management and successful practice can result.

Some of the issues with contractor compliance…¬†Law dictates that employers and those who control workplaces are responsible for a safe work environment and the safe work practices of employees and contractors. This is a fundamental and extremely important obligation that is also part of the common law duty of care. Under state and federal law, employers must ensure that any contractors that work with their company are sufficiently and correctly licensed, insured, comply with occupational health and safety requirements and obligations and are adequately inducted to the organisation, work environment and role. These requirements are so broad that they apply to all contractors, regardless of the role, occupation or industry. For many companies, this presents an administrative burden and additional pressure. Moreover, it is usually expensive and requires resources to be diverted from actual business functions. It follows too that compliance checks and processes can be costly for businesses.

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