As your business grows, you will find it more and more beneficial to hire contractors. Not only are they skilled, but they can work on both big and small tasks that your employees can’t.
There are lots of contractors out there whose expertise can be extremely valuable to your company. But how do you choose the best one to hire? If you choose poorly there may be serious issues your company will have to face. Choosing the wrong contractor can cost you time, money and energy that your business cannot afford.
An ounce of prevention is worth a pound of cure, so the best thing to do is to make sure questionable contractors never make it to your company in the first place. Knowing what to look out for and having the ability to pre-qualify contractors is vital to avoiding future grief.
Here are some red flags to watch for when looking for prospective contractors:
- They don’t have local offices – A physical location helps to establish legitimacy. It makes it less likely for the contractor to be mistaken as a fly-by-night operation and also provides a location where you can find them for any issues.
- They don’t have web presence – A reputable contractor should have a website. If they do enough business or have enough clients they should be able to put up a website where people can find out more about them. It’s also worth checking if your potential contractor is on social media; this can be a good sign the business has been around for a while and maintains contact with frequent customers.
- They don’t have references – If no one has heard of a contractor you are about to hire, you should think twice. Good contractors should be able to provide references from satisfied clients. The more references the better.
- They have contract issues – You should be worried about contractors who won’t sign a contract. The contract is the document that keeps both you and the contractor safe – it prevents any disputes or misunderstanding. In many instances the contract lays down the price for specific work, which stops contractors from unexpectedly invoicing you for additional charges. Any violation of a contract is grounds for a lawsuit.
- They can’t prove their business is registered – Any reputable business should have a business registration number (ABN in Australia, RN for the US, CRN in the UK, NZBN for New Zealand etc). This means they are a company that can issue invoices and pays taxes to the Taxation Office.
- They don’t insure their personnel – Every contracting company by law is required to have insurance for themselves and any workers they have. If a company is unable to supply you with a valid Personal Injury Insurance or Worker’s Compensation, then you need to be suspicious.
The question then is: how can you determine which of your contractors are legitimate? Rapid Contractor Management by Rapid Global is a contractor management software solution that helps you manage your contractors in the most efficient way possible. With this contractor compliance software, you or the contractor can enter all their information into the system. You then have access to review insurance certificate and documents, view pre-qualification forms, and ensure they have an ABN registered with the Australian Business Register.
Rapid Global’s contractor management software can help you check information regarding contractor certificates and licenses as well as keep track of their expiry dates. This tool can also allow you to verify and track information you need about a contractor’s company details, business registration, insurance coverage, workcover registration, safety systems, Safe Work Method Statements and compliance with Workplace Health and Safety laws.
It only takes a little effort in the beginning to save your company a mountain of trouble in the end. Pre-qualify your contractors using the right tools with Rapid Global’s contractor management system.