Fundamentals of Contractor QualificationMichael D’Aversa Manager | Cost Analysis Cherry Logistics Corporation
In the next 20 minutes…
• The Objective of Contractor Qualification• Strategic Considerations• Identification Scenarios• Qualitative and Quantitative Validation• Results
• Identify and validate a viable pool of qualified Facilities Maintenance contractors
• Aligned with your company’s specific needs• by trade specialty
• by geographic location
• Essentially available prior to having a specific need
• Having the potential for developing a sustained, long-term business relationship
The Objective of Contractor Qualification
Strategic Considerations
• Best time to evaluate a potential contractor
• Pre-relationship • Research
• RFI
• Dialogue
• Throughout relationship
• Direct providers vs. management companies
Identification
• Scenario: They find you• Lead generation vs. diligent, interested party
• Initial evaluation, RFI form, etc.
• Scenario: You have to find them • Internal reference
• Trade organizations
• Local chambers of commerce
• Non-competing local reference
• Internet research
Validation
• Quantitative• Establishment
• Competency
• Capacity
• Pricing/rate structure
• Risk management factors
• Qualitative• Dialog
• Visual evaluation
• That which is important though not easily counted or measured
Quantitative — Establishment
• Business structure
• Number of years in business• Current iteration
• Previous iteration(s)
• Number of years at location(s)
• Proximity• Potential time sensitivity
• Physical distance from provider start point(s) to site(s)
• Verifiable history of growth
Quantitative — Competency
• Licensing
• Degrees, certificates, etc.
• Verifiable training
• Past performance• Internal (vendor score, documented issues)
• External (BBB or other published rating data)
Quantitative — Capacity
• Concerns may vary by trade type
• Number and types of equipment• Trade-related
• Business-related
• Ownership of trade-related equipment
• Human Resources
Quantitative — Pricing/Rate Structure
• Buyer Perspective
• Seller Perspective
• Hourly rate information
• Quote on sample project
Quantitative — Risk Management Factors
• Insurance• Levels and types
• Endorsements
• Safety• Policies and procedures
• Record
• Litigation
Qualitative — Dialog
• Indicators of suitability• Experience matched to your business
• Clients/References
• Competitors
• Communicative ability• Likelihood of compliance
• Barriers to communication
• Intentional phone conversations and e-mail threads
Qualitative — Visual Evaluation
• Contractor facility visits• Verify equipment
• Observe conditions
• Observe staff
• Face-to-face meetings• Deeper dialog
• Clearer understanding
• Long-term suitability
Effective Contractor Qualification
• Strategic methodology• Pre-relationship and ongoing• Quantitative and qualitative validation• Our results
• Contractor pools in markets not yet served• Contractor relationships that span our 10 years in
business• Contractor turnover/termination rate < 4%
Additional Resources
• Search trade associations at www.asaecenter.org
(American Society of Association Executives)• Search complaints at www.bbb.org • Search litigation at law.justia.com and
www.leagle.com• White papers available on
www.cherrylogistics.com: – Emergency Response Case Study– Risk Management– The 8.5 Best Practices For Facilities Maintenance
PRSM Resources
White Papers: •Keys to Successful Request for Proposals•Vendor Relations Management
Best Practices Books•2012 Best Practices Book (Vendor Management and Communications)•2010 Best Practice Book (Vendor Management)