Tag Archives: Deciding on a Contractor

Deciding on a contractor is important for your future costs and claims. make sure your contractor is legitimate, will get the job done in good time, and has low amounts of claims on previous jobs.

How to Acquire the Best Contractors Using an Approval Plan

When deciding on acquiring a contractor for a job, it is almost never a smooth, easy process. A contractor or specialized worker is sometimes necessary last minute. For that reason, it’s helpful to develop a plan for screening contractors and determining which one is best.

There are a few key steps to take in order to achieve the best results when acquiring a contractor.

The first, most important step, is to develop an approval process that either accepts or denies potential contractors. Only allow exceptions in very limited situations while documenting all thought processes on why the contractor should be used. Be sure to do this when it comes to making exceptions for contractors that aren’t initially accepted. Finally, it is important to gather data on what went right and wrong to further refine the approval process.

When struggling to find a contractor to fill a certain position, it is important to evaluate all choices and to have a system that selects the best available contractor.

An owner wouldn’t want an employee not doing their best work, so it doesn’t make sense to hire a contractor that isn’t best suited for the situation. Using a proper system will ease the task of finding a contractor, increase performance on the job, and boost the reputation of a company. Being diligent in the approval process is key. 

 

Better contractor fits save a company time and money, whereas poor fits hurt the profit of a company. Poor fits can also potentially damage a company’s reputation. Successfully operating an approval plan also is a self-fulfilling prophecy. As more and more contractors are sorted, data is collected which further refines the plan, making it more effective. It’s a challenging process to come up with a solid approval plan but will be worthwhile in the long run.

 

For more information contact one of our Risk Advisors or call 914-357-8444

What Do the Top 600 Trade Contractors in the Country Have in Common?

Below you will find New York and New Jersey trade contractors that have been included in ENR’s top 600 speciality contractors of 2012 list. Want to see something interesting? The average experience mod of the companies we found below is a .866! This shouldn’t come as a surprise. Companies that have low mods have a much lower cost structure. As a result they can get more bids, have a higher revenue, and be on lists like this. In addition to the straightforward correlation between low workers comp costs and high revenue, a low mod is almost always an indication of a well run company in general.

“These companies have trained themselves for downturns, have managed to keep plugging away, pacing themselves, until they can see the finish line–a strong recovery.” This is especially true for large subcontractors and specialty-trade contractors that endured the “summer of recovery” in 2010, which never materialized, the planned rebound in 2011, which failed to gain traction, and a hoped-for election-year bounce throughout 2012, which barely registered.(ENR)”

If you’re serious about growing your business and gaining a competitive advantage against your peers contact a risk advisor about our Comp Care product today. If you qualify, Comp Care has the ability to lower your direct and indirect workers compensation costs by 30% or more in 12-18 months.

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