Selection, monitoring and control of contractors

Selection, monitoring and control of contractors

A1/006 - Issue date - July 2019

Please note that this list is not exhaustive. Check that the documents quoted are the most up to date versions.

• Tendering Procedures (A1/010)
• Work by contractors on occupied sites (C1/005)
• Construction (design and management) regulations (A1/014)
• Contractor performance sheet - D1/9

Legislation on the relationship between the council and a contractor is complex and imposes very considerable duties of care on the council as either the body having control of the site or being the occupier of the site and making it available to a contractor as a place of work. One such duty is to take all reasonable measures to ensure that the contractor engaged, no matter how large or small a contract may be, is competent, qualified and equipped to undertake the work.

To help meet this duty the council requires the Service Provider (SP) to establish checking procedures for the selection of all contractors to ensure that they are considered capable of carrying out the various aspects of council work. The procedures must be agreed by Property and Facilities and can be either:

• the SP own procedures using agreed application and reference questionnaire systems.
• using the services of a recognised external organisation, such as Constructionline to assist in the checking process.

All contractors must be provided with relevant documentation regarding work on county council sites including a copy of the Property and Facilities, Health and Safety On-site Works booklet.

Financial assessments must be carried out on all contractors being considered to carry out construction work on county council properties:

The procedure for carrying out financial checks as part of the tendering process:

• when selecting contractors for tender lists
• at tender acceptance stage

is detailed in Contract Procedure Rules (P&F) (A1/010).

Financial checking of contractors when compiling tender lists can be carried out by ensuring that contractors are registered with a recognised external body such as Constructionline, Exor or by using the SP own checking procedures. The information used in the checking process must be sound and reliable in order to support a conclusion as to the contractor's financial stability. The availability and supply of all information necessary to evaluate a contractor's current financial position should be made a condition of acceptance onto the tender list. Such information should include:

• Three consecutive sets of complete trading accounts, the last being for a period ending within the last nine months.
• Additional information regarding work experience, previous contracts etc.
• Details of directors, parent companies etc.

Reliance on bankers' references cannot be regarded as a substitute for sound financial checking and should be obtained for confirmation purposes only.

The financial standing of a holding company, where it is proposed to let a contract to one of its subsidiaries, should also be assessed. A guarantee under seal should be obtained from the holding company whenever possible if financial appraisal is not sufficient.

Where there are reservations as a result of financial checking then it would be normal practice to proceed no further with the contractor concerned and not to include them on any tender lists.

If following the tender process the consultant has concerns regarding the financial stability of the successful tenderer for a project, the consultant should discuss with the relevant Oxfordshire County Council Project Leader whether a further financial check should be carried out by the county councils Financial Services prior to placing an order. If agreed the Oxfordshire County Council Project Leader will make the necessary arrangements for the check to be carried out.

New build projects

New build works will be contained within a separate and fenced compound under the contractor's control. As such, there is no requirement to check each operative as they will not come into regular contact with children or vulnerable adults. However, it is normal for some key personnel to visit existing occupied buildings on a regular basis, either during construction or after completion. Maintenance or defect repair works will generally also require contractor's operatives to enter occupied premises. In these circumstances DBS checks will be required for those operatives having regular contact with children or vulnerable adults. As a minimum requirement for all such contracts the contractor's site agent will require DBS clearance. The contractor is to supply to the site, before they start on site, their Safeguarding Policy together with evidence that DBS checks, ID checks and Right to Work in the UK records are in place and up to date before relevant personnel enter existing occupied buildings. Oxfordshire County Council have defined regular contact as "any individual who does, or is likely to, come into contact with a child or vulnerable adult three or more times in a 30 day period".

Repair and maintenance and minor works projects

Works under this contract will generally require contractor's operatives to enter occupied premises. In these circumstances DBS checks will always be required for those operatives having regular contact with children or vulnerable adults. The contractor is to supply to the site, before they start on site, their Safeguarding Policy together with evidence that CRB, ID checks and Right to Work in the UK records are in place and up to date before relevant personnel enter existing occupied buildings. Oxfordshire County Council have defined regular contact as "any individual who does, or is likely to, come into contact with a child or vulnerable adult three or more times in a 30 day period".

In many cases the sites where contractors are contracted to carry out work will be occupied. It is essential for procedures to be established that will allow the contractor to carry out the work safely and without risk to both the contractor and building occupants. To help meet these requirements the consultant must ensure that their project managers:

1. Follow the as a minimum the guidelines contained in Work by contractors on occupied sites (C1/005).
2. Make the contractor fully aware of site procedures, the site notice system and of any known site hazards. Where the size or complexity of the job dictates, this should be at a formal pre-contract site meeting. For details of CDM requirements see Construction (design and management) regulations (A1/014);
3. Provide the Head of Establishment on occupied sites with a direct point of contact for dealing with any concerns the site may have regarding the work being carried out by the contractor, prior to the start of work.

It is essential to monitor and record the performance of all contractors used with regard to standard of work, attitude and performance and health and safety. This is to be organised by the SP as follows:

Term contracts and work below £25,000

1. Establishments to receive a copy of each order placed under this contract. The SP must establish a customer feedback system to allow the establishment to comment on the performance of the contractor with regard to standard of work, attitude and performance and health and safety.
2. SP to collect all information received and have procedures in place to action any poor performance issues. Information to be stored electronically and be accessible to OCC Project Lead

Contracts over £25,000

1. As for term contracts and work below £25,000, plus:
2. For all contracts SP is to complete Contractor performance sheet D1/9. Information to be stored electronically and be accessible to OCCCL.

The SP will be required to maintain records of all contractor selection and performance issues. These records can then be referred too when selecting contractors to be included on future tender lists. When required the SP will provide reports on contractor performance as requested by OCC Project Lead.