In the renewable energy industry, many companies depend on contractors to support their operations. This is why contractor pre-qualification is an important initial step, not only in determining the most suitable contractors for a project but also in helping mitigate costly claims.
Basic pre-qualification of contractors and vendors should include the following steps:
Reviewing the contractor’s safety record. Start by reviewing the contractor’s company safety program. This includes preplanning and site management to verify the effectiveness of their safety policies and procedures. A good indicator of a contractor’s past safety performance is their experience modification rate and/or OSHA rate and compliance history.
Establishing a pre-qualification process. It is essential to prequalify all contractors to confirm they have the proper credentials, work references, experience on similar energy projects, and skills to deliver quality work. Best practices suggest retaining documentation throughout the project and thereafter in accordance with state-specific statutes.
Verifying a contractor’s knowledge of codes and standards. When it comes to renewable energy projects, codes and standards are continually evolving. Hiring contractors who aren’t up to speed on things such as building codes, ordinances, and industry standards can put a company at risk. Additionally, it’s important to ensure that individuals such as project managers and subcontractors within your organization also remain current on codes and standards, as well as related best practices.
Obtaining certificates of insurance. It is vital for companies to obtain certificates of insurance from all contractors, subcontractors, and vendors before work begins. This allows them to confirm that they have met specific requirements of the written contract.
Companies in the renewable resource industry will find themselves in a better position to mitigate unwanted liability claims and assemble the right team for a project if they establish a proactive contractor and vendor selection process.
At Worldwide Facilities, our energy team helps companies secure comprehensive insurance solutions to address claims and liability issues in the ever-changing renewable industry. For more information, please contact Loren Henry at 619-541-4265 or firstname.lastname@example.org.