First and foremost, it can
help to ensure that work is completed on time and within budget. By having a
well-defined process for managing contractor, you can help to avoid any
potential problem that may arise, such as missed deadlines or cost overruns.
Finally, contractor
management can also help to ensure that all contractors are working in
compliance with company policies and procedures. This is especially important
for those in the healthcare sector. Contract workers in this space must always
adhere to HIPAA guidelines.
First,
Workers who don’t follow
them could put your business at risk, As a result, you may experience fines and
similar penalties. you may also be more likely to get audited in the future.
(Wheeler , 2022)
There are some
importance point of contractor management as below according to the Simplilearn ,
(2023) .
1. Assures contractors work in compliance with
organizational policies and procedures.
2. Ensures that the task is completed on time and
within budget.
3. Sometimes, companies need more specialized workers
and seek expertise to perform in extreme conditions. In such situations, the
contractors with the required knowledge and capabilities can benefit the
company.
4. Helps in saving the training time.
5. Contracts provide flexibility in project
management and workload.
6. Contractor management can aid in minimizing
the legal and tax issues associated with regular employees.
7. Specialized contractor brings the expected
results, increasing productivity and efficiency of the task.
8. The head cost of regular employees employs
additional costs, which need not be considered when hiring contractors. Thus,
it benefits office space and equipment.
(Simplilearn,2023)
Also owners
has many benefits with working well managed outsourcing company.so as per the
following mention benefits consistently render to the owners as well.
- The
administrative burden of sourcing and managing contractors is removed.
- The
contractor best suited for the job is appointed, ensuring optimal asset
care and asset performance.
- Pragma
has bargaining power and negotiates competitive rates to ensure cost
efficiency.
- The
client has the assurance that the appointed contractor complies with
industry requirements and standards.
- Asset
information is readily available for effective decision-making and follow
up.
- Long-term
contracting ensures continuity and sustainability.
- Risk
is reduced by documentation and sign-off being provided at relevant
points.
- The
client is ensured of the quality of contractor workmanship as it is
actively managed.
- The
burden of managing stock is removed or reduced.
- A
client’s overhead costs are less as contractors are only used when
required, giving a flexible and scalable workforce.
(Aberdein , 2022)
Conclusion
·
In my view Effective contract
management is essential for the success of a business. It helps Reduce costs and improve company
performance , , Streamline
administrative tasks and improve efficiency Enhance visibility into contracts and
their performance, Minimize exposure to risk and ensure compliance with
contractual terms and conditions ,Monitor and track key obligations and
milestones
Available at : https://www.pragmaworld.net/practices/advisory/contractor-management/ [Accessed on 29th march 2024]
Available at : https://www.simplilearn.com/what-is-contractor-management-article [Accessed on 24th march 2024]
Available at: https://bradfordjacobs.com/blog/what-is-contractor-management-a-quick-guide/ [Accessed on 24th march 2024]
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