What is the BP Oil Spill teaching us about contractor management?

As BP frantically tries to find answers to the horrifying question of "what went wrong?", you can bet a hundred million barrels of oil they're looking closely at their contractor management systems, including the way that their own internal decision makers interact with them. Because even if investigations discover that it was indeed a contractor error, the blame will fall squarely on BPs shoulders. And already the results for the company are proving to be disastrous.

Internally there must be a lighting storm of finger pointing, but at the end of the day, no matter what the result, relationships with contracting partners will be soured and contractor management systems and procedures will be overhauled.

But it'll never happen to us!
Very few companies enjoy the success, revenue and profits of BP. But every company has a financial breaking point that doesn't require a disastrous oil spill to set in motion. What's your company's worst case scenario? What events would cause it to happen? What needs to be done to minimize the risk of those events occurring?

These are not fun discussions to have and many safety managers avoid them for two primary reasons. One: worst case scenarios are rarely given the importance they deserve because they are unlikely to happen or even considered absurd. Two: discussions around worst case scenarios can raise attention to a number of weaknesses or gaps within company safety.

Time to look at contractor risk
When a company puts any part of their operations into the hands of a contractor, it becomes all too easy to let go of control. However, the responsibilities for output, quality and safety remain in the hands of the company. Placing safety procedures within your contractor management process that provide you a better understanding of where risks exist becomes essential when looking at ways to prevent incidents. While it is common to do fairly comprehensive background checks on the contracting companies we partner with, checks on individual contractors are rarely implemented. However, as soon as a contractor step foot on site, their safety and their work become your responsibility.

What to look for when managing contractors.
When minimizing risk associated with contractors, it becomes essential to have systems in place that enable you to know and track certain information.

Do they have the right and current insurance?
Are they registered with Workcover?
Are they inducted and is it current?
Are they who say they are?
Do they work for who they say they do?