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Compliance Case Study: Sub-contractors not covered under Contractor’s Insurances

Tuesday, 21 March 2017

Compliance Case Study: Sub-contractors not covered under Contractor’s Insurances

Smartek - Contractor & Compliance Management Software

A supplier for one of our valued clients recently contacted the Smartek team and raised questions relevant to the mandatory requirement to register his sub-contractors into Smartek for our mutual client’s sites.

Discussions with this supplier revealed that although he arranged the procurement, quoting, supply and allocation of each of the jobs from this client upon request - all jobs once approved were allocated to his sub-contractor base and he invoiced the client the agreed amount upon completion of each job.

This supplier had all of the relevant licenses, insurances and compliances requested by our client. However, further discussions revealed that his insurances would not cover his sub-contractor base. Furthermore, he could not confirm the insurance and compliance status requirements of his sub-contractor base requested by our mutual client. Therefore, he could not ensure with certainty that the sub-contractors that he was allocating the work to were fully compliant prior to allocating and up to attendance on the sites to complete the works.

In consultation with the supplier, this issue was raised with our mutual client who requested that all sub-contractors who attend their sites must be registered with Smartek and maintain their compliance status in accordance with their requirements.

Sub-contractors have started to register and although initial registrations have revealed an adequate level of compliance, there have been issues identified with some sub-contractors which have required further and updated information being requested to ensure that they meet the client’s compliance standards.

Prior to registering with Smartek these compliance obligations were not being met placing our mutual client at increased risk of harm/damage.

The Smartek team is working with each of these sub-contractors as they register to explain the compliance expectations and assist them through the compliance processes. These sub-contractors have also been encouraged to use the Smartek functionality on their own Smartek systems inclusive of part of their registration to assist them to manage their internal company compliances.

Learn more about what Smartek Contractor and Compliance Software can do for your organisation here.

Blayne Webb, Director, Barringtons



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