To measure contractor performance, take a wider view

Contractor management is extremely difficult, especially when dealing with safety and health issues. However, it is a curiosity that businesses that aim to measure their contractor’s performance generally do so through the narrow lens of what happens on their contract as if the contractor doesn’t exist when they can’t be seen, focused only on how the contractor performs on their site, under their contract. And while those metrics might look solid low incident rates, on-time delivery, cost compliance they don’t tell the full story.

Contractor management is notoriously challenging, particularly when dealing with safety and health issues. So it’s a curiosity that businesses that aim to measure their contractor’s performance generally do so through the narrow lens of what happens on their contract. It is as if the contractor doesn’t exist where they can’t be seen and are only measured how the contractor performs on their site, under their contract.

While those metrics might look solid, low incident rates, on-time delivery, cost compliance, they don’t tell the full story.

What’s happening elsewhere in that contractor’s portfolio?

Without enterprise-wide visibility, a company could be rewarding vendors with systemic issues, compliance failures, safety red flags, financial instability simply because none of it showed up on their project.

That’s where Internal Audit comes in.

Internal Audit is uniquely positioned to take an objective, independent view across the business. It can cut through local silos, aggregate performance data, identify patterns, and expose hidden risks that aren’t visible from the ground level. By evaluating contractor performance at the enterprise level not just project-by-project Internal Audit helps ensure vendor decisions are based on facts, not isolated impressions.

Want to reduce vendor risk, improve accountability, and make smarter sourcing decisions?

Start thinking holistically and let Internal Audit be your lens. Talk to ⚡Virtus Advisory⚡ to see how.