Many organizations that use contractors have a pre-qualification process. The pre-qualification process can be as simple as looking at the potential contractor's accident frequency rate and insurance. Some organizations take a more in-depth approach to the pre-qualification process. These organizations require the contractor to conduct planned inspections, train their employees, conduct safety meetings, conduct preventive maintenance, investigate incidents, comply with rules and protect the environment. One weakness tends to exist in many organizations, regardless of the complexity of the pre-qualification process; the owner does not determine if the contractor is capable of complying with the owner's requirements. Signature on a contract by the contractor does not indicate to the owner that they are capable of complying, only that they will have a legal instrument that can be used to hold the contractor accountable for non-compliance. This does very little to ensure the owner that the contractor is capable of completing the project on time and within budget.
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