Lessons Learned from Managing a Large Team of Contractors

According to Statista, in 2023, there were about 36.6 million occasional independent workers in the United States, an increase from 15.8 million in 2020, underscoring the growing reliance on contractor workforces. As the number of contractors grows, managing them becomes more challenging, with complexities in document collection, compliance control, and performance evaluation.
Drawing from their vast experience, the Appruv team shares valuable lessons learned from helping our clients manage large teams of contractors effectively.

Lesson 1. Addressing Communication Challenges

Clear and consistent communication is crucial for the success of managing team of contractors. Without it, misunderstandings can arise, leading to errors, cost overruns, delays, and frustration. According to a study by the Project Management Institute, ineffective communication is the primary cause of project failure one-third of the time. Appruv’s team proves it – we have observed that communication breakdowns with contractors can lead to up to a 40% increase in project delays and up to a 30% increase in project costs due to errors and rework.

Regular Meetings

Scheduling regular meetings helps keep everyone on the same page. Weekly or bi-weekly check-ins can help address issues before they escalate. These meetings can also serve as a platform for team building, fostering a sense of community and shared purpose among contractors.

Updates

Employers should provide frequent updates on project status, changes in scope, and other relevant information. This ensures everyone is aware of their responsibilities and deadlines. Our contractor management platform can facilitate these updates and visually represent project progress.

Transparent Channels

Companies need to utilize transparent communication channels where contractors can freely ask questions, share concerns, and provide feedback. Otherwise, contractors may be uncertain about how to reach management when facing a problematic situation, seeking project information, or needing managerial intervention in other cases. To avoid these problems, Appruv offers a platform for streamlined communication with contractors and rapid issue resolution.

Lesson 2. Robust Vetting Processes

A thorough vetting process ensures contractors are the right fit for the job and comply with all necessary regulations. Proper vetting minimizes risks associated with hiring unqualified or non-compliant contractors. Appruv’s team has frequently observed that implementing a thorough vetting process greatly lowers contractor turnover and mitigates the risks of OSHA fines and legal issues.

Background Checks

Conducting comprehensive background checks helps verify the credentials and reliability of potential contractors. This step can prevent future complications and ensure the hiring of trustworthy individuals. It’s also beneficial to check references and past work samples to gauge the contractor’s experience and expertise.

Qualification Assessments

Businesses should implement qualification assessments to evaluate contractors’ skills and competencies. Practical tests or project-based assessments can provide a clearer picture of their abilities. 

For instance, a construction company may require potential contractors to complete hands-on tests as part of their hiring process. These assessments include operating specific machinery like excavators and cranes to ensure safety and efficiency on site. Carpenters might be tested on framing walls and roofs according to blueprints, ensuring quality craftsmanship. Concrete workers demonstrate their ability to mix and pour concrete accurately for durable structures. Electricians are evaluated on wiring and safety standards to maintain reliable electrical systems. These tests confirm contractors’ skills and adherence to safety protocols, enhancing project quality and reducing risks on site.

Compliance Checks

The hiring company must ensure all contractors comply with legal and regulatory requirements. This includes verifying licenses, certifications, and insurance coverage. Utilizing a platform like Appruv can streamline this process by automating compliance checks and maintaining records.

Lesson 3. Integrating Technology into Contractor Management

Managing contractors without technologies can be ineffective for several reasons. Without technology, tracking progress and milestones becomes challenging, making it difficult to ensure work is on schedule and meets quality standards. Additionally, communication can suffer without efficient tools, leading to misunderstandings about project details and expectations. Appruv contractor management software streamlines documentation and reporting, reducing paperwork and improving accuracy. 

Besides, companies can use Appruv to monitor contractor performance and provide feedback. Our contractor management platform gives businesses a 360-degree view of a contractor’s productivity. Performance metrics and regular evaluations help identify areas for improvement as well as recognize top performers.

Key Takeaways for Effective Contractor Management

Managing a large team of contractors requires clear communication, thorough vetting, and effective use of technology. By adopting these practices, businesses can ensure their contractor teams are aligned, compliant, and productive. Tools like Appruv can further streamline these processes, making contractor management more efficient and effective.

Contact us today to discover how we can support your contractor management needs.