Qualification of Potential Contractors Considering HSE Criteria Requirements

Context: Why Contractor Qualification is a Necessity

The quality, efficiency, and safety of services provided by contractors directly affect the success of any project. However, finding a reliable contractor without prior interaction experience is not an easy task. In his presentation, Anton Panin, Project Manager at the HSE Project Office for Contractors of the NLMK Group, explains how the qualification procedure helps verify contractors before signing a contract and granting access to the production site.

Having an up-to-date register of qualified contractors creates a primary barrier against accidents, fires, and incidents. It also reduces the likelihood of poor-quality services, failure to fulfill contractual obligations, and fines from regulatory authorities.

Transformation of the Qualification Process

At the beginning of the journey, the team faced the need to restructure the qualification system. The main problems were:

• Lack of necessary processes and routes: Contractors could obtain a "qualified" status after self-registration without filling in HSE data.
• Subcontractors out of control: Subcontractors often did not undergo qualification, which created significant risks, as the work was actually performed by third parties.
• Manual launch of qualification: The process depended on category managers, leading to errors in sending questionnaires.

To solve these tasks, a separate questionnaire for subcontractors was developed, and the software architecture was updated, eliminating the possibility of concluding a contract without passing the HSE qualification.

Optimization of Qualification Questionnaires

The speaker notes that previously the HSE questionnaire contained over 70 questions and required attaching more than 120 documents. Many questions were irrelevant or did not relate to the HSE profile. Based on feedback from the business and current legal requirements, the team formulated new questionnaires consisting of a maximum of 17 questions, which significantly simplified the process without losing the quality of the check.

Process Management and Limits

One of the main problems was the endless qualification process. Contractors could try to pass the qualification an unlimited number of times, leading to irrational use of time. Introducing limits on the number of attempts (up to three) and time limits (30 days for low-value purchases and 90 days for general qualification) made the process manageable and helped define key performance indicators.

Types of Qualification

As a result of the transformation, three types of qualification questionnaires were created:

• Simplified qualification (low-value): For contractors planning to conclude low-value contracts with urgent work execution. Contains 7 questions.
• Standard (general) qualification: For contractors participating in large long-term projects. Contains 17 questions, including health protection and PPE provision.
• Secondary qualification (for subcontractors): The content of the questionnaire corresponds to the general qualification.

Working with Unscrupulous Contractors

The speaker shows by example what to do with contractors who falsify documentation or systematically violate HSE requirements. When such cases are identified, the issue of suspension or full disqualification is submitted to the conciliation commission. The maximum disqualification period is 36 months, which prohibits the contractor from participating in new competitive selections.

What you will learn from this webinar:

• How to build an effective contractor qualification process according to HSE requirements?
• What selection criteria to use for different types of contractors?
• How to optimize qualification questionnaires to make them informative and convenient?
• How to manage the qualification process and set limits for contractors?
• What to do with unscrupulous contractors and how the disqualification mechanism works?