Many businesses hire contractors to help with their workload – but managing what is sometimes a chaotic process can quickly get messy. In this first of a two-part guide, Simpro explores the benefits of a contractor management system in helping to increase the efficiency, reliability, and scalability of your business.
The right technology can lead to improved job management workflow and more time saved. A contractor management system can also provide better visibility over your contractors’ available workloads and skill-to-job matchups. With all those benefits, adopting contractor management software for your business should seem like a no-brainer. So, let’s dive into what the best systems are, plus identifying the signs that your business needs one.
The importance of effective contractor management
If your contractor management practices aren’t up to par, it could affect your business’ reputation and bottom line. For example, if a customer requests work to be redone because of a miscommunication, it will cause delays in completion and further expenses.
This is something that can be avoided with solid contractor management by recognising issues before it’s too late and addressing them early.
Contractors usually require less instruction than regular employees, and managing them is entirely different from managing direct employees. As contractors manage their own days to some degree, it’s important to set boundaries and expectations early on to avoid miscommunication or confusion.
For example, clearly define what is expected of them when representing your business on site. This includes anything from the scope of work involved, their responsibilities on the project, and completion timelines given to the customer, as well as any on-site protocols that might be important to follow. As an employer, you must ensure they have everything necessary for them to complete the work as agreed.
If expectations are not set at the start, it can cause issues later in the relationship. You should also aim to maintain good working relationships with your contractors, as it’s far easier to hire the same contractors for new jobs versus finding new ones.
The main responsibilities of contractor management include great communication and effective organisational skills. As the employer, you’re in charge of managing any documentation regarding a job’s completion, following up with anything that may be missing, and ensuring contractor-submitted invoices are processed on time. It’s also important to know which contractor is working on which job. This is where manual processes quickly get sticky.
As part of your larger field service management practices, project management tools and contractor management software can shrink the time it takes to organise your contractors, since you’re not relying on shuffling through a mountain of papers or spreadsheets.
Why implement a contractor management system?
Adopting contractor management software benefits your business in various ways. Here are a few of the benefits you’ll see after you adopt a technology-based contractor management system:
Streamlined organisation: Traditional paper-based methods restrict how efficient you can be with your time, as you’ll spend a lot of it rifling through various spreadsheets. With contractor software, all that information will be at your fingertips, vastly reducing the time you spend searching.
Efficient cost management: Having complete visibility around job costs, time cards, and, specifically, contractors at any project stage enables you to make more informed business decisions. This, in turn, will make it easier to manage contractor costs.
Intelligent business reporting: Gain insights into different aspects of your contractor’s work by setting up regularly scheduled reports that run weekly, bi-weekly, or even monthly. This enables you to monitor the progress of jobs at different stages and adjust anything before it becomes a real problem. Use Gantt charts to easily see the expected duration and start date to keep project schedules on track.
What makes a good contractor management system?
When you’re shopping around for the best software, you’ll find there are a lot of key features that many contractor management tools share. Let’s look at some of the features to prioritise:
Project management capabilities: The best contractor management software offers you a platform to look at an overview of all your jobs. This can be anything from the initial deployment of contractors to managing them on-site. You can then keep track of locations, deadlines, and dependencies, easily managing your project plan and project progress.
Contractor directory: Having a full list of contractors in one central location – including a place to keep important documents such as contractor licences – is a must to easily see who’s available for a job. It allows you to schedule faster, with more autonomy, and is a great way of comparing individual skill sets for specific jobs.
Time tracking and invoicing: Contractor work involves raising work orders and invoices, and a robust management system can help streamline this process, ensuring that everything is recorded accurately and processed on time.
Having one platform capable of handling it all helps streamline processes. Once an invoice has been raised, it can be passed onto the accounts team through the software, so that all relevant departments can view what is necessary. In addition, time-tracking capabilities help you see how long contractors spent on a job to better track resources.
Contractor portals: Having a portal that your contractors can access to view their jobs and upload invoices is a great way to take extra work off your plate. With contractor management software, office staff don’t have to wait for information regarding a job, meaning customers get invoices on time, and payments are reaching the business faster.
Mobile compatibility: Accessing a contractor management platform while out in the field is incredibly beneficial. For your contractors, it means they can send information back to the office instantly with their mobile devices. For example, any job updates or changes that need to be outlined can be communicated via a mobile app, so all relevant parties are informed.
In the next issue of NZ Landscaper, we will explore the best contractor management systems available to Kiwis and discuss four telltale signs that you may need to deploy contractor management software.
Built by the trades, for the trades, Simpro is a total business software for the trades – including landscapers. To learn more, visit simprogroup.com or contact sales@simpro.co.nz