The Contractor On-Boarding Review

Back to the Contractor lead schedule

Introduction

As soon as a new contractor is identified as being a potential business partner, the Procurement team is responsible for commencing the initial Contractor On-Boarding Review.

The Procurement team should proceed as follows.

Step 1. Open the MOD's Approved Contractor List stored in the Compliance Folder to confirm the contractor has not already been reviewed.

  • If they are listed and marked as 'approved' in either Columns A or B, and their insurances remain in date, no further action is required in respect of the Contractor On-Boarding Review process.
  • If the contractor is listed but not yet marked as 'approved', then the schedule will indicate what information or documents may be missing to complete the review, and the Procurement team should make inquiries to determine where the hold-up may be.
  • If the contractor is not listed, go to Step 2.

Step 2. The Procurement team should forward the following documents requesting they be completed and returned to them as soon as possible:

  • Contractor Application Form. Link.
  • Service Level Agreement. Link.

Step 3. All documents received back from the applicant should first be reviewed by the Procurement team to ensure:

  • Both the Contractor Application Form and the Service Level Agreement have been completed by the applicant correctly.
  • Both forms are signed by the Applicant.
  • The supporting documentation supplied by the applicant is valid and provides the required information in an acceptable format..

It is the responsibility of the Procurement team to obtain the required information.

Step 4. The Procurement team should upload the documents to the Compliance folder on the MOD.

A new folder should be opened for each applicant and assigned to one of the two contractors or a worker folder as appropriate, namely:

  • 01. Contractors.
  • 02. Individual Self-Employed Contractor.
  • 03. Workers.

There are 'master' folders in each of the above that set out the sub-folders that should be used.

The responsibility for populating the various folders with relevant documents supplied by the applicant rests with the Procurement team, unless stated otherwise in [square brackets].

There is no point requesting the involvement of the other teams in attempting to complete the on-boarding review until the Procurement team have collected in and populated the folders highlighted in red with the relevant documents.

Contractors:

  • 01. Contractor Application Form.
  • 02. Service Level Agreement.
  • 03. Insurance Documents.
  • 04. Professional Qualifications.
  • 05. H&S Qualifications.
  • 06. Supplied H&S Policies and RAMS.
  • 07. Normal CIS status review [Financial Team].
  • 08. Normal VAT charging review [Financial Team].
  • 09. Contractor Induction Records.[Operational/HR]
  • 10. DBS checks.[HR]

Individual Self-employed Contractors:

  • 01. Contractor Application Form.
  • 02. Service Level Agreement.
  • 03. Insurance Documents.
  • 04. Professional Qualifications.
  • 05. H&S Qualifications.
  • 06. Supplied H&S Policies and RAMS.
  • 07. HMRC Employment Status Checks for sole-traders only [Financial Team].
  • 08. Normal CIS status review [Financial Team].
  • 09. Normal VAT charging review [Financial Team].
  • 10. Contractor Induction Records. [Operational/HR]
  • 11. DBS checks.[HR]

Workers:

  • 01. Worker engagement contract. [Financial/HR]
  • 02. Professional Qualifications. [Financial/HR]
  • 03. H&S Qualifications. [Financial/HR]
  • 04. Contractor Induction Records.[Operational/HR]
  • 05. DBS checks.[HR]

In summary

The applicant cannot be engaged for a specific project until the contractor on-boarding review has been completed and approved. That does not mean that the Procurement team cannot simultaneously manage both reviews to shorten the time it takes to get a contractor on-site.

At the same time, putting a contractor on site to begin work before both reviews have been completed by all the stakeholders in the process will:

  • Automatically invalidate our insurance cover exposing Marisco to an uninsured claim and higher premiums in the future.
  • May breach our contractual obligations to our clients.
  • Will breach our legal obligations to ensure our contractors our competent before we allow them to begin work on one of our sites.
  • Create a need to record the ISO:9001 and ISO:45001 non-conformities that are serious enough to threaten our renewal of the accreditations.
  • Create a situation where we must report and amend our CIS and VAT returns to the HMRC.
  • In the event the contractor causes a fire, a serious injury or a death by their actions, Marisco and its directors will be prosecuted. In the absence of any insurance support, the legal defence costs and fines that will ensue could threaten the ability of the company to continue operating, assuming of course the damage to our reputation as a reliable and compliant operator does not result in our clients refusing to work us in future.

The correct procedures to on-board a contractor are time-consuming and a tedious chore to complete. The cost of following procedure is nonetheless insignificant in both terms of time and financial consequences if they are not followed diligently. For those reason, we exercise a zero-tolerance for not following procedures.

Marisco Group

Head Office:
Unit J5, The Fulcrum
Vantage Way, Poole, BH12 4NU

Tel: 01202 474001

Email: accounts@mariscosouth.com

Marisco South Ltd is registered with: