Last week, we discussed how to select an outside contractor. Let's now look at the next crucial phase of the contracting process: Negotiating the agreement. In addition to offering up a negotiating checklist, I've provided a model agreement (in the Tools section of SafetyXChange).

Everything Is Negotiable

The first thing you need to understand is that just about everything in a contract is negotiable. This is true even if the contractor has a form agreement that it uses. Don't be intimidated into thinking that a form can't be negotiated.

Another word of advice: Prepare a document such as a "Contractors Safety Agreement" in advance setting out the parameters of the job. This will help you to incorporate the appropriate terms in the agreement.

Items to Negotiate

I have compiled a short list of the key items to focus on during the negotiation. This list is not exhaustive. But if you're new to the contracting process, it should help you get organized and put you on the road to successful contractor negotiations. Here are the issues to consider:

• Licenses - Is the contractor licensed to perform the work? What type of certificates or license does the sub-contractor hold? Do they conform to local licensing requirements?

• Permits - Who gets them and schedules the inspections if required?

• Insurance - Make sure the contractor provides you certificates of insurance verifying that it has appropriate coverage. Does the general contractor have blanket coverage or do the individual sub-contractors carry their own insurance? What's the scope of coverage? The amount? Is this appropriate for the job?

• Safety - The work is going to be performed on your premises so you have safety considerations to evaluate. Does the work being performed by any of the contractors expose your current workforce to new or different hazards? Will the contractor be using any materials or creating any hazardous conditions that endanger your own employees? If yes, how will your employees be protected?

• Compliance - Will the contractors be required to conform to OSHA requirements and adhere to your own safety rules while performing the work? Have the contractors been properly trained in the use of their equipment and the hazards of the materials they will be using on site?

• Materials - Are all materials figured into the cost of the job? Who will determine the specifications of materials to be used?

• Who supplies the tools for the job - Will contractors have their own tools? Qualified contractors should have their own tools and equipment. You shouldn't have to supply them.

• Clean-up - Who is responsible for cleaning up the job site when the work is completed? Every construction job no matter how minor generates trash, material waste, dust and general disorder.

• Waste disposal - Some work in the construction, building, repair and general remodeling area produces waste of a hazardous nature. Unused paint, solvents or even remediation waste such as asbestos. Who is responsible for the proper disposal of this waste?

• Payment - Compensation is the heart of the contract. Consider not just the amount but the timing of payment. How will you pay the contractor? Partial payment before work begins? Pay as they go? Pay upon completion?

• Performance - What constitutes a good job - when is the job satisfactorily completed?

Conclusion

Working with contractors is completely different from working with your own maintenance employees and more challenging than working with your own engineering people. The more work you do preparing for the project, the easier things will be.

HALLOWEEN SAFETY SPECIAL

Grading the Monsters

Today is Halloween. So SafetyXChange thought it would be appropriate to consider some of the most beloved movie monsters and evaluate them from the perspective of safety. What we found was less than pretty:

FRANKENSTEIN

Dr. Frankenstein's lab is a safety nightmare. Sources of electricity aren't properly grounded. There are open test tubes lying around containing lord-knows-what chemicals. People walk around with open torches. Appalling.

Grade: F

DRACULA

Another safety disaster. That coffin he spends half his life in is a confined space. But does he conduct sampling of the air or use proper gauges? No. Not only that. He's all alone. So if he needs help, who's going to hear his cries and rescue him? Then, when he does come out at night, he walks around the streets in dark clothing without a flashlight or reflective vest. His fangs are also sharps and a likely source of infection.

Grade: F

WOLFMAN

He also has fangs issues. Moreover, his long hair can get entangled in the moving parts of machinery. But he does at least have a warning device to warn of his approach: His howl.

Grade: D

Jason: Monster in PPE.

JASON (From Friday the 13^th)

The bad news: He handles chainsaws, machetes and other dangerous tools like they're toys, and doesn't wear protective gloves. The good news: He does employ proper face protection.

Grade: C

Have a safe and happy Halloween, everybody.

Glenn Demby
Editor-in-Chief
SafetyXChange

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