Contractor Management Software: Definition, Use Cases, Benefits, and Key Features

Effectively managing contractors is a growing priority for companies across various industries, particularly those that rely on both full-time employees and specialized contractors to achieve operational goals, maintain productivity, and complete projects on time and within budget.

This is where contractor management software makes a transformative impact. By providing a centralized platform to oversee all aspects of contractor relationships—from onboarding and training to compliance tracking, time management, and performance monitoring—contractor management software helps businesses ensure that their contract workforce operates as smoothly and safely as their in-house teams.

In this guide, we’ll explore how contractor management software can optimize contractor oversight, reduce inefficiencies, and ensure that all workers, regardless of employment status, align with your organization’s safety and compliance standards.

What is Contractor Management Software and What Does it Do?

Contractor management software is a centralized platform that helps companies oversee various aspects of contractor relationships—from onboarding and compliance to cost tracking and work assignments. By automating and centralizing contractor data, this software enables companies to optimize resource usage, reduce administrative tasks, and improve oversight on projects, ultimately increasing overall efficiency.

Differences Between Contractors and Full-Time Employees

While full-time employees provide continuous service and are directly employed by the organization, contractors bring unique skills for specific projects and are often engaged on a temporary basis. This difference impacts how contractors and employees are managed, including onboarding processes, compliance requirements, and cost tracking.

Types of Contractors

Different types of contractors serve specific roles across industries. Here’s a look at some common categories:

1. Embedded Contractors: Contractors who work alongside full-time employees, often treated like team members in day-to-day tasks but not directly employed.

2. Independent Contractors: Self-employed professionals brought in for specialized, short-term projects.

3. Industrial Maintenance Contractors: Contractors specializing in equipment upkeep and repairs, critical for facilities with heavy machinery.

4. Capital Industrial Contractors: Hired for capital projects, such as infrastructure improvements, and typically brought in for long-term, large-scale tasks.

5. Construction Contractors: Essential for construction projects, from small building repairs to large infrastructure projects, with a focus on physical construction and structural work.

Challenges of Using Contractors and Full-Time Team Members

Mixing contractors and full-time staff on projects can create unique challenges, from maintaining consistent work standards to managing compliance. Each group may have different training, skill sets, and management requirements, which can impact the project’s workflow if not coordinated well.

Challenges of Managing Independent Contractors Without a Contractor Management Solution

Without contractor management software, overseeing independent contractors can quickly become overwhelming. Common challenges include:

Tracking job bids and completing RFQs: Managing multiple requests for quotations (RFQs) and selecting contractors can be time-consuming.
Limited visibility into contractor rates, performance, and qualifications: Without a centralized system, it’s difficult to maintain real-time information on contractor costs and credentials.
Invoicing complexities: Invoicing can be slow, with errors often arising from manual data entry or tracking issues.

Why Do Companies Use Contractors for Maintenance and Capital Projects?

Running the maintenance department for a company is no small feat, no matter what industry you are in. You are responsible for keeping operations moving at all times.

If you don’t stay ahead of maintenance issues, it can start to impede operations and production, which prevents your business from making the revenue it needs to stay in business.

Unfortunately, sometimes you lose key personnel, or you simply do not have enough staff for the amount of maintenance you need to complete. Fortunately, you can hire maintenance contractors to fill the gap.

In this article, we will cover the usual reasons why companies will use contractors to fill that gap in their maintenance initiatives, and how you can manage contractors more seamlessly.

1. Businesses Use Embedded Contractors to Sustain Daily Maintenance

Most businesses will use embedded contractors to perform daily maintenance to free up internal resources, or to accommodate maintenance needs in the midst of hiring. This is common when companies are growing, or when they are well established and choose to outsource maintenance for efficiency or cost reasons.

Using contractors during this time is a great way to get maintenance work orders completed and keep production moving. Sites like ThomasNet.com help connect you to maintenance contractors providing niche services and general maintenance services.

Some contractor service companies will provide services by job, short-term contract, or long-term contract. If the contractor company provides services based on contracts, you will be able to have them work on various projects throughout your facility for the duration of the contract.
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2. Companies Use Contractors to Perform Specialty Maintenance Work

There are a few reasons you would need to outsource maintenance work, like:

Your maintenance workers don’t have the specialized skillset required
A maintenance project requires tools your facility does not have
A repair is in a hard-to-reach or high-up location in your facility

If there are maintenance jobs that your maintenance technicians don’t perform routinely, it can be safer and more cost-effective to have a contractor perform them.

Companies like Industrial Access provide smokestack and industrial chimney repair, maintenance, and inspection services for manufacturing facilities, power plants, pulp & paper mills, mining & metals processing facilities, and steel & metal mills.

For niche maintenance services that you do not need on a frequent basis, it can make more sense to outsource the work to allow your technicians to focus on day-to-day maintenance, letting you save on equipment like cranes or rappelling systems that you would need to reach high spaces.
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3. Businesses Use Contractors for Help on Shutdowns, Turnarounds, and Outages

No matter how well-staffed your maintenance department is, large shutdowns, turnarounds, and outages (STOs) with tight deadlines will generally require the help of a few extra hands.

Some contract service companies provide services solely focused on shutdowns, turnarounds, and outages. Depending on the contractor company, they may be able to run the entire STO for you (if that is the level of help you are looking for).
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4. Companies Use Contractors for Assistance with Large Capital Projects

As your company expands and you add new locations and modify your existing buildings and structures, you will have many capital projects. Since these projects are large and highly construction and welding-focused, your usual crew will most likely be too small and not have the correct skillset required.

Fortunately, you can contract this work out to companies that run capital projects and staff capital projects every day. That is not to say, though, that you have to completely outsource all parts of your capital project if you don’t want to.

You could have a mixture where you run the high-level details of the capital project, and an external company provides you with the contractors needed to perform it.
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When is Construction Contractor Management Software needed?

Managing an internal maintenance crew is already hard enough, let alone managing both an internal crew and contractors. Fortunately, contractor management software makes this process easier by allowing you to track time, attendance, cost, overtime, and other key information.

Systems like Prometheus Contractor Management (previously WorkTech) allow you to manage contractors seamlessly, as well as help you increase the efficiency of your contract resource utilization and decrease your costs.

What services are included in Prometheus Contractor Management?

Prometheus Contractor Management offers a comprehensive suite of services designed to streamline contractor oversight, from cost tracking and onboarding to job assignment and performance management.

Here’s a closer look at the core features and benefits:

Contractor Cost Tracking

Prometheus Contractor Management simplifies the data capture, review, and approval processes associated with contractor costs. This capability helps boost ROI and cut down operating expenses through:

Streamlined Data Capture: Track, review, and approve contractor time, attendance, and cost data accurately and efficiently.
Error-Free Invoicing: Reduce manual errors in invoicing and avoid costly discrepancies.
Contract Negotiation Insights: Use real-time, accurate data to negotiate better rates with contractors.
Expedited Payment Processing: Simplify cost approvals, allowing for faster payment processing and fewer delays.
Mobile Data Entry: Contractors can enter their time and cost data remotely, ensuring flexibility and accuracy.

Gate Reconciliation

Gate reconciliation syncs entry and exit data with contractor time logs to ensure precision in time tracking:

Accurate Time Entries: Automatically flag discrepancies between gate data and contractor-reported hours.
Efficient Time Corrections: Identify and resolve incorrect time entries, ensuring precise invoicing.

Contractor Onboarding

Prometheus Contractor Management centralizes the contractor onboarding process, verifying each contractor’s readiness to perform specific tasks. Key benefits include:

Compliance and Insurance Verification: Ensure contractors hold the required insurance coverage for their roles.
Skills and Qualifications Tracking: Confirm contractors’ skills and certifications by trade, maintaining project and safety standards.
Centralized Data Management: Access all contractor details in one location, reducing administrative effort and oversight time.

Contractor Management

Manage contractors’ information and assignments within one integrated platform, maximizing efficiency and accuracy:

Vendor Management: Create new vendors directly within the system for streamlined setup.
Approval Workflows: Define workflows for labor, material, and equipment approvals, enhancing control and consistency.
Transaction History Tracking: Access submission and approval history, including timestamps and notes, for all contractor-related transactions.
Resource Qualifications: Attach critical qualification documents to contractor profiles and monitor their performance.
Self-Managed Qualifications: Contractors can update qualifications, ensuring data stays current and accessible.

Job Assignments

Job Bidding

The platform simplifies job bidding, offering a centralized view of job proposals and historical data:

Bid Visibility: Easily view and manage contractor job bids in one place.
RFQ Management: Submit and review Requests for Quotes (RFQs) seamlessly within the system.
Vendor Selection: Approve or reject vendor bids directly, ensuring transparency in the selection process.
Bid History: Access bid proposals and transaction details, fostering data-driven decision-making.

Contractor Job Planning

Manage day-to-day contractor planning with powerful scheduling and tracking tools:

Daily Reports and Plans: Provide contractors with daily job reports and plans for clarity on tasks.

Resource Projection: Plan resources by shift and craft, optimizing workforce allocation.
Discrepancy Resolution: Identify and resolve discrepancies between planned and actual resource allocations.

Who Should Use Contractor Management Software?

Industries with high reliance on contractors, such as Oil & Gas, Utilities, and Infrastructure, benefit most from contractor management software. This tool enables efficient onboarding, qualifications tracking, cost management, and job assignment for contractors across diverse projects.

What Are the Benefits of Using Contractor Management Software?

Seamless Integration with Existing Systems

Prometheus integrates with major ERP systems, including SAP, Maximo, and Oracle, ensuring all contractor data remains up-to-date and accessible across platforms.

Manage Complex Shift Assignments

Easily assign shifts, manage overtime, and ensure accurate time tracking for all contractors directly within the system.

Track and Compare Contractor Performance

Track essential metrics like cost, attendance, and productivity, allowing for data-driven performance evaluations and continuous improvement.

Keep Maintenance On-Track and On-Budget

Monitor labor and material costs, comparing current rates to previous benchmarks to keep projects within budget.

Easily Configure Screens and Business Rules

Adapt screens and business rules to suit specific contractor management needs, supporting custom workflows and reporting requirements.

Can Contractor Management Software Be Integrated Into Existing ERP or EAM Systems?

Yes, Prometheus Contractor Management integrates with ERP (Enterprise Resource Planning) and EAM (Enterprise Asset Management) systems, including SAP, IBM Maximo, and Oracle. This connectivity centralizes contractor data across HR, payroll, security, and financial management systems, promoting smooth data flow and reducing redundancy.

Why Is Prometheus Group the Best Contractor Management Software Available?

Prometheus Group combines extensive functionality with ease of use, enabling companies to manage contractor costs, compliance, and assignments in a single, intuitive platform. The software is built with flexibility and scalability, making it a fit for organizations across industries. Key differentiators include:

Comprehensive Data Management: Track everything from costs to compliance in one place.
Integrated with Leading ERPs: Leverage existing systems for cohesive contractor management.
Real-Time Insights and Mobile Capabilities: Make data-driven decisions on the go and improve operational agility.

Learn more about Prometheus Contractor Management Software

If you would like to speak to one of our in-house specialists about how Prometheus Group can streamline your contractor management, contact us today.

To learn about a better way to manage your contractors, check out our Contractor Management Evaluation Resources:

Prometheus Group October 20, 2022

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