Contractor Management Procedures¶

Procedures for bringing third-party contractors (HVAC, electrical, plumbing, IT, pest control, paint/coating, roofing, landscaping, service technicians, construction) onto Scott Recycling's facility to perform work.

Audience: Facility manager, Dan, office staff, anyone scheduling or supervising contracted work

Why this exists: Contractors introduce three categories of risk that require active management:

Safety risk — untrained outsiders in an industrial warehouse with forklifts, hazmat, and heavy equipment
Liability risk — if a contractor is injured on our property and they're uninsured, Scott Recycling inherits the claim
Business risk — contractors have access to inventory, records, equipment, and our reputation if they do poor work

A documented contractor management process converts ad-hoc relationships into managed ones.

Related: Visitor On-Site Procedures, Workplace Safety, Emergency Response, sr_maintenance module (tracks contractor work orders)

Scope of This Document¶

Covered: - One-time service calls (repair someone calls) - Scheduled recurring maintenance (HVAC tune-up, pest control, etc.) - Construction projects (building improvements, new equipment installation) - Specialty trades (welding, roofing, paint, concrete)

Not covered: - Employees of Scott Recycling (different HR process) - Customers dropping off material (see Visitor Procedures) - Vendors delivering supplies (also Visitor Procedures) - Temporary labor / staffing agency workers — these are managed under HR as contract employees

Contractor Approval Process¶

Step 1 — Scope definition¶

Before reaching out to any contractor, the person requesting the work (Dan, facility manager, department lead) documents:

What work needs to be done — as specific as possible
Why — urgent repair, preventive maintenance, improvement, compliance-driven
Budget — ballpark or authorized maximum
Timeline — when it needs to happen, any constraints
Access requirements — which zones, hours needed, any special accommodations
Impact on operations — does anything need to shut down? Temporary relocations?

This goes into a work request (paper, Odoo helpdesk ticket, or sr_maintenance work order).

Step 2 — Sourcing contractors¶

For non-urgent work, get at least 2-3 quotes before committing. For urgent or emergency work, use pre-approved vendors first.

Approved contractor list — a running roster of contractors Scott Recycling has used successfully before. Track:

Company name
Primary contact + phone
Services provided
Typical rate (or note "project-based")
COI on file date
W-9 on file date
Last used (date + project)
Rating / notes (1-5 stars + free text)

Maintain this list in ~/Desktop/sr-drafts/vendor-contacts.md (draft) or after filling in, in sr-docs knowledge-base/vendor-contacts.md.

Step 3 — Insurance verification (BEFORE work begins)¶

Every contractor must provide:

Certificate of Insurance (COI) showing active coverage for:
General liability: minimum $1M per occurrence / $2M aggregate (adjust to match your actual requirements)
Workers' compensation: if they have employees (required in TN for 5+ employees)
Commercial auto: if they drive vehicles on-site
Umbrella / excess: for higher-risk work (roofing, welding, etc.)
Scott Recycling listed as additional insured on the COI (this is a specific request the contractor's agent handles — not automatic)
W-9 for tax reporting (if payments exceed $600/year)
Business license in the state they're operating (varies by state/trade)
Bond (if required for the specific trade — often required for electricians, plumbers, some general contractors)

Store the COI and W-9 in the contractor's file. Re-verify the COI annually at minimum — insurance lapses without notice and you find out during a claim.

Step 4 — Background check (situational)¶

For contractors with access to sensitive areas (data destruction, cage area, server closet): - Criminal background check — consider requiring this for workers who will be alone in restricted areas - References — call 2 previous commercial clients to verify quality and behavior

For one-time visits to non-sensitive areas (HVAC in the office, pest control in the break room), background checks are usually skipped but can be required at Dan's discretion.

Step 5 — Written agreement / PO¶

For any work over $[[threshold — e.g., $500]]:

Written quote/estimate from the contractor with clear scope
Purchase order from Scott Recycling authorizing the work
Signed agreement if the work is ongoing (service contract)
Payment terms clarified in writing — Net 30 is standard, avoid COD for contractors

For small emergency repairs, verbal authorization from Dan or the facility manager is acceptable IF documented in the daily log.

On-Site Arrival Procedure¶

Step 1 — Advance notice¶

Contractors should have an appointment before arriving. The person who scheduled the work is responsible for:

Notifying reception of the expected contractor, company, and arrival window
Notifying the zone supervisor whose area will be affected
Notifying Dan for anything that affects multiple zones or requires utility shutoffs

All contractors sign in using the visitor log. Additional information for contractors:

Company name + vehicle description / license plate
Scope of work for this visit (if different from the original agreement)
Expected duration
Specific areas they'll be working in
Host employee responsible for escort and oversight

Step 3 — Contractor safety orientation¶

Before the contractor begins work, they receive a site-specific safety briefing:

Facility overview — this is a recycling operation, not a standard office or retail space. Active forklifts, chemicals, hazmat, dust, noise.
Hazards they might encounter in their work zone — lead dust (CRT area), battery acid, sharp metal, moving machinery
Required PPE — safety glasses, hi-vis vest, hearing protection where needed, respirator if in CRT or chemical area, hard hat for construction/roofing
Lockout/tagout rules — if they're working on equipment, they must follow our LOTO procedure (not just their own)
Emergency procedures — where to exit, where to assemble, how to call for help
Smoking / fire policy — designated smoking area only, no open flames without a hot work permit
Photography restriction — no photos without Dan's permission
Access restrictions — which zones they are and are NOT allowed in
End-of-day sign-out — must sign out, return badges, ensure tools are secured

Sign-off: contractor signs a brief acknowledgment that they received the safety briefing and agree to follow the rules. This protects Scott Recycling in a claim dispute.

Step 4 — Escort / supervision¶

Depending on risk level:

Low-risk work (office HVAC, pest control in break room): occasional check-ins, no constant escort
Medium-risk work (electrical in warehouse, equipment repair): regular check-ins every 30-60 minutes
High-risk work (roofing, welding, crane/hoist, hazmat adjacent): constant supervision by a Scott Recycling employee
Working alone after hours or in secure zones: not allowed — always supervised

Step 5 — Work authorization per task¶

If the contractor encounters something unexpected (need to cut into a wall, shut off a utility, access a different area), they should stop and ask for authorization from the host employee or Dan. No scope creep without approval.

Step 6 — Hot work permits¶

For work involving welding, torch cutting, grinding, soldering, or any open flame:

Required: signed hot work permit from Dan or facility manager
Fire watch required during and 30 minutes after hot work
Fire extinguisher within arm's reach
Area cleared of flammable material
Sprinkler system operational
Time-limited — permit is for a specific day and work area

During the Work¶

Check-in cadence¶

The escort / host employee checks on the contractor periodically:

Are they following the safety briefing?
Are they in the zones they should be in?
Any unexpected findings or scope changes?
Any concerns from the contractor about safety or access?
Are they making progress on the agreed scope?

Incident handling¶

If something goes wrong while the contractor is on-site:

Contractor injury: treat as emergency per Emergency Response. Call 911 if serious. Notify Dan immediately. Do not admit fault. Document everything. Notify insurance.
Damage to Scott Recycling property: document (photos, scope), ask the contractor to file a claim with their insurance. Do not accept verbal promises — get it in writing.
Damage to contractor's equipment: same approach but their claim is typically against their own insurance.
Safety violation: stop work immediately, have a conversation, re-brief, document. Repeated violations = terminate the engagement.
Theft or suspicious activity: stop work, escort out, document, notify Dan and police.
Scope creep requested by contractor: defer to Dan. No unauthorized additional work.

Daily end-of-shift¶

Before a contractor leaves for the day:

Walk the work area with the contractor — visual inspection for unsafe conditions, unfinished work that could injure someone, unsecured tools
Confirm work done today vs. remaining scope
Lock up any tools the contractor leaves behind
Contractor signs out at reception
Next-day plan if work continues — what time they'll arrive, any prep needed

Completion & Acceptance¶

Walkthrough at completion¶

When the contractor says they're done:

Walk the work area together
Verify the work matches the agreed scope — use the original quote/PO as the checklist
Test functionality — run the equipment, turn on the circuit, flush the line
Document any punch list items — things that still need attention
Photograph the completed work for the file
Sign off on completion (or note punch list remaining)

Final invoice and payment¶

Invoice should match the quote — if it doesn't, question the variance before paying
Pay per agreed terms (Net 30 typical)
Retain payment records per Record Retention Policy
Update the contractor rating in the approved contractor list

Warranty / follow-up¶

If the work came with a warranty (common for HVAC installs, roofing, equipment repairs): - Document the warranty terms in the contractor's file - Flag warranty expiration in your calendar - File service records for anything that might need warranty service

Contractor Classifications & Insurance Minimums¶

Trade	Typical liability minimum	Workers comp	Auto	Additional
HVAC service	$1M/$2M	Required if employees	Required	Freon handling cert
Electrical	$1M/$2M	Required if employees	Required	State license
Plumbing	$1M/$2M	Required if employees	Required	State license
IT / network	$1M/$2M	If employees	Not required	Data security plan for sensitive work
Roofing	$2M/$4M	Required	Required	Fall protection documentation
Welding / metal fab	$2M/$4M	Required	Required	Hot work cert
Pest control	$1M/$2M	If employees	Required	Chemical license
Landscaping	$500K/$1M	If employees	Required	—
General construction	$2M/$4M	Required	Required	State license, bond
Paint / coating	$1M/$2M	Required	Required	VOC disposal
Forklift / equipment service	$1M/$2M	Required	Required	OEM cert
Cleaning / janitorial	$500K/$1M	If employees	Not required	—

Adjust minimums up for any contractor working in or near hazmat storage, high-value inventory, or data destruction areas.

Red Flags (Decline or Pause)¶

If any of these come up, STOP and discuss with Dan before proceeding:

Contractor cannot or will not provide a COI
COI has expired
Worker's comp policy is questionable (e.g., "I'm a sole proprietor so I don't need it" — but then they bring employees)
License has been suspended or expired
Contractor refuses safety briefing
Contractor refuses to sign in
Contractor refuses to be escorted
Contractor arrives impaired (alcohol, drugs)
Contractor wants to work alone in secure zones
Contractor's quote is dramatically lower than competitors (suggests corner-cutting)
Contractor has multiple complaints on BBB / Google / industry sites
Contractor fails to complete prior jobs without explanation
Contractor subcontracts the work without telling you (you may end up with an uninsured subcontractor on-site)

Contractor File — What to Keep¶

For each contractor, maintain a file (physical or digital) with:

Intake documents: quote/estimate, PO, signed agreement
Insurance: COI, annually renewed
Credentials: W-9, license, certifications, bonds
Background check: if applicable
Safety: signed safety briefing acknowledgment per visit, any incident reports
Work records: daily logs, photos, completion walkthroughs, punch lists
Financial: invoices, payments, disputes
Ratings / notes: quality, reliability, behavior
Warranty documents

Retention: 7 years after the contractor's last engagement per Record Retention Policy.

Review Schedule¶

Annually: review approved contractor list, remove inactive contractors, re-verify COIs
Per engagement: review this procedure if any incident occurred
Triggered: if insurance requirements change (your coverage, state law), update minimums