What to look for before hiring a new contractor in the oil & gas industry?

Hiring contractors in the oil and gas industry requires meticulous evaluation to ensure the safety, efficiency, and success of your project. With high-stakes operations and rigorous safety standards, selecting the right contractor is a critical decision. Here’s a checklist of essential factors to consider when hiring contractors in the oil and gas sector:

1. Visit Their Main Office and Facilities

A physical visit to the contractor’s main office and facilities can provide invaluable insights into their operations and capabilities. This helps verify that they have the infrastructure, equipment, and workforce necessary to manage your project effectively. A site visit also allows you to assess their organizational culture and commitment to safety and quality.

2. Updated and Current PQF (Pre-Qualification Form)

Ensure the contractor has an updated and current PQF. This document demonstrates that they meet industry standards and have the qualifications to perform the required work. Reviewing their PQF will help you gauge their experience, capabilities, and compliance with industry regulations.

3. OSHA Logs for the Past Three Years

Safety is paramount in the oil and gas industry. Review the contractor's OSHA (Occupational Safety and Health Administration) logs for the past three years to assess their safety performance. This documentation provides a clear picture of workplace incidents and the contractor's commitment to maintaining a safe work environment.

4. Current EMR Letter

An Experience Modification Rate (EMR) letter reflects a contractor's safety record. A low EMR indicates a safer contractor with fewer workplace injuries, which reduces the risk of project delays or liabilities. Ensure the contractor provides their current EMR letter for evaluation.

5. W9 Form and Insurance Certificate

Before hiring, request and review the contractor’s W9 form to verify their tax identification information. Additionally, ensure they provide an up-to-date insurance certificate naming your company as the certificate holder. This step is crucial for financial accountability and protecting your company from potential liability.

6. Safety Training Records

Confirm that the contractor's safety training records are comprehensive and up to date. Employees should have received proper training to operate safely in the demanding oil and gas environment. Contractors with strong safety training programs demonstrate their commitment to minimizing risks on the job.

7. Membership with ISNetworld (ISN)

Verify if the contractor is an ISNetworld (ISN) member. ISN is the global leader in contractor and supplier information management. Their platform, ISNetworld®, facilitates sharing industry best practices, benchmarking performance, and providing data insights. ISN membership assures that the contractor has been vetted and meets the required standards for risk assessment and management.

Conclusion

Hiring the right contractors in the oil and gas industry involves more than just selecting the lowest bidder. By following this checklist and conducting thorough due diligence, you can ensure that the contractor is qualified, safe, and capable of managing your project efficiently. Prioritizing these factors will not only protect your operations but also set the foundation for a successful partnership.

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