Blog Post

Three Reasons You Need Contractor Compliance Management

Background Screening | COI Management | Industry Information | August 16, 2021
Contractor Compliance Management

Customers, be they homeowners or consumers, expect that you are aware of who is in your network and that some demonstration of due diligence can be provided for them. 

Protect Your Reputation

Customers do business with your organization because of your programs, reputation, pricing, and products and they expect your standards to be extended to anyone they interact with in the course of that relationship. This is why contractor compliance management is so important.

In a Mindspot study conducted by PlusOne Solutions, consumers expected that the individuals being sent into their homes had been background and drug-screened. This was often a criterion in selecting a servicing organization. As we know the current news cycle and access to social media allows negative information to be shared and accessed at rates much quicker than ever before. This means that any less than stellar interaction with your organization is likely to be broadcast without your knowledge or response. Additionally, the litigious nature of our society means that when harm is done, someone will be called to task for it.

In 2019, there was an incident in South Florida where a major electronics retailer was expected to know the screening status of everyone in their delivery chain, and this expectation is not uncommon – can you speak to your contracted network’s screening status?

Risk Mitigation

In line with our first point above, the operational, legal, reputational, and financial risks of not having a solid Contractor Compliance Management program for your organization, can spell the end of your days. There is never a 100% guarantee that who you are engaging as a contractor is without risk, however, being able to reference a program, contractual language, and demonstrate that diligence has been paid to the network will be incredibly helpful should an issue arise. 

People understand that mistakes are made and that no one can predict theContractor Compliance Management future, so having a strong program allows you to demonstrate that you sought to mitigate risk and were not willfully neglectful about the network you engaged in.

We noted that customers expect your organization to have a Contractor Compliance Management Program in place and without it, your reputation is at risk, especially when others in your industry do have a program. The financial and legal exposure your organization is under also increases without the ability to cite a program or efforts that the organization has made to protect its customers. 

With proper contractual language and a clear outline of what is required – background checks, Certificate of Insurance (COI) management, badging, license verification, and TIN matching, you are also less likely to engage with companies that cannot, or unwilling, to meet your standards. The program broadcasts your organization’s position and approach to protecting customers and ensuring protocols are in place to reduce risk.

Raising the Standard in the Industry

As John F. Kennedy so eloquently said, “a rising tide raises all boats.” Now although we are not speaking specifically of the economy as he did, the same concept holds when one organization – and it could be yours – begins to raise the standard in the industry.

In many industries, there are professional associations where members can share common concerns and challenges and in those areas, is the opportunity to see how you can differentiate your organization and set it above others. 

Specifically, if you start to require components in your Contractor Compliance Management program that others do not, the caliber and reputation of your network will quickly rise, leaving the dregs for the others whose standards and programs are not as well developed.  


As organizations look to reduce risk, differentiate themselves from competitors, and monitor their online and ongoing reputations, the need for a Contractor Compliance Management program only increases. 

Being able to competently defend against a claim becomes much easier when there is a program that can be pointed to that says “see, we thought about this, we’re trying.” As class actions, media platforms, and individuals become more aggressive, contact us and make sure your organization is ready to withstand these changes.

Contents are provided for information purposes only and should not be construed as legal advice. Users are reminded to seek legal counsel with respect to their obligations and use of PlusOne Solutions services.

About PlusOne Solutions

PlusOne Solutions has been an industry leader in the risk management field by specializing in compliance programs that meet the complex challenges of geographically dispersed contractors, vendors, and employee networks. PlusOne Solutions protects companies from possible financial, legal, and reputational risks associated with contractor and vendor relationships while creating safer work environments. To learn more, visit

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