#subcontractoragreements

Every day, your HR department works with a wide range of services, providers, and employees to meet your company’s needs. Your HR team needs to have the right processes in place to help ensure that every interaction meets the company's guidelines. But it’s just as important that your team’s resources are built based on those standards. Standardizing the terms for vendor contracts makes it easier to use recruiting services and provide benefits. It also ensures every employee is given access to the same benefits and has the same obligations. With the right human resources contract management software, you can make standardization easier. 

Standardize the Vendor Contracts Your Company’s HR Services

Your HR department deals with your 401(k) plan providers, hiring services used by your company, background check services, and more. The department may need to both negotiate and enforce those contracts, especially with regards to insurance or 401(k) plan providers. With the right contract management software, your team can standardize those contracts easily. You can:  Create contract templates.  You may not always have full control over what your vendors are willing to offer, but you can start the negotiation in the right place. Create vendor contract templates that either act as a starting place for conversations with the vendor or set the expectations for your team. These templates may include the standard services your business needs. They can also establish a price range that you're willing to pay for those services. These templates won’t just standardize your connections across those platforms. They can also make it easier for you to move those contracts through your approval process.  Set the terms your business is willing to accept.  Smart contract management software can do more than create a standard template that includes the services you need. The right software can also set specific limitations for the contract terms that you're willing to accept. For example, you might be willing to pay a fee up to a certain amount for the services you need from a vendor. Alternatively, you might need your contracts to include a specific clause in order to receive contract approval. By hardlining those requirements into the process, you reduce the risk of human error or bad contracts.  Streamline collaboration and approval.  Sometimes, vendor contracts need to be approved by multiple parties before you can move forward with a purchase decision. Whether you're utilizing a new subcontractor or connecting with a new company for your background checks, make a process that fits your company’s needs. For routine processes, create a streamlined check system. For specialized or expensive requests, you can also create a more robust approval process that’s automatically triggered by unusual cues. Effective contract management software can help teams and departments across your company collaborate to standardize those terms. Your contract management software can also help ensure that all relevant departments approve a contract before you sign it. This will make it easier for you to ensure that your contracts meet the terms needed by all departments, not just some of them.  

Manage Contractor and Subcontractor Documents with Human Resources Contract Management Software

Your HR department may work directly with many of the contractors and subcontractors you hire to do work for your company, whether they're working directly on projects related to your customers, helping to manage job sites, or simply providing subcontracted services that aid you in finishing your jobs and meeting your customers' expectations. You need a high degree of consistency and standardization across your contractor and subcontractor documents, both when working with the same contractors consistently across multiple projects and when working with multiple subcontractors.  Set your terms.  Consider what terms are relevant to all your contractor and subcontractor contracts. You may, for example, have a standardized confidentiality clause to help protect your end clients, or you might need to clearly designate which responsibilities rest with a subcontractor and which ones rest with your business directly. Create a list of standard terms that need to be included in all your contractor and subcontractor documents. In some cases, you may need to alter those terms for specific providers. But having them laid out clearly can make it easier to maintain your standards regardless of which subcontractor you deal with. Establish your company's price range.  If Contractor A provides premium service for $10,000 and Company B provides standard service for $8,000, which one does your company prefer to work with?  While there's no one right answer to that question that applies to every business, you should have a standardized answer that applies to your company to make it easier for you to handle client queries and deal with concerns along the way. Set a clear price range that your company is willing to pay for services. If services go outside those standards, you may want to choose a different provider for your needs. Having that price range already in place can make it easier to make those decisions for your company.  Set a process for the evaluation of your contractors and subcontractors.  When you work consistently with the same contractors and subcontractors, you may come to expect a certain specific quality of service from the ones you deal with on a regular basis. When you connect with new contractors and subcontractors, on the other hand, you may need a scale that will allow you to more easily evaluate exactly what those contractors are supposed to be accomplishing and how their standard of work holds up to your requirements.  At the end of each contract cycle, you may want to evaluate the performance of your subcontractors compared to your current standards. In some cases, you may need to alter your future contracts with those contractors. In others, you may choose a different provider for your needs. You may also want to conduct regular evaluations throughout the project, ensuring your contractors and subcontractors are delivering on your expectations.  Your contract management software can produce alerts and reminders that will let you know when important deadlines are approaching, which will allow you to make sure your contractors and subcontractors aren't falling behind in their work. Lay out your penalties.  What happens when a contractor or subcontractor fails to deliver on your company's expectations, including meeting your timeline and fulfilling the end client's expectations? While there may be times when events beyond your control or the subcontractor's slow down jobs, a subcontractor that doesn't meet their obligations can derail the progress of many jobs. Set clear penalties for contractors and subcontractors who fail to meet their obligations. Ideally, you want to standardize those across your agreements so that when those situations arise, you know exactly what your response should look like.  Keep all your contractor and subcontractor contracts in one easy-to-search location.  When you have multiple contractor and subcontractor contracts, it's easy for one or more of them to get lost in the shuffle. Paper contracts can end up shoved to the side. Virtual contracts may be forgotten as you deal with other job tasks and responsibilities. With enterprise contract management software, organization becomes easier. You can quickly search for and pull up the document you're looking for. You can also ensure that you have reminders and alerts for important dates and deadlines. This helps you ensure that your contractors and subcontractors are meeting their obligations. Even better, smart triggers and alerts will help you catch any potential problems before they impact the high quality of standards that you expect to deliver to your customers.  Your contractors and subcontractors often represent your company. You may, for example, hire them to perform actions on your job sites that your clients will attribute directly to your business. As a result, you need a high standard of performance. You also need a standardized scale that will allow you to clearly track how they are performing in their job responsibilities. Your human resources contract management software will allow you to keep all that information in one place. It can even provide you with reminders that you need to assess your contractors and subcontractors to ensure that they have met specific terms. 

Standardizing Employee NDAs with Reliable Human Resources Contract Management Systems

As many as 1/3 of employers across the United States use nondisclosure agreements to help prevent their employees from sharing information outside the business. Do you have confidential information that you need to protect within your business? A nondisclosure agreement can help protect your business and provide legal consequences if employees fail to adhere to those terms. An NDA can prevent your employees from speaking publicly about the inner workings of your business or from providing confidential information to your competitors. The HR department, however, needs to standardize those documents. Ask your team: Which employees need to sign NDAs?  Some of your employees may work directly with confidential information on a regular basis. Others may never come into contact with that information. Many businesses that use NDAs choose to have all employees sign them. Others may restrict their NDAs to specific employees within the organization. When considering who needs to sign an NDA for your business, don't forget about contractors, freelancers, and temporary employees. Many of these individuals may work with the same information your staff handles on a regular basis. When should employees sign NDAs?  Ideally, you want employees who need to sign NDAs to sign their agreement as soon as possible. You may want to make your NDA part of the hiring or onboarding process for employees at your company. Make sure your human resources contract management software sends out an alert to get that agreement signed quickly. The task should automatically originate as soon as you add a new employee to the system. This will help prevent you from allowing an employee access to confidential information without the NDA in place.  What is included in your NDA?  Over time, the NDA for your business may evolve. You may change its terms, especially if you start to deal with different types of information within your business. You may also make changes to your NDA after an information breach, especially if you discover gaps in your agreement. Your human resources contract management software can ensure that all members of the team sign the same NDA. This is a much better policy than pulling up a generic NDA every time you hire a new employee.  Also, your contract management software can send out alerts when it’s time to make changes to your NDA. Smart software can even notify you about long-term employees who need to come back in to sign the modified version. 

Handle Your Audit Processes Automatically with Smarter Human Resources Contract Management Software

Your subcontractors — no matter the industry, from construction to event management — are an incredibly important part of the business you complete every day. Often, your clients will judge your business on the quality of work your subcontractors produce. Not only that, if you fail to properly manage your subcontractor agreements, you could end up with poor quality, high prices, or an agreement that just doesn't benefit your business the way you had hoped. Organizing your subcontractor agreements is a crucial aspect of managing all of your business’s contractual relationships. There are several key reasons why you must keep clear records surrounding your subcontractor agreements. 

1. You must have a clearly established payment arrangement.

Some subcontractors will take advantage of an ambiguous payment arrangement to overcharge you, whether that means raising the price of materials or increasing the time spent on a project to gain extra payment for the labor they put forth. Others may simply charge you the going rate for their business or include prices that are much higher than their competitors. Putting together clear subcontractor agreements, on the other hand, removes that ambiguity. Your agreement should clearly establish the work that will be completed by the subcontractor, the materials they will be expected to supply, and the payment they will receive for their efforts. You may also include bonus payments or overhead in the agreement. You can also establish penalties that the subcontractor will incur if they fail to deliver the work you expected.  

2. Your company needs adequate liability protection.

Subcontractors and independent contractors are only human, and they can make mistakes like anyone else. Not only that, you don't have the chance to individually interview or evaluate every member of your subcontractor's team the way you can your own. What happens when the subcontractor makes an error? Your agreement with that subcontractor can accomplish several things, legally speaking. It can: Indicate who bore responsibility for completing a particular piece of work.  This can make it easier to establish who caused an error — and which company bears responsibility for fixing it. Establish penalties for subcontractors who fail to uphold their end of the contract or agreement. You hired a subcontractor to take care of a specific task, but they failed to finish it in time for the rest of the project. Your subcontractor agreement might not prevent you from needing to scramble to fix things, but it can establish what the subcontractor will need to do to make it right.  Help establish legal liability for anything that goes very wrong in the project.  If something does go badly wrong, legally speaking, you want to establish that the subcontractor, and not you, is legally liable. 

3. Subcontractor agreements can help establish security obligations.

Many businesses work with confidential material or in secure areas on a regular basis. Your subcontractors must adhere to the same security standards and guidelines that you do, and your agreement can help set that out. It may detail: What certifications or tiers of access must the subcontractor hold in order to work on a specific project? Both government contracts and strict private customer contracts, for example, may require substantial certifications or secure access tiers of specific employees. Also, they may require certain security clearances from each employee, including subcontractors, who enters the site.  What security regulations must the subcontractor adhere to?  In a medical care setting, for example, subcontractors may have to adhere to HIPAA regulations in addition to normal security. There may also be specific security requirements for some secure work sites or locations.  What are the penalties for failing to adhere to security regulations? Who bears liability if a breach occurs — and what will you do about it?  The subcontractor's lack of security could reflect negatively on your business. So it's critical to set out how you will handle potential breaches ahead of time. 

4. Complete insight into your subcontractor agreements can give you more warning as renewal dates approach.