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Vendor Management 20 Worst Mistakes
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Skipping Certificate of Insurance (COI) Verification:
- Consequence: You bear full liability for on-site damages or injuries without any backstop.
Overriding COI Restrictions Without Oversight
- Consequence: Expired or inadequate policies go unchecked, leaving insurance gaps.
No Formal Vendor Pre-Qualification
- Consequence: Unvetted contractors bring substandard work or introduce safety hazards.
Failing to Define Service Types Upfront
- Consequence: Confusion over scope leads to billing disputes and unauthorized work.
Treating Vendors Like Visitors
- Consequence: Critical vendor processes (e.g., tool checks) are skipped, compromising site safety.
No Scheduled Access Windows
- Consequence: Overlaps between vendors and tenants cause congestion and workflow clashes.
Missing Escort Requirements for High-Risk Vendors
- Consequence: Sensitive areas are accessed without supervision, risking theft or sabotage.
Lack of Integration with Turnstiles/Access Devices
- Consequence: Vendors piggyback on regular badges, undermining time-based controls.
No Automated Checkout or Credential Revocation
- Consequence: Former vendors linger on-site, inflating labor costs and security logs.
Over-reliance on Paper COI Records
- Consequence: Hard to track renewals, leading to expired coverage slipping through.
No Tracking of Vendor-Owned Equipment
- Consequence: Tools or assets are lost or left unsecured, exposing you to replacement costs.
Failing to Log Vendor Activities
- Consequence: No audit trail of who did what, making incident investigations impossible.
No Bulk Onboarding for Frequent Vendors
- Consequence: Repeat vendors face redundant paperwork, souring relationships and slowing operations.
Credential Expiry Not Enforced
- Consequence: Long-expired credentials remain valid, compromising temporal controls.
No Alerts for COI or Certification Expiry
- Consequence: You lose visibility when critical documents lapse, increasing liability.
Uniform Rules for All Vendors
- Consequence: Specialized contractors (e.g., electricians) aren’t subject to the protocols they require.
Not Aligning Vendor Access with SLAs
- Consequence: Service-level failures go undetected, impacting tenant satisfaction.
No Emergency Deactivation Process
- Consequence: In a crisis, you can’t instantly lock out all non-essential personnel.
No Reporting on Vendor Performance or Trends
- Consequence: You miss flagging chronic underperformers or recurring safety issues.
Lack of Tenant-Stakeholder Coordination
- Consequence: Vendors inadvertently disrupt tenant operations, leading to complaints or lease penalties.
