Learn how to effectively vet and choose reliable suppliers and vendors. Discover essential steps and red flags to consider when evaluating potential partners for your facility management needs. Find expert tips from JLL in this comprehensive guide.
Insight
Vetting suppliers and vendors for facilities management
Choosing reliable vendors and contractors is crucial for quality service delivery and risk management. Vetting potential vendors allows you to assess their past performance, legal and financial issues, and insurance compliance. Follow these steps to effectively vet your vendors:
- 1. Request and Review the Vendor’s W-9 to verify their company name and IRS registration, establishing legitimacy.
- 2. Check for State and Local Licenses to make sure they meet requirements for your area. Ask vendors for their license information. Confirm that their licenses are valid and current, as this information is often available as public records. Request a Certificate of Insurance: Before onboarding any vendor, always require a current Certificate of Insurance (COI). This document protects your organization in case of any incidents.
- 3. Check for Safety and Quality. Ensure that the vendor consistently adheres to safety guidelines and best practices. Conduct an OSHA Citation and Violation search in advance to identify any known citations or violations.
- 4. Check the vendor’s financial past to see if they can meet their responsibilities. Look at their financial health and ability.
a. Judgements: Look for active or past litigation cases to gather insights into their competence.
b. Liens: Understand the types of loans and their potential impact on the vendor’s ability to complete the work.
c. Bankruptcy: Pay attention to pending or past filings, which may indicate financial instability.
- 5. Keep Your Bottom Line in Mind. Vetting vendors ensures you safeguard your business and avoid negative consequences. Regularly assess existing vendors for changes in their company health or licensing/certification issues.
Additional Considerations: How can facilities managers effectively compare and evaluate multiple vendors or suppliers?
To compare and evaluate vendors, facilities managers should conduct thorough research, considering industry experience, reputation, and track record. Site visits, references from previous clients, and multiple quotes or proposals can also aid in decision-making.
What specific certifications are signs of a quality facilities management vendors ?
Facilities managers should consider relevant certifications like ISO certifications for quality management systems or industry-specific certifications like LEED for sustainability. Additionally, check for memberships in industry associations and evidence of specialized training to gauge a vendor’s professionalism and expertise.