A Smarter Approach to Managing Risk, Compliance, and Vendor Oversight
Over 75 percent of organizations still rely on manual methods to track contractor compliance (ISACA, Digital Transformation Barometer). That means most facilities are managing critical compliance records using spreadsheets, emails, and phone calls—systems prone to human error, delays, and security risks.
A single expired certification, missed safety requirement, or overlooked insurance document can lead to serious consequences: regulatory fines, project delays, unauthorized site access, and liability risks. Yet, without a structured digital compliance management system, these oversights become inevitable.
The reality is that manual contractor compliance tracking isn’t just inefficient—it’s dangerous. Organizations are spending significant amounts of time tracking down missing paperwork while still failing to ensure all contractors and vendors meet the necessary requirements. Every day a facility operates with compliance gaps, the risk increases.
The good news? A better way exists. By taking a proactive approach, facilities can eliminate inefficiencies, reduce risk, and regain control over contractor compliance. Now is the time to put an end to compliance blind spots.
Why Facilities Need Contractor Compliance Management Software
The Growing Complexity of Contractor Compliance
Facilities rely on contractors and vendors to keep operations running, but tracking compliance has never been more demanding. Regulations continue to evolve, safety and liability requirements are becoming stricter, and businesses must juggle multiple contractors across various projects—all while ensuring that compliance standards are met.
For many, this means managing paper records, spreadsheets, and multiple email chains to verify that contractors have the proper documentation. Additionally, many different versions of the same compliance document could be out there with no clear insight into which version is the correct one. These manual processes aren’t built to scale and often lead to inefficiencies, delays, and compliance blind spots.
The Risks of a Manual Compliance Process
Consider this scenario:
A facility hires a contractor for a maintenance project. Before work begins, the contractor must submit proof of insurance, safety training certificates, and background checks. The EHS manager requests the documents via email, and the contractor responds with a mix of PDFs and images—some of which are outdated. The EHS manager updates a spreadsheet and forwards the files to the compliance team. Days pass.
When the contractor arrives on-site, the front desk has no record of their compliance status. Security calls the EHS manager, who digs through email threads and realizes one document is still missing. Work is delayed, the contractor is frustrated, valuable time is wasted and costing the facility significant amounts of money from this entire process.
This is a common issue for facilities relying on manual compliance tracking. Without structured contractor compliance management software, organizations face:
- Limited visibility into compliance before contractors arrive.
- Lost or expired documentation due to scattered storage methods.
- Time-consuming administrative tasks that take resources away from higher-value work.
- Security and liability risks when non-compliant contractors enter the site.
The Risks of Manual Compliance Management with Expired Documents
Additionally, tracking and maintaining the right version of compliance documentation is another growing challenge. Without an automated system, keeping track of expiring or expired documents becomes difficult, leading to compliance gaps that put operations at risk.
For facility teams, manually notifying the right stakeholders about upcoming expirations adds to the administrative burden, increasing the likelihood of missed deadlines and last-minute approvals. This creates unnecessary delays and opens the facility to regulatory risk.
For vendors, staying informed about document expirations across multiple contractors is equally difficult. Without clear oversight, vendors may be unaware that a contractor’s insurance has lapsed, or a safety certification has expired—leading to compliance violations that could have been prevented with a more structured system.
As facilities continue to work with more contractors and vendors, the need for a system that provides real-time visibility and automated contractor document management becomes critical.
Why Facilities Need a Better Solution Right Now
Compliance gaps are not hypothetical problems—they are already disrupting operations, increasing security risks, and costing organizations valuable time and money. Every day that passes without a structured compliance management system, facilities remain exposed to avoidable risks that can escalate into major incidents. For example, nearly 1 in 3 organizations face regulatory fines for contractor non-compliance (Deloitte, Third-Party Governance and Risk Management Survey). These penalties aren’t just financial; they damage reputations, disrupt business continuity, and create long-term liability risks.
The Urgency of Fixing Contractor Compliance Gaps
Many organizations assume their current approach to contractor compliance is "good enough." But the reality is that manual, outdated tracking methods are leaving organizations blind to critical vulnerabilities.
- More than 70 percent of organizations lack full visibility into vendor compliance status. By the time a compliance issue is discovered, it’s often too late—leading to project delays, safety risks, or last-minute rejections that create operational chaos.
- Over 60 percent of data breaches are linked to third-party vendors with weak compliance controls. A single oversight—an expired security clearance, an unverified background check—can be the weak link that exposes an organization to cyber threats or unauthorized access.
Managing compliance reactively often means addressing issues after they’ve already caused delays or risks. Taking control now allows organizations to prevent compliance failures before they impact operations.
A structured, automated approach ensures compliance is a priority without being a burden.
Stop Wasting Time & Money on Manual Compliance Management
Managing contractor and vendor compliance manually isn’t just inefficient—it’s expensive. Facilities lose an estimated 1.5 months per year chasing down paperwork, following up on missing documents, and manually tracking expirations. The longer teams spend on these tedious processes, the less time they have to focus on higher-value tasks that keep operations running.
The cost of manual compliance management goes beyond just time. Delays in approvals lead to stalled projects, miscommunications increase security risks, and last-minute document reviews add unnecessary stress to your team.
A more efficient way exists. By streamlining contractor and vendor compliance management, facilities can reduce administrative workload, prevent delays, and ensure compliance is always up to date—without the back-and-forth.
Find out how to cut the costs of manual compliance management.
