By David Tibbetts
Past performance is not indicative of future success. For example, a lack of traffic tickets doesn’t mean that someone is a safe driver. The same concept is true when selecting contractors—just because a contractor has never experienced a recordable incident does not mean they are low-risk.
Many companies evaluate contractors based on past performance, including their OSHA 300A data, Total Recordable Incident Rate (TRIR), Experience Modification Rating (EMR), and Days Away, Restricted Duty or Job Transfer (DART) case rate. These lagging indicators provide valuable insight into a contractor’s qualifications but fail to show the entire picture. A contractor may have avoided a serious incident so far, but that may be a sign of luck rather than safety.
Companies must look beyond historical statistics to leading indicators in their prequalification processes, considering factors like safety programs, management systems, and culture. This information complements lagging indicators to give insight into past performance and predict future risk, supporting contractor success and generating better project outcomes.
