Compliance check of contractors/consultants

Compliance means conforming to stated requirements. The compliance check is a procedure to verify if your contractor(s)/consultant(s) have all the required permits, certificates and approvals to undertake the services you want from them.

Purpose and link to IQC

All contractors needs to comply with certain legal requirements that range from the formal registration of their business to specific permits and approvals that are needed for a given service or task. The purpose of a compliance check is to ensure that the contractors/consultants have the necessary permits and approvals to undertake their work. This contributes to ensuring the quality of subcontracted work and prevents breaches of regulations and laws. (WIKIPEDIA n.y.) It also helps in sensitizing contractors and consultants from the start about your quality standards and makes it easier for you to hold contractors liable for correcting possible sub-standard works.

How to

1.   Identify the different types of approvals and permits required by the contractor/consultant

List all the approvals and permits required for the contractor’s/consultant’s work in the first column of the table below. In case you do not have a systematic overview of contractors requirements, contact relevant authorities or organizations that implement similar projects.

2.   Request proof of relevant permits, requirements and approvals from your contractor/consultant

List all the approvals and permits that the contractor/consultant needs to comply with. Check the permits and their validity. Note the person responsible for authorizing the permit, her contact details as well as the date for all permits and approvals. If in doubt, check the validity of your contractor’s/consultant’s permits and approvals by contacting the relevant authorities or institution.

Use this information to complete the table below.

Example:

Required approvals and permits	Does the contractor/consultant have this permit and is it valid? Yes/No	Authorizing person	Date
Company incorporation certificate
Articles of association
PIN certificate
Tax compliance certificate
Professional/technical staff certificates (e.g. civil engineer, geologist…)
Material proof of ownership
Financial statements
…

3.   Ensure your contractor/consultant obtains all missing permits and approvals

In case any permits or approvals could not be produced at the outset of the contracting arrangement (e.g. because they are linked to the implementation process) you need to verify the contractor/consultant obtains them in a timely manner. Agree when the permits or approvals should be obtained and physically check them, recording the person responsible for authorizing the permit, her contact details as well as the date for all additionally required permits and approvals. If in doubt, contact the relevant authorities if the permits and approvals shown by your contractor/consultant are valid.

Update the table above with the information about the new permits and approvals obtained.

4.   Keep record.

Ask for copies of all needed permits and approvals and keep them in a safe place.

Template

https://www.waterintegritynetwork.net/?ddownload=11068

References & Further Readings

• GOVERNMENT OF UGANDA. 2007. Ministry of Water and Environment. Water and Sanitation Sector. District Implementation Manual (p. 80)
• n.y. Governance, Risk Management and Compliance. http://en.wikipedia.org/wiki/Governance,_risk_management,_and_compliance (Accessed: 22.01.2014)