Several years ago, a hazardous materials manager with the Chicago Fire Department received an urgent call from a chemical manufacturing facility. Contractors had been working on decommissioned chemical processing tanks when something went horribly wrong. One of the contractors had become trapped inside a tank. When emergency responders arrived, they asked for the worker’s name and entry time—basic information critical for a rescue operation. Shockingly, no one on site knew the contractor’s name or when he had entered the tank. All they could tell the firefighters was that the person inside was a man.
This case study isn’t just a story of miscommunication—it’s also a glaring indictment of inadequate contractor safety and oversight. It illustrates the very real, and often overlooked, danger of failing to implement robust systems for managing third-party workers. And more than anything, it demonstrates that the consequences of poor contractor safety protocols don’t stop at injuries—they threaten lives, reputations, and even entire businesses.
The complexity of contractor safety
Contractor safety isn’t difficult because workers are careless. It’s difficult because the system surrounding contractor management is often fragmented, underdeveloped, or treated as an afterthought. Several challenges contribute to this:
- High volume and turnover: Contractors, vendors, consultants, and temporary workers cycle in and out of facilities daily. Tracking who is on-site, when, and where they are working is logistically complex—especially when relying on outdated, paper-based systems located far from the action.
- High-risk work: Contractors are often brought in to perform the most dangerous jobs—hot work, confined space entry, or working at heights. These tasks demand stringent safety protocols and permit-to-work systems, regardless of who is performing them.
- Lack of familiarity with site protocols: Unlike full-time employees, contractors arrive without an ingrained understanding of a facility’s specific hazards or safety culture. This knowledge gap makes them—and those around them—vulnerable unless specifically addressed.
Despite these challenges, contractor safety frequently ranks lower on the priority list than employee safety. But this misalignment can lead to devastating consequences.
The true cost of contractor oversight failures
The consequences of failing to properly manage contractor safety extend far beyond physical harm. Yes, people can and do get hurt—or worse. But that’s only the beginning.
One major consequence is regulatory exposure. For instance, OSHA requires hot work permits and mandates confined space entry protocols. When employers fail to ensure contractor compliance with these rules, they risk fines, litigation, and shutdowns. Additionally, OSHA’s Recordkeeping Standard requires employers to log injuries sustained by temporary or contract workers if those workers are under the host employer’s supervision.
Oversights in contractor management can also hurt business resilience. A mature contractor safety program is more than just risk mitigation—it’s a cornerstone of business continuity. Companies with weak oversight systems are more likely to suffer catastrophic incidents. These events can halt operations, damage reputations, and erode trust among customers and investors. The reputational fallout can linger for years—sometimes longer than the physical damages.
Two-tier safety: Employees and contractors
Most companies do a better job of managing safety for their employees than for their contractors. But that isn’t the compliment it might seem. Safety management for full-time staff is often inconsistent, and even more so when extended to third parties.
The earlier story of the trapped contractor makes this painfully clear. Not only did the facility fail its legal obligations, but it also failed its moral and operational duties. And in situations like this, while the contracting company may suffer a reputational bruise, it is the host company—the one with its name on the facility and the legal responsibility for what happens there—that shoulders the lasting damage.
It’s also important to note that many high-risk activities—such as working with chemicals or operating in confined spaces—are performed by employees as well. If companies don’t apply permit-to-work systems universally, they’re exposing everyone on-site to unnecessary risk.
Shared responsibility, uneven knowledge
A key question in contractor safety is: Who is responsible? Contractors or the business that hires them? The answer is: both parties, but in different ways.
Contractors must train their workers on the hazards associated with their equipment and materials. They must follow site-specific rules and wear appropriate PPE. But host employers are responsible for ensuring that contractors know these rules. It’s not enough to post a sign or email a policy—orientation and induction must be intentional, clear, and thorough.
This information-sharing is particularly important when it comes to site-specific risks, such as confined space locations or chemical storage areas. Contractors simply won’t know what to avoid or how to stay safe unless the host company tells them—and verifies that they understand.
Best practices for safer worksites
Improving contractor safety and compliance isn’t just about filling gaps—it’s about building a more resilient, transparent, and efficient system. Best practices include:
- Oversight and visibility: Know who’s on-site, what work they’re doing, and whether they’re qualified. You also need visibility of all work conducted under permits at your site, including its approval and completion status. Apply permit-to-work systems to all high-risk jobs, not just those performed by employees.
- Induction and orientation: Every contractor should receive site-specific training before beginning work. Training should cover chemical hazards, emergency protocols, and permit requirements.
- Centralized systems: Relying on spreadsheets, binders, or emails is inefficient and risky. Centralized contractor management systems allow for better coordination, documentation, and oversight.
- Stakeholder engagement: Contractors are stakeholders, too. A strong relationship with them helps reinforce your safety culture and ensures alignment with environmental and sustainability goals.
The role of technology
All of the best practices above are easier said than done—unless you have the right tools.
Modern contractor management and permit-to-work software solutions streamline the entire process. From onboarding and training documentation to live permit status tracking and AI-assisted document verification, these platforms remove the administrative bloat that slows down safety programs. Some solutions report up to 90% reductions in administrative time, freeing safety teams to focus on what matters most: preventing incidents.
Technology gives EHS managers instant visibility into who is working, where, and under what conditions. It also ensures that everyone—from full-time staff to first-time visitors—operates under the same safety guidelines.
Conclusion: A shared future of safety
Contractor safety isn’t a side project. It’s central to the safety, integrity, and sustainability of any operation. The story of the trapped contractor is a worst-case scenario—but it’s also a wake-up call.
Companies must evolve from reactive to proactive safety models. That means embedding contractor oversight into every aspect of their operations, using robust systems, clear communication, and modern technology to ensure everyone—regardless of their badge, employer, or tenure—goes home safe.
Phil Molè is EHS & Sustainability Expert at VelocityEHS.