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Why Have a Vendor Agreement? Minneapolis Handyman Education

Tom Sedlack - Wednesday, December 6, 2017


  At HandyQuick Minnesota LLC, we have one of the largest vendor networks in the Twin Cities, and we are challenged every day to find new vendors who provide similar or additional services to what our clients need. We go through a rigid and process-oriented protocol of vetting vendors, using a vendor packet and a vendor agreement that goes out to these contractors who want to work with us. It’s detailed, and the Vendor’s need to be detailed as well.




Licensing and Insurance Requirements


Licensed contractors in Minnesota need to maintain their professional licensing through the Department of Labor and Industry. Insurance is also a statutory requirement. Generally, we require vendors to send us an Accord Certificate that shows HandyQuick as the certificate holder. This is required even before we engage with them for any work. We look for a workers compensation certificate as well. It’s critical that the subcontractors we hire use and have appropriate workers compensation insurance in the event of an injury at a job site.

We maintain all vendor agreements and vendor information, including contact information. We look for talented, experienced partners who are licensed, bonded, insured, and in possession of credentials. We also follow strict tax compliance procedures. We collect a W-9 so we can be sure to provide a 1099MISC for any subcontracted work that exceeds $600 annually. And, we get a copy of the Minnesota business registration from the secretary of state showing the business is in good standing. Our process is detailed and lengthy, and it’s what we consistently do every time we onboard a vendor into our network. We track all that information so we know when licenses and insurance expire.

 

Additional Vendor Requirements

We ask the vendor additional questions. Apart from basic licensing and registration, we look for general business and liability insurance. We make sure their GL covers at least a million dollars of minimum coverage. We want to know how many employees they have and whether they use licensed contractors or subs themselves, and also if they have policies and procedures within their own company. We look for everything from a drug free workplace to use of vehicles and tools by employees. It’s a detailed list of requirements that ensures you have a reliable vendor who can be trusted to work on your valuable asset.

All our vendors are independent contractors. When we bid, we want multiple quotes, so we competitively bid within our network. We use vendors we know can do the work well. We also consider the schedule. Some vendors are backlogged and we cannot coordinate projects to create a seamless workflow without pushing the schedule way out. So, availability can vary from vendor to vendor. Our client gets the best schedule and price value within the schedule that fits.

 

Matching the Scope of Work

We look for cooperation, providing work specifications and statements of work. All of our subcontractors receive detailed work orders to make sure the work is clearly communicated and scheduled. We want our vendors to have all the information they need to be successful on the site.

Another thing we help with is handling disputes. This is probably one of the biggest reasons customers come to us. They want a single source to engage a contractor, communicate specifications, and handle any potential disputes. There’s no need to juggle a list of vendors. HandyQuick is a one stop shop. We stand behind all the work we subcontract. If there’s a dispute or an issue, we fix it. We provide a single voice to the client. 

If you have any questions or you have a project that you need help with, please don’t hesitate to reach out to us at HandyQuick Minnesota LLC.


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