Contractor and External Supplier Management
Anyone who comes aboard without being crew brings a risk somebody must have assessed: how external suppliers are qualified and monitored, and for which category of them approval is not the Company's choice.
Operational Explanation
The ISM Code requires the Company to establish procedures for key shipboard operations relating to safety and environmental protection, with duties defined, assigned to qualified personnel and documented: this principle extends to contractors and external suppliers (shipyards, technical service providers, equipment suppliers, catering agencies, security) who work on board or provide services critical to the ship.
Structured contractor management requires prior qualification of the supplier, a clear definition of the scope of work, supervision of the activities carried out on board and, where relevant, integration of the supplier's procedures with those of the ship's Safety Management System.
Regulatory Reference
The ISM Code does not govern contractor management in a single article and does not prescribe one vendor-qualification and approval process valid for every supplier: controls must be proportionate to the risk, the tasks delegated, the Company SMS, contractual requirements and any applicable statutory or class regime. Where the Company has adopted its own contractor-control procedure, it is compliance with that procedure that is auditable.
“Implicitly” is too vague: the paragraphs exist. § 6.5 requires the Company to identify and provide for the training needs of personnel involved in the safety management system. § 7 requires procedures for key shipboard operations, and operations carried out on board by third parties are among them. § 1.2.2.2 requires assessment of all identified risks to the ship, personnel and environment and the establishment of appropriate safeguards: this is the provision covering the risk brought aboard by people who are not crew.
For one category of supplier the duty is far more specific. IACS UR Z17 (rev. 21, January 2025, applied from 1 July 2026), Procedural Requirements for Service Suppliers, lists the firms that must be approved before they can work on board — thickness measurement, liferaft servicing, radio equipment testing, fire extinguisher inspection, in-water survey, remote inspection techniques. For these, verification is not the Company's choice: an unapproved supplier cannot do the work.
Scope of Application
Every Company using contractors or external suppliers for services on board or in support of the ship, with the DPA responsible for ensuring that the qualification and monitoring of these suppliers is documented and verifiable.
Procedure / How to Complete It
- Qualify every supplier/contractor before engagement, verifying references, certifications and safety track record relevant to the service provided.
- Define the contractor's scope of work in writing, including the safety responsibilities applicable during execution on board.
- Integrate the external supplier's procedures with those of the ship's Safety Management System, particularly for high-risk activities (hot work, confined space entry).
- Actively supervise contractors' activities on board, not just rely on a prior document check.
- Document the supplier's performance at the end of the assignment, to inform future engagement decisions.
Practical Example
Example: before maintenance work by an external technical supplier requiring hot work near fuel tanks, the Company verifies the supplier's personnel certifications, integrates its safety procedures with the ship's Permit to Work System, and designates an on-board person responsible for direct supervision of the work.
What Typically Goes Wrong
Common Mistakes Mistake Library
| Mistake | Consequence | How to avoid it |
|---|---|---|
| Supplier/contractor engaged without a documented, verifiable qualification procedure | Major non-conformity in audit when evidence of qualification is requested, not just the assertion of having carried it out | Formalise a written supplier qualification procedure, with documentary evidence kept for every engagement |
| Contractor's scope of work not defined in writing, with implicit or assumed safety responsibilities | Ambiguity over safety responsibilities during work execution on board | Always define the scope of work and specific safety responsibilities in writing before work begins |
| Contractor activities on board not actively supervised, relying solely on prior supplier qualification | Operational risks not detected during actual execution of the work | Maintain active supervision of contractor activities on board, especially for high-risk work |
What the PSCO Checks
Operational Tips
- Do not rely on informal supplier qualification: always formalise the procedure in writing, with documentary evidence kept.
- Always integrate the contractor's safety procedures with the ship's own (Permit to Work, confined space entry), don't treat them as parallel, separate systems.
- Document every supplier's performance at the end of the assignment: this information is valuable for future engagement decisions and for audit evidence.
Preparation checklist
Educational checklist. This summary supports learning and preparation only. It does not replace the vessel’s approved procedures, manuals, statutory documents, company SMS, or applicable official requirements. Completing it demonstrates neither compliance nor readiness for an inspection: it shows that a list has been read, not that the ship is in order. Always verify the current documents carried on board.
- Supplier/contractor qualification procedure formalised in writing
- Scope of work and safety responsibilities defined in writing before work begins
- Supplier procedures integrated with the ship's SMS for high-risk activities
- Active supervision of contractor activities on board documented
- Supplier performance documented at the end of the assignment
FAQ
Related Topics
Last substantive revision of this page: 29 August 2026 · page fingerprint 2af26a45f788