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.
The Company defines controls proportionate to risk and service: competence, scope, responsibilities, authorisations and supervision. Not every supplier requires the same process or approval.
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.
References include risk assessment (§1.2.2.2), key operations (§7), competence (§6) and §12.2 on delegated ISM tasks: the Company verifies that those performing them act in conformity with its responsibilities. Amended texts: MSC.273(85) and MSC.353(92).
IACS UR Z17 Rev.21 (applied from 1 July 2026) concerns service-supplier categories whose results support class or statutory surveys and certification. For the requested service check the applicable regime, approving body, category, scope, validity and acceptance of approval. It is not a general ban on all work on board by every business lacking Z17 approval.
For a service subject to Z17, verify that approval covers the specific activity assigned and that any conditions or limitations are met. Rev.21’s implementation date concerns IACS societies; report acceptance and flag or manufacturer requirements must be checked for the particular service.
Scope of Application
The Company assigns selection, control and supervision responsibilities under the SMS. The DPA performs §4 monitoring functions; the role is not a statutory universal supplier-qualification or procurement manager.
Procedure / How to Complete It
- Define the service, risk and tasks, including any delegated ISM tasks.
- Verify competence and, where required, relevant supplier approval; retain proportionate evidence.
- Define scope and responsibilities, coordinating ship procedures and permits for the planned work.
- Assign supervision to competent personnel and check actual working conditions.
- Check results, reports and performance, addressing deficiencies under the applicable regime.
Practical Example
Example: for external technical work, define activities and required competence, verify relevant approvals and coordinate permits, equipment isolation and simultaneous operations under applicable procedures. Assign shipboard supervision and verify results and handover conditions before return to service. Supplier qualification does not replace these controls.
What Typically Goes Wrong
Common Mistakes Mistake Library
| Mistake | Consequence | How to avoid it |
|---|---|---|
| Supplier controls inadequate for the service or SMS | Competence, approvals or safety not demonstrated; possible NC | Verify requirements and retain proportionate evidence |
| Unclear scope and responsibilities | Unmanaged operational interfaces | Define them before work starts |
| Documentary approval without activity control | Hazards missed | Competent supervision and verification of results |
What the PSCO Checks
Operational Tips
- Check approval scope, not just the approving body’s logo.
- Coordinate work and permits with shipboard procedures.
- Use results and deficiencies to review the supplier under the SMS.
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.
- Service and risk identified
- Competence and relevant approvals verified where required
- Responsibilities and SMS interfaces defined
- Delegated ISM tasks verified under §12.2
- Supervision and results documented proportionately
FAQ
Related Topics
Last substantive revision of this page: 15 September 2026 · page fingerprint f126ac0e79f7