Contract Management

High risk industries often outsource many of their high risk activities to contractors and subcontractors and therefore are at a high risk of exposure. The supply chain often don’t realise that it’s ultimately the operators (duty holder) responsibility to ensure that the contractor working on their behalf is carrying out high risk tasks competently, with the correct staffing, management processes, policies, procedures and checks in place. Nor do they appreciate that it’s up to the company to ensure and regularly check that contractors are doing what they say and doing it correctly.

Duty Of Care

• All companies have a duty of care responsibility to contractors and sub contractors
• Both H&S and Environmental
• Correctly implemented and followed processes and procedures provide an audit trail
• Prosecution under law a possibility if found not to be meeting these requirements

Legislative

• All operators (duty holders) have a legal requirement under H&S law, to assess risks of work to be undertaken by contractors.
• A correctly functioning process for identifying correctly qualified and competent contractors.
• Management of said contractors throughout contract life cycle to ensure meeting these requirement.
• Prosecution possible if not controlled and managed effectively

A Contract Management Process will help

• Define roles and responsibilities within the organisation
• Outline the process steps to be followed in order to mitigate against the risk of the scope of work
• Correct processes, procedures and tools to vet the performance of a contractors ability to deliver your requirements
• Capturing these requirements within the T&C’s of the contract
• Correct interfacing of contractor and company
• Improved internal and external expectations
• Raise awareness of HSEQ requirements of staff and contractor
• Driving staff and contractor behaviours for identification of areas of improvement
• Regular review of performance and deliverables

The benefits of a supplier relationship program

• Improved risk awareness
• Highlight expectations
• Collaborate achievements
• Sharing of information
• Team decisions
• Clearly defined goals (kpi's)
• Management participation
• Develop a strong relationship to nurture a strong performance

Also see more information in our HSEQ Centre of Excellence, Management Systems and Training sections.

Also See