Contractor(Management(( - Workplace Access & Safety · 2018-12-15 ·...
Transcript of Contractor(Management(( - Workplace Access & Safety · 2018-12-15 ·...
Contractor Management
A Risk Based Approach
Presented by Katrina Macgregor
Objec<ves
This session will address how an organisa/on can proac/vely demonstrate due diligence through the procurement and contractor management process to ensure that they:
– Clearly understand the risks associated with the goods and services they are wan/ng to outsource;
– Establish a procurement strategy that ensures that the right checks and balances are completed to verify the organisa/on objec/vely assesses and selects the right contractor to do the work;
– Proac/vely monitor the contractor to ensure all key risks and obliga/ons are being appropriately managed.
Pi>alls in Contractor Management • The scope of works for the services/goods to be
outsourced/procured are not clearly defined.
• Key risks (including controls) associated with the services/goods to be outsourced/procured are not defined.
• OHS accountabili/es/responsibili/es and performance standards are not clearly defined and documented;
• The assessment of a contractor’s OHS performance during the procurement process not involving an OHS expert.
Pi>alls in Contractor Management • There is no valida/on of a contractor’s responses to OHS
requirements in a tender document.
• Safety documenta/on is not contextualised for the actual work to be completed (i.e. only prepared for tendering and selec/on purposes).
• There is no ongoing valida/on of how the contractor has implemented the required OHS requirements for the contract.
Due Diligence in Contractor Management
“Taking every precau/on that is reasonable in the circumstances to protect health, safety and welfare of all workers and others who could be put at risk from work carried out as part of the business or undertaking.”
Safe Work Australia, 2011
Due Diligence in Contractor Management
• What are the services/goods being outsourced?
• What are the key legisla/ve requirements? • What are the key risks associated with the goods/services being outsourced?
Specify
• Verifica/on the contractor’s compliance to the scope of works?
• Verifica/on of capabili/es, competencies, insurances, registra/ons and systems of work.
Assess
• Inspec/ons, audits, mee/ngs. • Performance repor/ng. • Management of non-‐compliances.
Monitor
Risk-‐based Contractor Management • A key element to demonstra/ng due diligence in the
selec/on, engagement and management of contractors is Risk Management.
• A risk based focus to contractor management suggests that:
– Risks are first iden/fied and assessed; – The amount of effort, planning and supervision to
manage the contractors reflects the risk of the task/contract (not just the contract size and monetary value).
Risk-‐based Contractor Management • Factors that influence the risks associated with contractor
management include:
– Size and cost of the project; – The type of work (i.e. high risk work); – The size and capability of the contractors including the
maturity of their OHS Management System;
– Degree of choice in contractors available to deliver the product/services;
– Your organisa/on’s ability and capability to manage the contractor.
Risk-‐based Contractor Management
Low Risk Contract High Risk Contract
Procurement Controls
• Request for quota/on . • 5% of overall evalua/on
allocated to OHS capability. • Contractor ‘s OHS
Capability assessed by the Contract Manager.
• General Terms and Condi/ons to be issued which include project specific OHS requirements.
• Tender. • 15% of overall evalua/on
allocated to OHS capability. • OHS ques/onnaire to be
completed by contractors. • Contractor’s OHS capability
is independently assessed by an OHS professional.
• Full contract to be provided with detailed OHS requirements outlined.
Risk-‐based Contractor Management
Low Risk Contract High Risk Contract
Contract Management Controls
• Restricted access to the work area.
• Induc/on to the work area and emergency procedures.
• Arrival and departure monitored.
• JSAs, insurances, licences and registra/ons vefed.
• Project Risk Register an Mi/ga/on Plan.
• Full OHS induc/on completed.
• Safety Management Plan with JSAs, WMS etc. provided.
• Pre-‐work assessment completed.
• OHS Adviser appointed to oversee OHS aspects of the contract.
• Monthly inspec/ons. • Monthly mee/ngs.
Risk-‐based Contractor Management
Low Risk Contract High Risk Contract
Contract Management Controls
• Monthly performance reports.
• Insurances, licences and registra/ons vefed.
• Handover plan.
Conclusion
• Knowing what goods/services you are about to outsource/procure by: – Iden/fying all foreseeable risks and establishing appropriate
controls; and
– Understanding the legal implica/ons associated with outsourcing/procuring goods/services.
• Preparing, planning and adop/ng a cradle to grave approach to contractor management.
• Applica/on of the ‘SAM’ principle will ensure that the common pihalls will be sa/sfactorily addressed.
Conclusion
• Establishing a tender process that looks at OHS Management before examining cost/price.
• Adopt a partnership approach with contractors. – Formalise regular communica/on and review processes.
– Provide support and guidance.