Design and implementation of a contract execution management methodology
SITUATION
A large mining company delegated the service contract execution management to its employees, mainly trusting on their abilities and experience in the subject matter.
CRITICAL ISSUE
The investigation of an accident that ended up in the fatality of a contractor’s employee together with the constant lack of compliance with the planned costs in the service contracts resulted in the awareness of the deficiency of the client’s contract execution management.
REASONS
The analysis of the accident causes revealed that the victim had not received adequate training and the person responsible for the contract administration did not have the tools to ensure that each person working in the job had the required competences.
CAPABILITIES
Apart from controlling the contractors’ workers’ competences, it was necessary to have a solid and standardized methodology to ensure efficient compliance of contracts as regards the required terms, costs and quality.
We designed and implemented a methodology for the contracts execution management, including the critical activities necessary for each kind of contract/service. We also sized the necessary resources to ensure an appropriate implementation of the methodology.
As a result, the organization managed to save over 3 % on the contracts portfolio, to have higher control and to reduce the risks of accidents, ensuring the compliance with the labor laws in force.
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