Strengthening of the competences in the contract execution management of a mining operation


Mining companies set aside between 40 % and 50 % of their operation costs to the contracting of the services supporting the operation. Therefore, the correct administration in a risk-controlled scenario is highly relevant to get the value contribution expected from the contracting companies.

critical-issueCRITICAL ISSUE

Lack of a standardized procedure to manage the service contracts supporting the operation reduces the possibility to obtain the expected results. It sometimes happens that each person manages according to his or her personal criteria and with their own tools, not always aligned with the company’s objectives.


To strengthen the relationship with the contractors, it is essential to have a standard methodology to compare results, identify the best contract managers, capture the lessons learnt and open the use of the best practices to everyone, in order to receive the services at the required moment, in the manner required by the operation and at the cost agreed by the parties.


After defining the program contents, we organized the creation of a team whose members were highly experienced in industrial training programs, with the purpose of providing tools and practical knowledge that can be used quickly in the different contracts the participants were responsible for.

We designed customized contents, we carried out programming and we executed the program agreed with the client. As previously agreed with the client, the training program included the strengthening of technical competencies and soft skills for the contracts administrators. The workdays consisted on expositions by the team members, ludic activities and use of audiovisual material to enrich the contents development, using an andragogical methodology to take advantage of experiences and motivate attendees’ participation.

We carried out a 162-hour training to 75 service contract managers, organized in groups of 25 people. All of them had the opportunity to put into practice the different methodological tools and the knowledge for the contract execution management divided in 11 modules. A relevant aspect to highlight was the coordination work we carried out in order to organize the contract managers’ shifts and the program planning. Some of the issues considered were Contracting Process, Contract Administration, Negotiation and decision-making, Subcontracting and provision of workers, and Management Control, among others.

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