IT’S NOT JUST ABOUT THE PRICE: USING THE CONTRACT TO MEASURE YOUR PROVIDER’S PERFORMANCE7 November 2018
Procuring consultants and contractors to manage asbestos can often feel like a daunting task. Often clients will choose a provider based on their experience, price and even through recommendation. But when it comes to measuring your provider’s performance, how confident are you about the KPIs set from day one?
Kelvin Hughes, Contract Consultant, KH Consultants, took to the main stage at Asbestos The Truth Conference 2018 to share knowledge with delegates about using the provider contract to communicate plans and timelines, methodology and agreed outcomes. Using the contract to set out goals and objectives enables clients to procure the best contractor, supplier, consultants or any other provider for the job.
How To Choose Your Consultants
There are many factors to consider when choosing or tendering for the correct consultant or provider for the job. These may include but are not limited to:
- Expertise, certification and accreditation
- Quality of services and reporting
- Timescale compliance
- Communication skills
- Health and Safety record
- Financial stability
Hughes’, during his main stage speech, stressed that the lowest priced consultant or providers may not necessarily be the lowest cost. Only factoring price when procuring your service provider can negate the quality of the work and may result in further costs and longer timescales to get the job done properly to achieve compliance. Using the contract to regulate the timescale, cost and quality reduce the number of risks taken when using a provider.
What is an NEC Contract?
Recently updated to promote further flexibility, clarity and ease of use, improving upon its predecessor the NEC3: Contracts, the NEC4: Contracts is a suite of contracts are end-to-end project management contracts that empower users to deliver projects on time, on budget and to the highest standards when implemented correctly.
Promoted for its simplicity, the NEC4 Contract is more accessible for both parties involved encouraging more effective clearer communication between client and provider. The contract also allows both parties to see what the risks involved are and decide who is in the best position to manage these risks during the project.
According to Hughes, only 2% of NEC Contracts go to court for resolution in breaking contract. This leaves 98% of NEC Contracts remaining with parties who have engaged in the contract in the first place.
NEC Contract Objectives
The objectives of NEC Contract suites are:
- Promote flexibility – options for clients to add to the contract as the project develops
- Applicable to multiple disciplines
- Provide clarity and simplicity to both parties
- Apply context – allows clients to give reasons for certain decisions or rejections of elements of the contract
- Stimulate good management
The final bullet point objective stimulates good management, is imperative in forming a cohesive and coherent plan between both client and provider. Good management can be promoted by the contract using two key principles:
- Foresight applied collaboratively mitigates problems and shrinks risk – anticipating potential risks and issue before engaging in works can help manage expectation
- Clear division of function and responsibilities help to manage accountability and can be used as a motivator
Early Warning Signs
Through the contract, both clients and providers can put in place agreed early warnings where clients and providers agree to communicate if:
- Increases total price
- Delays in completion
- Delays of meeting key dates within the agreed timeline
- Impaired services
- Any works that may affect the client’s’ ability to conduct other works
These early warnings are known as an early warning register and aim to encourage collaboration, innovation and gives flexibility to circumstance changes during the contract.
Quality Management Systems
During the period of the contract, the consultant or provider operates a Quality Management System for providing the services as stated in the scope and should provide the service manager with both a quality policy statement and a quality plan for the client to accept. This means the provider has contributed and understood the scope and has engaged in the contract agreeing to the expected outcomes and is responsible for the supervisions and implementation of the services and will name a person responsible to the observation and supervision of works within the scope.
Hughes’ concluded his main stage speech stating that the best way to procure the best consultant or provider is through choosing the best contract. The best contract provides the foundation and plan for managing, monitoring and measuring the provider’s services and ultimately promotes communication between client and provider.
KH Consultants: http://www.khconsultants.co.uk/
NEC4: Contract: https://www.neccontract.com/NEC4-Products/NEC4-Contracts
Tool Box Talk: Asbestos Awareness
As part of Lucion’s Take Care Be Aware initiative, we actively take care of our health and safety responsibilities, with continuous awareness of our commitments to knowledge share and educate.
In doing so we have created a ‘toolbox talk’ on asbestos awareness to raise awareness of the hazards associated with asbestos-containing materials, enabling safety professionals to share knowledge and overall save the time and effort in producing them for you and your teams.
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Health and Safety Risk Assessment Template
Risk Assessments are part of the risk management process and are included in the Management of Health and Safety at Work Regulations. A Risk Assessment is a process of identifying what hazards currently exist or may appear in the workplace. Utilise our Risk Assessment PDF example and template to help conduct your own Risk Assessment.
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The Role of the Designer Explained
Designers and architects are fundamental under the CDM 2015 regulations ensuring risks are assessed throughout the design process and beyond. Tasks in the construction stages and in the future maintenance of a building are often underestimated and result in additional risks that could have been removed.
To support duty holders such as clients and designers following the introduction of the CDM 2015 regulations we focus on the role of the Designer in this quick CDM Roles Explained download.
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