Contractors Archives

Watch External Dependencies

Keep a careful watch on external dependencies.

External things such as deliveries, contracts, and approvals that could delay your project if late.

They may not be your direct responsibility and are out of your control, but you need to keep watch that they are getting done and that dates are not slipping.

Deliveries are a big one here. You should make your suppliers aware of your project schedule (or the part relevant to them) to emphasise the importance of the delivery date you require of them.

Don’t say you need it by a certain date if that date is the actual date you will install it. You need to allow time for delivery, unpacking, checking, and moving to the site.

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Filed under: ContractContractorsProcurementTime

Check the Status of the Supplier

Before the final signing of a contract with a supplier or contractor, review their status to make sure they are still capable of delivering as originally discussed.

They may have tendered or quoted a long time ago and things may have changed (such as their workload, delivery schedules, material costs etc).

Even if you are still within the validity of the quote, they may have now booked a lot more work and may struggle to meet your expected delivery schedule. Suppliers or contractors may have said they can meet the price, but often the delivery time will slip. So check if they are still capable.

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Filed under: ContractorsCostProcurement

Outsourcing

Recognise that outsourcing some tasks might be more efficient. Especially if your organisation is struggling to recruit enough people to fill needs (in a tight market).

Paying an external expert to do some specific tasks (e.g. calibration of sensors) may be quicker (saving costs and time) than finding an internal commissioning engineer with available time and getting them trained.

Also recognise that such training could benefit the company in the long run if it is a common task. If not, then outsourcing it may be the best way to get it done.

Time can often be the biggest saving to the project by outsourcing some tasks, as long as you manage the risks of doing so properly.

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Filed under: ContractorsHuman ResourcesTimeTraining

Cap the Stakes

Make sure all stakes on a construction site are capped with coloured safety caps.

This is probably a requirement in many countries. It obviously reduces the risk of injuries, and it makes stakes easier to find. Health and safety inspectors may fine your company if they find stakes not capped.

It’s not a difficult task. Packs of the caps can be bought and put on site ready for use.

This is usually a task the construction contractor will do, but if you are running a smaller project, if you are the project manager you should check they are capped.

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Filed under: ConstructionContractorsSafety

Quality Assurance (QA) and Quality Control (QC) are important.

  • Make sure QA plans are put together and submitted properly.
  • Make sure internal audits are done to be sure the project has covered all the quality aspects it should (and that they have been documented).
  • The internal audits should also be documented.
  • Subconsultant’s quality plans and controls should also be audited. The client may want to see records of this.

Doing all this will make client audits of the project much smoother and easier.

Even if clients often don’t do a QA audit, you should work on the assumption that they will do one. Plan for internal QA reviews at the start, in the project planning.

Compliance with the quality plan should be monitored both internally and for the sub consultants / subcontractors.

Subcontractors poor work will reflect badly on your company, so it is important that their quality is monitored.

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Filed under: ContractorsDocumentationPlanningQuality

If your company is not involved with construction (but just design or inspection), make sure the contract states that the construction contractor is responsible for site safety, not the “engineer” or your company.

There should also be clauses so your company is also indemnified.

The construction means and methods and related safety should be the responsibility of the construction contractor. This must be in writing in the contract.

Your company should be included as additional insured on the contractor’s general liability insurance.

Liability coverage should define who it specifies as being covered. If it covers the “engineer” your company must document and include that it includes your company as well.

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Filed under: ConstructionContractContractorsDocumentationRiskSafetyScope

Directing Consultants

If, in your contract, the client instructs you to directly pass on the cost of consultants, it would be better to have the consultants contract directly with the client instead of with your company.

This is especially important when the client specifies which consultant to use.

For example, ground drilling and soils analysis.

If you are not getting paid to manage and review their work, then the client should contract with them themselves.

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Filed under: ClientContractContractorsCost

If you believe a schedule required by the client is unreasonable, you should document your reasons for believing so, and inform the client of those concerns in writing.

If the client still chooses to go ahead with a schedule that you are not a party to (for example for their construction contractor) but using your company’s designs, you should inform them (with details) of your concern in writing.

This may reduce the possibility of claims and your liability in the event of contractor over runs.

If you believe a contractor’s schedule is unreasonable, you should also inform the client in writing.

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Filed under: ClientContractorsPlanningRisk

Design Discrepancies

If your company is the design contractor but not involved in the construction phase you should instruct the client to notify you for your company’s input for any design discrepancies.

If your company has designed something but the field conditions on site mean a change is needed, the client or their contractor may try to back charge your company for the design changes they had to do on site.

You should include language in the contract that they must first give you the option of giving input before proceeding with changes that may result in back charges to your company.

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Filed under: ClientContractContractorsDesign

Sub Consultant Agreement with Tender

Get sub consultant agreement on tender documents.

When you are bidding for a tender and you are getting prices from sub consultants, make sure the sub gets a copy of the tender documents and agrees with them (or the relevant section) in writing before submitting them and their price to the client.

It is important that the agreement is in writing.

If you don’t get this agreement, the sub consultant may change their prices or conditions once they see the details of the tender.

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Filed under: ContractContractorsTender

Awareness of Details of Designs

Make sure contractors are aware of the details of designs.
E.g. types or colours of pipe, colours of wires, flange types required.

Make sure those details are in the contract between you and them.

Make sure any reminders you give them on details are in writing (and recorded).

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Filed under: ContractorsDesignDocumentation

Get Subcontractor Buy In

Get agreement on the final designs with subcontractors before submitting them to the client.

You need subcontractor buy-in to the design. This gives you the opportunity to confirm they can actually construct it, and gives them the opportunity to support you in your delivery to the client.

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Filed under: ContractorsDesign

Low Bids by Contractors

Be wary of low bids by contractors.

Get a number of bids. Compare and check why a low bid is so low.
If a low bid is accepted, be especially careful in your documentation, communication, contract conditions, and liabilities.

Be aware that by taking the lowest bid (especially if it is significantly lower than the others) you will be increasing the risk that the contractor won’t be able to deliver to the quality and schedule you require.

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Filed under: ContractorsProcurementRisk

  
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