Contractor example

Eor this example the cost of the battery limits plant is about four times the purchase cost of the equipment. This number is about two for module I-type plants designed and iastalled by the fine chemicals company itself, and about six for expanded module IV-type plants designed and built by contractors. 

Example 12 Expected Value of Net Profit Let iis consider a contractor who stands to make a net profit of 100,000 on a contract. The cost of preparing the bid on the contract is 10,000. There are four competing contractors, each with a probability pi = 0.25 of obtaining the contract. Thus, each contractor has a probability p2 = 0.75 of not obtaining the contract. Therefore, the expected value of the project is... 

Has an effective safety and health program (for example, safety procedures, training, hazard identification and analysis) been established to protect personnel on the work site, including employees and contractors If no, explain. 

Kerridge has provided an excellent article on the interface betw een the operating company and the contractor to define all requirements in complete and standardized detail. This includes who is responsible for every deliverable. The operating company and contractor must work as a team. An example of one area that needs to be reviewed often with the contractor is the provision of secondary systems as packages, perhaps from a third party. Such systems can easily become orphans. This problem is discussed in the Process Definition section of Chapter 16. 

The responsibilities of contractors and subcontractors have been the subject of much debate. Therefore, it has become more commonplace for clients, who may have in-house personnel and resources adequate to perform cleanups, to hire subcontractors. These subcontractors could include all of those mentioned in the previous example, along with an oversight contractor. All of these subcontractors could bill the client directly for services or could bill the oversight contractor. Typically,... 

Let s discuss an example For time and material, or not to exceed jobs, some clients prefer to hire a general or main contractor for environmental remediation projects, and allow the contractors freedom in the performance of the work. In this case, the main environmental remediation contractor might hire subcontractors such as earth movers, haulers, reclaimers, drillers, or construction companies to perform different phases of a job. The main contractor organizes the work. Most of the work is performed by subcontractors. Once the job is completed, the client will get one invoice. 

Let s take another example. Under DOE, when the M O contractor has oversight responsibility for other prime contractors, the M O... 

Contractors at Sites B, D, G, I, and J had incomplete sampling practices and as a result were not able to evaluate PPE levels based on monitoring data. Eor example, both contractors SSAHPs at Site I lacked provisions for monitoring site hazards such as metals, pesticides, herbicides, and semi-volatile organic compounds (SVOCs) that could not be evaluated with a PID. Since worker exposures to the range of hazards on site had not been characterized, PPE was not selected based on its performance relative to the nature and level of site hazards. 

Requirements for written safety and health SOPs are found in paragraphs (b)(4)(I) of the HAZWOPER standard. None of the sites audited had developed comprehensive, site-specific SOPs that specify the controls necessary to complete each task. The contractor s SSAHP at Site B did discuss generic task-related hazards and SOPs however, the task-specific SOPs lacked detail. Eor example, the SOPs did not specifically identify the site locations where hazards were likely to occur, nor did they specify the appropriate types of controls. 

For example, one section of the contractor s SSAHP for Site F required personnel to evacuate the site during an emergency, while other sections of the plan indicated that personnel may respond to spills, leaks, or fires. Neither contractors SSAHPs at Sites C or G identified the individuals responsible for coordinating emergency response activities. 

The primary contractor at Site A had identified clean zones, buffer zones, and related site control procedures in its written plan however, onsite implementation differed from those specified in the plan. For example, the exclusion zones identified in the plan at the upper pad of the wastewater treatment plant, the dredge area, and the solid waste storage area were marked with signs requiring PPE, but were not labeled with red banners as called for in the plan. In addition, the exclusion zones did not have controlled access through one point of entry as described in the plan, nor were the buffer zones established and demarcated with yellow banners. 

The contractors SSAHPs at Sites B, F, and K had general confined space provisions but lacked site-specific confined space procedures. For example, SSAHPs for the Site K contractor and subcontractor had written confined space entry programs, but the programs did not establish site-specific rescue procedures or identify the confined space hazards present on the site. The job hazard analyses for both programs failed to address site maintenance tasks that could involve confined space entry and hot work hazards. The programs also failed to identify the specific person or position responsible for supervising confined space entry procedures and the location of permit-required confined spaces on site. Interviews with both contractors indicated confusion about rescue procedures. 

Employees stated that they had received confined space training and were prepared to perform confined space rescue, but they had not rehearsed rescue procedures. In addition, the confined space entry permit form for both contractors did not ask for all required information. For example, the form did not require documentation of the duration for the permit, the intended communications procedures for entry operations, or documentation of hot work performed during confined space entry operations. Completed permits did not contain documentation of hot work performed during confined space entry operations, even though hot work had been performed during such operations at least twice during the project. 

Similarly, the Site B contractor s SSAHP provided corporate policy and procedures for permit-required confined space entry but lacked the site-specific detail necessary to describe the application of the corporate policy to procedures at the site. For example, the SSAHP did not identify specific components of the thermal treatment unit that presented confined space hazards, nor did it describe the specific circumstances or procedures that would require employee entry into these areas. In addition, the plan stated that the contractor would maintain an onsite employee confined space rescue team, but did not identify the members of this team. The SSAHP for Site F also contained a generic confined space entry program but did not identify the specific location of confined space hazards present at the site. 

Contractors at Sites E, H, and J had documented confined space programs but had not fully implemented these programs. The Site H contractor had established a permit-required confined space entry program consistent with HAZWOPER requirements however, onsite procedures were not completely consistent with the written program or OSHA requirements. For example, the confined space permit form used at Site H was not the form included in the written program. The audit team also found evidence that employee training was insufficient for safe... 

The contractors SSAHPs at Sites I and K required that safety and health program inspections be conducted however, these requirements were not effectively implemented at either of these sites. Both Site K contractors required the HSO to conduct daily inspections, and both stated in their written plans that hazards would be immediately corrected. Neither contractor, however, had established hazard abatement procedures to ensure the prompt correction of hazards, and site records for both contractors indicated that hazard abatement activities were either not documented or not completed. For example, the subcontractor s daily safety log contained several notations of safety hazards, including an unstable concrete well and storage of diesel cans near the propane tank however, later log entries and site records did not track the abatement of these hazards. 

Other sites provided general provisions for acceptable training programs but lacked the site-specific detail necessary to implement a successful program. Eor example, the contractor s plan at Site E contained a requirement that all project field personnel receive training in accordance with applicable OSHA standards, including a minimum of 40 hours of hazardous waste operations training. The plan did not contain,... 

Contractor/snbcontractor A party in either the prime or subcontractor role, or otherwise providing goods or services to the organization, who performs some of the obligations of a particular prime contract. For example, a contractor hired to put up temporary fencing around a work area to control access would be a subcontractor who must be prequalified. 

While you may gtoup trainees in any of a number of ways, consider at least four btoad categories managers, trainers, employees, and others—for example, contractors. The following discussion focuses on the training needs of each of these trainee groups and some of the techniques you may want to consider for addressing them. 

Even when the time comes to make a purchasing decision, an energy-efficient motor purchase is not a certainty. Sometimes an energy-efficient motor will be the economically efficient choice at other times, not. The capital investment decision is based on the cost in relation to performance, efficiency and reliability. Moreover, the decision depends on the application and the amount of time the motor is in operation. It can be the major component of a product (drill or mixer), or a minor component (computer disk drive) it can be the major component cost of a product (fan), or it can be a minor component cost (stereo tape deck) it can run almost constantly (fan, pump, and machinery), or only a few minutes a day (vacuums and power tools). For example, contractors purchase circular saws almost solely based on performance and reliability. Time is money, and since the saw is operating only a few minutes a day and the contractor is often not responsible for the electricity costs to run the motor, energy efficiency is not a consideration performance and reliability are what matter most. On the other hand, an industrial user, who runs huge electric motors twenty-four hours a day to work pumps, machinery, and ventilation equipment, is very concerned tvitli energy efficiency as well as performance and reliability. 

An example would be where the consultant had already invited competitive quotations for supplying air-handling units so that he could design a particular make into the system and ensure that his client received the best value for money. The bidder would include in his bid, either separately shown or in the body of his figures, a sum to cover profit and on-cost in handling the equipment. The contractor appointed would be responsible for organizing delivery and would give a warranty on the equipment, in accordance with the contract. This aspect is amplified in Section 8.20. 

This is a specific sum included in the bid documents. It indicates to the bidder that it is contemplated that the particular work referred to will be carried out, but that, at present, no firm plans have been made as to cost, and usually the work has not been detailed either. The contractor is not entitled to profit or on-cost, unless the works go ahead. An example of this would be a general intention by the client to provide special ventilation to a laboratory, which is part of a larger scheme, but that no firm plans as to the full requirements have been drawn up at the time of inviting bidder. 

Bids received can vary by up to 100 per cent over a range of hrms. The higher bids may be from hrms who do not want the job but wish to keep contact with the client. Where there is a difference of more than 10 per cent between the lowest and second-lowest bidder, this can cause problems. For example, the Electrical Contractors Association offer a guarantee of completing through their members, at no extra cost, in the event that a member is unable to do so, but only if the difference between the contractors appointed and the next bid is not more than 10 per cent. In some instances, this could be enough to seriously consider not accepting the lowest bid. 

A qualihed bid can make the offer void, and most organizations would disqualify a bid which was qualihed. An example of a qualihed bid would be where the specihca-tion says that electrical attendance is part of the contract, whereas the bidder says in his bid documents or in an accompanying letter that he has not included for electrical work, and is not prepared to carry it out. A common qualihcation is where a contractor puts forward a manufacturer of plant different to that specihed. The plant may be just as good, but the bid is nonetheless qualihed, and would give an unfair advantage to the bidder. 

An area of increasing importance financially is the program. Contractors are claiming large sums with respect to delays, and it is important to take note before the contractor is appointed of any qualifications he may make to the bid. For example, if a bidder says in his bid that he can carry out the works in 40 weeks and it is known that the period envisaged is 52 weeks to coincide with other trades, then if he is frustrated from doing the work he can sue for loss and/or expense for the 12 weeks when he will have, in theory, to lay off men. The solution is to challenge the period inserted, and if the bidder will not amend his period, then do not appoint him. 

There are occasions when it is more appropriate to appoint a mechanical or electrical firm to be the main contractor. An example would be the laying of a district heating mains, where the largest value and complexity is in mechanical engineering. However, experience shows that not all specialists are geared to this role, and this can cause problems, especially from a main contractor who is more familiar with the role of sub-contractor. Overall, it is recommended that the main contractor be a building or civil engineering firm, unless those works are very small. 

The value of having one contractor to control the progress of the work can be seen where there are several contractors on a site at different periods. Progress can suddenly come to a halt if a key contractor does not comply with an agreement. For example, if the electrical sub-contractor does not provide a temporary electrical supply, there may be no light and power, causing other contractors to be delayed. 

Most standard forms of contract contain specific procedures for determination, and these should be rigidly adhered to. For example, the contract document may lay down that the contractor be given 14 days notice in writing to rectify his progress before determination is carried out. Any letters should be sent by recorded delivery or served by hand. While liquidated or non-liquidated damages can be claimed with respect to late or incomplete work, expense claims usually follow the events shown below, which are also mentioned in Section 8.24 ... 

As an example, the reputable cooling tower designer would establish most of the above parameters from his own experience. In addition, he could determine with his client the economic factors which could influence his selection, i.e. low capital cost with high mnning costs, or a higher capital cost with more acceptable power costs (a 12-month or a 5-year payback period). Turnkey contractors often understandably ignore this particular factor, and end users should always obtain alternative designs to make their own selection. 

Employers must, as far as is reasonably practicable, have regard for the health and safety of contractors employees or the self-employed who may be affected by the company s operations and for the health and safety of the general public. This covers, for example, the emission of noxious or offensive gases and dust into the atmosphere, or danger from plant and equipment to which the public or those not directly employed by the company have access. 

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