Contractors contract requirements

This type of contract requires the operator to pay a fixed amount to the contractor upon completion of the well, while the contractor furnishes all the material and labour and handles the drilling operations independently. The difficulty with this approach Is to ensure that a quality well Is delivered to the company since the drilling contractor will want to drill as quickly and cheaply as possible. The contractor therefore should guarantee an agreed measurable quality standard for each well. The guarantee should specify remedial actions which will be implemented should a substandard well be delivered. 

The OSHA PSM contractor element requires that employers obtain and evaluate information regarding the contract employer s safety performance and programs. Many employers use this as an opportunity to screen contractors and only hire and use contractors with safety performance records that meet their minimum criteria. 

Management of outsourcing was generally believed to be a critical factor in determining its safety impact. In particular, one individual noted that if managed properly, use of contractor services need not affect safety he observed that at his own airline, contractors were required to meet the same standards as airline personnel. Another individual remarked that at his airline, use of contractors in the maintenance field is quite limited. He pointed out that scheduled heavy maintenance is not contracted out at his airline, and that the airline has its own maintenance people wherever there is sufficient workload to justify that. Where the airline cannot afford to have its own maintenance people, and instead has contractors on call in case of problems. 

An EPCM contract on a lump sum basis does not solve the problem of antithesis there is now every incentive for the contractor to minimize the EPCM input, but none to promote better EPCM performance. This goes even further in the contract, where the EPCM contractor is reimbursed by a percentage of DEC there is now a positive incentive to raise the DEC. If this can be done in ways which reduce the EPCM input, for instance by purchasing large packages or choosing more expensive suppliers and contractors who require less surveillance or expediting, the EPCM contractor scores twice. 

Subpart B contains an interpretation and the applicability of construction health and safety standards to work performed under contract to government agencies. This subpart contains the general rules of the Secretary of Labor which state that no contractor shall require any laborers work in conditions that are unsanitary, hazardous, or dangerous to a person s safety and health. Section 107 of the Contract Work Hours and Safety Standards Act is addressed. As stated in section 107, a con-... 

Are there written policies for on-site contractors Are contractors rates and safety and health programs reviewed before selection Do contracts require contractors to follow site safety and health rules Are there means for removing a contractor who violates the rules ... 

However, these require extensive management time and monitoring of contractor quality, and could become difficult from a scheduling perspective if the selected contractor is not available when the work is scheduled. Rescheduling is then required and this can add to maintenance costs. The other additional cost is the contract management. If the facility is large and requires multiple contractors, each contractor will require a contract that defines the tasks, cost, and timelines. This also requires a contact administrator and multi-invoice management, as well as additional financial support. 

In some sectors (eg. chemical, mining, constmction) major conglomerates have retained stewardship over sub-contractors and require that safety management practices are applied, but in many areas of sub-contracting and out-sourcing, safety is not managed well and the consequences of poorly controlled OH S will be picked up by the injured worker or be shunted onto the public purse (Larsson Betts, 1996 Mayhew et al, 1997). 

To a large degree the response from the contractor will depend on the information provided to them by the client. In order to formulate a comprehensive tender the contractor will require specific information about the technical requirements of the contract, which is often dealt with very well. However, they will also require information about the safety conditions of the contract and any risks which the client has identified, which they will need to consider during the project works. 

Advise that the contractor is required to provide a monthly written safety report and statistics, as may be detailed in the contract and safety plan ... 

A contract is a legal agreement between two or more competent parties. In the systems acquisition process, a contract is typically between the government and a contractor, whereby the contractor develops and produces a product or system for the government. In addition to specified performance requirements, contract requirements include those requirements defined in the statement of work (SOW) specifications, standards, and related documents the Contract Data Requirements List (CDRL) management systems and contract terms and conditions. 

The quality of the works is ensured by the implementation of an appropriate Quality Control Programme. A well planned and executed Quality Control Programme benefits all parties. The Client, the Designer and the Engineer are ensured that the works are carried out in accordance with the Contract requirements whilst the Contractor can efficiently optimise the planning. In addition, monitoring may enable all parties to identify unforeseen inappropriate fill mass behaviour in an early stage of the construction. Immediate action can then be taken to hold technical and financial consequences to a minimum. 

Do contracts require the contractor to follow site safety and health... 

To overcome this difficulty the Authority asked all insurance companies in New South Wales to submit competitive bids covering accident insurance for all its future major contracts, stipulating that the amounts of the insurance premiums to be paid by major contractors were to be tied to the accident frequency rates achieved in each case. The Authority undertook to specify in all future works contracts that the accident insurance business would go to the insurance company submitting the accepted bid and the major contractors were required to regard the accepted bid as being a condition of contract as far as they were concerned. 

One of the interesting requirements of the PSM standard deals with outside contractors. Contract workers who work on the facility are exposed to the same hazardous processes as plant personnel. PSM spells out the duties of the host (employing facility) and the contractor. Some of the specific duties of the host include ... 

Site-specific health and safety requirements and site personnel, including contractors, are typically held responsible for managing and conducting all activities safely. Every worker should understand that he or she is responsible for sharing in the commitment to a safe workplace. In addition, employees should perform their work in accordance with any applicable laws, regulations, contract provisions, and established site-specific requirements. 

Contractors and subcontractors are typically required by contract to be responsible for their own workers and should provide a level of oversight to meet all specifications. The primary contractor who is responsible for the worksite typically establishes the minimum requirements, controls access to the worksite, and verifies that subcontractors fulfill their health and safety duties and responsibilities. Wlien these specifications are defined, all contractors and subcontractors should meet or exceed these requirements, as appropriate. This could be based on the nature of the assigned tasks and associated hazards [2]. 

The process of engaging the required capabilities must be a formal process so that both the organization in need and the contractor/sub-contractor are protected in the event of a failure to perform, an accident, or a difference of opinion as to terms or performance. Adherence to the provisions of this procedure will help attain good contracting practices and minimize the potential liabilities to the host organization in contractual relationships. 

A copy of the general safety rules accompanied by a receipt form shall be included with the prequalification letter to a prospective contrac-tor/subcontractor. This document sets forth in broad terms the safety requirements with which a contractor/subcontractor is expected to conform while working under contract for the host organization. 

Contracts with the federal government require compliance with Executive Order Nos. 11625 and 12138 to utilize small and small disadvantaged businesses. The contractor/subcontractor must complete a copy of the representations and certifications providing self-certification of business classification under existing federal definitions. The representations and certifications also provide tax identification information required by the Internal Revenue Service. The original of the representation and certification form should be sent to regional purchasing and a copy included in the project file. 

The subcontractor records that are delivered to you should form part of your records. However, the controls you can exercise over your subcontractor s quality records are somewhat limited. You have a right to the records you have paid for but no more unless you invoke the requirements of this clause of the standard in your subcontract. Your rights will probably only extend to your subcontractor s records being made available for your inspection on their premises therefore you will not be able to take away copies. It is also likely that any subcontractor records you do receive are copies and not originals. Before placing the contract you will need to assess what records you will require to be delivered and what records the contractor should produce and retain. 

Regardless of the approach your company selects, what s important is the assurance that contract personnel, by whatever means, are as conversant as your own employees with those aspects of your PSM system with which they interact. For this reason, you may wish to consider meeting with your key contractors to discuss the system and how it may affect their persoimel. As part of this discussion, you will want to review whatever training the contractor provides to determine if it meets your needs and is appropriate for the PSM system. If the system requires additional contractor training, you can then work out (either as a global policy or on a case-by-case basis) how best to provide it. 

Internal personnel will normally undertake boiler plant operation. Maintenance work may be by either internal personnel or outside contractors. Service contracts will be available from equipment suppliers covering all items of the boiler plant. Recently, companies have started offering contract energy-management schemes. These may be designed to suit individual applications and will be tailored to customer requirements. They may take over the operation of an existing plant or, if necessary, include for a new replacement plant. They will usually operate over a 3-10-year contract period. Dependent upon the terms of contract, all fuels, electricity, repairs and replacements may be covered. 

If a work request is received that requires an outside contractor, the work order should immediately be assigned and issued to the contract maintenance liaison supervisor or other designated representative once the shutdown is approved. Do not hold until the outage assignment meeting. 

---