Subcontracts/subcontractors

This note applies to roadhaulage only. Haulers may subcontract the haulage, or employ independent traction (driver/tractor) or employ interim drivers. A written policy is expected, detailing what criteria have to be met in such cases, and at what stage the client is to be informed about the use of subcontractors. 

If you subcontract design, you must be able to demonstrate you have the appropriate capability to ensure your subcontractor meets the design control requirements of ISO/TS 16949. 

Are subcontractors selected on the basis of their ability to meet subcontract requirements ... 

Notwithstanding the guidance given below under Evaluation and selection of subcontractors, this requirement does not relieve you of the responsibility for ensuring the quality of subcontracted parts, materials, and services. Therefore, it would be unwise to place orders on a customer-specified subcontractor without first going through your evaluation and selection process. You can obviously take some short cuts but don t make assumptions. The customer will not be sympathetic when you are late on delivery or your price escalates. If you find a subcontractor that can meet all your product/service requirements at a lower price you can submit details to your customer for approval. 

The standard requires the supplier to evaluate and select subcontractors on the basis of their ability to meet subcontract requirements, including the quality system and any specific quality assurance requirements. 

Subcontracts enable you to choose the degree of control exercised over your subcontractors. With suppliers, your choices are often limited as you have no privileges. Control over your suppliers is therefore exercised by the results of receipt inspection or subsequent inspections and tests. If your confidence in a supplier is low, you can increase the level of inspection and if high you can dispense with receipt inspection and rely on in-process controls to alert you to any deterioration in supplier performance. 

It is important that you inform the subcontractor through the contract of how the product or service will be accepted. Will it be as a result of receipt inspection at the specified destination or as a result of acceptance tests witnessed on site by your authorized representative These details need to be specified at the tendering stage so that the subcontractor can make provision in the quotation to support any of your activities on site. If you have invoked ISO 9001 in the subcontract, you are protected by clause 4.6.4.2. If you have not, you need to specify a similar provision in your subcontract, otherwise you may lose the right to reject the product later. There is no requirement for you to document your proposal to verify product at the subcontractor s premises but such a plan would indeed be a useful section in any quality plan that you produced. (See also Control of subcontractors in this chapter.)... 

The standard requires that where specified in the contract the supplier s customer or his/her representative shall be afforded the right to verify at the subcontractor premises and the supplier s premises that subcontracted product conforms to specified requirements. 

Provide those responsible for the preparation of subcontracts requirements to approve them prior to issue to the subcontractor. 

Don t permit subcontractors to subcontract the work further without your approval and assessment of the proposed subcontractors. 

In production you need to ensure that only those personnel, equipment, materials, and facilities that were qualified are employed in the process, otherwise you will invalidate the qualification and inject uncertainty into the results. If subcontracting special processes you need to ensure that the subcontractor only employs qualified personnel and has qualified process equipment and facilities (see Part 2 Chapters 6 and 18). 

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. 

GR-6.2.2.3 Subcontractor Control. The subcontractor services shall be controlled by the processes of procurement, quality review, and surveillance, including receiving inspection, supported by the proper documentation. The subcontractor shall provide a Quality Control System (manual), documented procedures, and applicable work instructions. The construction organization shall be responsible for approval of all subcontract services. 

When a laboratory subcontracts work, either because of unforeseen reasons, or on a continuing basis, this work shall be placed with a competent subcontractor. The subcontractor e g. should comply with ISO/lEC 17025 for the work concerned. The laboratory is resportsible to the customer for the subcontractor s work. The laboratory shall maintain a register of all subcontractors that are used for tests and/or cahbratiorrs and a record of the evidence of compliance with ISO/lEC 17025. 

A laboratory may outsource aspects of its work occasionally because of unforeseen reasons (too great a workload, equipment problems, need for outside expertise) or on a regular basis. Where work is subcontracted, a competent laboratory (i.e., one that complies with the standard), must be used. The customer must be notified in writing about the use of subcontractors, and a register of all subcontractors, including calibration services, must be maintained. 

The project at Plant Sweatt was organized with Southern Company Services as EPRI s prime contractor responsible for project management, project direction and subcontractor performance. Subcontracted to Southern Company Services were Babcock Wilcox (B W) and KVB. B W provided technical consultation and boiler performance evaluations, KVB provided combustion gas emission characterizations and supplementary technical consultation. 

The materials column includes all the equipment and materials usually purchased by the Owner and/or general contractor - to be installed by the subcontractors. The subcontracted labor column includes all costs, direct and indirects, incurred by the subcontractors for the installation of these materials. Construction equipment rentals as well as contractor overhead and profit must also be included. The accounts traditionally treated in this manner are ... 

The subcontract column includes those items where a vendor or a subcontractor supplies both materials and erection. The cost includes materials, labor, labor indirects, construction rental equipment, and contractor/vendor overheads and profits. The following accounts are traditionally executed and estimated on a subcontract basis. 

When the piping installation is subcontracted, the subcontractor frequently supplies the bulk materials. Even if that is the case, the account should show the breakdown between material and labor to permit the analysis of the material/labor ratio. 

Normally, the installation of instruments is subcontracted with the subcontractor supplying the installation materials. Those materials should be included together with the subcontract labor in the subcontract column. 

Field Indirects - Since all costs and factors are based on subcontractor rates, use 20% of labor and subcontract columns. 

When construction is to be subcontracted, some accounts (civil, insulation, and paint) are usually estimated on a total cost basis, combining both materials and labor. Other accounts (piping, electrical, instrumentation, equipment erection) are estimated and shown separately as material and labor. In that case, the labor should be loaded with the subcontractor s field indirects plus overhead and profit. The field indirects would reflect only the cost of construction management. 

Work resulting from the resolution of "holds" and/or major design changes in the initial scope is considered additional scope. When defined and added to the subcontract, they must be considered as "committed" at the subcontractor firm price or best estimate, as applicable. Changes in take-off quantities arbitrarily fixed for bidding purposes will fall in this category. The "committed" quantity must be adjusted based on unit prices as soon as the real quantities are known. 

Subcontracting The CRO may not subcontract services without the sponsor s permission. The sponsor has the right to evaluate and approve the subcontractor. 

Jake is a geologist working on a current site evaluation and report for a project that his company has been hired as a subcontractor to conduct. The scope of the project involves transforming a solid waste dump into a park through habitat creation and land redevelopment. This project has been deemed essential to the vitality of Jake s company if they are to stay in business and continue to subcontract to the much wealthier firm on other future projects. 

A consultant is not allowed to subcontract part or all of an evaluation to any second person without written permission from the drug regulatory authority. If the drug regulatory authority agrees to such an arrangement, the consultant must ensure that the subcontractor is fully aware of the provisions on conflict of interest, confidentiality and impartiality set out in these notes. 

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