Adding Value to Contractor Pre-Qualification

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Mike Cosman
Managing Director
Impac Services Ltd, PO Box 10197, Wellington 6011
Mike@impac.co.nz

(P41, Friday 28,

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Adding Value to Contractor Pre-Qualification

  1. 1. Adding Value to Contractor Prequalification Mike Cosman CMIOSH Managing Director Impac Services Ltd/CPNZ
  2. 2. Are Contractors the weakest link in your health and safety management system?
  3. 4. They get the blame but the Principal/Client has a duty
  4. 5. ....as well as the contractor!
  5. 6. ...and carries the cost of failure
  6. 7. Why do we use contractors? <ul><li>Specialist skills </li></ul><ul><li>Extra capacity </li></ul><ul><li>Flexibility </li></ul><ul><li>Dirty jobs </li></ul><ul><li>Cost pressure </li></ul><ul><li>Time pressure </li></ul><ul><li>Easier to engage </li></ul><ul><li>Easier to let go </li></ul><ul><li>No unions? </li></ul><ul><li>We can’t do it ourselves </li></ul><ul><li>We don't want to do it ourselves </li></ul>
  7. 8. What are the risks? <ul><li>Unknown quantity </li></ul><ul><li>Not familiar with our plant, people, processes </li></ul><ul><li>Hard to manage </li></ul><ul><li>May take short cuts </li></ul><ul><li>Don’t share our culture </li></ul><ul><li>May sub-contract </li></ul><ul><li>May not deliver quality outcomes </li></ul><ul><li>May blow the budget </li></ul><ul><li>May walk off the job </li></ul><ul><li>Looking after their interests –not ours </li></ul>
  8. 9. Are contractors more at risk than employees?
  9. 10. Possibly?
  10. 11. Pike River
  11. 12. How does the law see it? <ul><li>ACC </li></ul><ul><li>Protect our employees from harm caused by action of contractors </li></ul><ul><li>HSE </li></ul><ul><li>Take proactive steps to protect contractors and sub-contractors from harm whilst working for us </li></ul>
  12. 13. How do we meet our s18 obligations?
  13. 14. The DoL 6 Stage process
  14. 15. Why prequalify?
  15. 16. How do we assess... <ul><li>Their commitment to our safety goals? </li></ul><ul><li>Their competence to work safely in our environment </li></ul><ul><li>Their capability to manage their own and others safety? </li></ul>
  16. 17. The Current State
  17. 18. Contractor
  18. 19. Why do we focus so much on LTIFR?
  19. 20. ...and ACC accreditation
  20. 21. Why ask the question if you don’t know how to interpret the answer?
  21. 22. There must be a better way....?
  22. 23. So we talked to some clients
  23. 24. ...we scoped international best practice
  24. 25. ...we piloted our ideas
  25. 26. ..and developed CPNZ
  26. 27. The CPNZ value proposition <ul><li>A web based, fully outsourced, cost effective, client led, pan-industry prequalification system developed for the New Zealand context </li></ul>Do it once – do it right! Use a specialist
  27. 28. The CPNZ process
  28. 29. The benefits For the client
  29. 30. For the contractor
  30. 31. CPNZ is.... <ul><li>Overseen by an external governance group </li></ul><ul><li>Capable of expansion to include other client requirements (quality, environment, etc) or verification audit </li></ul><ul><li>Designed to drive continuous improvement –not pass/fail </li></ul><ul><li>Underpinned by robust moderation and quality process </li></ul><ul><li>Secure and confidential </li></ul>
  31. 32. CPNZ is not.... <ul><li>An accreditation scheme </li></ul><ul><li>A one size fits all solution </li></ul><ul><li>A panacea for clients–you still have to manage the rest of the process </li></ul><ul><li>A replacement for your local knowledge and experience </li></ul><ul><li>A threat- but an opportunity! </li></ul>
  32. 33. If contractors are one of our biggest risks –don’t we need to work together to improve their performance?
  33. 34. Any questions

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