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Effective Contractor Evaluation for Risk Mitigation in Pre-Contract Assessments

Explore the importance, benefits, and methods of pre-contract risk-based assessment for contractors in the energy coal industry. Learn why assessing vendors prior to contract finalization is crucial for ensuring compliance and reducing risks.

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Effective Contractor Evaluation for Risk Mitigation in Pre-Contract Assessments

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  1. Pre-contract risk- basedassessment of contractors Reg de la Hunt

  2. Pre-contract risk- based assessment of contractors • CONTENT • Background / reasons for pre-contract risk-based assessments • Benefits when conducting pre-contract risk-based assessments • Methods and processes for pre-contract risk-based assessments Energy Coal – Ingwe Collieries Ltd

  3. Pre-contract risk- based assessment of contractors The why • SOME OF THE REASONS FOR ASSESSING CONTRACTORS PRIOR TO CONCLUDING A CONTRACT • Selecting the contractor with lowest tender price (usually because they are not fully aware of the mine’s SHEQ, technical and legal requirements) • Selecting contractor with most influential sales / marketing person This result in: • Contractor arrives on site with equipment and personnel not complying with mine’s SHEQ, technical and legal requirements • Contractor must use contract time to get equipment and personnel compliant • Contractor becomes a major risk Energy Coal – Ingwe Collieries Ltd

  4. Pre-contract risk- based assessment of contractors The benefits • SOME OF THE BENEFITS FROM ASSESSING A VENDOR / CONTRACTOR PRIOR TO CONCLUDING A CONTRACT • Contractors tendering are fully aware of mine’s SHEQ, technical and legal requirements (conduct a self-assessment) • Contractors can structure their tenders according to SHEQ, technical and legal requirements • Contractors tendering for a specific contract are measured equally • Contractor arrives on site with equipment and personnel that comply with mine’s SHEQ, technical and legal requirements • Contractor can start immediately • Contractor becomes a lower risk Energy Coal – Ingwe Collieries Ltd

  5. Pre-contract risk- based assessment of contractors Methods / processes (EBMS) Energy Coal – Ingwe Collieries Ltd

  6. Pre-contract risk- based assessment of contractors On-line vendor accreditation Energy Coal – Ingwe Collieries Ltd

  7. Pre-contract risk- based assessment of contractors ? Energy Coal – Ingwe Collieries Ltd

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