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Contractor Management frequently comes with 3 inherent challenges:

Lack of Transparency

  • On how the project and scope will develop during execution
  • On the contractor’s true capability and motivation
  • On the impact of their project on other areas of work
  • On how other issues may impact their project, such as infrastructure projects elsewhere competing for the same skilled resources

High Complexity

  • Of the contract, with technical, commercial, legal and formalistic issues and requirements intertwining while each are complex in their own right
  • Of the scope itself, with several areas needing close coordination
  • Within the organisation, with multiple stakeholder needs to be addressed, such as Operations, HR, sites, Finance, etc.

Pressure

  • To award urgent works in line with a demanding schedule
  • To stay within budget and demonstrate they have won a good deal
  • To secure a partner that will execute the work effectively
  • Of tight resources for the required experts and skilled workers

 

Acting with a lack of transparency in a highly complex situation under time and cost pressure is never a comfortable place to be.

Rather than dealing effectively with those challenges, companies often exacerbate the situation with additional, home-grown hurdles.

More on home-grown-hurdles

Which pragmatic solutions can Procurement provide to support effective Contractor Management and how can they do it?

Procurement’s solutions

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