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