Running Head: CONTRACTOR’S PERFORMANCE AND OBLIGATIONS IN A COMPANYCommercial and ContractManagementContractor’s Performance and Obligations in a CompanyStudent Name:Student ID:Course Name:Course ID:Faculty Name:University Name:
CONTRACTOR’S PERFORMANCE AND OBLIGATIONS IN A COMPANYDelegate in Work RoleThe involvement of the suppliers in the businesses is the usual activities and can be witnessed ona daily basis. These suppliers support the businesses with various material requirements andother products and services. The company that has been selected for the assessment in this paperis in which I worked for few months and my job profile was indirectly related with themanagement of the various contractual activities. The company was involved in energy businessand, therefore, the risk factors within the business were high and it required the contractors toperform their duty with complete responsibility. The proper contract management for most partof the activities was a necessity. The company was involved in the production of thehydrocarbons from the various diverse geographies and, therefore, it was almost a mandatorycall for all the involved individuals to act on proper time and in proper safety to support thecompany’s activity. There has been a predefined understanding that the companies in energy business keep contractmanagement processes embedded in their various activities and the case of this company was nodifferent (Australian National Audit Office, 2012). The contractual obligations were almoststraight forward which mainly asked the parties to act in complete conscience and bring out thequality that are of high standard (Chuah et al, 2010). However, despite the presence of all thevarious contract management processes within the organizations, there was numerous instancesthat led to the incidents and accidents. The investigations within the organization helped reachthe conclusion that the most common cause of such incidents is the unappreciable contractmanagement. The contract management was poor within the organization and which was theusual cause of the failed performance of the contractors in most of the cases. Such incidences1
CONTRACTOR’S PERFORMANCE AND OBLIGATIONS IN A COMPANYgave rise to the need of establishing the effective contract management which is likely toimprove the contractor’s performance. The energy business has always been termed as the high risk business in terms of operation and,therefore, the proponents of the safety procedures have always tried to ensure that the industryregularly follows the safety procedures that have been placed (Bautista and Ward, 2009). Thishas also brought the operators and the contractors together in most of the instances to ensure thatthey follow the obligations as defined in the contract with the desired industry standard ratherthan just performing the duty. It can be stated at this point that just placing the documentation ofthe contract in the place cannot be the guarantee that everything will act as per the rules andpolicies (Breedon, 2013). There are three major factors that play the vital role in the effectiveexecution of the contract, namely, the people who are working with the organization, the existingmanagement system of the firm, and the contractors (Bhardwaj, 2011). The organization, aboutwhich I am writing here, has almost appropriate contract documentation procedures. However,there are some contractors who have continuously failed to perform as per the required levelwithin the organization. They have delivered poor quality projects and rarely taken enough careabout health and safety. Moreover, the late completion of the tasks became day to day situation. Along with the aforementioned situation, there were some other issues. The members who wereon the receiving end of the contract results from the suppliers were also less careful. Despite ofthem being in the contract management team, they also failed to perform up to the mark. Themembers continuously failed to take the proper ownership of the contract which eventually usedto result in failed cost controlling mechanisms, and invoice delivery and receipt always after thedeadline. These activities led to the cost overrun and, the number of complaints from both thesides was rampant. 2
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