Procurement

Sub-contractor & Supplier Management

1. PURPOSE

This procedure documents the roles, responsibilities, and process to be followed for engaging, monitoring, and managing sub-contractors and suppliers used by PACM.

2. SCOPE

This procedure applies to all PACM workers, business and work activities where sub-contractors and suppliers are engaged to undertake work on behalf of, or supply products to, PACM.

This procedure does not apply to sub-contractors providing professional services in an administrative or office-based only setting or to suppliers providing non-critical supplies such as office supplies, administrative consumables etc.

3. RESPONSIBILITIES

Senior Managers must ensure:

• Procedures are developed to ensure sub-contractors and suppliers are assessed prior to engagement and regularly monitored and managed; and
• Procedures are developed to define the requirements for approving sub-contractors and suppliers in accordance with the Integrated Management System (IMS) requirements.

QHSE Manager must ensure:

• Sub-contractors and suppliers are provided with the information and support necessary to submit documentation for review and approval;
• Sub-contractors and supplier documentation is reviewed and assessed for suitability and non-conforming companies are not approved where documentation does not meet the required standard; and
• Records of sub-contractor and supplier documentation and reviews are maintained.

Project, Works, Site Managers and Supervisors must ensure:

• The QHSE Manager is notified of new sub-contractors and suppliers to be engaged or used prior to allowing works to start where required;
• Sub-contractor and supplier reviews are conducted;
• The supplier register is checked for approval status of sub-contractors and suppliers before engaging previously used company’s;
• Workplace monitoring is conducted to verify that sub-contractors are complying with regulatory requirements and PACM procedures;
• Products received and services provided are inspected to verify their adequacy, suitability and conformity to the requested requirements; and
• Sub-contractors and suppliers are consulted with on matters relating to their health and safety.

Workers must ensure:

• Sub-contractors not complying with regulatory requirements and PACM procedures are reported to site supervisors; and
• Where an imminent risk to the health and safety of other persons or to the environment is identified, sub-contractors are requested to stop work and the matter reported to site supervisors immediately for resolution.

Sub-contractors and Suppliers must ensure:

• They comply with the relevant legal and QHSE requirements of their contract and terms of engagement;
• They provide all requested company and project specific information for review and approval prior to work commencing;
• Only competent, qualified workers undertake the work;
• All products provided are manufactured in accordance with relevant regulatory requirements;
• They undertake their own QHSE assurance activities such as having their own Quality, Health & Safety and Environmental Management plans or procedures, SWMS and risks assessments; and
• They comply with all lawful and reasonable QHSE directions provided by PACM and our workers including compliance with PACM policies and procedures and reporting all incidents, accidents, near misses, hazards and non-conformances occurring on PACM sites.

4. PROCEDURE
   • Sub-contractors

The QHSE Manager is responsible for ensuring sub-contractors are provided with the necessary information and support to submit documentation using IMS-F-106 Sub-contractor Engagement Checklist, also the QHSE Manager will provide new sub-contractors with a link to the Sub-contractor Registration requesting provision of the following minimum requirements:

• Complete Sub-contractor Questionnaire;
• Certificates of Currency for relevant insurances including mandatory Public Liability of minimum $20M and required Workers Compensation cover;
• Business trade licence where relevant;
• Employee evidence of qualifications including licences and all training/competencies;
• Task specific SWMS/risk assessments with the ability to be made site specific upon project start;
• A register of plant and equipment including:
  • Evidence of current servicing, maintenance, current testing and/or calibration; and
  • Plant risk assessment for each item of plant.
• Register of electrical equipment expected to be used on site where applicable;
• Register of materials, substances and/or chemicals expected to be used on site including:
  • Current SDS; and
  • Risk assessments for materials and substances classed as hazardous.
• Documentation as required by the contract; and
• Design Risk Assessment for any structures or materials that have been designed by the sub-contractor.

The QHSE Manager will review each sub-contractor registration, in consultation with the Project Manager, and assess the validity of all documentation using IMS-F-105 Sub-contractor Approval Checklist.

SWMS and plant/chemical risk assessments will be reviewed using IMS-F-306 SWMS/Risk Assessment Review. A SWMS or risk assessment that does not meet the requirements will be returned to the sub-contractor for review and re-submission. Work must not commence on site prior to a SWMS being approved for use.

Where a sub-contractor cannot produce an approved SWMS, they will be required to operate under PACM SWMS relevant to the task/activity. The PACM SWMS must be reviewed by the sub-contractor in accordance with IMS-PR-101 Participation & Consultation Procedure.

The QHSE Manager will request further information from a sub-contractor whose registration does not meet minimum requirements. Once the sub-contractor has successfully provided all required documentation and it has been assessed for validity the sub-contractor profile will be approved and they will be added to the IMS-R-210 Approved Supplier Register ready to be engaged by PACM.

PACM will provide approved Sub-contractors with access to the following information prior to starting works:

• Project Risk Assessment;
• Sub-contractor Guide including relevant Project Management Plan (PMP) sections;
• Site Safety Rules;
• PACM Policies and Procedures; and
• Training and information modules relevant to the sub-contractor in accordance with IMS-PR-606 Competency, Training & Awareness Procedure.

Sub-contractors are required to comply with all procedures related to, or referencing sub-contractors as set out in PACM’s IMS and associated documents.

Sub-contractor performance will be monitored using a combination of pre-start meeting records, weekly site inspections and incident reports.

• Suppliers

Suppliers are reviewed by the Project Manager, in consultation with the Site Supervisor, using IMS-F-210 Supplier Review and Risk Assessment. Approved supplier records are maintained in IMS-R-210 Approved Supplier Register.

Suppliers are reviewed on engagement and annually to ensure their ongoing ability to provide quality products and services which meet both PACM’s and our client’s requirements including, but not limited to:

• Duration of service to PACM;
• Value for money;
• Provision of products in accordance with standards and legislation;
• Timeliness;
• Quality of work; and
• Quotation submissions.

Supplier reviews are also based on the level of risk in relation to the number of suppliers available to provide the products required and include:

• High Risk – products available from one supplier only;
• Medium Risk – products available from 2 suppliers only; and
• Low Risk – products available from 3 or more suppliers.

This risk rating allows PACM to determine appropriate lead times and contingencies for the supply of products in accordance with client requirements.

The combination of the supplier’s ability to meet the performance expectations and their risk level determine their suitability as an approved supplier.

5. SUB-CONTRACTORS

Sub-contractors and suppliers must always adhere to the requirements defined in this procedure and must ensure any changes to their business which may affect the ability to provide the products / services in accordance with regulatory and PACM’s requirements are communicated to PACM in a timely manner.

6. ASSOCIATED DOCUMENTS

PROCEDURES

• IMS-PR-101 Participation & Consultation Procedure
• IMS-PR-606 Competency, Training & Awareness Procedure

FORMS

• IMS-F-106 Sub-contractor Engagement Checklist
• IMS-F-105 Sub-contractor Approval Checklist
• IMS-F-306 SWMS/Risk Assessment Review
• IMS-F-210 Supplier Review and Risk Assessment

REGISTERS

• IMS-R-210 Approved Supplier Register

7. EXTERNAL REFERENCES

Work Health and Safety Act 2012 (SA)

Work Health and Safety Regulations 2012 (SA)

Occupational Safety and Health Act 1984 (WA)

Occupational Safety and Health Regulations 1996 (WA)