Supplier Management

Question 1

What types of contract have you used for supplier management?

Answer 1

NEC3 Term Service Contract

Question 2

What RICS guidance are you aware of relating to these?

Answer 2

There is the guidance note, commercial management of construction March 2016, The Guidance Note on Interim Valuations and Payments & the guidance note on Subcontracting

Question 3

How do you manage performance in contracts?

Answer 3

It is set out in the Service Level Agreements but it is usually monitored against a set of KPI’s

Question 4

What happens if something goes wrong?

Answer 4

Depends on what has gone wrong, the first approach should also be to discuss the issue and resolve it amicably. Then it will depend on the dispute resolution procedures set out in the contract

Question 5

What is a SLA?

Answer 5

It is a service level agreement, it sits as part of the contract documents and sets out what exact services the contractor will provide and the standards for them and how this will be monitored

Question 6

How do you use them in your supplier management work?

Answer 6

It has been used for performance monitoring primarily

Question 7

What are KPIs?

Answer 7

Key Performance Indicators, the quantifiable measure of performance

Question 8

When do you use KPI’s?

Answer 8

In contract management, in monitoring performance

Question 9

How do KPI’s help to manage performance?

Answer 9

They provide a quantifiable method of assesing performance against a set target, where they haven’t been met it provides an opportunity to notice this and make adjustments and learn

Question 10

When might you use benchmarking in supplier management?

Answer 10

When you want to evaluate your performance against another in the industry. This can help assess if you are actually getting a good service from your supplier and what you might need to do to perform as well as competitors

Question 11

What benchmarks would you use?

Answer 11

It could be costs, so is what we are paying our contractors too much or too little, are the repair turnaround times good enough, are we keeping our customers as happy as others?

Question 12

How would you compare performance in benchmarks?

Answer 12

By setting what it is that you want to compare and who with, compile the data, analyse it to see if your performance or the contractors performance is comparing favourably and then set any plans

Question 13

Tell me about construction supply chains in your area of practice.

Answer 13

At LCC the supply chain involved us as a ‘client’ the internal service provider who purchase materials from suppliers who deliver direct to site normally, they will in turn purchase their materials directly from the manufacturer or from a specialist wholesaler such as a timber merchant, who in turn will purchase from a manufacturer, they will also use sub-contractors to provide specific services

Question 14

What issues do you face and how do you overcome these?

Answer 14

It can be with the performance of sub-contractors, or their ability to take on work which will extend completion times, this can be managed by conversations with the sub-contractors, having alternative options available and allocating work sensibly without being reliant on a single supplier

Question 15

What action do you take if there is a breach of contract?

Answer 15

Would depend on the contract and the nature of the breach, it could be to suspend operations with that contractor pending an investigation, it could be immediate dismissal or a financial penalty

Question 16

What legislation relates to contract law?

Answer 16

Supply of Goods and Services Act, 1982

Question 17

How is a contract formed?

Answer 17

When one party makes an offer and another party accepts that offer

Question 18

What is a JCT contract?

Answer 18

It’s a standard form construction contract, from the Joint Contracts Tribunal

Question 19

What forms/types of JCT contract are available?

Answer 19

Standard Form, Intermediate Building Contract, Minor Works Building Contract, Major Project Construction Contract, Design and Build Contract, Management Building Contract, Construction Management Contract, Measured Term Contract

Question 20

How have you used an existing process to manage suppliers?

Answer 20

I have read and digested the contract documents, SLA’s and process’s where available, then developed a relationship with the contractor, sticking to the agreed management process

Question 21

How have you ensured that the scope and value of the service received met the project and contractual requirements?

Answer 21

I have done this by undertaking pre and post inspections as well as during works to ensure the specification has been met, agreeing variations where appropriate. I’ve then checked the invoicing, either questioning it or authorising it for payment

Question 22

What were these requirements?

Answer 22

Void turnaround times, right first time fixes, response times

Question 23

How were they monitored?

Answer 23

Through data obtained on the system, spreadsheets, customer satisfaction surveys and on-site monitoring

Question 24

How have you been involved in performance review meetings?

Answer 24

I have obtained and distrubuted relevant performance data, arranged meetings and agendas, chaired the meeting and discussed performance

Question 25

How have you audited a supplier’s/contractor’s/sub contractor’s performance?

Answer 25

Through performance monitoring information, which has mostly been KPI information

Question 26

How have you dealt with budgeting?

Answer 26

I have held meetings with finance teams to look at past expenditure, WIP and forcecasted spend to look at performance against targets

Question 27

How have you dealt with ordering variations to a service?

Answer 27

By using the agreed process, that it must be in writing, describing the change and must be approved if it is over a certain limit

Question 28

Tell me about your involvement with paying suppliers.

Answer 28

I have processed orders on the system following invoicing, either approving or denying it based on the accuracy of the invoice

Question 29

How have you developed collaborative relationships?

Answer 29

Through discussion, site meetings and face to face meetings

Question 30

Describe your role in the monthly contract review meetings.

Answer 30

It would depend, but I would take turns charring the meeting, sending out the relevant documents and agenda’s, then leading in the meeting

Question 31

How had the drainage contractor performed well against their KPIs?

Answer 31

They had high satisfaction scores and response times were within targets consistently

Question 32

How did you negotiate the fee reduction on extension of the contract?

Answer 32

By asking for it, based on excercising the 12 month contract extension option

Question 33

Describe your role in the procurement exercises.

Answer 33

My role was primarily in the first stage of the scoring exercises for the social aspect of the documents, scoring their response out of ten, then taking part in a group scoring exercise and discussion

Question 34

What advice did you provide on KPIs/service areas/level/work available?

Answer 34

That was my role, to answer questions on these but none actually came up

Question 35

Describe your role in the question and answer sessions.

Answer 35

That was my role, to answer questions on these but none actually came up

Question 36

Describe your role in the scoring exercises to select a preferred supplier.

Answer 36

My role was primarily in the first stage of the scoring exercises for the social aspect of the documents, scoring their response out of ten, then taking part in a group scoring exercise and discussion

Question 37

How have you tailored an appropriate approach to the management of an individual supplier or group of suppliers based on the scale of the service?

Answer 37

I would give much more attention to the ISP as they needed much more assistance and they provided a much bigger service. I would work from their office and be in daily contact with people there

Question 38

How have you used user/customer feedback to provide effective supplier management, ensuring that performance matches the needs of the contract and project?

Answer 38

I would bring the customer satisfaction surveys to the monthly meetings, discussing key trends and comments, including positives. I would also discuss complaints and trends within them.

Question 39

How have you developed partnership relationships to deliver joint objectives with the supply chain?

Answer 39

I have done this through site meetings with sub-contractors to share the vision for the project and identify potential issues

Question 40

How have you developed learning and innovation within the supply chain?

Answer 40

I have provided feedback on sub-contractors performance and issues that I have seen from inspections, invoices and contact with them and then discussed this with the main contractor, working with them to improve performance and learn from mistakes, one was with an invoice for the roof, where the wrong dimensions had been submitted, so I went through the rules and provided the contractor with a condensed copy so they could discuss it with the subby

Question 41

Talk me through your role in the project group to develop an Operational Procedures Manual.

Answer 41

I led the project, we went through each key process, developing new process maps and agreeing key contacts and methods of working for each

Question 42

What advice did you provide?

Answer 42

What would work, what wouldn’t, why we couldn’t do something a certain way, why things needed to be in writing, that kind of thing

Question 43

How did you present your written document to colleagues and senior managers?

Answer 43

Online, going through key points and then giving them time to go away and read it

Question 44

Why was the relationship with the ISP becoming frayed?

Answer 44

Distance, there was misunderstandings on both sides over the proper process and a lack of desire to talk to each other to resolve those issues

Question 45

Why did you recommend co-location?

Answer 45

Because being on site would make conversations and communication much easier

Question 46

What is the role of the Internal Service Provider?

Answer 46

To provide the repairs and maintenance for 1/3 of LCC’s housing stock

Question 47

What advice did you give regarding the training programme?

Answer 47

What needed to be included and areas where we needed to get the staff critically thinking about the new SORs

Question 48

How would you deal with mistakes, errors or omissions from the contractors in the tendering process

Answer 48

Included in JCT practise note 17 -
NEC tender guidance, option a or b
A- Whatever is in the tender is fixed
B- the other option is that mistakes, errors and omissions can be amended but you will need to stand by the revised price

If a question comes in from one contractor you have to answer to all who have tendered in

Question 49

You mentioned environment management with your contractors, what do you mean by this?

Answer 49

Key driver for LCC, and part of tendering info for contractors and how they will achieve net zero.

It would comply with ISO 14001 which is environmental management, It is a way of making sure that your organisation is conscious of its environmental impacts and improves its operations over time, to reduce these impacts on the environment.

Question 50

How would you assess the health and safety performance of a supplier?

Answer 50

Review of the accident book, H&S inspections, discuss their H&S procedures with them, check credentials and accreditations, include discussion and review of H&S in contract meetings, desktop review of their H&S management systems