Tenders and Contracts

Contract Management The management structure for each contract is reviewed to ensure site supervisors have related experience for the type of work and have the necessary competence to ensure the contract is executed in accordance with the contract requirements.

The growing potential for conflict in the building industry means that time and cost pressure often have a detrimental effect on contractual relationships between partners. Taking effect in the early phases, our contract management avoids this outcome.

For example, we examine the invitation to tender for potential conflict and draw up bulletproof contracts with clear rules in compliance with current regulations. During the works, our contract controlling uses early-warning systems to ensure that deviations are promptly detected and resolved.

On receipt of a tender, it is reviewed to ensure the Company can meet the contractual obligations of the contract. This review process, with the required control arrangements, continues throughout the following stages and is recorded in a tender / contract specific project plan.

• Enquiry appraisal Contractual obligations

• Tender Key issues of tender

• Tender adjudication Tender review

• Contract start up Review contract award and decisions

• Contract Checklist Review contract key issues

• Contract progress Review contract progress

• Variations to contract Review variations

• Contract completion Review performance on contract defining key issues where Preventative measures can be put in place.

Sub-contractors & Suppliers

STERLING Project Management operates approved and preferred lists of sub-contractors & suppliers. Entry onto the list is satisfied on meeting defined criteria. Performance of sub-contractors and suppliers is monitored at the tender and contract stage through the various parts of the project plan. Sub-contractors or suppliers whose performance is unacceptable will be suspended or deleted from the approved or preferred list.

Inspection, Testing and Commissioning of Installations

Records of inspection, tests and approvals take various forms, as required. These are carried out and agreed in accordance with the individual requirements of the contract. Any non-confirming work identified will be reviewed by the contract engineer who will define appropriate corrective action. These will be reviewed to identify if any preventative action is required to prevent re-occurrence.