Understanding Pre-Qualification and the benefits of Contractor Compliance Management

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Today’s Agenda

1) Who is ComplyWorks?

2) Why are contractors pre-qualified?

3) Contractor pre-qual in real life

4) Keys to building/using a contractor pre-qualification/management

system

5) Questions

What is ComplyWorks?

Web-Based System

Employers/Owners Contractors

Oil & Gas

Property Management

Mining

Manufacturing

Oilfield Services

Maintenance

Construction

Who is ComplyWorks?

Canadian Company, incorporated in 2004. Emerged out of Oil & Gas

initiative.

175 Employing companies, 50 000 contractors and suppliers, 120 000

individual users.

Offices in Calgary, Houston, Toronto and Pretoria (South Africa).

200% Growth rate

Decrease in injury frequency of subscribers by 53%

50 000 company specific orientations, 52 000 communications sent,

70 000 compliance alerts.

Who uses ComplyWorks?

CNRL, Sunshine Oil Sands, TAQA North, Sinopec Daylight

Colliers, BLJC, SNC-Lavalin O&M

Shaw Communications, Xstrata, Lonmin Precious Metals

Superior Propane, Atco S&L, Schlumberger, Ferus

Why Pre-Qualify Contractors? You can outsource work, not the liability:

Employers are required to ensure proper due diligence is done before hiring a

contractor.

Avoid safety, regulatory, financial and other risks.

Avoid fines, citations and criminal charges.

Why ComplyWorks? System automates data collection and compliance monitoring – saving time,

reducing risk.

Provides contractors area to store compliance data and ensure good standing with

customers.

Pre-Qualification versus

Contractor Management

Contractor Management Lifecycle is

a continuous process.

Risk is assumed when the contractor

is hired.

Entire relationship from pre-

qualification to payment and post-job

evaluation must be managed.

Contractor Management in the real world

ComplyWorks doesn’t have a monopoly—

Different Employers/Owners use different

systems. Contractors may have to

subscribe to multiple systems.

How do we address this?

Seek to improve communication – don’t be

a barrier

Ensure solution is affordable, relevant and

simple to use

Contractor Management in the real world Pre-qualified contractors are asked to provide

same data multiple times:

Pre-qualification

Bid submission/Project Sourcing Stage

Additional Evaluation

Contractor

Contractor Management Stakeholders

Building a successful compliance management system.

• Relevant Compliance

• Keep it Simple

• Keep it Affordable

Relevant Compliance

One size doesn’t fit all – questions asked,

data provided, verification/validation must be

relevant to address unique requirements.

Services provided, local requirements,

jurisdictional legislation.

Existing qualifications, certificates, audits, etc.

Keep it simple and keep it affordable

System must drive efficiency – true cost of ownership is reduced if

solution is simple and the system is user friendly

Transparency is key – employer/contractor requirements must be

understood and communicated throughout supply chain.

ComplyWorks In Action

Safety, purchasing, operations, legal, finance involved in the

process.

Contractors are categorized, pre-qualified and qualified based on

relevant compliance: Services, size, risk, project.

Compliance actively monitored – real time non-compliance alerts.

Preferred suppliers list maintained, contractor selected.

Post-job evaluation based on performance.

Delivering value moving forward

Two-way Communication – not just employer to contractor

Users meetings, online forums.

Brining the gap between employers and contractors

Working with contractors to help them meet/exceed employer

requirements.

What else?