RICHARDS BAY MINERALS GENERAL RBM PROCEDURE

Effective date: 1 February 2019

APPLICABLE TO PROCEDURE NO REVISION NO Page
All Divisions E 09 GP 008 4 1 of 21

VENDOR / CONTRACTOR WORK PACKAGE MANAGEMENT PROCESS

Compiled by: Superintendent Contractor Management

1. PURPOSE

1.1 SCOPE
Safety is our top priority and one of our core values. Our commitment to safety extends to the
safety and wellbeing of our contractors. We know a safe, engaged and effective workforce is
essential to the delivery of our business goals and that contractors of all types have a key role.
By improving the effective end to end management of contractors and living our value of
teamwork, we will deliver a direct and material influence on safety, productivity and cost
outcomes.

1.2 OBJECTIVES
To ensure that adequate planning, engagement and auditing occur to assure safe and efficient
completion of contracted work packages. This procedure addresses the following key
practices(KP) in RBM Contractor Management process:
 KP2 - Operationalise the contract
 KP3 - Verify the work
 KP4 - Evaluate performance of the contractor
(For KP1 – Clear Scope: Refer to F 09 GP 005 - Develop a Scope of Work)

To define the roles and responsibilities of all individuals involved in the process, to ensure they
are aware of the RBM requirements pertaining to contractors performing work on all RBM sites
and capable of fulfilling their roles and responsibilities in this process.

2. ROLES AND RESPONSIBILITIES

2.1 Contract Sponsor: RBM Managers of the Contract Owner/s.

The person accountable for ensuring the contract/supplier aligns with the Group Contract
Management (CM) and Product Group/Business Unit strategies.
Approval of the commitment must follow the relevant Delegation of Authority standards.

2.2 Rio Tinto Procurement Lead: The RTP representative for the specific contract/order.

 Responsible to drive the process from the initial “Request” from the Contract Owner
through the Scope of Work, Tender process, Adjudication and approval of the
Contract/Order.
 To summarize the contract, refer to Appendix 4, KP2 Contract Summary Template as a
reference.

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 Initiate the Internal meeting, to ensure the Contract Owner/end-user/s are aligned with the
contents of the contract, prior to the implementation meeting with the contractor. CM
Lead/s can be included on new to site, high value and/or high risk contracts.
 Should attend the Implementation meeting with the contractor (New to site contractors,
high value and long term Contracts)
 The responsibility for “Walk the contract” resides with RTP, who may convene a small
team for assistance.

2.3 Contract Owner: Project manager, Operational 7(4) Appointees and/or Engineer appointed
2.13.3.1 or Superintendent.

The Contract Owner is accountable for the delivery of the work according to the scope of
work/contract, schedule, quality and budget. The Contract Owner must implement the Key
Practices after award/order placed. Note that KP2, KP3 and KP4 all run together from the
moment the work starts on site.
Assigns a Designated Leader for the work package. This may be per order/contract, but some
of the higher risk/higher value or multi-disciplinary contracts may require that the work is broken
down in work packages and appropriate Designated Leaders are assigned to suit the discipline
i.e. Structural, Mechanical, Electrical.
 Within Engineering Design Solutions (EDS), the Contract Owner (Project Manager) assigns
a Designated Leader in consultation with the Construction Engineer/Superintendent, who
controls the assignments of Designated Leaders (Clerks of Works) for EDS
The Contract Owner is the decision-maker on the contract/agreement/scope of work (SoW),
responsible for defining the external and on-site services requirements, scope quality and fit
for purpose nature, assessing risk, setting budgets, approval and payment of the work.
 Interacts closely with the Designated Leader, CM Lead, Procurement and the nominated
contractor representative.
 Arrange and chair the Implementation Meeting with the Contractor
 Acts as escalation point for issues relating to the contract.
 Accountable for the safe and effective execution of the work as per the contract.
 Responsible for implementing the contract as per the RBM CM strategies.
 Coaching and support of Designated Leaders across the end to end CM process. The
Contract Owner remains accountable for the order/contract.
 Is the “Requisitioner” in RTBS. Can use an alternative “Requisition Created By” to place or
initiate the purchase requisition.

Project Manager nominated in SAP and other Contract Owners (Requisitioner)

Refer E 02 GP 002 - Appointment of Persons Accountable for Projects
The specific responsibilities of the Project Manager/Contract Owner include, but are not limited
to the following:
 Ensuring a Quality control plan is agreed before work commences.
 The level 3 and 4 Milestone and Work Schedule is agreed and baselines fixed (Gant chart).
 Ensure the scope of work is correct, (tasks, deadlines and HSEQ standards).
 Ensure an appropriate Work Method Statement (WMS) and Job Hazard Analysis (JHA)
incorporating adequate controls and mitigation is performed prior to work commencement.
 Ensure that work is adequately overseen by the RBM Designated Leader.
 Effective performance monitoring for both work execution and HSEQ compliance.
 Verify competency of workers by reviewing the appropriateness of profile documents
presented by the Contractor Responsible Person (CRP) as part of the Pre-Mobilisation
Work Pack review.
 Do a monthly Contractor Performance evaluation, making use of the RBM Contractor
Performance Assessment Tool (Excel Spreadsheet tool in Appendix 4) to measure the

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performance of the contractor and discuss decisions and agree actions with the Contractor.
Ensuring that a Contractor’s HSEQ performance is acceptable with regard to the work to be
undertaken as part of a contract. Escalate issues/non conformances where necessary to
the Contract Sponsor and Procurement for resolution.
This Performance Evaluation should coincide with the monthly invoice verification and
payment of the work. The monthly scores should be captured and tracked on a monthly
basis to show trends.
 Ensuring the effectiveness of a Contractor’s HSEQ system and processes in relation to
executing the scope of work.
 Ensuring that the Contractor takes part in the Critical Risk Management (CRM) process and
the contractor company supervisor do the CCC’s with his work crew.
 Ensuring that Contractors have received appropriate orientation, induction and training; that
the contractor work areas are clearly defined (and where practicable demarcated); that
contractors’ work is monitored for conformance; that HSE incidents are reported,
investigated and recorded and that HSEQ improvement ideas, suggestions and identified
hazards are captured and acted upon.

2.4 Designated Leader:

Clerk of Works (EDS and other CoW); Operational and Technical Appointees such as, but not
limited to Maintenance Controller, Supervisor, Operations Specialist, Metallurgist (Preferably
be a 2.9.2 appointee as per E 02 GP 003 - APPOINTMENT OF PERSONS RESPONSIBLE
FOR CONTRACTOR COMPANY WORKS)

Assigned by the Contract Owner as Designated Leader

To provide in-field oversight of the work being undertaken by the contractor(s).

 Tracks exposure hours per Contractor individual/headcount and provides feedback to the
Contract Owner on contractor performance.
 Responsible for the safe and effective execution of the work as per the Scope of Work and
contractual terms, including contractor mobilization, in-field verification and demobilization.
 The RBM Responsible Person nominated on the Construction Signage Board (Refer E28
GP 004 – Safety Barriers and Barricading)
The specific responsibilities of the Designated Leader include, but are not limited to the
following:
 Ensuring the requirements of the Quality Control Plan is completed.
 Verify the 2.9.2 appointment of the Contractor Company Supervisor.
 Verification of the appropriate General Safety training, Plant Specific training and other
training requirements is up to date, as detailed in COP 4 – HSEQ Training Requirements.
 Ensure the scope of work is executed correctly as per design, tasks, deadlines and HSEQ
standards.
 Ensure that work is completed as per the approved Job Hazard Analysis performed prior to
work commencement.
 Complete compliance auditing as described in 4.1.6 At Mobilisation Compliance Audit, of
this procedure. Work place Compliance Audits to be done at least monthly.
 Ensure the contractor’s PPE, Tools and Equipment conform to RBM standards. If such
arrive after the “At Mobilisation Compliance Audit”, the Contractor must notify the
Designated Leader of any additional Plant and Equipment coming on to site during the
execution of the works; to be checked on arrival/before use.
 Oversee the work being performed in accordance with the schedule and scope.
 Monitoring both work execution and HSEQ compliance.
 Measurement of contractors’ “attitude toward safety”.

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 Verify competency of workers by observation. Do Planned Task Observations (PTO) at

least monthly per Work Package. PTO’s should be targeted for the times when the high or
critical risk work is taking place on site.

2.5 Contractor Responsible Person: The contractor’s site supervisor appointed by RBM as a
2.9.2 Contractor Company Supervisor in terms of E 02 GP 001 – Appointment as Contractor
Company Supervisors

The Contractor Responsible Person is responsible for:

 Meeting the on-site requirements as specified in the contract, RBM Codes of Practice and
General Procedures and the body of this GP.
 Completing the necessary RBM contractor access documentation and ensuring that their
employees are competent to perform the work as per the RBM order/contract.
 Ensure the work crew/s attend the necessary training and medical examinations as per the
minimum RBM access requirements stipulated in the NOP. These may include KBC, RBM
General Safety, Plant Specific training, specific competencies, i.e. W@H training; as
required by COP 04.
 Prepare the Work Method Statement and Job Hazard Analysis on the latest JHA template,
as per T 10 GP 003 – Job Hazard Analysis.
 Ensure a Permit to Work is taken out for all work (Refer COP 09 - A Permit to Work is
required for all Category 3 Contractor Company work).
 Compliance to all HSES site requirements (PTO, CCC, CRM board, contractor information
boards, vehicle access compliance, Tools list, Material Safety Data Sheets (SDS).
 Prepare and maintain a contractor site file, using the templates in Appendix 4 as a guide.
 Conduct at Mobilisation and then Daily Work Pack Review/Toolbox Talk with Work Crew.
Support the group Take 5 process and ensure the CCC’s for the risks for the day is filled in
and displayed on the CRM board. The Take 5 must be completed on site at the workplace.
 Supervise the work team, ensuring that the work is carried out as per the Work Method and
the Controls in the JHA
 Do regular Planned Task Observations (PTOs) ensuring that the work method and controls
are adequate to execute the work safely. Send completed PTO’s to own management on
the outcomes of the PTOs. (Contractor’s management must send this to the Contract Owner
and Designated Leader)

2.6 Contractor Management Lead: Superintendent: Contractor Management

 Role within RBM providing contractor management (CM) guidance/expertise and capability
development to the RBM personnel responsible for managing/oversight of the contractor
work.
 Ensures ongoing compliance to Group policies (e.g. HSE Element 7 – Contractor
Management).

3. DEFINITIONS:

4 STANDARDS:
4.1 Key Practice 2 – Operationalise the contract
When a contract is signed or a purchase order released, the expectations of all those involved
in the work at RBM are agreed. An internal meeting between the RTP person and the
Contract Owner to clearly understand the terms of what has been agreed in the contract. High
value, long term and contracts with complex requirements.

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Operationalising the contract, is about making sure the key operational aspects of the contract
are understood and applied in the day to day work, to deliver safe work, in the most
productive and cost effective way.
There are three ways we will make this happen:
1. Standardised commercial terms per region that are easy to understand.
2. Contract summary documents (contract summary page/s by RTP) that simplify contract
terms for everyone involved in the job, including:
 scope of contract
 how safety and risks will be managed
 who pays for what
 how performance will be measured (Key Performance Indicators (KPI’s))
 what behaviours are required on the job
 what is excluded (battery limits).
3. A kick-off meeting with the supplier to ensure everyone involved in the job understands
what is expected.
Rio Tinto Procurement is responsible for making sure these three things happen alongside
the Contractor Management Leads and site teams.

4.1.1 Internal Alignment

Once the contract has been awarded, RTP will facilitate a meeting between the Contract Owner
and RTP to confirm the terms and conditions as per the scope of work of the contract prior to
implementation of the contract. RTP will summarize the contract, refer to Appendix 4, KP2
Contract Summary Template as a reference.

4.1.2 Contract Implementation meeting

Where a new contract is to be implemented, (or significant variances/amendment to an existing
contract is taking place), the Contract Owner and the Service provider/Contractor Responsible

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Person will hold a Contract Implementation meeting. The purpose is to provide and confirm
matters relating to scope, safety and critical risk management, commercial items, performance
measurement, schedule and productivity associated with the contract.
Discuss and facilitate Training and Onboarding of the contractor staff.
If the Contractor is not "Aligned" (New to site Contractor in terms of COP 09 is designated as a
“Supervised Contractor”), the Contract Owner must determine according to E 09 GP 006 -
Contracting Company Alignment all the additional safety measures to be taken.
Where required, the Contractor Responsible Person (CRP) and Designated Leader will meet
on site to further clarify the requirements of the scope, critical risks and intended methodology.
The CRP and Designated Leader must take note of all the risks, specific critical risks to use as
a reference, when reviewing the Level 4 Work Method Statement (WMS) & Job Hazard Analysis
(JHA) drafted by the Contractor Responsible Person.

4.1.3 Site Engagement – Safety Management Plan

The purpose of site engagement is to ensure that the contract is applied at site level. Critical
items to review are the contractors’ safety management plan and qualification profiles of the
work crew members:
Prior to mobilization on site the CRP will draft a Work Pack consisting of the following:
 A level 4 detail project execution schedule.
 A level 4 Work Method Statement (refer to Appendix 1 for explanation of different levels of
work schedule detail). The work team must be able to review the section of the WMS and
JHA relevant to the work to be done on the day, prior to start of the work period. (I.e. every
morning to review the tasks for the day and safety controls required) The WMS is filled in
the JHA template – refer T10 GP 003 - Job Hazard Analysis (JHA).
 A level 4 Risk Assessment (JHA) referenced to the steps in the WMS. The work crew must
be able to quickly reference the intended hazard controls after reviewing the steps in the
WMS. Also in the JHA template.
 Profile documents identifying agreed competencies for each individual to be involved in
undertaking the Work Package. The template is found in Appendix 4 - KP2: Operationalising
the contract.
 The above and all the required documentation/registers to be prepared with reference to the
“CM At Mobilization Workplace Compliance Audit” (see template, Appendix 4, KP2) and
presented to the Designated Leader in the form of a Site Safety File, appropriately indexed.
After review by the Designated Leader this Site Safety File must be available on site while
work is in progress.
Where RBM COP’s, GP’s, SOP’s, isolation procedure etc. exists that covers aspects of the
work methodology, this should be incorporated into the Work Pack rather than assumed known.

4.1.4 Job Start Discussion

Pre Mobilisation Work Pack - Review and Approval
Ensures that the contractor is aware of the job, the scope is clear, safety management is pre-
planned and expectations are confirmed.
Prior to mobilization, the Work Pack will be reviewed by the Designated Leader, who will work
with the CRP to get the Work Pack to an acceptable level and submits the JHA for approval.
For EDS, as per the JHA template the Project Manager (Contract Owner) and Construction
Engineer approves the JHA, before submission to the Plant Superintendent and Plant
Engineer (Geographically Responsible Engineer) for approval.
Where EDS is not involved, the JHA must be approved by the Plant Superintendent and Plant
Engineer. The Contract Owner in this case is one of these two.

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The CRP will include any modifications agreed by the review committee and resubmit for
approval. This process will be reiterated as many times as required to obtain approval. The
RBM representatives who are present at the pre-mobilisation site meeting should refer to their
notes to ensure identified hazards and appropriate controls have been included.
The review of the Work Pack and the inclusion of suggestions from RBM representatives in no
way diminish the accountability of the CRP to ensure that the Work Pack defines a safe system
of work.

4.1.5 At-Mobilisation Work Pack briefing with the Work Team by the CRP (Contractor
Company Supervisor)
At mobilization on site, the CRP will conduct a Toolbox Talk with every member of the work
team, or during the contract, when a new team member is introduced or an existing member
has been off site for a period of longer than 10 working days. During this first Toolbox Talk, all
team members will be informed of the high level scope of work, duration, work methods, the
hazards and controls of the approved JHA. Their knowledge must be checked for
understanding, by discussions and review of the Critical Risks, until all team members can
provide feedback that they understand the hazards and controls.
 The CRP will brief his team on the overall work methodology (WMS) and associated
hazards with the contract. The details of the work to be done and to be completed in
accordance with the contract schedule.
 Each member of the Work Team must date and sign the JHA sign-off page: “EMPLOYEE
BRIEFING SHEET FOR THE JHA” to signify understanding of the WMS, all the hazards
and controls to be implemented during the work and to confirm that this review has been
completed. If additional members join the team during the period of work execution, they
must be appropriately briefed and must also sign the briefing sheet. (This includes a Crane
driver and sub-contractor staff.)
 No physical work may be undertaken or any team member exposed to a workplace hazard
until this first briefing is complete.
 Any sub-contractor’s personnel are treated as members of the Contractor’s Work Team for
the purposes of this GP.
 The specific work to be done on the first day must be briefed as per Daily Work Pack
Review / Toolbox Talk with Work Team as below.

4.1.6 At-Mobilization Compliance Audit

 Preparation by the CRP for mobilization must include the use of audit checklist/s.
 At mobilization the RBM Designated Leader will complete the “CM At Mobilisation
Workplace Compliance Audit” (see template, Appendix 4, KP2) to ensure that all
procedural requirements have been met, no work will be allowed if any critical non-
compliances have been recorded.
 Compliance is the responsibility of the CRP. Any delays arising from critical non-
compliance will be at the cost of the Contractor.

4.1.7 Daily Work Pack Review / Toolbox Talk with Work Team
During the Toolbox Talk, at the commencement of each work period (at least daily),
morning/afternoon as the tasks change to the next task), a review of the sections of the WMS
and JHA applicable to the period’s activities will be conducted by the CRP, with every member
of the work team. All applicable hazards will be covered until all team members can provide
feedback that they understand the hazards and controls.
No physical work may be undertaken or any team member exposed to a workplace hazard until
this review is complete.

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Any sub-contractor personnel are treated as members of the Contractor’s Work Team for the
purposes of this GP.
The JHA needs to be reviewed for all the tasks to be executed on the day especially after a
period of absence from site.
After review of the WMS and JHA, the Work Team will complete a group Take 5 to consider
whether there are any critical hazards not captured and controlled in the JHA.
Each member of the Work Team will sign the Take 5 to confirm that this review has been
completed.
A CCC will be done for every critical risk identified in the Take 5.
Supported by the CRP, the Work Crews must make sure they finalize their group Take 5 on
site at the work place. This is to ensure they can observe and include any hazards/controls not
previously noted or conditions created during the times they were of site. Housekeeping issues
from their own work processes can also be resolved at this time, before work commences.

4.1.8 Change control of the JHA Projects document after initial approval
During the execution of the work, the need for changes to the WMS and Hazard Analysis may
arise due to changed circumstances, detail observation, a need to use different work methods,
tasks not covered in the original WMS or JHA, Planned Task Observations or other reasons.
Any changes made must be approved by the Contract Owner (Project manager, Operational
7(4) Appointees and/or Engineering 2.13.3.1 appointees) after careful consideration ensuring
that no new unknown or uncontrolled hazards are introduced.
The employees must be re-briefed on any changes made to the WMS or JHA, and acknowledge
understanding of the changes by signing the briefing sheet.

4.1.9 Workplace Compliance Audit and other safety interactions

The Designated Leader and Contractor Principle (not together) will complete a monthly on-site
“Workplace Compliance Audit”, (refer to Appendix 4, KP2 templates) per work package to
ensure compliance to RBM HSE and contract requirements. Non-conformance related to non-
compliance in the audit, the contract scope and site work, which cannot be resolved by the
Designated Leader/Contract Owner, will be escalated to RTP for resolution.
HSE non-conformances must be logging as incidents in RTBS for investigation as per COP 11
– Non-conformance, Incident and Injury Reporting and Recording
Leadership In the Field (LIF) to be done by the Contractor Management Representavive/s
(Contractor Principal) to be discussed.
The outcome of these assessments will form part of the contractor overall performance
evaluation.
The Contractor HSE and Contractor Performance evaluation criteria must be discussed with
the Contractor Principal to further set the expectations during the kick-off meeting

4.2 Key Practice 3 – Verify the work

Effective management of day-to-day contractor work requires a structured and well-defined
approach that includes verification activities while the work is underway.
These activities, supported by a suite of verification tools ultimately help us manage
contractor work safely and efficiently as per the scope and agreement.

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4.2.1 CM Verification
What is CM verification?
An interaction between Rio Tinto and supplier personnel, that takes place at the job site. It
encourages two-way discussion, allowing us to monitor expected outcomes and take action
where required.
A CM verification should take place at least once per job, towards the start as a
recommended minimum, and thereafter, at scheduled intervals based on the job risk,
experience with the supplier and supplier familiarity with the task as your guideline.
Why is CM verification important?
We invite suppliers to our sites to deliver a service or outcome (scope) as per an agreement
(contract or PO). Our role as a Contract Sponsor, Contract Owner or Designated Leader is to
verify that:
 HSE risks are understood, controls are in place and are effective;
 Work being performed is aligned to the agreed scope;
 Everyone understands the contract / agreement; and
 Work is being executed in a productive manner.

Essential Elements: CM Verification

HSE Risks & Scope of work Contract / Productivity
Controls Agreement

Why it’s important Risks are Scope is Contract terms & Work is being
understood, understood by all conditions are in executed in a
controls are in parties and work place as per the productive manner,
place and are being performed is agreement, ensuring with roadblocks
effective aligned to the we only pay for (holdpoints),
scope items we have inefficiencies
agreed to pay for identified and actions
to remove put in
place

What tools to use  LIF  Scope of work  Contract; or  Work schedule;

 CCFV (CRM document; or  Contract or
Portal)  Work order; or summary; or  Work order
 JHA  SWP  Quote (scheduled time)
 Take 5

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 Permit to Work
What I should see  CCC complete  Scope of work  Arrival, break,  No wait time at
and controls is at the job finish times the start or
effective  Awareness / align with during the job
 All risks knowledge of agreement  Right number of
identified and scope by  Consumables people on the
controls people use aligns with job
effective performing the agreement  Parts are
 Awareness of job  PPE supply available when
risks  Work being aligns with required
 Positive safety performed agreement  Permits and
behaviours aligned to  Equipment Authorizations
 Positive scope supply aligns are on/off when
attitude to  Scope with agreement required
safety sufficiently
describes the
work required
Follow up action  Action / correct  Clarify scope  Clarify with  Remove
on the spot / at outcomes if vendor leader roadblocks
the job unclear on the on the job encountered
job
 Correct on  Escalate
 Feed any gaps timesheet systemic /
in scope back recurring
Escalate to Supt /
to scope writer roadblock
CM rep

Benefit of CM Confident that the Preventing rework Only pay for what Everyone enjoys
verification work is taking place later on by getting we’ve agreed to pay doing their job,
safely the job right the first for because the
time frustrations getting in
the way have been
removed

Daily Diaries
The daily recording of on-site activities is incorporated in the RBM Daily Diary, which is to be
made available to the Contractor. This document is to be signed off on a daily basis by the
Contractor’s site representative and the RBM Designated Leader. Designated Leader can sign
daily for the previous day, during his daily site visits.

Verify the work: Roles and Responsibilities

Designated leader  Plan and schedule which jobs are to be verified based on risk
or previous performance
 Verify work being undertaken and take action where required
– Daily oversight required
 Sign off the Daily Diary every day (for the previous day)
 Conduct workplace compliance audit at mobilisation of the
contractor and then at regular intervals, as a minimum,
monthly per work package
 Do Planned Task Observations regularly on high risk and
critical work also at least monthly per work package)
 Provides input to the monthly Contractor HSE Scorecard and
Contractor Performance Assessments

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 In future: Record outcomes in the CM Verification App (or

manual system)
Contract Owner  Identify and act on trends from CM verification process
 ‘Spot check’ scopes and provide coaching to scope writers
 Participate in in-field verification activities (with Designated
Leader, CM Team and/or RTP)
 Do LIF in-field and engage the work crews
Contract Sponsor  Be visible in the field supporting leaders (LIF) and CM Team in
messaging related to four Key Practices.
 Act where gaps are observed to build momentum
CM Lead / CM Team  Visit jobs with Designated Leaders to understand practical
application and coaching opportunities.
 Coach leaders on key aspects to allow leader led coaching /
cascade.
 Implement process improvements
Vendor/Contractor  Participate in verifications and provide feedback on what has
occurred and also what could improve the four aspects for the
job (safety, scope, contract & productivity)

Tools available for verification

The primary purpose of the CM Verification is to record verification outcomes for leader-lead
action and supplier performance discussions. The information captured by means of
completing the “Contract Performance Evaluation”, Appendix 4, KP4, forms a primary input
into the Contractor Planning Board / CM Verification Dashboard (Long term contracts)
and creates the data for the contract review meetings. This gives you an idea of where the
‘hot spots’ are to focus your energy.

4.2.2 Invoice Verification

We invite suppliers to our sites to deliver a service or outcome at an agreed rate/cost. Invoice
verification ensures that by only paying what we agreed to pay for we are acting as owners,
treating the business’ costs as our own.

Key Principles
 An Invoice Verification Process is an element of sound Contract Management
 Empowering Contract Owners to effectively measure requirements delivered, before
effecting approval of claims and payments to vendors
 Ensuring all relevant controls are in place in order to reduce the risk of variations and
potential exploitation.

Process Roles
Who Role
Vendor • Execute work or supplies goods as per scope/specification
• Submit invoices for payments due to Accounts Payable
• Provides all supporting documents to the end user
• Maintains supporting evidence of all work completed
Contract Owner • Ensure services/goods supplied are as per scope/specification
• All contract conditions are met
• Verify and measure work completed
• Create and approves Service Entries

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• Inspect and maintain supporting documents

Accounts Payable • Match invoice details with PO in RTBS
• Capture for payment if the above correspond
• Report discrepancies to Contract Owner or RTP

Accountability for Vendor Payment

The Contract Owner (end user) is accountable for the following:

 Acceptance of services or goods, approval of service entries/goods receipts and
subsequent payment of vendors
 Proper due diligence performed before a request for payment is approved. For EDS an
enhanced process is followed with support from EDS Admin and Quantity Surveyors
 Keeping and maintaining any records that are relevant, such as proof of claims and
approved payments
 The timeous creation and approval of Service Entries

4.2.3 Walk the Contract – Long Term Contracts

Why use it?
The intent of 'Walk the Contract' (WtC) is to verify in practice that a contract:
1) Has been implemented as intended (value is realised, leakage is minimised)
2) Remains fit for purpose (market shift, KPIs relevant, scope relevant)

Outcomes from the process create opportunities for:

1) RTP to build stronger relationships with its partners (developing a deeper practical
understanding of site conditions) .
2) Site personnel to deep-dive into contracts, building commercial awareness, knowledge
and capability.
3) Site personnel to focus on improving aspects of contract management locally to generate
value / stop leakage.

Who does it?

The responsibility for “Walk the contract” resides with RTP, who may convene a small team
for assistance, the team may consist, but not limited to the following:
 RTP representative for contract / site (lead)
 Site Contractor
 Contractor Management Lead
 Contract Owner
 Designated Leader(s)
 Supplier representative(s)

Walk the contract: Scope & Cadence

Walk the Contract*
o Within 3 months of implementation
o Full deep-dive - focus on critical / strategic suppliers (top 10 – 20%)
o Has the contract been implemented as agreed?

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o Are contract terms understood by key stakeholders? Sufficient lead time (approx. 6-12
months) prior to exit / renewal (supplier dependant)
o Is the contract still fit for purpose?

Health Checks
o Periodic reviews undertaken throughout the contract term
o Specific areas of focus - driven by WtC findings, business context etc.
o Informs daily in-field verification activities (‘CM Verification App” once available)
o Outcomes may be tracked on Planning Board / VMC

Refer to Appendix 4 - KP3 – “Walk the Contract” template workbook.

4.3 Key Practice 4 – Evaluate performance of the contract

Evaluating performance provides a platform from which to deliver better business outcomes
together with our suppliers, through data driven discussions and partnership. These
discussions are centred around the Five Priorities (Safety, Cash, Growth, Partnership &
People) and how we improve the overall business outcome together.
Two-way and timely feedback enables performance to be corrected, before progressing too
far and incurring costly overruns or budget blowouts. More importantly it provides positive
feedback for a job well done, energises and motivates people to maintain and improve
performance levels.
Recording performance data also enables the business to hold constructive improvement
discussions with supplier leadership teams, our site GMs and Procurement colleagues, who
manage the commercial relationship with supplier firms on our behalf.

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KEY FACTORS
 Regular two-way dialogue ensures improvement opportunities are captured, actioned and
tracked in real time
 Receiving and acting on constructive feedback from the supplier workforce will unlock
productivity opportunities.
 Performance is being measured daily, monthly and data is accessible and drives effective
decision-making by Contract Owners, RTP and management.

The Contract Owner and Contractor Principle will complete a final Contractor Performance
Assessment (KP4 for template) at the end of the project for every work package to ensure
compliance to RBM HSE and contract requirements.
The outcome, together with the assessments completed during the duration of the contract,
will determine the overall performance rating of the contractor / vendor.
The outcome of the performance evaluation could lead to:
- Continued relationship with contractor
- Rescue contractor/vendor by placing on a performance improvement program or assign a
mentor
- Terminate relationship with contractor/vendor.

Tools to evaluate contract performance

Auditing of the contract will be done, using the following process:
- Monthly HSE scorecard (KP4 template)
- Contractor Performance Assessment (KP4 template)

Improvement actions
The outcome, together with the assessments completed during the contract, will determine the
overall performance rating and presented and addressed in the following manner:

- CM HSE and performance scorecard dashboard

- Contract review meeting
- RTP vendor / contractor relationship meeting

5 AUDIT:

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6 REFERENCES:
COP 02 Appointment of RBM Officials and Contractors in terms of the MHSA
E 02 GP 001 Appointment of Contractor Company Supervisors
E 02 GP 002 Appointment of Persons Accountable for Projects
E 02 GP 003 Appointment of Persons Responsible for Contractors
COP 04 HSEQ Training Requirements
COP 09 Contractor Management
COP 22M Minimum Standard of Fitness to perform work
F 09 GP 001 Vendor Registration Procedure
F 09 GP 002 Contractor Mentors
F 09 GP 005 Develop a Scope of Work
E 09 GP 006 Contracting Company Alignment
E 28 GP 004 Safety Barriers and Barricading
COP 10 Health, Safety and Environmental Risk Management
T 10 GP 003 Job Hazard Analysis (JHA)
COP 11 Non-conformance, Incident/Injury Reporting and Recording
Rio Tinto CMX Portal

6 APPENDICES
Appendix 1: Explanation of “Levels of detail” for Schedule and Work Method Statement
Appendix 2: Contractor Management Roles
Appendix 3: Contractor Management Roles and Responsibilities
Appendix 4: Templates and Information

7 REVIEW HISTORY

REVIEW HISTORY
REV NO DETAILS PAGE NO DATE
0 New document - Finance Departmental GP F 09 GP 003 All 21 Feb 2012
SOP 001 converted to GP applicable to All Divisions at RBM

1 General review and update – changed SOP to GP. Changed All 22 June 2015
JTA to JHA.

Item 3.1 - General Managers changed to Managers

Item 3.6 – Updated RBM Work Permit Issuer responsibilities

Removed Take-over, care, acceptance and control of

completed work.

Added Items 3.6.4, 3.6.5 and 3.6.6

Item 4.1.1 (i) removed last part: to enable fixed and firm
pricing even if a rates based contract is intended.
Item 4.5.1 Added item (V)

Updated Item 4.6.1 – changed Line Manager to Management

(Plant Superintendent)
Changed last sentence.

Updated Item 4.7.1

Updated Item 4.8.1 – added 1st sentence

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REVIEW HISTORY
REV NO DETAILS PAGE NO DATE
Added Item 4.9.4 – The JHA needs to be reviewed for all the
tasks to be executed on the day especially after a period of
absence from site.

Added Item 4.10 - Change control of the JHA Projects

document after initial approval.

2 Added words: RBM COP’s, GP’s in item 4.5.2 4 28 Sept 2015

3 Item 4.7.2 - Added WMS & JHA sign off page with date. 5 01 Dec 2015
Item 4.10.1 - Added “tasks not covered” as a need for 5
change to the WMS and Hazard Analysis
Item 4.10.5 - Added 6
4 Complete review and change of document to align with All 1 Feb 2019
Rio Tinto CMX

APPROVAL
POSITION NAME DATE SIGNATURE
Manager Contractor Management Nilesh Ramdhani
Officer: Chief Financial Bradley Reddy

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APPENDIX 1:
EXPLANATION OF LEVELS OF SCHEDULE AND WORK METHOD STATEMENT
Work schedules and associated Work Method Statements (WMS) are prepared with ever
increasing detail as work package development progresses from concept to execution. The
various “levels” of development of Project Schedules/WMS is described below:

Level 1
Addressed to: Executive Management and Sponsor
Named as: Executive Summary / Project Master Schedule
Information:
• Major milestone
• Only one page
• It highlights major project activities, milestones, and key deliverables
• Used to assist in the decision making process (go/no-go)
• Can be used to integrate multiple contractors / multiple project schedules into an overall
program schedule
• This level of detail may be used to support a proposal or a potential project
• Used for high level Resource planning.

Level 2
Addressed to: Project Management and Project Team
Named as: Management Summary / Summary Master Schedule
Information:
• Maintained as a summarisation of the Level III Project Coordination Schedule(s).
• It depicts the overall project broken down into its major components by area
• Used to integrate multiple contractors / multiple project schedules for the overall control of
a program.
• Used for higher-level management reporting

Level 3
Addressed to: Program and Project Managers, Construction Managers, Contract Owners
Named as: Project Coordination Schedule
Information:
• Maintained as a summarisation of the Level IV schedule
• Level 3 schedule to be submitted by tenderers with their tender submission
• For reporting status to senior management and to report monthly status to major clients
• It includes all major milestones, major elements of design, engineering, procurement,
construction, testing, commissioning and/or start-up
• During the execution phase of the project this schedule defines the overall critical path
and is the primary coordination tool for the overall project.
• Detailed status of the project and its course to completion.

Level 4
Addressed to: Discipline Leads, Project Engineers, Designated Leaders
Named as: Execution Schedule / Working Level Schedule
Information:
• Detailed Information by each work package (Design, Procurement, Manufacture, Delivery,
Construction and Commissioning)
• Maintained as an expansion of the Level III schedule

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• Displaying the activities to be accomplished by the project workforce on site

• The Level 4 schedule may be for the whole of the project or a part of the project
depending on the size of the project and complexity of the project.
• A Level 4 Schedule to be kept at a sensible size that can be easily managed, updated,
validated, etc.
• Every area should have a responsible manager associated to it.
• It should have high level resource plan.
• One should be able to extract 2 week look ahead schedule
• Can be used to develop a Level 4 Work Method Statement for the JHA

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APPENDIX 2
Contractor Management Roles

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APPENDIX 3
Contractor Management Roles and Responsibilities

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APPENDIX 4
Templates and Information
Contractor Management – Common Terminology:

CM Common
Terminology.docx

KP2: Operationalising the contract:

• Contract Summary:

KP2 Contract KP2 Contract

Summary Template.docx Summary (example).pdf

• Contract Implementation Meeting:

KP2 Contract Index Contractor Contractor Personal

Implementation Meeting Site
Agenda.docx
Safety File.docx Profile and Work Scope.xlsx

• On-site Workplace Compliance Auditing: At Mobilization and during the execution of the work:

CM Mobilisation CM Safety File CM General CM Active Site CM General

Work Place Compliance Checksheet
Workplace Compliance
Safety .docChecklist
Workplace.doc
Compliance Checklist
Workplace.doc
Compliance Checklist
Shortened.doc
Workplace Compliance Checklist .doc

Also available in the Workplace Compliance Audit System in IMPI, where the audit results can also be
logged (Access for Designated Leaders and Contract Owners can be requested via the RBM Intranet
– Log a Request  Order IS&T Services Incl. Access Requests  Workplace Compliance Audit
System in IMPI

KP3: Verify the work

Contract Progress KP3 Invoice KP3_Walk-the-Contr

Meeting Template KP3.docx
Verification Checklist.docx
act_Template_Workbook_Final_v2.xlsx

KP4: Evaluate Performance

Contract
Performance Assessment RBM Tool KP4.xlsx

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