Precontract risk based assessmen contractors Reg de la

Pre-contract risk- based assessmen contractors Reg de la Hunt

Pre-contract risk- based assessment of contractors CONTENT § Background / reasons for pre-contract risk-based assessments § Benefits when conducting pre-contract risk-based assessments § Methods and processes for pre-contract risk-based assessments Energy Coal – Ingwe Collieries Ltd 10/30/2020 2

Pre-contract risk- based assessment of contractors The why SOME OF THE REASONS FOR ASSESSING CONTRACTORS PRIOR TO CONCLUDING A CONTRACT § Selecting the contractor with lowest tender price (usually because they are not fully aware of the mine’s SHEQ, technical and legal requirements) § Selecting contractor with most influential sales / marketing person This result in: § Contractor arrives on site with equipment and personnel not complying with mine’s SHEQ, technical and legal requirements § Contractor must use contract time to get equipment and personnel compliant § Contractor becomes a major risk Energy Coal – Ingwe Collieries Ltd 10/30/2020 3

Pre-contract risk- based assessment of contractors The benefits SOME OF THE BENEFITS FROM ASSESSING A VENDOR / CONTRACTOR PRIOR TO CONCLUDING A CONTRACT § Contractors tendering are fully aware of mine’s SHEQ, technical and legal requirements (conduct a self-assessment) § Contractors can structure their tenders according to SHEQ, technical and legal requirements § Contractors tendering for a specific contract are measured equally § Contractor arrives on site with equipment and personnel that comply with mine’s SHEQ, technical and legal requirements § Contractor can start immediately § Contractor becomes a lower risk Energy Coal – Ingwe Collieries Ltd 10/30/2020 6