1. The Challenges and Lessons Learned Related to the Qualification, Selection and Monitoring of Site Contractors Tom Mudge 31st Energy & Environmental Conference September 2004 Orlando, Florida

2. LEARNING OBJECTIVES UNDERSTANDING RISKS KEYS TO SUCCESS EVALUATION METHODS COMPENSATORY ACTIONS

3. RISK ASSESSMENT PROBLEMS ATTRIBUTED TO INADEQUATE PERFORMANCE OF CONTRACTORS CAN BE AS MUCH AS 60% OF THE OVERALL QUALITY PROBLEMS ON A PROJECT. BIG BUCKS $$$$$

4. RISK ASSESSMENT NATURE OF ACTIVITY CRITICALITY OF MISSION CONSEQUENCES OF FAILURE

5. NATURE OF ACTIVITY TYPE OF ACTIVITY WHAT CAN GO WRONG? PROBABILITY PREVIOUS EXPERIENCE

6. TYPE OF ACTIVITIES REINFORCED CONCRETE STRUCTURAL STEEL PIPING HVAC CARPENTRY PAINTING I&C / ELECTRICAL

7. CRITICALITY OF MISSION RESIDENTIAL HOUSING PUBLIC FACILITY Buildings Rail Highway INDUSTRIAL Chemical / Nuclear

8. CONSEQUENCES OF FAILURE LOSS OF LIFE AND LIMB REPAIR / REWORK SCHEDULE DELAYS CONTRACT TERMINATION CUSTOMER SATISFACTION DAMAGED REPUTATION

9. COMPENSATORY ACTIONS SURVEILLANCE / AUDIT WITNESS / HOLD POINTS CONTINUOUS OVERSIGHT - INSPECTION - TESTING

10. ATLANTIC CITY GARAGE COLLAPSE INADEQUATE REBAR INSTALLATION - Quantity - Connections NO CYLINDER TESTING NO BRACING SCHEDULE PRESSURE

11. KEYS TO SUCCESS MANAGEMENT SYSTEM - Organization PROJECT TEAM PERSONNEL - Technical Background - Work Experience - Team MANAGEMENT’S ROLE

12. HUMAN SIDE OF QUALITY PRIDE LOYALTY / COMMITMENT EGO / POWER INTEGRITY “ME”

13. DON’T UNDERESTIMATE THE HUMAN SIDE OF QUALITY.

14. ORGANIZATION INDEPENDENCE MANAGEMENT INVOLVEMENT - AWARENESS - RESPONSE

15. Contractor Characteristics Contractor AContractor BContractor CContractor D TypeLocal National SupervisionLong Term Short Term Work ForceLong TermShort Term Team ExperienceYesNoYesNo Management Involvement CloseIntermittent

16. EVALUATION METHODS REVIEW QA MANUAL REVIEW RESUMES FACILITY SURVEY QUESTIONNAIRES PREVIOUS CUSTOMERS MANAGEMENT OVERVIEW

17. INVEST IN THE EVALUATION PROCESS THE COST OF THE EVALUATION PROCESS IS MINOR COMPARED TO THE COST OF FAILURE – NOW AND THE FUTURE

18. SELECT THE BEST All companies will occasionally experience quality problems on their projects.

19. What sets the good contractor apart, however, is their ability to understand why the problem occurred and implement effective corrective action to prevent recurrence in the future