Monitoring Contractor Performance – Maintenance Services

1. Monitoring Contractor Performance – Maintenance Services Aldo Gangi Manager Maintenance & Minor Works 11th July 2013

2. Agenda 1 Contextual Overview 2 Strategy Development 3 Managing Expectations 4 Monitoring Contractor Performance 5 Performance Monitoring Culture & Tools Contractor Performance Management

3. Contextual Overview Estate Portfolio • 168 buildings across six campuses • 674,887m2Gross Floor Area and over 60Ha of Grounds • 585 Registered contracting companies • 4018 Inducted contracting employees Service Contracts • 39 Service contracts • Valued at $13.15M p.a. (2012) • Attending to 49,511 work orders per annum (2012) Contractor Performance Management

4. Strategy Development Contract Manageability • Size of contract • Service inclusion • Alignment with market Service Delivery Model • Service level delivery • Set frequency/Manufactures rec. • Condition based Contractor Performance Management

5. Managing Expectations • Partnering Principles • Alliancing objectives • Primary points of contact • Communication methods and frequency • Detailing of contract performance expectations in tender documentation that: • Clearly identify KPI’s • Outline performance monitoring methodologies & frequencies • Stipulate performance management actions • Work Type Prioritisation • Outline work priorities levels c/w examples Contractor Performance Management

6. Managing Expectations cont. Key Performance Indicators (KPI) • Timeliness • Cost of service • Quality and improvement of service • Occupation Health & Safety • Customer Satisfaction Asset information • Maintain asset lists • Asset renewal prioritisation Contractor Performance Management

7. Monitoring Contractor Performance Operational Monitoring • Monthly meeting with contractors • Monitor performance against contract (esp. time, quality & cost) • On-site contractor sign in (OHS) Category Management • Annual assessment against contract KPI’s • Test alignment with organisational objectives • Contract renewal / market engagement recommendations Contractor Performance Management

8. Monitoring Contractor Performance cont. Key Performance Indicators • Average time taken to complete – by priority • Average cost of work type • Average hours per work order • Compliance with On-site contractor sign in & inductions (OHS) • Compliance statutory reporting Measuring approaches • % compliance against a pre set benchmark • Mean Time to Repair (MTTR) • Penalty point system Contractor Performance Management

9. Performance Monitoring Culture & Tools Contract management culture • Understanding of contractor performance and service delivery Organisational structure • Appropriate alignment of contract supervisors, category managers and administrative staff Monitoring Tool(s) • Computerise Maintenance Management System (CMMS) • Work order priority setting • Analysis and trending Contractor Performance Management