Contractor Management Project

This article is one of a series of articles on Power Generation Commercial Group. Next month's edition of the EM will contain two features on the Overhaul Programme Management area in Commercial Group, one in relation to Aghada Unit 1 Refurbishment 2008 and a second feature on Turlough Hill/ Erne Hydro Refurbishments & Investment 2008-2012.

With the introduction of Station Agreements and increasing levels of contractor access, managing contractors has become a very important part of how Power Generation manages its business. Power Generation's Commercial Group is currently leading a cross-Power Generation initiative to improve how the business manages its contractors.

The Project, headed by Mark Harmon was established in April 2008, under the sponsorship of Donal Crean, Commercial Manager, with the objective of delivering improved contractor performance in the following areas:-

• Safety & Environment
• Work Quality
• Schedule Compliance
• Cost Control
• Communications & Reporting

To deliver these objectives the Project Team has enlisted the help of a wide range of personnel across the business, including a Project Steering Group and Project User Group. Working with the Project User Group and a cross section of staff, two main initiatives have been identified so far.

Operational
The first initiative is looking at how Power Generation works with its contractors from the point of contract award right through to contract closeout. The aim of this team is to introduce clear expectations in relation to contractor safety and environmental performance, work quality, cost control etc..., through each phase of the contract. This 'expectations process' is based on a model that was successfully introduced in Poolbeg Generating Station during last year's overhaul.

This new process will be piloted by the each of the Overhaul Project Teams on this year's Overhaul Programme and is seen as one of the key safety initiatives in Power Generation for 2009.

Strategic
The second initiative is concentrating on Power Generation's long-term contracting strategy, with the aim of developing longterm framework agreements with a number of preferred contractors, who understand Power Generation's business and have the required competencies to meet each generating station's needs Three long-term framework agreements are currently being targeted for delivery in 2009.

A third but smaller group is focusing on how Power Generation manages contractors engaged in the provision on-going services and running maintenance type contracts. Guidelines as to how best to manage these types of contractors will be rolled out to all Power Generation locations later this year. Further initiatives are also likely to arise during the course as the year as the new processes are applied and refined in each location.

Clearly good progress has been made to-date, and 2009 will undoubtedly be an important and pivotal year for the Project as Power Generation pilots the new contractor processes in:
Aghada, Moneypoint, West Offaly, North Wall and Marina and works closely with the Overhaul Teams to apply the lessons learned in readiness for full implementation of these new processes in 2010. EM

For more information on the Power Generation Contractor Management Project, please contact: Mark Harmon: Extn. 27786, email: mark.harmon@esb.ie or Derek Fuller Extn, 27204, email: derek.fuller@esb.ie.