Outsourced Contract Management Services

Matthew Winkler
Senior Consultant
Heavy Industry
Contract Management
June 4, 2024
Managed Spend
Cost Reduction

Client Problem

Caliba had managed the tenders for many strategic supply and services contracts for the mine. The mine had a very limited procurement team with a focus on tactical procurement so required support for the on-going management of the contracts.

Caliba Solution

The client engaged Caliba to manage their strategic contracts, with the client to focus on mine site tactical procurement activities. The contracts under management included: equipment fleet hire and maintenance services; CHPP operate and maintain services; production drilling and DTH services; product haulage; OTR tyres; explosives; fuel; and lubricants. Our team manages all the forecasting of requirements; price and rate reviews; contract variations; disputes; KPI performance reviews; and payment claim validation for the contracts.

We also proactively recommend and implement improvements in the contract management processes including payment claim and payment schedule improvements, updating contract formats to be more practical, updating contract T&Cs to be more relevant; and adjusting R&F mechanisms to align with cost driver movements.

Through the proactive management ofthe contracts our team to date has reduced the operating costs of the client by over $5m in FY24. The relationships with strategic suppliers significantly improvement as aresult of the improved contract management resulting in better allocation of supply and supplier resources to the mine.

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