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Topics: Construction, Governance, Procurement Management, Scheduling
How can I control my sub-contractor for substantial schedule deviation?
My supplier of signage lies too much about deliveries and does not give accurate timeline for deliveries of items for a major project.
What can I do to maintain as much as possible the project deadline?
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Omar
1. Control his invoice and release only after receiving satisfactory goods or services.
2. work out to find more substitutes so you be better in negotiating
3. Increase your resources
4. continuously communicate with your supplier
5. educate your supplier on how important to meet dead line and how that can impact their future P.O. if the supplier keen to stay in business with you
6. Give them shorter time frame not your real dead line keep some cushion / margin for you for delays
Riyadh mentioned some very good points.

Omar, contractually, there should be some clauses for penalties to the supplier if he did not fullfill his contract so if his delays are delaying your project amd incuring additionsl cost, then this is something you should address too and it might straighten things out.
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1 reply by Riyadh Salih
Apr 21, 2018 12:25 PM
Riyadh Salih
...
Rami- thank you for your support and mentioning about the contract details,
unfortunately, most contracts legal conditions can be met through court if escalated to the arbitrators in the western society but in the East or middle east I found it very difficult and rarely you can gain anything even if you take them to court, there is big corruptions, bribes, and no laws justification, Many countries still lack the O.H. & S requirements I have seen many workers works in factories with their sleepers no steel toe safety boots!you can imagine the rest, In one of the countries I don't want to mention name I have seen to satisfy the owner with economy solution they bring two different power supplies in one breaker where here we are in Canada as per CSA standards it is considered a big blunder a big crime to do so. and similarly I am sure you can find many examples in your construction trade as well.
Apr 21, 2018 11:47 AM
Replying to Rami Kaibni
...
Riyadh mentioned some very good points.

Omar, contractually, there should be some clauses for penalties to the supplier if he did not fullfill his contract so if his delays are delaying your project amd incuring additionsl cost, then this is something you should address too and it might straighten things out.
Rami- thank you for your support and mentioning about the contract details,
unfortunately, most contracts legal conditions can be met through court if escalated to the arbitrators in the western society but in the East or middle east I found it very difficult and rarely you can gain anything even if you take them to court, there is big corruptions, bribes, and no laws justification, Many countries still lack the O.H. & S requirements I have seen many workers works in factories with their sleepers no steel toe safety boots!you can imagine the rest, In one of the countries I don't want to mention name I have seen to satisfy the owner with economy solution they bring two different power supplies in one breaker where here we are in Canada as per CSA standards it is considered a big blunder a big crime to do so. and similarly I am sure you can find many examples in your construction trade as well.
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1 reply by Rami Kaibni
Apr 21, 2018 12:59 PM
Rami Kaibni
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Riyadh: Yes and No. You can find this thing anywhere in the world and it also depends on the organization and its strength.
Apr 21, 2018 12:25 PM
Replying to Riyadh Salih
...
Rami- thank you for your support and mentioning about the contract details,
unfortunately, most contracts legal conditions can be met through court if escalated to the arbitrators in the western society but in the East or middle east I found it very difficult and rarely you can gain anything even if you take them to court, there is big corruptions, bribes, and no laws justification, Many countries still lack the O.H. & S requirements I have seen many workers works in factories with their sleepers no steel toe safety boots!you can imagine the rest, In one of the countries I don't want to mention name I have seen to satisfy the owner with economy solution they bring two different power supplies in one breaker where here we are in Canada as per CSA standards it is considered a big blunder a big crime to do so. and similarly I am sure you can find many examples in your construction trade as well.
Riyadh: Yes and No. You can find this thing anywhere in the world and it also depends on the organization and its strength.
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1 reply by Riyadh Salih
Apr 21, 2018 1:19 PM
Riyadh Salih
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Yes Rami but I meant that the local legislation play big part on effecting those kind of behavior. Thanks Rami
There are two ways to manage this:
1. You need to include delivery schedule along with quality parameter in the contract.. Once, it is included in the contract, set up the governance to review the schedule and quality parameters. When doing the review, include what has been accomplished and what will be accomplished in the next week.

2. If the contract is already signed and it is difficult to make changes to it, you need to work with the vendor to draw up a schedule with them with objective parameters to measure the progress on every review.

3. You can also include financial penalties for not meeting contractual deliverables.
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1 reply by Riyadh Salih
Apr 21, 2018 1:24 PM
Riyadh Salih
...
Hirdesh - most of the time the PM has no privilege to negotiate the vendor contracts it is already done by procurement manager and the PM has to deal with their crab, many times if the PM highlighted those hardship for future avoidance but in functional organization the PM has not much of a say
Thank you Gents for your valuable input.. I shall consider the points that I can do in my situation.
Also, part of the fault was that we held him previously due to clients review of design and different inputs from stakeholders.. Is this considered a good argument for the supplier to delay?
Apr 21, 2018 12:59 PM
Replying to Rami Kaibni
...
Riyadh: Yes and No. You can find this thing anywhere in the world and it also depends on the organization and its strength.
Yes Rami but I meant that the local legislation play big part on effecting those kind of behavior. Thanks Rami
Apr 21, 2018 1:08 PM
Replying to Hirdesh Singhal
...
There are two ways to manage this:
1. You need to include delivery schedule along with quality parameter in the contract.. Once, it is included in the contract, set up the governance to review the schedule and quality parameters. When doing the review, include what has been accomplished and what will be accomplished in the next week.

2. If the contract is already signed and it is difficult to make changes to it, you need to work with the vendor to draw up a schedule with them with objective parameters to measure the progress on every review.

3. You can also include financial penalties for not meeting contractual deliverables.
Hirdesh - most of the time the PM has no privilege to negotiate the vendor contracts it is already done by procurement manager and the PM has to deal with their crab, many times if the PM highlighted those hardship for future avoidance but in functional organization the PM has not much of a say
...
2 replies by Hirdesh Singhal and Omar Haddad
Apr 21, 2018 1:25 PM
Omar Haddad
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Agree with your point Riyadh
Apr 21, 2018 1:35 PM
Hirdesh Singhal
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I understand that it might not be straight forward. What matter the most is to initiate the change process. Usually, even in the functional organization, the authority of PM is defined. When the change process is initiated, let it follow the process. When your vendor knows that change is being processed and will impact the contract, it will have significant impact of their behavior.

It should not be looked from the authority point of view. Irrespective of the authority of the PM, the more important to follow the change management process.
Apr 21, 2018 1:24 PM
Replying to Riyadh Salih
...
Hirdesh - most of the time the PM has no privilege to negotiate the vendor contracts it is already done by procurement manager and the PM has to deal with their crab, many times if the PM highlighted those hardship for future avoidance but in functional organization the PM has not much of a say
Agree with your point Riyadh
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1 reply by Riyadh Salih
Apr 21, 2018 5:46 PM
Riyadh Salih
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Thank you Omar
Apr 21, 2018 1:24 PM
Replying to Riyadh Salih
...
Hirdesh - most of the time the PM has no privilege to negotiate the vendor contracts it is already done by procurement manager and the PM has to deal with their crab, many times if the PM highlighted those hardship for future avoidance but in functional organization the PM has not much of a say
I understand that it might not be straight forward. What matter the most is to initiate the change process. Usually, even in the functional organization, the authority of PM is defined. When the change process is initiated, let it follow the process. When your vendor knows that change is being processed and will impact the contract, it will have significant impact of their behavior.

It should not be looked from the authority point of view. Irrespective of the authority of the PM, the more important to follow the change management process.
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