Securing maximum effectiveness from mining contractors

"The authors make recommendations that they believe will improve the efficiency of a mining company's use of a mining contractor's services. The recommendations are in the form of specific ""DO"" or ""DO NOT"" instructions, giving explanations and covering the contracting process from the end of the feasibility study to the end of the job. IntroductionThis paper is an attempt by the authors to set out some of the things which they feel an owner should consider to achieve maximum effectiveness from mining contractors. It is based on our experience as contractors as well as our experience as consultants to owners. Should this paper create the impression that we feel all the responsibility lies with the owner, this is neither our intention nor our belief.Before the Tendering Process BeginsUse Defined EstimatesIn Feasibility Study DO NOT estimate your cost or schedule by telephoning contractors and asking them for ballpark figures. The only kind of estimate that is worth anything is the one that is clearly defined on paper and bears the signature of the author. This type of time or cost estimate takes time to prepare. In general, the estimate will be worth what you pay for it.Ensure Adequate FinancingDO NOT ask contractors to tender on a project unless the funds have been approved for it. Remember that, depending on the size of the job, it will cost the contractor from $5,000 to $50,000 to prepare his tender. When financing is not assured, a single contractor should be approached regarding a detailed estimate and he should be paid for it. Contractors should not be expected to finance speculative mining ventures."