Incorporating Human Aspect into Service Contract Procurement

Abstract

Abstract Organizations always strive to develop robust contracts to support supply chains. Depending on the size of the organizations, tens to thousands of contracts are procured to secure goods and services, including manpower. However, many disputes and penalties occur after contract awarding due to manpower qualifications not being satisfied as per contract terms and conditions (Brian, 2018). As the demand to outsource services increases, optimal safety operations require more qualified manpower. This paper introduces a new contract measure to evaluate individual safety intelligence, which represents the ability to recognize self and others safety profiles and use information and knowledge to guide thinking and behavior towards safe operations and safe working environment. Safety is always one of corporate values and is recognized as one the pillars to operational excellence models. Individuals’ safety intelligence factors can be used in contracts to assess candidates and current employees’ capabilities and interest in safety. This can help organizations which plan to outsource, to select the right staff based on their safety intelligence. Various literature reviews demonstrate the importance of human aspect to safety, but only a few shows a practical approach to measure its quality and fitness from contract administration perspective. Safety intelligence, as introduced here, can be used to guide organizations to assign qualified staff at the very early stage in a business relationship. This can optimize operations while protecting lives and assets. Contract procurement is one of the major activities that company has to perform in order to get necessary services to operations (Andrea, 2023). This paper focuses on contact procurement that includes manpower. Each organization has its own way to do the procurement but they all agree on some basic steps. Service contract procurement usually consists of 4 major steps shown in Fig. 1, namely develop service procurement plan, service procurement, contract administration, and adjust service procurement plan (Andrea, 2023).