Monthly Archives: September 2012

Key Performance Indicators The risk of not knowing how a supplier is performing is unacceptable. Our risk auditing services regularly provide evidence that no KPI’s exist or have not been subjected to rigorous scrutiny before they have been included in a contract. We dealt with a contract for the provision of security services to a […]

The Scottish Building Federation recently reported some interesting findings. Its’ survey results indicated companies were spending huge sums on unsuccessful bids. The probability of winning a contract was reported as 1 in 36, remarkably similar to the odds of betting on a single number at a casino. It further claims that two-thirds of companies have opted out […]

The proposed BAE Systems and EADS “merger” has prompted me to reflect on the impact of changes in company structure, in particular takeovers and the subsequent effect on a buying organisation. Whilst the BAE EADS fusion is far from a done deal, other mergers have not necessarily benefited customers. When I first studied Mergers and […]

Auditing the Auditor The 2011/2012 report by the Auditor General, Singapore, provides some fascinating reading. Not least of which is the report into lapses in selection of Firms for Audit Shared Service Scheme. The Auditor General’s Office (AGO)  audited the “Request for Proposal” (RFP ) called by the Singapore Sports Council  (SSC) to select a […]

The UK is probably 8 – 12 years behind USA experience with outsourced contracts. It has been evident for some time that in-sourcing was taking place at an increasing pace, particularly with IT contracts. Unsurprisingly, the public sector has had mixed experiences with outsourced contracts for a wide variety of services. The UNISON bargaining web-site […]

BID (TENDER) BONDS This is a debt secured by a bidder for a construction project or other large ‘project’ on a tender based selection process for providing a guarantee to the potential client that the bidder will take on the contract if selected. If they decline to accept the contract the bond is forfeited, unless […]

Parent Company Guarantees A parent company guarantee (PCG) is a promise to answer a liability being a debt or default of another ….. in construction terms the parent company will be answering the debt or default of a contractor, noting that PCG’s are used in a variety of procurement situations, including outsourcing contracts. The essential […]