There are many contracts where a supplier will have their assets on the buyers’ site. There are consequences of this scenario for which procurement must ensure the potential consequences are dealt with. Some examples of supplier assets on a buyers’ site are:
- IT hardware being used to support the suppliers’ project.
- Plant and equipment used on construction projects.
- IT licenses being used on the buyers’ project.
- Project documentation.
- Maintenance tools stored by buyers’ organisation.
- Site cabinets and furniture.
Assuming you are in procurement you will find the following questions helpful to determine whether your organisation has covered all the necessary risks:
- Who is insuring the supplier assets?
- What does your contract say about the supplier assets?
- Do you know what supplier assets are on your site?
- If the supplier goes into administration can you use the supplier assets?
- Who checks the supplier assets for compliance with health and safety requirements?
- How are the supplier assets stored?
- Do any of the supplier assets have to be checked for security implications?
- What happens to the supplier assets when the project finishes?
- Do you know if the supplier assets are owned by a third party or hired?
- Who in your organisation is accountable for managing the implications of supplier assets on your site?
What are the dangers of failing to manage supplier assets on your site? Here are just a few:
- The assets are uninsured by the supplier when the assets are on your site.
- The supplier enters into administration and his assets are seized.
- The assets belong to a third party who removes them from your site.
- The IT licenses are misused.
- The assets do not comply with all the relevant legislation.
We can help you manage all of the above risks (and more). Contact Ray Gambell on 01744 20698 or at firstname.lastname@example.org to discuss your options, we always welcome interest.