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Importance of contracting standards

The mining industry sometimes responds so rapidly when commodity prices rise that contracting standards tend to drop in the mad rush to meet the next potential boom. One of our clients supplies dozers and earthmoving machinery to the Queensland coal mining industry. They have gone from having half of their fleet parked up, to having more work than equipment and then to considering buying new equipment over the course of a month.

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Contracting and variations

Many years ago, when I was a young engineer working for a contract mining company at a large surface mine, a good friend (working for the client at the same operation) lamented the way contractors issue variations. From memory, I think he wanted to borrow a dozer for a few hours, and the contract didn’t provide for wet (operator included) hire.

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