Performance Management of cleaning contracts and other building service contracts is essential to minimise the risks associated with illegal subcontracting. Illegal subcontracting or ‘labour hire’ is rife in the building service industry and it is critical that companies that participate in this practice are identified and eliminated in the tender process.
Performance Management and Illegal Subcontracting
The recent case where Myer terminated the contracts of its cleaning service provider after a Fairwork Australia investigation uncovered under award payments has yet again shone a negative spotlight on Australia’s cleaning Industry.
Illegal Subcontracting has caused, and continues to cause, significant damage to the reputation of cleaning industry. Building owners and building managers are responsible for the health, safety and working conditions of building occupants including contractors. Cleaning Service providers who use ABNs to evade the payment of correct wages and entitlements, workers compensation and payroll tax expose not only their business but also their customers to significant risks and liabilities. This risk has never been greater with ongoing crackdowns by Fair Work Australia, the Australian Tax Office and State and Federal agencies.
Corporate Australia and Government is becoming increasingly frustrated and disillusioned with the cleaning industry and is taking a tough stance against suppliers generally whose actions may expose them to risk and damage to their brand. Risk mitigation has fuelled a need for accountability and transparency of building service contracts and facility managers are now demanding to know what actually goes on in cleaning operations.
FM Contract Solutions has developed and introduced comprehensive contract performance management systems and software for cleaning contracts and building service contracts that allows Facility Managers to ensure and monitor that contractors adequately address OH&S, risk management, environmental impact and sustainable work practices in line with sustainable purchasing guidelines.
Performance management of Cleaning Contracts incorporates the introduction of exacting specifications for cleaning coupled with key performance measures (KPMs) for tasks, equipment, environmental performance, safety and training which, in turn, are audited to provide measurement through key performance indicators (KPIs). This ensures that there is a framework in place that accurately describes the work to be performed and how outcomes will be measured and quantified.
The outcome of Performance Managed Cleaning Contracts is better value for money, improved service standards and minimal risk.
For more information, contact Brian Clark 0448 341 935 or by email.
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