Operational Risk Management

Risk Management Strategy

Mead Con’s Risk Management Strategy is based on principles and guidelines from ISO 31000-2009 Risk Management - Principles and Guidelines, and AS8001:2008 Fraud and Corruption Control. An example has been provided below of how we use our Fraud Control Framework within the context of sub-contractor and/or supplier financial fraud controls during a project.

Prevention

  • Mead Con’s Risk Management Policy and Framework.
  • Mead Con’s Fraud Control Framework.
  • Mead Con’s Vision Key Result Areas – fostering an ethical culture and behaviours.

Initial risk assessment

  • Prior to engaging sub-contractors and suppliers, it is required that they provide the appropriate insurances, business registration, accounting details and licensing/competencies.
  • Risks and vulnerabilities are identified at this point.

Control plan [for material procurement]

  • Supervisors are required to provide an authorised purchased order in order to procure materials.
  • On receipt of materials, deliveries are checked against the order documentation.
  • Non-conforming materials are separated, recorded and actioned.
  • CAT Projects is utilised to monitor the budget, enter, and collate invoices.
  • Invoices are then sent through a two-step verification process across multiple personnel/departments to ensure the invoice is correct.

Control plan [for client invoicing]

  • When invoicing the client, Mead Con organises a progress claim prior to the end of month.
  • Claim is sent through to the Superintendent.
  • Once approved, the claim is generated as an invoice in CAT Projects.
  • Invoices are then sent through a two-step verification process across multiple personnel/departments to ensure the invoice is correct.
  • The verified invoice is issued to the Customer.

Detection

  • Invoice auditing.
  • Monitoring of unauthorised invoices being sent through to company email addresses.
  • Monitoring of project budgets.

Monitoring SHEQ Compliance

Mead Con must comply with all regulatory authorities and ensure systems are in place to monitor, operating under a company Quality, Safety and Environmental Management System to Australian and International Standards. The following are the internationally recognised standards to which Mead Con strive to achieve. Our processes are designed to maintain compliance with the listed standards and to continually improve our systems.

  • Safety & Health AS/NZS 4801:2001
  • Environment SO AS/NZS 14001:2004
  • Quality ISO AS/NZS 9001:2000

As part of our membership with Master Builders Tasmania [MBT], documents such as regulations, standards, codes of practice and other industry requirements are maintained by MBT for access / review by members on an as needs basis.

Management processes for continual improvement within the system and the assurance of conformity to the client and applicable regulatory requirements are as follows:

Role

Responsibilities

Managing Director/General Manager of Construction

  • Ensure all projects adhere to legislation.
  • Ensure all Project and Site Managers are aware of their onsite obligations for Mead Con and sub-contractors.
  • Nominates a Project Manager.

Project Managers and Supervisors

  • Aware of and comply with onsite regulations for themselves and ensure the compliance of sub-contractors.
  • Keep records accurate and document.

SHEQ

  • Identifies methods of analysis [internal auditing] for continual relevance to the organisation and improvement within the system as well as for customer service and satisfaction.
  • Identifies controls against which compliance a can be measured.

Finance Officer

  • Ensures all payments and bank guarantees are processed as directed and in a timely manner.
  • Ensures all insurances are current.

Employees

  • Ensures compliance for self and others against the requirements of the Project procedures.
  • Communicates with the Project Manager and Operations Manager regarding any perceived or identified non-conformances and improvements.

Project Managers must request a trigger audit of any of Mead Con’s processes that they believe are non-conforming, communicating with the Operations Manager regarding any such items promptly. Mead Con’s Document and Data Control Procedure requires all relevant documents which affect the quality of the work [e.g., drawings, specifications and contracts, checklists, forms, inspections contracts, permits / approvals etc.] must be stored in a suitable environment to minimise deterioration or damage and to prevent loss.

Protecting Confidentiality

Mead Con is committed to protecting the rights and personal information of all employees, adhering to the spirit and the letter of privacy legislation [Commonwealth and State] in its control of the collection, use, storage and disclosure of employment records and personal information of its employees. We respect an employee's right to privacy. Therefore, any information retained within Employee Records will only be used for its intended purpose and without disclosure of any personal, confidential, or sensitive information without the express permission of the employee.

The Australian Privacy Principles [APP] within the Privacy Act 1988 [Cth] guide our practices when dealing with personal information.

  • How personal information is collected: as far as is reasonable, personal information is only collected directly from the employee and collected by an authorised Mead Con representative. If collecting personal information from a third party [e.g., former employer or referee] all reasonable steps are taken to inform the candidate of the collection and how the information will be collected.
  • How personal information is retained: any personal information provided by the employee as part of the employment process is treated as confidential and stored in a secure environment to which access is strictly controlled and monitored.
  • Sensitive information is only collected and retained with the express consent of the employee unless required by law [e.g., workers compensation], in which case employees are notified.
  • The employee has a right to access and correct personal information unless where denying access is required and authorised by law. Where an employee is denied access, they must be notified of the reasons for the denial.
  • Where additional collection of personal information is required, employees must be notified of the collection, the purposes of, and the consequences of not providing the information.
  • Employees are notified of what kinds of information are disclosed to other parties and for what purpose. Any details released shall only be for verification of employment, competencies, and emergency contact details where applicable.