PICKING UP A CONTRACT ISN'T CHILD'S PLAY
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easily disposed of and is consequently a high security risk. In addition to these aspects, he had to take into account the nature of work on which the vehicles were to be employed — almost transforming himself into a vehicle mission simulator. The body design had to be such that there was the minimum physical effort on the part of the driver when loading or discharging, thus reducing driver fatigue. It had to offer as much security as was possible at all times and be so constructed that any damage either through accident or wear and tear could be quickly repaired, thus reducing down-time to a minimum. It. should be remembered that while the vehicle is off the road the contract requires it to be replaced.
Having decided upon the configuration and the construction, the next consideration was vehicle livery. Each of the nine brand names launched by the distribution company carries its own trade mark. This presented the signwriter with the opportunity to display his skills with jaunty Johnnie Walker and the bright-eyed black and white terriers. The specification called for free-hand signwriting throughout except in a few isolated cases where transfers were used. DC(D) Ltd was specific in its requirements even to the shade of gold on one livery. This set a problem and taxed the resources of both BRSL and ICI Paints Ltd to the limit, before the required shade was finally obtained.
While it is accepted that smaller contracts may not be so demanding, Reg Cole continues to contend that scaled-down versions of similar problems could arise.
Negotiations between BRS and DC(D) Ltd on the Lark swood contract began in May 1971. Tenders were accepted in November of the same year and the vehicles went into operation in August 1972. From that date the retention of the contract and any possibility of its renewal became the responsibility of the operating company, Southern BRS Ltd, under its new managing director, Mr J. Mather.
The 16 vehicles in the contract have payloads of 35cwt, 6 tons, 8 tons and 10 tons, and 15 must be available for service every day. Business at Larkswood, however, has been such that the anticipated increase in requirement for the last three months of 1972 demanded 300 per cent more vehicles than specified on the contract and not the estimated 100 per cent. It is a condition of the contract that peak demands will be met from the tenderer's resources. The situation prompts the question: "Could a smaller operator commit himself to such a condition even on a scaled-down contract?" Indeed, would he have noticed this condition and realized its implications without the services of a legal mind?
Emergency repairs
BRSL is contracted to supply the vehicles ready for the road and this includes fuel, maintenance and repairs. With its network of depots in the area it can cope with emergency repairs, an important aspect when it is remembered how high a security risk the cargo is. Similarly, vehicles, although based at the Victoria Park branch, have access to refuelling points throughout the area. Because DC(D) Ltd employs the drivers it must hold the operator's licence, but to protect the licence the Distillers Company specifies the frequency of vehicle Servicing. Reg Cole estimates that less than 5 cent separates the top and bottom rate competitive tendering contracts genen Consequently, tight controls have to exercised during the life of the contrac ensure that at the end of the day estimated profit has been achieved. I operates an equalization accounting sys and while, for example, the estimated ant maintenance figure might be gm overstated on year 1 and groE understated on year 5, over the life of contract it will balance. The same applie fuel, lubricants and other aspects operating costs.
10 per cent error
An aspect of mileage charging wl gives cause for concern in a tender is wl the estimated mileage has been inaccn either way to more than 10 per cent. ] Cole takes the view that immediately becomes apparent the customer should advised. He considers it bad custoi relations to -neglect to advise the custoi of the discrepancy until the contraci about to expire.
The responsibility is placed on operating company to check vehi mileages each week and rep discrepancies each month to the contra section at the Southern BRS headquar at Potters Bar.
It would be difficult to dispute Reg Co philosophy that contract hire work can undertaken only by operators who h adequate resources to meet the ct requirements of the contract plus a 100 cent vehicle reserve and who have or I engage other back-up services that ; worthwhile contract demands. emphasizes that the other types of contr are the ones that are easily picked "Worthwhile contracts, like most wol while things in life, have to be worked and frequently waited for."