9.00  Operational - The cost base for this category is the operation portion of the contract value

9.01

Supplier / Contract Management / Outsourcing and Building Structure and Systems including Maintenance

Supplier and Contract Management Risk is the risk of any contractor, outsourced serviced provider, or supplier failing to provide products or services as agreed. It is also the risk that supplier could walk away / breach the contract. It is also the risk of the Ministry not managing its multitude of contracts in a systematic, efficient and timely manner. This risk also relates to the impact of forming strategic alliances with inappropriate parties due to incomplete information or an inadequate or inappropriate selection process. This risk can result in disruptions in service and program delivery, missed deadlines, increased costs to the Ministry and increased exposure to liability.

9.02

Technological Obsolescence and Upgrade

Risk of the contracted services and its method of delivery not keeping pace, from a technological perspective, with specified requirements and risk associated with the need for upgrade of the assets over the term of the project to meet performance requirements.

9.03

Operation of Building for Occupant Use

Risk that appropriate performance specifications do not suit required standards of intended users. Failure to provide services to required standards and quantity.

9.04

Health & Safety

The service is not operated in compliance with safety requirements.

9.05

Quality Risk

Risk that government will change hospital quality standards. This could negatively impact operational costs of the building / service provider, including one-time expenses/costs to upgrade the building to meet required quality standards.

9.06

Un-anticipated Operating Costs

Risk that operating costs will be higher than projected due to inflation factor or because of inaccurate estimates and assumptions, affecting utility and maintenance costs. Amongst the factors contributing to higher than projected operating costs are environmental issues (air quality), changes to room design, security supporting systems, and others.

9.07

Labour Relations - Disputes

The risks of adversarial union/management relations or inability to settle contract negotiations in a timely, fiscally responsible manner. The risk of not being able to put adequate structures in place (in a timely fashion or not at all) due to contract limitations. This risk can lead to strikes, decreased employee morale and business service interruptions.

9.08

Recruiting, Retention And Employee Satisfaction

Recruiting and retention risk is the failure to appropriately identify, screen, hire and retain the most competent, individual for the job. Failure to manage this risk can lead to low productivity, loss of key personnel. The inability to attract these people may be a function of skill shortages in the marketplace, non-competitive compensation packages, high demand for certain skills, or a perception that the organization is not a good place to work.

9.09

Professional and Legal Liability

The risk that key staff of operating facility may be subject to litigation and claims related to negligence. Risk may affect operations of facility, causing delays in delivering services to public and, as a result, damaging reputation of the Ministry.

9.10

Incomplete RFP Tender Documentation

Risk that the RFP tender documentation is not complete. This will result in increased addenda and could give a sense of uncertainty to bidders, resulting in reduced tolerance to risk resulting in higher tenders.

9.11

Uncoordinated Information

Risk that tender documentation is uncoordinated. This will result in increased addenda and could give a sense of uncertainty to bidders, resulting in reduced tolerance to risk resulting in higher tenders.

9.12

Client / Customer / Public Satisfaction

Inability to meet client/customer/public expectations, a lack of focus on specifics of the project and associated service requirements. Key contributors to this risk can include failure to respond in a prompt and efficient manner, failure to deliver services in an efficient and timely manner, lack of client/customer confidentiality, inadequate or inappropriate services delivery.