Contract Manager: Ext: Department: Type: Purchase Agreement Personal Service General Service Public Improvement IGA Other: Start Date: End Date:

Transcription

1 Contract Title: Contractor: Contract Overview: CITY OF TIGARD, OREGON - CONTRACT SUMMARY FORM (THIS FORM MUST ACCOMPANY EVERY CONTRACT) Number: Contract Total: Initial Risk Level: Extreme High Moderate Low Risk Reduction Steps: Risk Comments: Risk Signature: Contract Manager: Ext: Department: Type: Purchase Agreement Personal Service General Service Public Improvement IGA Other: Start Date: End Date: Quotes/Bids/Proposal: FIRM AMOUNT/SCORE Account String: Fund-Division-Account Work Order Activity Type Amount FY FY FY FY FY Approvals - Department Comments: LCRB Date: Department Signature: Purchasing Comments: Purchasing Signature: City Manager Comments: City Manager Signature: After securing all required approvals, forward original copy to the Contracting and Purchasing Office along with a completed Contract Checklist.

2 Risk Assessment Process Overview Steps to assess the risk of a project or contract 1. List all aspects of your project/contract. 2. Identify risks associated with each project. Be sure to think broadly about potential risk. 3. Use the matrix to determine the level of risk associated with each project before applying any risk management strategies. 4. Brainstorm methods to manage the risks. Find strategies you can apply to reduce the severity of the risk and the probability that something will go wrong (see reverse side). 5. Use the matrix to re-assess the activities once you have applied the risk management strategies. 6. Determine if you have reached an acceptable level of risk by applying risk management strategies. Consider modifying or eliminating activities that have unreasonable risk associated with them. Remember to consider how the project relates to the mission and purpose of your department and the city. Risk Definitions Many contracts/projects, without proper planning, can have unreasonable levels of risk. Applying risk management strategies can reduce the risk to an acceptable level. E H M L EXTREMELY HIGH RISK HIGH RISK MODERATE RISK LOW RISK City has little or no control over contractor s actions which may cause severe injury/death, major property damage, significant disruption of business schedule, financial loss/increased cost, or degradation of performance. Consider whether the city should eliminate or modify project/activities that still have an E rating after applying all reasonable risk management strategies. City has little or no control over contractor s actions which may cause serious injury, major property damage, significant disruption of business schedule, financial loss/increased cost, or degradation of performance. Activities in this category contain potentially serious risks that are likely to occur. Application of proactive risk management strategies to reduce the risk is advised. The city should consider ways to modify or eliminate unacceptable risks. Potential to cause injury/illness, property damage, some disruption of business schedule, financial loss/increased cost, or degradation of performance. Special intellectual ability required to perform the contracted services some of which will be performed on-site. On-site generally involves a significant presence or activity, rather than a single visit or training session. Activities in this category contain some level of risk that is unlikely to occur. The city should consider what can be done to manage the risk to prevent negative outcomes. Presents a minimal threat to safety, health and wellbeing of participants and third parties, has little potential to cause disruption of business schedule, financial loss/increased costs, or degradation of performance. Activities in this category contain minimal risk and are unlikely to occur. The city can proceed as planned.

3 Assessment Matrix Probability That Something Will Go Wrong Category FREQUENT LIKELY OCCASIONAL SELDOM U N LIKELY Likely to occur Q uite likely to May occur Not likely to occur Unlikely immediately occur in time. in time. but possible. to occur. or in a short period of time; expected to occur frequently. How Severe Will It Be When It Happens? EXTREMELY HIGH May result in severe injury or death, major property damage, significant disruption of business schedule, financial loss/increased cost, or degradation of performance, result in significant negative publicity. HIGH RISK May cause serious injury, property damage, financial loss, disruption of business schedule, result in serious negative publicity. MODERATE RISK May cause minor injury, illness, property damage, financial loss, little disruption of business schedule, result in limited negative publicity. NEGLIGIBLE Hazard presentsa minimal threat to safety, health and well-being, has little potential to cause disruption of business schedule, financial loss/increased costs, or degradation of performance. E E H H M E H H M L H M M L L M L L L L Methods to Manage Risk Avoidance There s a great deal of risk. You don t want to assume the risk and it can t be transferred, so you avoid the risk altogether. This method eliminates any possibility of loss. It is achieved either by abandoning or never undertaking an activity or asset. Loss Prevention Reduces the frequency or likelihood of a particular loss. Examples include: Improve security measures to reduce the possibility of arson or theft. Improve maintenance of facilities to reduce the possibility of a tripping hazard. Loss Reduction Reduces the severity or cost of a particular loss. Examples include: Require the presence of a city staff member at all times with contractor when working with youth on a project. Require the use of hearing protection by contractor and other safety programs to reduce the chance of an injury. Segregate Losses Arrange your department s activities and assets to prevent one event from causing loss to the whole. There are two methods duplication and separation. Separation city activities or assets are distributed among multiple locations so loss at contractor work site won t impact all city assets typically at that location. Duplication relies on spare or duplicates that are only used if assets or activities suffer a loss. 1. What measures can be used to minimize the potential loss exposures identified in your risk assessment based upon the risk rating and your mission? 2. How can measures be implemented? 3. Who is responsible for implementation, follow-up, monitoring and reporting? For More Information Jennifer Curran Risk Management jenniferc@tigard-or.gov This Risk Assessment Worksheetwas created using ideas from: U.S. Marine Corps, City of Portland, Kaiser Permanente, University of Texas, Texas A & M University, and Jacobs Engineering.

4

5

6

7

8

9

10

11