Non-Core Work Is Best Given To Independent Specialists

Date posted: July 27, 2016

To work in the resources industry in Australia requires specific skills, qualifications, licences to operate very large and specialised equipment, a thorough understanding of safety principles and the ability to work in an efficient and time-conscious manner. To maintain a large staff with these abilities is expensive, so most businesses working in this sector take advantage of the cost savings offered by hire companies.

Contracting Out Non-Core Work Makes Operational Sense

It is not difficult to make a business case for this type of operational model. Take, for example, the type of work we do. At Reay Services Group we provide support for companies that need trenching and mining work done as part of a larger project.

We already have the right equipment, the qualified personnel and the accredited management systems in place. For other organisations to develop their workforce and credentials to the same stage as ours would be a duplication of effort, a waste of resources and would needlessly tie up capital.

You Build the Pipeline – We’ll Dig the Trench

To illustrate the point, say a company has just secured a contract to build a pipeline across thousands of kilometres from a gas field in remote Australia to the coast. This is already a massive undertaking. They may also be contracted to provide electrical and communication lines along the same terrain. This company has its own specialised workforce, equipment and systems to fulfil their contractual obligations.

What they don’t have is a range of trenching machines with skilled operators who can quickly and efficiently cut through the terrain to prepare the surface. They also don’t have the right certifications or management skills in their team to oversee this part of the project. Why try to build all that additional capacity and add extra costs to the project, when they can use our services?

Using Contractors is Efficient and Cost Effective

Another example of the efficiency of this operational model is in the mining industry. A company has negotiated mining leases and met all the required environmental concerns. They want to remove the ore and prepare it for transport to the coastal ports ready for export. Do they want to start building roads, removing topsoil or any other work not directly related to getting the ore out of the ground? Not when they can call on us to do this work, maintain the equipment needed and meet all legislative requirements.

For them to have the right people full time on their payroll would most likely make many of their projects uneconomic. Being able to contract non-core work out to companies like ours frees up their management people for the inevitable problem solving, and their funds for other purposes.