LET THE BUYER BE AWARE
Capital expenditure on major items can be a make or break affair, particularly so for small businesses. If researched and budgeted carefully, equipment purchases can add significantly to the performance and operation of a business. The consequences of a bad decision, however, such as a poor selection or worse, the purchase of a lemon, can be devastating to business viability.
In the extractive industry, small margins don’t allow for extravagance and capital purchases must perform in all respects: operational functionality, mechanical reliability and availability. Increasingly having an impact are issues of safety and regulatory compliance. It is easy to spend money and it is just as easy to spend it wrongly.
In recognition of the impact of major item capital expenditure, the CMPA is undertaking a special project to formulate a reference manual to be used when making purchasing decisions.
With the working title “Capital selection, acquisition and commissioning reference manual”, the guide will identify the range of factors involved in ensuring equipment selection meets the requirements of all parties involved in transactions including manufacturers, distributors, purchasers and operators.
The reference will address issues that arise by the sale or purchase of plant items that do not meet safety and regulatory requirements but will also provide a basis for a correct hand-over process, training and education requirements to ensure safe operation and correct maintenance regimes. The reference is also intended to provide details on the presentation of used equipment by owners so as to meet regulatory requirements and to protect all parties from environmental or OH&S risks involved.
The reference manual steering committee, part of the Policy & Special Issues committee, is being chaired by Andrew Lambing of Komatsu and members include representatives from the Department of Natural Resources & Environment as well as an insurance and OH&S experts. It is expected that the Victorian Workcover Authority will also have a nominee on the committee.
The document will be presented to the DNRE, VWA, EPA and other parties prior to publication to ensure integrity.
The reference manual has been welcomed by equipment dealers and extractive industry operators alike as it should reduce risks involved in the presentation of equipment by dealers and manufacturers that may not meet regulatory requirements and also address issues of purchasing decisions being made without a complete knowledge base.
The reference manual is expected to be available by late 2003 for purchase by CMPA members and interested parties. Any person that wishes to have input into the manual should initially contact committee chair, Andrew Lambing.
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