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IPWEA NSW Division Annual Conference 2006
Page 1
HOW TO LAUNDER GENERAL CONDITIONS OF CONTRACT
(AS 4000, AS 2124 & NWPC3)
TO MAKE SIMPLE INSTRUCTIONS
THAT CAN BE EASILY CHECKED
Mr Nathan McDonald – [email protected] Executive Director, Mustor Institute, Australia, www.mustor.com
Paper Summary
General Conditions of Contract (GCC) such as AS 4000, AS 2124 and NWPC3 are written in complex legal language. As a result they are difficult to use – even for the most experienced contract managers. In particular, it is difficult to for Pubic Officers to determine how they are going to comply, and to check that they and their counterparts did in fact comply.
Research has shown that Laundering these contracts that will reduce costly errors, disputes and professional embarrassment. As a result it will save your department time and costs. The laundering process is called Mustor Laundering™ and is governed by the standard MIS 1500.
At the 2005 International Plain Legal Language Conference in Washington DC, the conference summary speaker Mr Christopher Balmford described Mustor Management as “the most exciting development in our field at the moment”.
This paper builds upon the paper presented in the 2005 NSW Institute of Public Works Engineers (IPWA) Annual Conference, titled “High speed contract and regulation comprehension system - Mustor Highlighting (MIS 1200).
Scope
This paper is divided into the following sections:
• Introduction • Laundering is a natural subconscious act • The problems associated with subconscious laundering • Moving Laundering from a subconscious act to a conscious one
• Public Officer’s preference for a Laundered contract • The Mustor Laundering System • Science behind Mustor Laundering • Exclusivity • Laundering case studies from the GCC
• When will Pubic Officers benefit from Mustor Laundering • Acting as the client • Managing contractors, subcontractors, suppliers, consultants and lawyers
• How can Public Officers learn Mustor Laundering
IPWEA NSW Division Annual Conference 2006
Page 2
Colour version availability
This paper is available in colour by email request to [email protected]
Introduction
General conditions of contract such as AS 4000, AS 2124 and NWPC3 are written in complex legal language. As a result they are difficult to manage. In particular, it is difficult to for Pubic Officers to determine how they are going to comply and to check that they and their counterparts did in fact comply.
Research has shown that there are patterns within these contracts that will help Pubic Officers to convert them into simple instructions that can be easily checked. This process is called Mustor Laundering.
The process of Mustor Laundering uses nine standardised rules (MIS 1500) that ensure that the clauses maintain there integrity when they are being cleaned. This is of utmost importance.
Once laundered, it becomes easier to:
• negotiate obligations, offers and counter offers • identify and compare choices • compare changed clauses with original ones • compare clause between documents • plan, program and cost compliance • check and audit compliance • analyse workflow requirements and develop procedures • prepare flowcharts, procedures, action plans and programs (timelines, Gantt/PERT charts) • make and review contractual claims • complete prescribed notices • translate requirements into other languages
The paper also describes:
• how these benefits equate to huge time and cost savings • how they reduce costly errors, disputes and professional embarrassment.
IPWEA NSW Division Annual Conference 2006
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Laundering is a natural subconscious act
Everyone launders everyday, even Public Officers.
They naturally subconsciously launder the requirements within instructions, procedures, government regulations, purchase orders, service level agreements and contracts. They launder them just the same as their customers, employees, contractors, lawyers, translators and consultants.
For example, when they read or hear the words, “the supplier must, if the work is completed late, compensate the client” they automatically convert it into:
• “The supplier must compensate the client if the work is completed late” or • “If the work is completed late, the supplier must compensate the client”.
The figure below graphically displays this concept.
If you don’t think this type of language is used in your environment, then check out the case study clauses in this paper.
This type of drafting is not unique to the GCC. It is known as a Scrambled clause (MIS 1300) and is often found in the following documents:
• instructions • procedures • government regulations • purchase orders, service level agreements and contracts
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The problems associated with subconscious laundering
The problems associated with subconscious thinking begin to show when your employees, customers, contractors, lawyers, translators and consultants have to:
• develop and draft requirements for: o internal business procedures o externally promoted policies and claims o purchase orders, service level agreements, technical
specifications and contracts • issue the requirements (articulating and drafting) • receive the requirements (listening or reading) • understand the requirements • plan how they are going to comply • check compliance • resolve compliance disputes • fix non-compliances (correct and prevent)
It is almost impossible to check someone’s subconscious thinking. Also it is not something that easily taught or tested.
Laundering may seem to be a minor issue but if Pubic Officers have to answer the question “what do you mean?” and “then why didn’t you just say that?” each time their customers, contractors, lawyers, translators and consultants use a clause, the cost, time, errors and frustration builds up very quickly. The following diagram displays this concept.
CONSUB
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Moving Laundering from a subconscious act to a conscious one
The Mustor Laundering standard, MIS 1500, shows Pubic Officers how to quickly launder the GCC so that they don’t have to repeat the mental gymnastics each time they have to work with the document. This standard ensures the integrity remains the same. It is an easy skill to both teach and check.
The following diagram graphically shows how the Mustor Laundering technique moves your people from subconscious thinking to conscious thinking. This is extremely important, because subconscious thinking is almost impossible to communicate.
Consciousthinking
Subconsciousthinking
Understanding
Subconsciouslaundering
Mustor Laundering™conventions(MIS 1500)
CONSUB
Neededunderstanding
Currentunderstanding
Moving from subconscious to conscious thinking, naturally increases the understanding
In moving people from subconscious to conscious thinking, their understanding increases. This equates to increased productivity and a reduction of errors. In particular, the benefits of using this system is that the people involved in the GCC will be able to faster and more accurately:
• comprehend and understand the risks, rights and responsibilities in contracts and regulations • develop, draft and negotiate offers, counter offers and amendments • compare choices • compare original and changed instructions • plan and cost compliance programs • analyse workflows and develop business procedures • complete prescribed notices • prepare and review contractual claims • check and audit compliance • resolve disputes • translate requirements into other languages
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Public Officer’s preference for a Laundered contract
As shown by the chart below, during a recent Public Officer’s internal contract management course1 known as Contract Bootcamp2, the majority of participants preferred it when the GCC was Laundered and Highlighted.
The survey participants consisted of Project Managers, Engineers and Internal Consultants that came from the following departments.
• Executive Services • Field Services • Operations • Projects Branch • Technical Services • Training
1 The client wishes to remain anonymous for the time being as their contract is issued to the public at large. 2 Based upon Australian Standards Handbook AS 226
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The Mustor Laundering System
Mustor Laundering (MIS 1500) consists of the following nine rules and conventions:
Rule 1 Start with the end in mind
Rule 2 Refine for ease
Rule 3 Reverse for ease
Rule 4 Unscramble for ease
Rule 5 Divide instructions for ease
Rule 6 Divide groups for ease
Rule 7 Separate groups for ease
Rule 8 Divide Siamese Clauses for ease
Rule 9 De-contaminate for ease
Science behind Mustor Laundering
Mustor Laundering is based upon the manipulation of Mustor Patterns.
Mustor Patterns are the legal logic patterns within business and government documents such as:
• agreements • bids and tenders • codes • commitments • contracts • conveyances • deeds • finance loans • franchises • instructions
• insurance policies • investments • leases • purchase orders • offers and counter offers • specifications • rules • industry standards • government legislation and • statutory regulations
What makes these patterns significant, is that:
• they occur in business and government documents that are written in complex legalese as well as those in plain English
• they are universal across all languages
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• they are based upon a proven system of logic • they are very predictable • they are self evident and self validating • they are applicable to everyone from laymen to lawyers – everyone from the kitchen table to
the court room • they are easily taught to everyone from children to retirees
Mustor Patterns have tremendous commercial value, because they break documents down according to Intensity Dictators, Structural Dictators and Limiters.
The following table and pie chart shows the relative percentages that these words make in a typical GCC3.
Intensity Dictators 3%
Structural Dictators 5%
Limiters 0.1%
Subject 91.9%
Total 100%
In effect, these Dictators and Limiters make up 8% of the words. The other 92% describe the subject matter. However, despite being only about 8% of any document, these three elements are the key to comprehending complex government and business documents.
3 Based upon AS4000
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The following chart shows the Mustor Patterns subsections. Intensities, Structures and Limiters are not always explicit. Some are inferred. Consequently they need to be derived by reasoning.
Mandatory Elective& statement of fact
Intensity dictators
PATTERNS
Limiters
Who What
Subject
Instruction/requirement
Structural dictators
Progressionals
SuccessorsConcurrencies
Predecessors
Conditions
Multiples
Alternatives
Exceptions
Timing dependencies
orMust
Mustor Laundering and Mustor Patterns are supported by the sciences of language, logic and law. The diagram below graphically displays the relationship between these. The intersection being the focus of Mustor Management.
IPWEA NSW Division Annual Conference 2006
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Exclusivity
Mustor Patterns, Mustor Laundering and Mustor Highlighting are protected by patents, copyrights and trademarks. This means are only available from a licensed Mustor Consultants. Consequently, they are not taught in universities or law schools.
Laundering case studies from the GCC
The following case studies of clauses are typically of GCC such as AS 4000, AS 2124 and NWPC3 are provided to show how some of the Mustor Laundering Rules can be commercially exploited by your people.
Each of them detail:
• the original version • the Mustor Highlighted version (MIS 1200) • the Mustor Laundered version (MIS 1500)
This paper has been developed with colour Mustor Highlighting (MIS 1200). For those who are reading a black and white version, a colour copy is available on the internet site www.mustor.com
Case study one – Laundering alternative exceptions The Final Certificate shall be evidence that the Works have been completed in accordance with the terms of the Contract except in the case of fraud relating to the work under the contract or any defect in the Works which would not have been disclosed upon reasonable inspection at the time of the Final Certificate.
The clause has been interrogated and repeated with Mustor Highlighting (MIS 1300). Amongst other highlighting, you will notice the word ‘except’ has been highlighted orange to indicate an exception. You will also notice the square Grouping brackets (MIS 1200). These become very beneficial when Public Officers have determine compliance. Be careful, as complex exceptions are not easy clauses to work with because the exception has an inverting effect.
The Final Certificate shall be evidence that the Works have been completed in accordance with the terms of the Contract except [in the case of fraud relating to the work under the contract or any defect in the Works which would not have been disclosed upon reasonable inspection at the time of the Final Certificate].
Using the Mustor Laundering Rule 6, Divide groups for ease, the clause has been bullet pointed.
The Final Certificate shall be evidence that the Works have been completed in accordance with the terms of the Contract except [in the case of-
1) fraud relating to the work under the contract; or 2) any defect in the Works which would not have been disclosed upon reasonable inspection at the
time of the Final Certificate.
Now admittedly, this change may not seem to have much benefit. It is not until your staff are asked to check whether they or someone else complied, or to plan how they are going to comply,
IPWEA NSW Division Annual Conference 2006
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do the real benefits of this small change reveal them selves. These benefits are magnified when dispute resolution costs are taken into account.
Compliance Checking and dispute resolution
The requirement has two elements, A and B.
A = the Final Certificate shall be evidence
B = fraud relating to the work under the contract or any defect in the Works which would not have been disclosed upon reasonable inspection at the time of the Final Certificate.
To help explain the potential problems and pain, let’s first start with by simplifying the exception. Let’s say the exception (B) is only a fraud relating to the work under the contract and not any defect in the Works which would not have been disclosed upon reasonable inspection at the time of the Final Certificate.
When your staff are required to determine compliance, they will need to check both elements of the clause - A and B; and then based upon the combination of the two, come up with a net compliance state. MIS 1410 provides details on nine possible compliance states.
MIS 1430 details that the number of possible scenarios is 2 to the power of the number of compliance checking elements within the instruction. The table below graphically displays this concept.
i.e. 2n (two to the power of n, where n = number of compliance checking elements)
No# of compliance checking elements
Equivalent
sub-section number
Formula No# of possible scenarios
1 a 2 2
2 b 2 x 2 4
3 c 2 x 2 x 2 8
4 d 2 x 2 x 2 x 2 16
5 e 2 x 2 x 2 x 2 x 2 32
6 f 2 x 2 x 2 x 2 x 2 x 2 64
7 g 2 x 2 x 2 x 2 x 2 x 2 x 2 128
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As “A except B” has two compliance checking elements (A and B), there are four possible scenarios. As shown below, the Mustor Scenario Combination Table (MSI 1440) helps your staff visualise these combinations.
Scenario A
B
1
2
3
4
So far we have only considered a simple exception (B) – a single compliance checking element. But in fact, the exception (B) is complex, in that it has two elements. That is, fraud relating to the work under the contract and any defect in the Works which would not have been disclosed upon reasonable inspection at the time of the Final Certificate. The net effect is a requirement with three compliance checking elements. As shown in the table below, this equates to eight possible scenarios. With each scenario having a distinct Compliance State. Let’s say for this example, B = C or D. Therefore the compliance checking elements are (A, C & D).
A = the Final Certificate shall be evidence
C = fraud relating to the work under the contract
D = any defect in the Works which would not have been disclosed upon reasonable inspection at the time of the Final Certificate.
Scenario A B
C D
Evidence Fraud Defect
1
2
3
4
5
6
7
8
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You can see that once requirements become a little more complex, the compliance checking requirements become a whole lot more complex. Now it is important to remember that most of this happens subconsciously, and that subconscious thinking has problems and pain associated with it.
At the end of the day, all that has been done is the clause has been divided.
Compliance Planning
When your staff are required to plan how they are going to comply with requirements that have exceptions they need to first extract the exception and create a matching monitoring and action plan.
For example, someone needs to monitor:
• whether there was fraud relating to the work under the contract and • whether there were any defect in the Works which would not have been disclosed upon
reasonable inspection at the time of the Final Certificate.
Once either of these has been detected, then some action needs to be initiated. In this example, an inquiry as the effect of the final certificate. This may involve:
• notifying a manager of the detection • writing a notice in accordance with the GCC • reviewing the notice • a manager approving the notice • determining the method of giving the notice to the contractor (post, hand deliver, email) • registering the issuing of the notice (registers and records)
Similar to the compliance checking example, you can see that once requirements become a little complex, the compliance planning requirements become a whole lot more complex. And all that has been done is that the clause has been divided.
Case study two – Laundering alternative exceptions Within 28 days after the expiration of the defects liability period, or where there is more than one, the last to expire, the contractor shall lodge with the superintendent a final payment claim and endorse it `final payment claim'.
When Public Officers are interrogating a clause like this, it is important for them to ask:
• whether the clause is mandatory or elective and • what is effect of the word ‘or’ in the top line and how does it relate to the word ‘within’?
The requirement has been interrogated and repeated below with Mustor Highlighting (MIS 1200).
Within [28 days after the expiration of [the defects liability period, or [where there is more than one, //the last to expire]], //the contractor shall [lodge with the superintendent a final payment claim and endorse it `final payment claim'].
IPWEA NSW Division Annual Conference 2006
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Notice how this instruction has a complex timing dependency. That is, there are alternative timing dependencies. This concept is much easier to visualise in a Mustor Map (see below).
Be careful, as this clause is deceptively complex. You will notice that it has a condition embedded in one of the alternative timing dependencies. This adds another step when checking compliance or auditing.
The instruction has been refined using the following Mustor Laundering Rules Structural Reversing (Rule 3) and Structural Division (Rule 6). In this case, Reversing has allowed the Launderer to use Structural Bullet Points. Not that these are not the same as normal bullet points.
The contractor shall [lodge with the superintendent a final payment claim and endorse it `final payment claim'], within 28 days after the expiration of:
• the defects liability period, or • where there is more than one, //the last to expire.
To assist your understanding the following Mustor Maps have provided. To help you focus on the benefits of laundering, particular sections have been omitted.
Original version Laundered version(MIS 1500)
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Case study three – Unscrambling a consequence If an insurance company which has given an insurance bond under this Clause 5.5 fails to maintain a rating equal to or better than that set out in Item 7A of the Annexure, the Contractor shall, upon being requested by the Principal to do so, substitute that insurance bond -
(i) with a bank guarantee in the same amount and in the form prescribed in Clause 5.5(b) and from a bank approved by the Principal; or
(ii) with an insurance bond in the same amount and in the form prescribed in Clause 5.5(c) and from a different insurance company approved by the Principal.
To assist your understanding the following Mustor Maps have provided. To help you focus on the benefits of laundering, particular sections have been omitted. Also be sure to take note of the scrambled symbol (MIS 1200). Understanding how to Unscramble a Scrambled clause becomes very important when Public Officers have to check compliance.
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Using Laundering Rule 4, the consequence can be unscrambled so the condition (upon) is leading the consequence.
If an insurance company which has given an insurance bond under this Clause 5.5 fails to maintain a rating equal to or better than that set out in Item 7A of the Annexure, upon being requested by the Principal to do so, the Contractor shall substitute that insurance bond -
(i) with a bank guarantee in the same amount and in the form prescribed in Clause 5.5(b) and from a bank approved by the Principal; or
(ii) with an insurance bond in the same amount and in the form prescribed in Clause 5.5(c) and from a different insurance company approved by the Principal.
an insurance company whichhas given an insurance bondunder this Clause 5.5 fails tomaintain a rating equal to orbetter than that set out in Item7A of the Annexure,
If
or
the Contractor shall substitutethat insurance bond -
and
i)
with a bankguarantee
in the sameamount
in the formprescribed inClause 5.5(b)
from a bankapproved bythe Principal;
and
ii)
with an insurancebond
in the sameamount
in the formprescribed inClause 5.5(c)
from adifferentinsurancecompanyapproved bythe Principal.
IPWEA NSW Division Annual Conference 2006
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In order to determine the benefits of Mustor Laundering, you might like to check the compliance of the following scenario. Try see which version is easier to check – the original version or the Laundered version.
• An insurance company has given an insurance bond under this Clause 5.5. • The insurance company fails to maintain a rating equal to or better than that set out in Item 7A
of the Annexure. • The Principal has asked the Contractor to substitute that insurance bond in accordance with
the contract. • The Contractor substitutes that insurance bond:
o with a bank guarantee in the same amount o in the form prescribed in Clause 5.5(b) and o from a different insurance company approved by the Principal.
Be careful, the answer is not as obvious as it might seem. It is also important to ask “what would be the consequence of getting it wrong?”. How would the Public Officer feel if they told the contractor they complied, when it fact they did not.
Of course more Laundering could be done to make the clause easier to use.
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Case study four – Unscrambling, reversing, dividing Siamese Structures
Which out of the following five versions do you prefer? Which version would make it easier to:
• plan how you were going to comply • compare alternatives • check compliance? • resolve disputes • articulate in meetings or on the phone • teach to junior Public Officers
1 2 3 4 5
Original
version
Unless either party, either before the Final Certificate has been issued or not later than 21 days after the issue thereof, serves a notice of dispute under Clause 47, the Final Certificate shall be evidence that the Works have been completed in accordance with the terms of the Contract and that any necessary effect has been given to all the terms of the Contract which require additions or deductions to be made to the Contract Sum.
Highlighted version
[Unless either party, [either before the Final Certificate has been issued or not later than 21 days after the issue thereof], serves a notice of dispute under Clause 47], the Final Certificate shall be evidence that the Works have been completed in accordance with the terms of the Contract and that any necessary effect has been given to all the terms of the Contract which require additions or deductions to be made to the Contract Sum.
Laundering
Step 1
[Unless either party serves a notice of dispute under Clause 47, [either before the Final Certificate has been issued or not later than 21 days after the issue thereof]], the Final Certificate shall be evidence that the Works have been completed in accordance with the terms of the Contract and that any necessary effect has been given to all the terms of the Contract which require additions or deductions to be made to the Contract Sum.
Laundering
Step 2
The Final Certificate shall be evidence that the Works have been completed in accordance with the terms of the Contract and that any necessary effect has been given to all the terms of the Contract which require additions or deductions to be made to the Contract Sum [unless either party serves a notice of dispute under Clause 47, [either before the Final Certificate has been issued or not later than 21 days after the issue thereof]].
Laundering
Step 3
The Final Certificate shall be evidence that the Works have been completed in accordance with the terms of the Contract and that any necessary effect has been given to all the terms of the Contract which require additions or deductions to be made to the Contract Sum, [unless either party serves a notice of dispute under Clause 47, [either:
• before the Final Certificate has been issued or • not later than 21 days after the issue thereof]].
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When will Pubic Officers benefit from Mustor Laundering
Public Officers will benefit from Mustor Laundering:
• when acting as the client and • when managing contractors and subcontractors.
Acting as the client
When acting as a client, they need to:
• develop their GCC (general and special conditions) • issue the requirements (articulate and/or draft) • check compliance (of their counterparts and themselves) • resolve compliance disputes • fix non-compliances (prevent)
Public Officers can use the Mustor Requirement Management system (MIS 10 200) to ensure that their contractors comply with the GCC. Appendix A&C shows this system with its referenced standards.
As well as the GCC, Public Officers also have to comply with:
• internal requirements • externally promoted policies and claims • government regulations • referenced documents, standards & codes
Public Officers can use the Mustor Compliance Management system (MIS 10 100) to ensure that they comply with the GCC. Appendix A & B shows this system with its referenced standards.
The following figure graphically displays this concept.
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Both the Requirement Management system (MIS 10 200) and the Compliance Management system (MIS 10 100) come under the umbrella of the Mustor Management system (MIS 10 000) as shown in Appendix A.
The diagram below gives an indication of the Mustor Management system (MIS 10 000) with it matching references. A3 sized versions are available upon and email request to [email protected]
MIS 1800 Mustor D&DMIS 1900 Mustor Mapping
MIS 1300 Mustor HighlightingMIS 1900 Mustor Mapping
NegotiationMediation Expert determinationArbitrationLitigationOther
MIS 1500 Mustor Compliance CheckingMIS 1900 Mustor Mapping
Internal requirements
Externally promoted policies and claims
Government regulations
Purchase orders, service level agreements, technical specifications & contracts
Referenced documents, standards & codes
MIS 1200 Mustor ChunkingMIS 1500 Mustor LaunderingMIS 1300 Mustor HighlightingMIS 1900 Mustor Mapping
MIS 1600 Mustor Compliance Planning MIS 1700 Mustor Management Alarm Bells MIS 1900 Mustor Mapping
NegotiationMediation Expert determinationArbitrationLitigationOther
MIS 1500 Mustor Compliance CheckingMIS 1900 Mustor Mapping
Corrective Action Fix and recheck Reject, redo and recheck
Preventative action (elective) Improve procedures & instructions MIS 1500 Mustor Laundering MIS 1800 Mustor Development & Drafting Improve selection of: Employees (MIS 7100) Suppliers & Contractors (MIS 7200) Translators (MIS 7300) Lawyers (MIS 7400) Consultants (MIS 7500) Improve: Staff competency testing (MIS 4000) Training (MIS 5000) Staff competency certification (MIS 6000) Review appropriateness of improvement systems ISO 9000 QMS Six Sigma DMAIC Kaizen Business Process Reengineering Seven Habits of Highly Effective People Others
Mustor Management(MIS 10 000)
Mustor Requirement Management(MIS 10 200)
Mustor Compliance Management(MIS 10 100)
Issue therequirements
(articulate, draft)
Develop therequirements
Resolve non-compliance disputes
(negotiate, mediate, expert determination,
arbitrate, litigate)
Check compliance
Fix non-compliances
(correct & prevent)
Plan compliance
Understand therequirements
Receive therequirements
(listen, read)
Resolve non-compliance disputes
(negotiate, mediate, expert determination,
arbitrate, litigate)
Check compliance
Fix non-compliances
(correct & prevent)
Corrective Action Fix and recheck Reject, redo and recheck
Preventative action (elective) Improve procedures & instructions MIS 1500 Mustor Laundering MIS 1800 Mustor Development & Drafting Improve selection of: Employees (MIS 7100) Suppliers & Contractors (MIS 7200) Translators (MIS 7300) Lawyers (MIS 7400) Consultants (MIS 7500) Improve: Staff competency testing (MIS 4000) Training (MIS 5000) Staff competency certification (MIS 6000) Review appropriateness of improvement systems ISO 9000 QMS Six Sigma DMAIC Kaizen Business Process Reengineering Seven Habits of Highly Effective People Others
These systems can be bolted onto existing management systems or can be used by itself (stand-alone). Appendix D illustrates this concept.
Managing contractors, subcontractors, suppliers, consultants and lawyers
The GCC details how Pubic Officers are required to manage contractors and subcontractors. To provide a greater amount of assurance, Public Officers can include a requirement in the special conditions of contract for the contractors and subcontractors to establish:
• a Compliance Management system in accordance with MIS 10 100 (Appendix B) to ensure that they comply and
• a Requirement Management system in accordance with MIS 10 200 (Appendix C) to ensure that their subcontractors comply.
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The following two diagrams graphically displays this concept.
1 Receive the requirements2 Understand the requirements3 Plan compliance4 Check compliance 5 Resolve compliance disputes6 Fix non-compliances
1 Receive the requirements2 Understand the requirements3 Plan compliance4 Check compliance 5 Resolve compliance disputes6 Fix non-compliances
1 Develop requirements2 Issue requirements3 Check compliance 4 Resolve compliance disputes5 Fix non-compliances
The Compliance Management system (MIS 10 100) describes requirements for how the contractor and subcontractor is to:
• receive the contract (listen or read) • understand the contract • plan how they are going to comply (plan compliance) • check compliance • resolve compliance disputes • fix non-compliances (correct and prevent)
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How can Public Officers learn Mustor Laundering
Having delivered hundreds of programs over the years the Institute has observed that a combination of the following learning/training techniques work best:
• problem and pain discovery • solution self discovery • introductory explanation with business based case studies • application sessions that focus on the documents the participants use at work • practice until habitual programs and • on-the-job coaching programs (subconscious learning)
As a result of these five observations the following learning standards have been developed.
The self discovery is an enormous part of the learning, and consequently the Institute has spent a lot of time developing tools to help people make that discovery. It’s not surprising to get training feedback that says ”it’s so obvious now that I can see it” and one of our favourite from a Defence Department “it’s just specialised common sense – of course you would do it that way.”
So far, the Institute has delivered face-to-face learning programs to over 1500 professionals from banks, government departments and defence departments. The Institute has learnt to start with generic examples so that participants learn to focus on the patterns and then move to subject matter. Also to start with generic examples before moving to job specific examples.
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Over time the Training Program has developed to include:
• an awareness program (problem, pain and solution self discovery) • an entry level skills program and • a competitive skills program.
The learning schematic below puts this program into perspective (expanded in Appendix E).
As a result of the feedback from the participants, Mustor Bootcamp has been designed to get people up and running quickly. The bootcamp package is a combination of:
• the initial awareness course (4hrs) (MIS 2200) • entry level skills training program of (3x4hr modules) (MIS 2300) • an Application Afternoon which focuses on applying the techniques to the very documents the
participants are responsible for in their jobs (1x4hrs) • take back package for the office which enables large group on-the-job subconscious learning
(Mustor Osmosis) (MIS 5300) • practice until habitual program consisting of a weekly question (Mustor PH) (MIS 5400) • and finally a take home subconscious learning pack for children and teenagers (to teach is to
learn again) (MIS 5300)
The Institute is quite excited at the moment, as client reviews are saying that the on-the-job coaching packages (subconscious learning) are a very effective way of training staff. This involves setting up the workplace with inquiry and debate igniters. By debating the meaning of particular contractual style clauses, participants inadvertently pick up the required skills and knowledge. These training tools are affectionately know as Mustor Osmosis and are governed by the Standard MIS 5300. On-the-job subconscious learning is by no means a new thing, it is how most adults learn what they have to do on the job.
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Appendix A – Mustor Management Standard MIS 10 000
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Appendix B– Mustor Compliance Management Standard MIS 10 100
Internal requirements
Externally promoted policies and claims
Government regulations
Purchase orders, service level agreements, technical specifications & contracts
Referenced documents, standards & codes
MIS 1200 Mustor ChunkingMIS 1500 Mustor LaunderingMIS 1300 Mustor HighlightingMIS 1900 Mustor Mapping
MIS 1600 Mustor Compliance Planning MIS 1700 Mustor Management Alarm Bells MIS 1900 Mustor Mapping
NegotiationMediation Expert determinationArbitrationLitigationOther
MIS 1500 Mustor Compliance CheckingMIS 1900 Mustor Mapping
Corrective Action Fix and recheck Reject, redo and recheck
Preventative action (elective) Improve procedures & instructions MIS 1500 Mustor Laundering MIS 1800 Mustor Development & Drafting Improve selection of: Employees (MIS 7100) Suppliers & Contractors (MIS 7200) Translators (MIS 7300) Lawyers (MIS 7400) Consultants (MIS 7500) Improve: Staff competency testing (MIS 4000) Training (MIS 5000) Staff competency certification (MIS 6000) Review appropriateness of improvement systems ISO 9000 QMS Six Sigma DMAIC Kaizen Business Process Reengineering Seven Habits of Highly Effective People Others
Mustor Compliance Management(MIS 10 100)
Plan compliance
Understand therequirements
Receive therequirements
(listen, read)
Resolve non-compliance disputes
(negotiate, mediate, expert determination,
arbitrate, litigate)
Check compliance
Fix non-compliances
(correct & prevent)
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Appendix C - – Mustor Requirement Management Standard MIS 10 200
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Appendix D – Choice of system integration
MustorCompliance Management
(MIS 10 100)
Bolt-on arrangement Stand alone arrangement
Existing management system
Choice of arrangements
MustorCompliance Management
(MIS 10 100)
Recieve
Understand
Plan
Check
Resolve
Fix
Step 1
Step 2
Step 3
Recieve
Understand
Plan
Step 4
Step 5
Step 6
Check
Resolve
Fix
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Appendix E – Mustor Training and Certification Standards
Training Standards Certification Standards
MustorManagement
Awareness
Mustor Chunking&
Mustor Highlighting
Mustor Compliance Checking
Mustor Laundering
MustorCompliance Planning
MustorDevelopment & Drafting
MustorMapping
Advanced Compliance
Planning
AdvancedListening & Articulation
AdvancedChange
Negotiation
Advanced Compliance
Checking
Advanced Translation & Interpretation
Mustor Professional(MIS 6121)
All three
Mustor Master(MIS 6122)
Top twoplus one
Mustor Associate(MIS 6111)
Entry level skills
(MIS 2300)
Competitive Skills
(MIS 2400)
Awareness(MIS 2200)
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Author Biography
Nathan McDonald is an author of over 15 books, manuals and reference wallcharts on understanding and administering contracts, specifications, codes of practice, government regulations.
He is also the founder of multiple training programs that specialise contractual and regulation review, administration and dispute resolution.
Nathan is the Executive Director of Mustor Institute and has been involved in the development a suite of over eighty products that increase the speed and accuracy of contract and regulation comprehension, interrogation, negotiation, articulation, translation, compliance checking, development and drafting.
He has presented at government, law, engineering and business conferences in America, Europe and Australia.
Some of his clients include the Aust Department of Defence, Liverpool Council, Telstra, Energy Australia, NSW Department of Commerce and the NSW RTA.
Postal Address:
PO Box 1447, Maroubra, NSW 2035
Tel: 02 9344 3816
Fax: 02 9344 4614
Mobile: 0418 743907
E-mail: [email protected]
Website: www.mustor.com