The qualification process

The qualification process enables Ternai to assess suppliers with regard to their observance of the law, their technical, organizational, and economic solidity, and their conformance with the ethical, social, and environmental requirements of Terna’s policy as expressed in the Company’s Code of Ethicsi.  
Among other things, the qualification requirements include:

  • the application of conditions regarding rules and pay that are not inferior to those provided for by the collective-bargaining agreements applicable for the same kind of work;
  • the observance of laws regarding the protection of the environment and occupational safety;
  • the existence of documented procedures adopted for the protection of the environment and of the safety and health of workers

The purpose of the monitoring is to ascertain whether the requisites required are maintained throughout the three years in which the qualification is valid.

Such monitoring includes the use of IT systems to continuously screen information. In particular, the vendor rating info sheets written by the engineers who supervise locally the construction sites of qualified companies are used to analyze the latter’s performances monthly, which enables Terna to promptly intervene and to disseminate the information recorded among its Operating Areas. During 2010 the Company monitored 593 supplier performances (compared to 263 in 2009), while – in keeping with the established objectives – the number of supplier categories subject to qualification increased (from 36 to 40), as did the number of companies qualified to be entered in the Company’s supplier register.         


The entire company qualification process – from the initial qualification to the monitoring of actual behavior and the infliction of sanctions – is entrusted to Terna’s Company Qualification Committee, which consists of eleven members of the top management and an independent external Chairman with recognized legal and technical expertise.

QUALIFICATION

  2010 2009 2008
Companies qualified for entry in supplier register
260 180 303
Supplier categories subject to qualification 40 36 36

PROCEDURES ADOPTED FOR AWARDING CONTRACTS
(% of value of awards)

  2010 (1) 2009 2008
European tenders
53 58 77
Non-European tenders 35 27 13
Without tender 12 15 10

(1) Excluding non-traditional business activities