Managing Contractors Effectively 2011


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A presentation from on of WSPS\\\\’s regional conferences in Sault Ste. Marie. Co-Written and Co-Presented along with Steve Taylor from Great Lakes Power. Not exhaustive by any means, this presentation gives a high-level view of what to look for when establishing relationships with contractor at your workplace.

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  • The defendant may be found not guilty if he/she can prove that all reasonable precautions were taken to protect the worker(s) from incidents and injuries
  • The defendant may be found not guilty if he/she can prove that all reasonable precautions were taken to protect the worker(s) from incidents and injuries Proper documentation always applies. If you didn’t write it down, you didn’t do it.
  • - For simplicity, Project means the same as contract (in the case of maintenance contracts)
  • - Relinquishing control does not mean “delegating safety”
  • Of course we all are, but it is very important to clearly define the type of work; and the applicable roles and responsibilities of the parties prior to awarding the contract.
  • - To give an idea how much safety is involved during dealings with Constructors or Contractors
  • - Pre-Bid Meetings allow the potential contractors to view the worksite, consider potential hazards, and perform an appropriate hazard assessment
  • Pre-Bid Meetings allow the potential contractors to view the worksite, consider potential hazards, and perform an appropriate hazard assessment To ensure that contractors have the information they require to develop estimates to address job site hazards, the bid documentation should address at least the following items: Scope of Work Identified Hazards and Work Restrictions Work Permits and License Requirements Special Job Site Safety Program Requirements (Is the Owner’s or Contractor’s Safety Program prevalent?) Contract Management Arrangements (Managing or Monitoring Only?) Orientation and Training Requirements Monitoring/Auditing of Contractor Safety Performance Onsite Control of Work
  • Past projects may include work with dollar amounts over $100K HR Contacts would include H&S Representative(s), Project Manager(s), Supervisor(s), etc. A vastly extensive program does not guarantee that contractor is the best one to hire; other factors need to be considered A properly implemented program should include rules, procedures, hazards, disciplinary actions for failure to comply with procedures WSIB is required and absolves the Owner of any WSIB premiums incurred by the Contractor while performing services for the Owner Independent Contractors/Operators that perform Construction-type services will need to have mandatory WSIB Coverage in 2012 (Bill 119) Job-Specific Hazard Assessments Considerable weight should be placed on how the contractor assesses and controls the hazards related to the project; shows competency An extensive training and development program shows managerial commitment to H&S Workers should have at least WHMIS, and appropriate training for the work being performed H&S Incident History Experience Rating Programs (NEER, MAP, CAD-7) should be considered along with other prequalification elements A poor rating or high incident frequency may be used as a trigger to obtain further information Contractors with perfect safety records may not always be the best contractor, either (may hide injuries, or “fudge” information)
  • Premiums are calculated by “manhour” therefore an Owner could be liable for all the manhour premiums for the work 2012 Under Bill 119 will require construction IO’s to have mandatory coverage
  • Joint Health & Safety Worker Trades Committee (Projects longer than 3 months or with 50 or more workers)
  • Contractor “Self-Monitoring” and the monitoring (by the owner) of Contractor may be part of the contractual obligations Regardless whether the owner retains full control or has contracted out to a “constructor,” monitoring should be included as part of the contractual agreement and a partnership created between the owner and the contractor (or constructor)
  • Managing Contractors Effectively 2011

    1. 1. To Manage, or Not to Manage? Guidelines for Hiring and Maintaining Effective Relationships with Your Contractors Presented By: Stephen Findlay, OLG Steve Taylor, GLP
    2. 2. Outline <ul><li>Key Terms </li></ul><ul><li>PART I: HIRING CONTRACTORS </li></ul><ul><ul><li>OHSA and Ontario Regulations </li></ul></ul><ul><ul><li>WSIA & WSIB Considerations </li></ul></ul><ul><ul><li>Contract Language & Tender Documents </li></ul></ul><ul><ul><li>Selection & Hiring Contractors </li></ul></ul><ul><li>PART II: MANAGING & MONITORING CONTRACTORS </li></ul><ul><ul><li>Managing Contractors </li></ul></ul><ul><ul><li>Monitoring Contractors </li></ul></ul>
    3. 3. Key Terms & Workplace Parties <ul><li>Due Diligence </li></ul><ul><li>Owner </li></ul><ul><li>Constructor </li></ul><ul><li>Employer </li></ul><ul><li>Contractor </li></ul><ul><li>Supervisors </li></ul><ul><li>Workers </li></ul><ul><li>Construction </li></ul><ul><li>Non-Construction </li></ul><ul><li>Project </li></ul><ul><li>Duty </li></ul><ul><li>CAD-7 </li></ul><ul><li>NEER </li></ul><ul><li>MAP </li></ul>
    5. 5. Due Diligence <ul><li>Owners, employers, managers, and supervisors have a general duty to take all precautions reasonable to prevent injuries and accidents in the workplace. OHSA Sec. 25(2)(h) </li></ul><ul><li>Employers shall develop a plan to recognize, assess, and control potential workplace hazards that may increase risk of incident or injury to a worker. </li></ul>
    6. 6. Due Diligence <ul><li>Due Diligence may be a legal defense for a person or company charged under Occupational Health & Safety Legislation </li></ul><ul><ul><li>Must be able to provide objective evidence, which is factual data based on a history of documented actions taken </li></ul></ul><ul><ul><li>The defendant may be found not guilty if he/she can prove that all reasonable precautions were taken to protect the worker(s) from incidents and injuries </li></ul></ul>
    7. 7. What is Due Diligence? <ul><li>Some examples of effective due diligence includes, but is not limited to: </li></ul><ul><ul><li>Written H&S Policy and Program </li></ul></ul><ul><ul><li>Appropriate Training to Tasks Performed </li></ul></ul><ul><ul><li>Competent Supervision </li></ul></ul><ul><ul><li>Inspections and Enforcement of Policies & Procedures </li></ul></ul><ul><ul><li>Evaluation and Continual Improvement </li></ul></ul><ul><ul><li>Easily Accessible Documentation (Audits) </li></ul></ul>
    8. 8. Who is the “Owner” ? <ul><li>According to Section 1 definitions of the OHSA, the definition of “owner” includes a: </li></ul><ul><ul><li>“trustee, receiver, mortgagee in possession, tenant, lessee, or occupier of any lands or premises used or to be used as a workplace, and a person who acts for or on behalf of an owner as an agent or delegate” </li></ul></ul>
    9. 9. Who is the “Constructor” ? <ul><li>Also, under the Section 1 definitions of the OHSA, “constructor” means a: </li></ul><ul><ul><li>“person who undertakes a project for an owner and includes an owner who undertakes (is responsible for) all or part of a project by himself or by more than one employer” </li></ul></ul><ul><li>To simplify, as the OHSA intended, it is the person who has overall accountability for health and safety matters on a project </li></ul>
    10. 10. Duty <ul><li>Obligations imposed on a employer or supervisor by law (provincial/federal) </li></ul><ul><li>Legislative or regulatory duties cannot be assigned or delegated to another party by anyone </li></ul><ul><li>May also be known as a General Duty Clause </li></ul>
    11. 11. Duties of a Constructor <ul><li>Ensure that the measures and procedures prescribed by the OHSA and applicable Regulation(s) are carried out on the project </li></ul><ul><li>Ensure that every employer and worker performing work on the project complies with the OHSA and applicable Regulation(s) </li></ul><ul><li>Ensures the health and safety of workers is protected </li></ul>
    12. 12. Duties of Owners <ul><li>For a workplace that is NOT a project: </li></ul><ul><ul><li>Ensure facilities provided are maintained </li></ul></ul><ul><ul><li>Ensure the workplace complies with the OHSA and applicable regulations </li></ul></ul><ul><ul><li>Ensure no construction projects are undertaken UNLESS they comply with the OHS and applicable regulations </li></ul></ul>
    13. 13. Construction Activities <ul><li>Construction activities may include, but are not limited to </li></ul><ul><ul><li>Erection of a structure </li></ul></ul><ul><ul><li>Alteration or Repair </li></ul></ul><ul><ul><li>Dismantling or Demolition </li></ul></ul><ul><ul><li>Structural Maintenance </li></ul></ul><ul><ul><li>Painting </li></ul></ul><ul><ul><li>Drilling or Boring </li></ul></ul><ul><ul><li>Concreting </li></ul></ul><ul><ul><li>Installation of Machinery </li></ul></ul>
    14. 14. Construction vs. Non-Construction <ul><li>Construction </li></ul><ul><ul><li>Alteration or dismantling of a building </li></ul></ul><ul><ul><li>Installation of a piece of equipment or machine </li></ul></ul><ul><ul><li>Maintenance on structural components </li></ul></ul><ul><li>Non-Construction </li></ul><ul><ul><li>Maintenance or repair of a building </li></ul></ul><ul><ul><li>Maintenance or repair of a piece of equipment or machine </li></ul></ul><ul><ul><li>Routine plant maintenance </li></ul></ul>
    15. 15. Project <ul><li>According to the Act, “project” means a construction project, whether public or private, including, </li></ul><ul><ul><li>the construction of a building, bridge, structure, industrial establishment…..or any combination thereof, </li></ul></ul><ul><ul><li>the moving of a building or structure, and </li></ul></ul><ul><ul><li>any work or undertaking, or any lands or appurtenances used in connection with construction; </li></ul></ul>
    16. 16. Project <ul><li>All projects must have a constructor and an owner </li></ul><ul><li>Clearly defining, in writing, the responsibilities of each party is as critical as the activities of the parties themselves </li></ul>
    17. 17. Project <ul><li>To clarify, on all projects, either the owner or someone hired by the owner is the constructor </li></ul><ul><li>Owners may also be constructors in instances on a project or contract, </li></ul><ul><ul><li>When they are directing the work of employees of another company or contractor; or, </li></ul></ul><ul><ul><li>When they are employer and uses his or her own workers to carry out that project </li></ul></ul><ul><li>Owners must relinquish control over the project to a General Contractor/Construction Manager to avoid becoming the constructor under the Act </li></ul>
    18. 18. Who is Responsible for H&S? <ul><li>If the work is considered construction : </li></ul><ul><ul><li>The constructor will bear responsibility for the health and safety of all workers under the Construction Regulations </li></ul></ul><ul><ul><li>This does not mean that the Owner can “delegate” its health and safety obligations; there needs to be ongoing communication, monitoring and coordination of work. </li></ul></ul><ul><ul><li>In instances where there is imminent danger to any worker, the Constructor AND the Owner may stop the work until the hazard has been addressed </li></ul></ul><ul><li>If the work is considered non-construction : </li></ul><ul><ul><li>The owner or employer is responsible for the health and safety of all workers under the Industrial Regulations </li></ul></ul><ul><ul><li>The owner has a duty to manage the worksite as they would with their own employees </li></ul></ul>
    19. 19. Regulations <ul><li>Industrial Regulations (Reg. 851) </li></ul><ul><ul><li>Apply to any workplace except a mine or construction site </li></ul></ul><ul><li>Construction Regulations (Reg. 213/91) </li></ul><ul><ul><li>Apply to a construction project </li></ul></ul><ul><ul><li>Building, bridge, structure, shaft, tunnel, trench, sewer, watermain, service connection, etc. </li></ul></ul>
    20. 20. Stages of Contracts or Projects <ul><li>Pre-Contract Planning </li></ul><ul><li>Scope of Work </li></ul><ul><li>Bid-Package Assembly, Contract Language </li></ul><ul><li>Prequalification of Potential Contractors </li></ul><ul><li>Invitation to Bid </li></ul><ul><li>Pre-Bid Meeting </li></ul><ul><li>Hazard Assessment </li></ul><ul><li>Bid Review, Evaluation, and Contractor Selection </li></ul><ul><li>Contract Award </li></ul><ul><li>Safety Program/Job Analysis Review for Specific Job </li></ul><ul><li>Pre-Construction Meeting </li></ul><ul><li>Work/Project Phase </li></ul><ul><li>Project Kick-Off Meeting </li></ul><ul><ul><li>Defining Roles & Responsibilities </li></ul></ul><ul><ul><li>Hazard Assessment Review </li></ul></ul><ul><ul><li>General Orientation </li></ul></ul><ul><ul><li>Job/Site-Specific Orientation </li></ul></ul><ul><ul><li>Development of JHSC & WTC </li></ul></ul><ul><li>Contractor Monitoring </li></ul><ul><li>Progress/QC Meetings </li></ul><ul><li>Tailgate Meetings </li></ul><ul><li>Handover to Owner </li></ul><ul><li>Contract Closeout </li></ul><ul><li>Post-Contract Evaluation </li></ul>
    21. 21. Steps in Hiring Outside Contractors
    22. 22. Pre-Contract Planning <ul><li>Scope of Work </li></ul><ul><ul><li>Developed by Owner identifying specific work and details </li></ul></ul><ul><ul><li>Required when requesting bids from contractors </li></ul></ul><ul><ul><li>May include preparation and clean up tasks; or whether work is subject to additional regulations (i.e., Environmental) </li></ul></ul><ul><li>Bid Package & Invitation to Bid </li></ul><ul><ul><li>Potential contractors review scope </li></ul></ul><ul><ul><li>Are they able to meet the technical and safety criteria to complete the project on time and budget? </li></ul></ul>
    23. 23. Pre-Contract Planning <ul><li>RFP Review & Pre-Bid Meetings </li></ul><ul><ul><li>Prospective contractors should be invited to the proposed worksite to review the bid package requirements, ask questions, and obtain clarification </li></ul></ul><ul><ul><li>Physical tour of the worksite </li></ul></ul><ul><ul><li>RFP’s with a clear and concise definition of safety requirements is an important element in effective contractor management </li></ul></ul><ul><li>Hazard Identification </li></ul><ul><ul><li>The Contractor must submit a hazard assessment to Owner </li></ul></ul><ul><ul><li>Identifies hazards affecting contract workers and Owner/Employer’s workers </li></ul></ul>
    24. 24. Pre-Contract Planning <ul><li>RFP Review & Pre-Bid Meetings </li></ul><ul><ul><li>To ensure that contractors have the information they require to develop estimates to address job site hazards, the bid documentation should address at least the following items: </li></ul></ul><ul><ul><ul><li>Scope of Work </li></ul></ul></ul><ul><ul><ul><li>Identified Hazards and Work Restrictions </li></ul></ul></ul><ul><ul><ul><li>Work Permits and License Requirements </li></ul></ul></ul><ul><ul><ul><li>Special Job Site Safety Program Requirements </li></ul></ul></ul><ul><ul><ul><li>Contract Management Arrangements </li></ul></ul></ul><ul><ul><ul><li>Orientation and Training Requirements </li></ul></ul></ul><ul><ul><ul><li>Monitoring/Auditing of Contractor Safety Performance </li></ul></ul></ul><ul><ul><ul><li>Onsite Control of Work </li></ul></ul></ul>
    25. 25. Pre-Contract Planning <ul><li>Bid Evaluation & Contractor Selection </li></ul><ul><ul><li>Bids will be reviewed against two types of criteria: </li></ul></ul><ul><ul><ul><li>Technical Safety Criteria (Focus for the purposes of this session) </li></ul></ul></ul><ul><ul><ul><li>Price and Price Related Criteria </li></ul></ul></ul><ul><ul><li>Effective Contractor Safety Programs should ensure that only the contractors that successfully meet the Technical Safety and Price Criteria will be considered </li></ul></ul><ul><ul><li>Contractors may be “short-listed” prior to this selection process </li></ul></ul>
    26. 26. Pre-Contract Planning <ul><li>Bid Evaluation & Contractor Selection </li></ul><ul><ul><li>Short-Listed Contractors that have not already been prequalified may need to take part in a prequalification process, which may include: </li></ul></ul><ul><ul><ul><li>Past Projects with Dollar Value </li></ul></ul></ul><ul><ul><ul><li>Human Resource Contacts (re: Safety) </li></ul></ul></ul><ul><ul><ul><li>Health & Safety Policy & Program </li></ul></ul></ul><ul><ul><ul><li>WSIB and Liability Insurance </li></ul></ul></ul><ul><ul><ul><li>Job-Specific Hazard Assessments </li></ul></ul></ul><ul><ul><ul><li>Training Records </li></ul></ul></ul><ul><ul><ul><li>Health & Safety Incident History (Summary Reports) </li></ul></ul></ul><ul><ul><ul><li>A signed declaration demonstrating contractor’s commitment to their H&S Program and validating information in prequalification package </li></ul></ul></ul>
    27. 27. WSIB Considerations <ul><li>WSIB (eClearance) Certificates </li></ul><ul><ul><li>Now available online by Owners/Principals hiring Contractors </li></ul></ul><ul><ul><li>90 day validity period (up from 60 days) </li></ul></ul><ul><ul><li>Clearance with WSIB demonstrates proof that the Contractor is paying WSIB insurance premiums for its workers </li></ul></ul><ul><ul><li>Owners may be held liable for a contractor’s unpaid premiums in connection with the work or services performed </li></ul></ul><ul><li>No Clearance Certificate Available? No Contract, OR </li></ul><ul><ul><li>Contractor could be an Independent Operator (IO) </li></ul></ul><ul><ul><li>Contractor could be part of a By-Application Industry </li></ul></ul>
    28. 28. Pre-Contract Planning <ul><li>Contract Award & Pre-Job Meeting </li></ul><ul><ul><li>The contractor that meets the technical, safety, and price criteria has been selected and a pending contract offer, now what? </li></ul></ul><ul><ul><ul><li>Contract Award with Required Signatures </li></ul></ul></ul><ul><ul><ul><li>Pre-Project Meeting (As Required) </li></ul></ul></ul><ul><ul><ul><ul><li>Introductions to Key Personnel </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Scheduling of Project Kick-Off Meeting </li></ul></ul></ul></ul>
    30. 30. Work/Project Phase <ul><li>Project Kick-Off Meeting </li></ul><ul><ul><li>Critical meeting between Owner and Contractor (or Constructor, if applicable) </li></ul></ul><ul><ul><ul><li>Defining Roles & Responsibilities of Workplace Parties </li></ul></ul></ul><ul><ul><ul><li>Contractor Safety Rules/Orientation </li></ul></ul></ul><ul><ul><ul><li>Legal Notices and Reporting Requirements (MOL) </li></ul></ul></ul><ul><ul><ul><li>JHSC, WTC, and Tailgate meeting dates/frequency </li></ul></ul></ul><ul><ul><ul><li>Contractor Monitoring and/or Enforcing </li></ul></ul></ul><ul><ul><ul><li>Site Access & Restrictions </li></ul></ul></ul><ul><ul><ul><li>Accident Reporting </li></ul></ul></ul><ul><ul><ul><li>Emergency Response Procedures </li></ul></ul></ul>
    31. 31. Work/Project Phase <ul><li>Contractor Orientation </li></ul><ul><ul><li>The hiring company (owner and/or constructor) may choose to conduct all or part of the orientation for contract workers </li></ul></ul><ul><ul><li>Some parts of the orientation may require the contractor to conduct some job or site-specific elements </li></ul></ul><ul><ul><li>It is important that there is a clear understanding between the Owner and the Contractor as to who is to complete and document the orientation training </li></ul></ul>
    32. 32. Work/Project Phase <ul><li>Contractor/Constructor Monitoring </li></ul><ul><ul><li>Frequency may be based on risk of activities </li></ul></ul><ul><ul><li>Findings from the inspections are documented for corrective action within a specific period of time </li></ul></ul><ul><ul><li>When using a Constructor, Owners may document constructor performance but cannot correct items (“hands-off”) </li></ul></ul><ul><ul><ul><li>Must bring findings to constructor for correction; otherwise, owner may be implicated as constructor if an incident were to occur </li></ul></ul></ul>
    33. 33. Work/Project Phase <ul><li>Contract or Project Progress Meetings </li></ul><ul><ul><ul><li>Held at prescribed intervals to follow up on any concerns with the contractor(s), sub-contractor(s), or constructors </li></ul></ul></ul><ul><ul><ul><li>Meetings may include findings from monitoring, workplace inspections, JHSC/WTC meetings, or complaints </li></ul></ul></ul><ul><ul><ul><li>Progress meetings are essential for due diligence, and serves as a Quality Control Function (especially when retaining the services of a constructor) </li></ul></ul></ul>
    34. 34. Work/Project Phase <ul><li>Contract/Project Completion & Handover to Owner </li></ul><ul><ul><ul><ul><li>In the case of construction projects, the Constructor would hand over the site to the owner, including all warranties, shop drawings, etc. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>The wrap up of the project generally ends with a post contract meeting, with evaluation of the contractor/constructor performance </li></ul></ul></ul></ul><ul><li>Post Contract Evaluation </li></ul><ul><ul><ul><ul><li>A review of the contractor/constructor’s performance (namely health & safety) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Review of contractor’s attention and commitment to health and safety over the course of the project </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Cooperation of contractor </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Allows Owner to determine whether services will be used on future projects </li></ul></ul></ul></ul>
    35. 35. Questions? Comments? <ul><li>THANK YOU! </li></ul><ul><li>STEPHEN FINDLAY </li></ul><ul><ul><li>Contractor Safety Coordinator </li></ul></ul><ul><ul><li>Ontario Lottery & Gaming Corporation </li></ul></ul><ul><li>STEVE TAYLOR </li></ul><ul><ul><li>Health, Safety, and Environmental Specialist </li></ul></ul><ul><ul><li>Great Lakes Power Transmission, LP </li></ul></ul>
    36. 36. Further Learning <ul><li>WSPS (IAPA) Offers two Half-Day Courses </li></ul><ul><ul><li>Hiring Outside Contractors </li></ul></ul><ul><ul><li>Managing Outside Contractors </li></ul></ul>
    37. 37. References <ul><li>The Queen's Printer for Ontario, Occupational Health & Safety Branch, Ministry of Labour (2010). The Occupational Health & Safety Act, R.S.O. 1990, Chapter O.1. </li></ul><ul><li>The Queen's Printer for Ontario, Occupational Health & Safety Branch, Ministry of Labour (2008). Constructor Guideline. </li></ul><ul><li>Industrial Accident Prevention Association (2006, 2010). Contractor Safety Training Participants Guide </li></ul>