Report No. 6.64/291
September 1999
HSE management -
guidelines for working
together in a contract
environment
IMCA
leaders...
Publications
Global experience
The International Association of Oil & Gas Producers (formerly the E&P Forum) has
access to...
HSE management - guidelines for working
together in a contract environment
Report No: 6.64/291
September 1999
These guidelines have been prepared for OGP by the Safety, Health and Personnel Competence Committee (SHAPCC),
through its...
i
HSE management - guidelines for working together in a contract environment
© 2000 OGP
Purpose/Intent.......................
ii
International Association of Oil & Gas Producers
© 2000 OGP
The overall objective of this guideline is to improve
the c...
1
HSE management - guidelines for working together in a contract environment
© 2000 OGP
Within the oil and gas explo-
rati...
2
International Association of Oil & Gas Producers
© 2000 OGP
1.2 Interrelationship with other systems
While this document...
3
HSE management - guidelines for working together in a contract environment
© 2000 OGP
2 Overview of process
Management o...
4
International Association of Oil & Gas Producers
© 2000 OGP
The objectives of this phase are to describe the work
and to...
5
HSE management - guidelines for working together in a contract environment
© 2000 OGP
Figure 4 Risk assessment matrix
Se...
6
International Association of Oil & Gas Producers
© 2000 OGP
• Operations too large or diverse for a single contrac-
tor ...
7
HSE management - guidelines for working together in a contract environment
© 2000 OGP
4 Pre-qualification
4.1 Objective
T...
8
International Association of Oil & Gas Producers
© 2000 OGP
The screening process should be designed to assure that
the ...
9
HSE management - guidelines for working together in a contract environment
© 2000 OGP
5 Selection
The objective of the s...
10
International Association of Oil & Gas Producers
© 2000 OGP
In preparing their bid, the contractor should demon-
strate...
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HSE management - guidelines for working together in a contract environment
© 2000 OGP
The best incentive scheme is one ...
12
International Association of Oil & Gas Producers
© 2000 OGP
6 Pre-mobilisation activities
The objectives here are to en...
13
HSE management - guidelines for working together in a contract environment
© 2000 OGP
The kick-off meeting may provide ...
14
International Association of Oil & Gas Producers
© 2000 OGP
7 Mobilisation
The objectives of this phase are to assure t...
15
HSE management - guidelines for working together in a contract environment
© 2000 OGP
In the final stages of the mobilis...
16
International Association of Oil & Gas Producers
© 2000 OGP
8 Execution
The objectives of this phase are to assure that...
17
HSE management - guidelines for working together in a contract environment
© 2000 OGP
During execution of the work, the...
18
International Association of Oil & Gas Producers
© 2000 OGP
9 De-mobilisation
The objectives of this phase are to ident...
19
HSE management - guidelines for working together in a contract environment
© 2000 OGP
10 Final evaluation and close-out...
20
International Association of Oil & Gas Producers
© 2000 OGP
Appendix I: HSE responsibilities for company and
contractor...
21
HSE management - guidelines for working together in a contract environment
© 2000 OGP
Contractor Manager should:
• prep...
22
InternationalAssociationofOil&GasProducers
©2000OGP
AppendixII
People (fatal, inj, occptnl health) Assets*, equipment E...
23
HSEmanagement-guidelinesforworkingtogetherinacontractenvironment
©2000OGP
People (fatal, inj, occptnl health) Assets*, ...
24
International Association of Oil & Gas Producers
© 2000 OGP
1 The questionnaire should cover the information required t...
25
HSE management - guidelines for working together in a contract environment
© 2000 OGP
Section 3: Organisation, Responsi...
26
International Association of Oil & Gas Producers
© 2000 OGP
(vii) Standards
a) Where do you spell out the HSE performan...
27
HSE management - guidelines for working together in a contract environment
© 2000 OGP
Section 6: Implementation and Per...
28
International Association of Oil & Gas Producers
© 2000 OGP
Section 7: Auditing and Review
(i) Auditing
a) Do you have ...
29
HSE management - guidelines for working together in a contract environment
© 2000 OGP
Appendix IV: HSE pre-qualification...
30
International Association of Oil & Gas Producers
© 2000 OGP
A B C D
Standards: items 3(vii)(a)-(c)
No HSE standards ava...
31
HSE management - guidelines for working together in a contract environment
© 2000 OGP
Section 5: Planning and procedure...
32
International Association of Oil & Gas Producers
© 2000 OGP
Section 7: Auditing and review
Auditing: item 7(i) (a)-(c)
...
33
HSE management - guidelines for working together in a contract environment
© 2000 OGP
Appendix V: HSE plan guidelines f...
34
International Association of Oil & Gas Producers
© 2000 OGP
Section 1 Leadership and commitment
• Leadership and Commit...
35
HSE management - guidelines for working together in a contract environment
© 2000 OGP
Detailed checklists for HSE plan
...
36
International Association of Oil & Gas Producers
© 2000 OGP
HSE organisation
Key personnel
Personnel responsible for th...
Csms 1999
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  1. 1. Report No. 6.64/291 September 1999 HSE management - guidelines for working together in a contract environment IMCA leadership and commitment policy and strategic objectives organisation, resources and documentation evaluation and risk management planning implementation and monitoring review a u d i t leadership and commitment policy and strategic objectives organisation, resources and documentation evaluation and risk management planning implementation and monitoring review a u d i t
  2. 2. Publications Global experience The International Association of Oil & Gas Producers (formerly the E&P Forum) has access to a wealth of technical knowledge and experience with its members operating around the world in many different terrains. We collate and distil this valuable knowl- edge for the industry to use as guidelines for good practice by individual members. Consistent high quality database and guidelines Our overall aim is to ensure a consistent approach to training, management and best practice throughout the world. The oil and gas exploration and production industry recognises the need to develop con- sistent databases and records in certain fields. The OGP’s members are encouraged to use the guidelines as a starting point for their operations or to supplement their own policies and regulations which may apply locally. Internationally recognised source of industry information Many of our guidelines have been recognised and used by international authorities and safety and environmental bodies. Requests come from governments and non-government organisations around the world as well as from non-member companies. Disclaimer Whilst every effort has been made to ensure the accuracy of the information contained in this publication, neither the OGP nor any of its members will assume liability for any use made thereof. Copyright OGP Material may not be copied, reproduced, republished, downloaded, posted, broadcast or transmitted in any way except for your own personal non-commercial home use. Any other use requires the prior written permission of the OGP. These Terms and Conditions shall be governed by and construed in accordance with the laws of England and Wales. Disputes arising here from shall be exclusively subject to the jurisdic- tion of the courts of England and Wales.
  3. 3. HSE management - guidelines for working together in a contract environment Report No: 6.64/291 September 1999
  4. 4. These guidelines have been prepared for OGP by the Safety, Health and Personnel Competence Committee (SHAPCC), through its Contractor HSE Task Force, in consultation with the International Association of Geophysical Contractors (IAGC), and the International Marine Contractors Association (IMCA), who both endorse the use of these guidelines. Task Force membership R Kratsas Arco Chairman R Moschetta Arco C Preston Baker Hughes R Shields BG Plc D Laing BP Amoco ER Moir BP Amoco L Simpson BP Amoco M Alexander Chevron TL Thoem Conoco Y Guenard Elf E&P JL Monopolis Esso D Krahn IADC M Covil IAGC JC Sanchez PDVSA B Stene Saga Petroleum A Kjelaas Saga Petroleum G Kubala Schlumberger P Mann Shell R Sykes Shell Chairman G Van der Graaf Shell HJ Grundt Statoil P Guyonnet Total LA Tranie Total DK Hide OGP Secretary Following the Task Force work on developing the guidelines, Bob Moschetta undertook the role of Technical Editor to review and address comments and suggested amendments.
  5. 5. i HSE management - guidelines for working together in a contract environment © 2000 OGP Purpose/Intent..................................................................................................................................................................... ii Description ....................................................................................................................................................................... ii 1 Introduction 1 1.1 Background ...................................................................................................................................................................1 1.2 Interrelationship with other systems..............................................................................................................................2 2 Overview of process 3 3 Planning 4 3.1 Objectives......................................................................................................................................................................4 3.2 Description of work.......................................................................................................................................................4 3.3 Risk identification .........................................................................................................................................................4 3.4 Contracting strategy......................................................................................................................................................5 3.5 Contract schedule..........................................................................................................................................................6 4 Pre-qualification 7 4.1 Objective .......................................................................................................................................................................7 4.2 Purpose and responsibilities...........................................................................................................................................7 4.3 Standard pre-qualification documents...........................................................................................................................7 4.4 Screening.......................................................................................................................................................................8 4.5 From pre-qualification to selection ................................................................................................................................8 5 Selection 9 5.1 Objective .......................................................................................................................................................................9 5.2 Bid documentation prepared by company .....................................................................................................................9 5.3 Bid preparation by contractor......................................................................................................................................10 5.4 Pre-award meetings .....................................................................................................................................................10 5.5 Incentive schemes for HSE ..........................................................................................................................................11 5.6 Contract award............................................................................................................................................................11 6 Pre-mobilisation activities 12 6.1 Objectives....................................................................................................................................................................12 6.2 Kick-off meeting..........................................................................................................................................................12 6.3 Pre-job audits...............................................................................................................................................................13 7 Mobilisation 14 7.1 Objectives....................................................................................................................................................................14 7.2 General ......................................................................................................................................................................14 7.3 Mobilisation audit .......................................................................................................................................................15 8 Execution 16 8.1 Objectives....................................................................................................................................................................16 8.2 Responsibilities............................................................................................................................................................16 8.3 Contractor compliance ................................................................................................................................................16 8.4 Competence assurance.................................................................................................................................................17 8.5 Inspection and HSE auditing/reviews .........................................................................................................................17 9 De-mobilisation 18 9.1 Objectives....................................................................................................................................................................18 9.2 Responsibilities............................................................................................................................................................18 10 Final evaluation and close-out 19 10.1Objectives....................................................................................................................................................................19 10.2Final evaluation and report..........................................................................................................................................19 APPENDIX I: HSE responsibilities for company and contractor key personnel................................................................ 20 APPENDIX II: Definition of consequence - severity of risk.............................................................................................. 22 APPENDIX III: Contractor HSE pre-qualification............................................................................................................24 APPENDIX IV: HSE pre-qualification points system........................................................................................................29 APPENDIX V: HSE Plan guideline for major contracts.....................................................................................................33 APPENDIX VI: HSE Plan guideline for small contracts....................................................................................................50 Table of contents
  6. 6. ii International Association of Oil & Gas Producers © 2000 OGP The overall objective of this guideline is to improve the company and contractor health, safety and environ- mental (HSE) performance regarding exploration and production activities. Active and ongoing participation by both the company and contractors are essential to achieve this goal. While each has a distinct role to play in ensuring the ongoing safety of all involved, there is an opportunity to further enhance the company/contractor relationship by clearly defining roles and responsibili- ties, establishing expectations and maintaining com- munication throughout the relationship. For example, one role of the company is to review and assess the con- tractor’s HSE Management System and Programmes, while one role of the contractor is to provide HSE infor- mation as requested by the company. Often the infor- mation requests vary from company to company. By establishing a standard format, which streamlines the bidding process, company and contractor resources can be devoted to improving specific HSE issues. This guideline is designed to: 1 improve workplace safety, health and environmen- tal performance by assisting the company and con- tractors in administering an effective HSE program for the contract; 2 assist contractors in administering programs which are consistent with the clients expectations; 3 facilitate the interface of contractor’s activities with those of the company, other contractors and sub- contractors. These programs should be designed to protect both company and contractor personnel from workplace inju- ries and illness as well as from losses associated with the incidents, while preserving the independent contractor relationship. This information is provided to assist company and contractor management to visualise the process of man- aging contractor HSE programs. This document is not intended to replace the necessary professional judge- ment needed to recommend the specific strategy to follow. Each reader must analyse their particular situa- tion, tailor the information in this document and obtain the appropriate technical support. Due to the rapid change that is occurring in the oil and gas industry, together with the various company- contractor interface systems and management practices that are evolving, this guideline will be reviewed every two years. The Safety Health and Personnel Compe- tency Committee will make updates and modifications based upon review. Purpose/Intent Description The main section of the document covers various phases of the contracting process and the associated HSE tasks and responsibilities of the company and contractors. This is an eight-phase process, which begins with plan- ning, and ends in final evaluation and close out. The objectives, roles and responsibilities are defined for each phase. A key part of the planning phase is risk identification. It is also the prime factor in determining contracting strategy. During this step the level of risk is assessed and the most appropriate measures are identified to pre- vent incidents from occurring. Included in the appendi- ces are additional tools such as checklists for HSE Plan development, severity of risk definitions, and guidelines for small and large contracts.
  7. 7. 1 HSE management - guidelines for working together in a contract environment © 2000 OGP Within the oil and gas explo- ration and production industry, the pattern of use of contractors has changed significantly over the last ten years. Figure 1 shows the pattern of company and contractor hours reported to E&P Forum for the period 1985-1998. Prior to 1985 the work force was predominately company employ- ees. Since 1990 there has been a significant increase in the use of contractor staff, with a resulting shift in responsibility and risk from the company to the con- tractor population. It can be seen from figure 2 that there have been significant improvements in the safety performance of both the Companies and their contrac- tors during this period. Historically the contractor Lost Time Injury Frequency (LTIF) has not been as good as that of companies, though the gap is narrowing. The trend is encouraging, since contractor personnel generally have a higher expo- 1 Introduction 1.1 Background 0 2 4 6 8 10 Overall Company Contractor 1998199719961995199419931992199119901989 8.1 3.0 2.73.4 2.5 3.1 6.1 5.2 4.7 4.1 3.9 6.6 2.8 3.3 3.0 2.5 2.6 1.92.0 2.0 0 200 400 600 800 1000 1200 Manhours Contractor Manhours Company 1997199519931991198919871985 Figure 1 Company contractor hours worked (millions of hours) sure to risk, and it is important this trend continues, particularly as use of contractors in the E&P industry increases. These guidelines have been produced to assist man- agement of the company-contractor interface in this changing environment and to help in the achievement of further joint improvements in safety performance. Figure 2 LTIF performance of E and P companies and contractors (number of lost workday cases, including fatalities, per million hours worked)
  8. 8. 2 International Association of Oil & Gas Producers © 2000 OGP 1.2 Interrelationship with other systems While this document is designed to focus on improv- ing contractor health, safety and environmental (HSE) performance, it is an extension of the previous efforts within the E&P Industry and various governmental efforts around the globe to improve overall industrial HSE performance. This effort has utilised and built upon the E&P Forum’s “Guidelines for the Development and Application of Health, Safety and Environmental management sys- tems”; and the API recommended practices documents 2220 and 2221, which address contractor-client inter- actions and how to build an effective contractor HSE program. Additional influences are the UK Health and Safety Executive publication, “Successful Health and Safety Management”; the U.S. Occupational Safety and Health Administration’s Process Safety Management Guidelines; the ISO 9000 and 14000 systems; and numerous E&P Forum Member programs. All of these documents/programs utilise the same basic model for a system starting with leadership and com- mitment and flowing to testing and evaluation in a con- tinuous cycle. Loss of any portion results in a system failure. This guideline follows the wording and structure used in the Forum’s “Guidelines for the Development and Application of HSE-MS.” However, by following the guidelines in this document, a user should meet the basic requirements of various industry associations, gov- ernmental entities and the user’s own requirements. These guidelines were developed for the “normal activi- ties” expected in E&P operations. Each operation is, however, unique. Therefore, the user should critically evaluate these guidelines for his activities and their asso- ciated risks, and may need to adapt them for the par- ticular circumstances of the work. This guidance is primarily developed for those responsi- ble for contracting out activities, and personnel responsi- ble for interface and operational oversight of contractors, their employees and subcontractors. This guidance document is mainly for activities with a medium to high risk although similar principles may be applicable to all contracted activities. These guidelines in no way supplant a host country’s requirements.
  9. 9. 3 HSE management - guidelines for working together in a contract environment © 2000 OGP 2 Overview of process Management of HSE in a business environment where two or more companies work together requires co-oper- ation between them and a clear definition of the tasks and responsibilities of each of the parties. The typical phases of a contracting process are shown in Figure 3. The sectional headings addressing the phases are shown on the right. Each section describes the tasks and responsibilities showing a clear distinction between the company and contractor(s). An overview of respon- sibilities is given in Appendix I. Joint company / contractor activities Contractor Company Description of work & risk identification Contracting strategy Planning Shortlist and screen contractors Establish bid evaluation criteria Contractor responds to questionnaire and provides HSE information Pre-qualification Contractor database Bid evaluation and clarification Contract award SelectionContractor prepares bid and HSE plan Pre-mob audits Pre-mobilisation Preparations Joint completion of HSE and execution plans Pre-execution auditMobilisation Kick-off meeting Mobilisation Execution De-mobilisation Review of de-mobilisation HSE plans De-mobilisation Final evaluation and report Review Close-out Execution, supervision and reporting Monitoring, audits and inspection Acceptance of work and restored site Report Figure 3 Phases of the contracting process
  10. 10. 4 International Association of Oil & Gas Producers © 2000 OGP The objectives of this phase are to describe the work and to assess the HSE risks associated with the work. The contracting strategy is to be selected on the nature and size of the work, and the risk involved. 3 Planning 3.1 Objectives The planning phase is generally a company activity, but can be enhanced by use of specialised advisers. The company is responsible for describing the work to be executed. The description should be supported by doc- umentation in the form of standards, drawings, etc. allowing selected contractors to obtain a full under- standing of the work required. The company may also specify HSE requirements to be met; examples include, but are not limited to, the following: • Emissions and waste generated by the activities • Timing of the activities • Location of the work • Requirements for site restoration • Reporting requirements, applicable laws and regu- lations etc. • Training expectations • Competence assurance • Materials to be utilised • Alcohol and drug testing policies • Medical policies • Prohibited work practices. 3.2 Description of work The company is responsible for making an initial assess- ment of the HSE risks involved in execution of the work. This will aid the contractor and company in developing programs and safe work practices to protect all workers. The focus of the assessment during this phase should be to evaluate the inherent hazards in con- ducting the work. In addition, the assessment addresses the potential adverse consequences of an accident and the potential adverse consequences of an incident to the workforce, the public, the environment, company and contractor assets and reputations. The level of risk assessed for the proposed work should be the prime factor in selecting a contracting strategy (as outlined in Section 3.4) and in determining which measures are most appropriate for consideration by the contractor to prevent incidents from occurring and to minimise the consequences of an event should it occur. The level of risk is also indicative of the amount of time and effort to be spent at later phases to provide assurance that con- trols are in place to reduce the risks to as low as reason- ably practicable. As a minimum, a risk assessment should include con- sideration of the following: • Nature of the work - materials to be utilised • Location of the work • Potential for exposure to worksite hazards (H2S, Asbestos, etc.) • Potential exposure to hazards for all personnel involved in the activities • Potential consequences of incidents (environmen- tal damage, delays of project development, delay in production operations, legal claims) • Exposure to negative publicity. The risks assessed can be characterised as low, medium or high in accordance with the Risk Assessment Matrix approach shown in Figure 4. Definitions for the ratings are provided in Appendix II. 3.3 Risk identification
  11. 11. 5 HSE management - guidelines for working together in a contract environment © 2000 OGP Figure 4 Risk assessment matrix Severity People Assets Environment Reputation 0 1 2 3 4 5 Consequence Increasing probability A B C D E Never heard of in E&P industry Heard of in E&P industry Incident has occurred in our company Happens several times per year in our company Happens several times per year in a location No health effect/injury Slight health effect/injury Minor health effect/injury Major health effect/injury Single fatality Multiple fatalities No damage Slight damage Minor damage Localised damage Major damage Extensive damage No effect Slight effect Minor effect Localised effect Major effect Massive effect No impact Slight impact Limited impact Considerable impact National impact International impact Intolerable Manage for continuous improvement Incorporate risk reduction measures 3.4 Contracting strategy One of the most important strategic contract manage- ment decisions to be made by the company is on the way in which the contractor, or alliance of contractors, is held responsible for the management of HSE. Two distinctly different modes are described below. Mode 1 The contractor provides people and tools for the execution of work under the supervision, instructions and HSE-MS of the company. The contractor has a management system to pro- vide assurance that the personnel for whom he is responsible are qualified and healthy for the job and that the tools and machinery he is pro- viding are properly maintained and suitable for the job. Mode 2 The contractor executes all aspects of the job under its own HSE Management System, pro- vides the necessary instructions and supervi- sion and verifies the proper functioning of its HSE Management System. The company is responsible for verifying the overall effective- ness of the HSE management controls put in place by the contractor, and assuring that both the company’s and the contractor’s HSE-MS are appropriately compatible. Selection of one of these modes is preferred. However, in certain situations it may be necessary to adopt a mix- ture of the two modes. This can be accomplished by following Section 3.5 of the E&P Forum “Guideline for the development and application of health, safety and environmental management systems”, report number 6.36/210. This section outlines the interfacing of con- tractors’ activities with those of the company and with those of other contractors as appropriate. This may be accomplished by means of a specific interface document between the company and the contractor so that dif- ferences may be resolved and procedures agreed before work commences. Examples of such situations are given below. • Operations in an area where there is a limited selec- tion of contractors able to meet the evaluation crite- ria. For example an alliance may have to be formed between the company and available contractors with the objective to develop, improve and imple- ment an HSE Management System for the contrac- tor while executing work under the management system of the company. The management system will initially aim at working under Mode 1.
  12. 12. 6 International Association of Oil & Gas Producers © 2000 OGP • Operations too large or diverse for a single contrac- tor may require a number of contractors and sub- contractors (a consortium) to work together under the supervision of one main contractor working for the company under Mode 2. • The work is intimately associated with the activities of the company, or presents such a high risk to the company that the work is to be executed using the company’s management system under Mode 1. • The contractor executes most aspects of the job under its own HSE Management System; however, certain support activities such as transportation and emergency response are provided by the company. • A Drilling Contractor is responsible for identify- ing and supplying personal protective equipment to its personnel. A Fluids Contractor designs the mud program for the Operator, with new additives included in the well plan. In this case the company has an interface procedure that details the respon- sibilities of the drilling contractor and requires the fluid contractor to provide chemical hazard infor- mation to the Operator and drilling contractor before shipping the materials. The interface pro- cedure further requires the on-site fluids engineer to communicate chemical hazards during the pre- spud meeting. Also, when working with an alliance of contractor(s) or a consortium, it should be made clear in advance whether the alliance or the lead contractor is fully responsible for all instructions and supervision or whether that is the responsibility of the company. If the alliance or con- sortium is responsible, it should be made clear in the contract how this is organised. In addition, the person responsible for critical activities has to be clearly identi- fied. Joint responsibilities should be avoided by break- ing down the work into smaller identifiable activities, each with a party assigned to it with responsibility for the HSE aspects. Usually Mode 2 is preferred except in “High Risk” situ- ations where the work is highly interactive with compa- ny’s activities. Example: On an offshore production platform, a modification requiring welding and grinding has to be made in a hazardous area. This is considered a “High Risk” oper- ation. Moreover, the essential controls and emergency response are arranged by the company. Typically Mode 1 would be used. Example: A consortium of contractors with one lead contractor is responsible for the construction of a new onshore production facility. Construction activities are always “High Risk”. However, until the moment that hydro- carbons are introduced, the lead contractor can be held accountable for managing all aspects of the job pro- vided the construction contractor can demonstrate its capability to manage all HSE aspects. Typically Mode 2 would be used. “Low Risk” contracted operations, e.g., deliveries of non-critical materials, food, stationery, etc., are usually covered by Mode 2 whereby the contractor provides the HSE controls. Usually the company controls on such low risk activities are minimal and Mode 2 is typical. However, contractors working on company premises are normally under the control of company personnel and should follow company instructions. Issues in setting a contract strategy might include: number of contracts, contract schedule, rules and regu- lations, and the use of company HSE standards and/or relevant national HSE legislation and international con- ventions. 3.5 Contract schedule A contract schedule should be developed with due con- sideration of the HSE issues and deliverables involved, paying particular attention to allow adequate time for mobilisation/demobilisation. This evaluation may well highlight HSE issues that require special emphasis in later contract phases.
  13. 13. 7 HSE management - guidelines for working together in a contract environment © 2000 OGP 4 Pre-qualification 4.1 Objective The objective of the Pre-qualification phase is to screen potential contractors to establish that they have the nec- essary experience, capability and financial viability to undertake the activities in question safely and in an environmentally sound manner. 4.2 Purpose and responsibilities The general practice in Companies for selecting con- tractors is through competitive tendering. In the pre- qualification stage, potential contractors are screened to establish that they have the necessary experience and capability to undertake the activities in question. Only those being able to demonstrate that they can manage in a fully satisfactory manner the HSE risks of the work, should be included on the pre-qualified list. A formal historical record of the HSE performance, including findings of audits and inspections, of all contractors previously employed, should be maintained by the com- pany for use during the pre-qualification process. The pre-qualification process is a crucial step in which assurance is sought that the risks of the work will be managed. The purpose of the pre-qualification stage is for the company to agree on a list of contractors that will be invited to bid, and a list of HSE bid evalu- ation criteria to be met. Pre-qualification is one of the last safeguards in identifying suitable contractors. Once contractors are qualified to bid, they are eligible for award of a contract. The company contract manager is responsible for pre- qualification and providing assurance that the contrac- tors invited to bid can manage the HSE risks associated with the work. 4.3 Standard pre-qualification documents Pre-qualification is usually achieved by issuing a stand- ard format document for the contractor to complete, supported where necessary by historical performance records. It may be necessary to review the content before issue and to add, remove or emphasise requirements specific to the activity. As a means to streamline the pre-qualification process, the E&P Forum recommends that companies adopt the pre-qualification questionnaire, located in Appendix III. Requests for additional or company specific infor- mation that is not included in the questionnaire can be inserted into Section 9. By implementing this standard format, both the company and contractors can devote their resources to improving HSE performance rather than reformatting existing information into a variety of formats. Of special importance is the management by contrac- tors of their subcontractors and the need for the main contractor to demonstrate understanding and commit- ment to having full responsibility in this area. Similarly, when contractors are working in an alliance or consor- tium, it is of special importance to demonstrate that each entity fully understands, and is committed to, the HSE management of the assigned HSE critical activi- ties. A points system method, which minimises subjective judgement, may be used to evaluate contractors’ submis- sions. Contractors who achieve a pre-defined acceptable score will then be judged to have met the HSE pre-con- tract requirements. Appendix IV provides guidelines for such a rating system.
  14. 14. 8 International Association of Oil & Gas Producers © 2000 OGP The screening process should be designed to assure that the contractors invited to bid can perform the work to the required HSE criteria. The general approach is to send a uniform question- naire to all potential contractors, initially assess their HSE capabilities based on the questionnaire using an equitable measuring system (see Appendix III) and sup- plementing this with site inspections of current contrac- tor work sites. Contractors which have been used by the company pre- viously can be assessed through the use of close out reports and other historical records. A review of any potential changes to the contractor’s organisation, pro- grammes and systems should also be conducted. During pre-qualification of large contractors, especially those with many divisions in numerous countries, the use of the record of the Corporation may not be appro- priate. In such a case, the focus should be on the divi- sion bidding for the work. For those contractors not qualifying, a feedback mecha- nism should be in place to inform them why they did not qualify and that by correcting the identified defi- ciencies; they may qualify for future work. Where there is a policy to encourage selected contrac- tors to develop an HSE management Plan, and these contractors have little or no background in HSE man- agement, then a plan to overcome the shortcomings should be developed. Such a plan may require addi- tional company supervision, more explicit procedures or additional training. The HSE requirements should be met before work commences. The scale of the con- tract and the exposure must be matched accordingly. Again, the details of the program and performance of such contractors should be recorded and retained for future reference. 4.4 Screening Before entering the selection phase the company should document the pre-qualified contractors and the ration- ale for the selection. At this time, the company specifies the minimum evidence to be produced during the selec- tion phase by the potential contractors demonstrating that a sound Plan exists for implementing HSE man- agement during the potential contract work to control risks to as low as reasonably practicable. This informa- tion should be prepared by the contractor as part of the HSE Plan. Appendices V and VI provide requirements for an HSE Plan for major and small contracts, respectively. Dependent on the level of risk involved in the con- tracted work, the company should establish yardsticks to measure the quality of the contractor’s HSE Plan and criteria to be met. These measuring methods and crite- ria should be documented prior to the selection process in the form of “Bid Evaluation Criteria”. 4.5 From pre-qualification to selection
  15. 15. 9 HSE management - guidelines for working together in a contract environment © 2000 OGP 5 Selection The objective of the selection phase is to assess whether the HSE Plan and the Bid Evaluation Criteria have been met and to select, where necessary on the basis of clari- fication meetings, the successful bidder. Pre-qualification is the most important screening tool for the selection of contractors. All contractors that are pre-qualified should be fully capable of managing all HSE aspects of the job. 5.1 Objective 5.2 Bid documentation prepared by company The selection criteria used should consider significant aspects such as costs, technical ability, reputation, and the ability to meet schedules. The overall risk of con- tract and HSE management should be given appropriate weighting along with other considerations when selec- tion criteria are evaluated. This section outlines some key considerations specific to the HSE portion of the selection process. Contractors should be given copies of the company’s HSE documentation relevant to the contract. Docu- mentation in the tender package may include: • company HSE goals and objectives. • company HSE-MS. • definition of the scope of the HSE Plan and the known hazards to be addressed. • list of HSE controls procedures and compliance issues for the contract. • definition of the company/contractor anticipated interfaces, the company supervision strategy and interaction with company operations, interaction with specific company plans such as emergency response. • type and schedule of company and contractor train- ing requirements and competencies. • specification of the minimum pre-execution require- ments. The HSE tender documentation should be compiled, with due attention to the following: • It is the company’s responsibility to assure that the tender documents address the HSE requirements for the contract and that knowledge about hazards already identified by the company are passed on to the contractor. The company should not assume that the contractor knows of the hazards in the workplace, which are associated with the execution of contracted activities. • The contractor has independent responsibility for his own HSE Plan, but documents should make clear provision for the company to perform HSE audits on the contractor in order to assess compli- ance. • The documents should include provision for the company to suspend work if the contractor does not observe the HSE criteria spelled out in the con- tract HSE Plan or HSE Case and, in particular at mobilisation, to withhold permission to start exe- cution and hold payments until a satisfactory pre- execution audit has been achieved. Before any work is suspended, the company should liaise with the contractor to allow them the opportunity to rectify any non-conformances. • Where special HSE provisions are to be provided, the documents should specify these clearly and identify who is to pay for them. Any constraints on the methods of working should also be specified.
  16. 16. 10 International Association of Oil & Gas Producers © 2000 OGP In preparing their bid, the contractor should demon- strate compliance with such requirements and illustrate their process for preparing their own HSE Plan within the required framework. The actual plan will be devel- oped after the contract is awarded. This may be accom- plished by developing a system which facilitates the interfacing of company, contractor and sub-contractor activities, as described in section 3.5 of OGP’s “Guide- lines for the development & application of health, safety and management systems”. Contractors should be allowed the freedom to use industry HSE guidelines/recommended practices/standards, e.g., those of the International Association of Drilling contractors (IADC) or International Association of Geophysical contractors (IAGC), or the International Marine Con- tractors Association (IMCA), or of OGP, API and IMO, if they are equivalent to or exceed the company’s requirements. The company should have the expertise and resources to evaluate the alternatives proposed. The tender documents should allow flexibility for the con- tractor to take ownership of HSE responsibilities under the contract but allow for the company to effectively manage the contract. Adequate lead times for tender preparation should be allowed to avoid compromising the establishment of a sound basis for HSE manage- ment. The company should assure that the mobilisation and demobilisation phases are adequately covered in the HSE Plan. In some instances the ability to exercise influence may be limited (for example when work is being carried out in a yard or factory where only a small percentage of the contractor’s workload is for the com- pany). Some HSE requirements will have been supplied at the pre-qualification stage. An important element that the contractor should provide is their process for develop- ing a written HSE Plan commensurate with the level of risk involved in the work. This plan will be the main element considered when carrying out evaluation of the bid and should be regarded as the top document that drives the specific HSE program for major contracts. The HSE Plan could be developed along the lines pre- sented in Appendices V and VI. Examples of typical HSE Plans and Programs used in similar contracts in which the contractor has been involved may be submitted. The contractor’s HSE Plan should clearly identify where he believes his HSE-MS interacts with the HSE-MS of the company and other contractors. A proposal should be made by the contractor on the approach to manag- ing these interactions and the allocation of responsibili- ties for overlapping areas. The interface document should demonstrate that both parties have the necessary procedures (e.g., Permit to Work, Hazard and Risk Assessment, Operating Instruc- tions, Contingency Plans) and controls in place to achieve the work program without compromising HSE performance. These systems should be harmonised where possible to minimise the potential for misunder- standing. If there is a considerable amount of time between pre- qualification and the bid submission, contractors should be asked to provide evidence of documenting their cur- rent HSE systems and performance. 5.3 Bid preparation by contractor The company’s internal pre-award meetings should con- centrate on reviewing the HSE program prepared by the contractor, and on assessing how effective the con- tractor has been in providing assurance that all haz- ards have been identified & that suitable controls are planned to reduce the risk to a level as low as reasonably practicable. A joint company and contractor “pre-award” meeting with contractors should be used to clarify and further assess the suitability of contractors’ HSE Plans and how that plan interacts with the HSE MS of the company and of other contractors. Following these “pre-award” meetings the company should assess whether the HSE Plan and acceptance cri- teria, as defined in Section 4.5 (Bid Evaluation Criteria), have been met. This appraisal should be documented as it is one of the crucial conditions for awarding the contract. 5.4 Pre-award meetings
  17. 17. 11 HSE management - guidelines for working together in a contract environment © 2000 OGP The best incentive scheme is one which values HSE per- formance and which results in a continuing long-term relationship between company and the contractor based on good HSE performance. The need for additional incentives should be carefully considered. To be effective a scheme should: • not discourage or suppress the reporting of inci- dents. • be proactive and reward effort, eg, audits and fol- low-up rather than ‘after the event’ statistics. • ensure that incentives are valued by the personnel who are in a position to influence the performance and maintain the systems. • be culturally sensitive to the local environment. • motivate personnel to change those behaviours that detract from HSE performance. • appreciate the HSE culture of the contractor 5.5 Incentive schemes for HSE Award of the contract should consider a number of areas such as technical competence, ability to meet schedule, and cost. The documented appraisal of the contractor’s capability to manage HSE should be available from pre- vious phases. This appraisal provides a “go- no go” cri- terion, i.e., if a contractor does not meet the minimum criteria, he should not be awarded a contract. Once the award has been made, joint meetings should be held as soon as possible to agree on the final HSE Plan and detailed programmes. 5.6 Contract award
  18. 18. 12 International Association of Oil & Gas Producers © 2000 OGP 6 Pre-mobilisation activities The objectives here are to ensure that the relevant aspects of the contract risk assessment and any other HSE aspects of the contract are communicated and understood by all parties prior to implementation of the contract. Several activities such as reviews, meetings and audits can be used. The amount of detail and effort for pre-job activities should be commensurate with the level of risk. 6.1 Objective A kick-off meeting should be used as an opportunity for the contractor(s) to become familiar with the location, facility, personnel, and other work information. The kick-off meeting is generally recognised as an impor- tant bridging step in working together to prevent inci- dents and resolve any health, safety and environmental issues. The kick-off meeting should be held immediately after contract award and before the execution of any work. For a new contractor, the kick-off meeting may include the company’s and contractor’s local management. If the contractor mobilises locally at the work site, the kick-off meeting may be held locally. If not, it may be necessary to hold the initial kick-off meeting at the contractor’s base office. This should be followed by a subsequent mobilisation of key contractor and subcon- tractor personnel to the work site and possibly addi- tional local kick-off meeting(s). The local meeting(s) should be held immediately prior to the start of any work as part of the mobilisation process. The topics covered by the kick-off meetings might include: • review of associated major hazards • confirmation of HSE Plan to be implemented including confirmation that roles and responsibili- ties have been clearly defined and understood • confirmation of worker competence; this includes both company and contract workers who are exposed to workplace hazards as defined in the description of work and risk assessment phases. • confirmation of any HSE performance objectives and targets • distribution and explanation of the company’s HSE policy statement, basic HSE rules and work proce- dures in as far as the contractor works under the company HSE-MS • confirmation of the scope and schedule of HSE activities for example; HSE meetings, audits and reviews • interaction of company’s and contractor’s contin- gency plans • contact with third parties to assure their role in emergency response plans is known • confirmation that HSE induction and training plans are in place and ready for start up • briefing of subcontractors on HSE requirements • incident reporting and investigation procedures The meeting(s) may be structured as an HSE work- shop, with participation by both company and contrac- tor management. The kick-off meeting(s) should be used as an opportu- nity to clarify or raise new HSE issues that may not have been covered in the contract documentation. Account should be taken in the meeting discussions of the con- tractor’s own HSE Management System, work culture and working practices. 6.2 Kick-off meeting
  19. 19. 13 HSE management - guidelines for working together in a contract environment © 2000 OGP The kick-off meeting may provide an opportunity to discuss the mechanisms that will be involved to certify that HSE systems are in place. It may also provide an opportunity to check the condition of the equipment and worksite in as far as is possible. It is important to keep in mind that equipment and site may still be in use for other jobs. The items listed under Section 6.2 can be parts of the pre-job audit. Supplemental audit areas might include the provision and maintenance of: • equipment and site to be used for the work • HSE equipment • communication systems and procedures • environmental protection systems • health hazard identification and assessment, medi- cal facilities, Medivac procedures. The audit should provide recommendations to be imple- mented prior to commencing the work. The scope and duration of the pre job audit can be determined by the company and contractor, this determination is based upon the job description and associated hazards. 6.3 Pre-job audits
  20. 20. 14 International Association of Oil & Gas Producers © 2000 OGP 7 Mobilisation The objectives of this phase are to assure that the HSE Plan is modified, if warranted, and communicated to all relevant personnel, both company and contractor. 7.1 Objectives Prior to mobilisation, it is likely that the full HSE Plan is known only to the principal members of the company’s and contractor’s project management teams. During mobilisation, the HSE Plan should be commu- nicated by the management of both the company and the contractor to all relevant personnel. In the mobilisation phase some of the principal activi- ties are: • local kick-off meeting(s) • mobilisation of contract staff and equipment • finalise the contractor’s HSE Plan • commence induction and site-specific training • hold mobilisation HSE audit. During mobilisation the company and contractor assure that each sets up a method of operation that is in accord- ance with the agreed HSE Plan. It is at this stage that implementation of the HSE Plan by the contractor for- mally begins. For contracts under “Mode 1” strategy, the contractor’s operations should be fully compatible with the company’s HSE-MS. For contracts under a “Mode 2” strategy, any HSE Plan requirements should be integrated into the contractor’s HSE-MS. The company and contractor should confirm that each has deployed his supervisory staff and is implementing the agreed-upon briefing and training for his supervi- sors and employees. Depending on the circumstances, additional supervi- sory staff from the contractor may be required to allow rapid set-up and implementation of the HSE Plan. The company and contractor may want to have addi- tional staff available to verify that the HSE Plans are fully implemented. This can be accomplished by a joint company/contractor HSE field review or audit. During the initial part of the mobilisation phase all key personnel assigned to the project should attend an HSE orientation program that should be used to com- municate the HSE Plan and any other significant HSE aspects of the contract. Progress meetings should then be used as a formal method of reviewing HSE implementation, along with frequent walk-throughs by company personnel. Aligning the various interests and areas of responsibility requires good working relationships between the com- pany and contractors, among contractors and between contractors and sub-contractors. This is particularly true if the subcontractor activities are difficult to moni- tor (e.g. distributed work groups, transportation). Once mobilisation activities have commenced, the company should begin monitoring of the contractor’s pre-execution activities to assure the HSE Plan is imple- mented. 7.2 General
  21. 21. 15 HSE management - guidelines for working together in a contract environment © 2000 OGP In the final stages of the mobilisation, an audit or review against the project’s HSE Plan should be completed to determine whether the contractor has achieved the necessary targets stated in the HSE Plan and whether mobilisation can be considered complete. This can be accomplished by a joint company/contractor HSE field review or audit. Achievement of HSE Plan targets for this stage should represent the first milestone of the project. Usually, the extent of the audit depends on the level of risk associated with the activity. For a relatively low risk contract, an audit may be conducted by means of a simple checklist. For high-risk contracts, a more ana- lytical approach may be used. If the audit proves to be unsatisfactory, then the status of the contractor’s progress should be carefully reviewed. The options available at this stage are: • Minor deficiencies: the contractor should be requested to implement corrective action and the audit repeated. It may be possible to allow this to take place in parallel with initiating the execution phase. • Serious omissions: the option of withholding per- mission to proceed or even terminating the contract may be necessary. To minimise the possibility that the company could be perceived as assuming responsibility for HSE supervi- sion, the results of the mobilisation audit are documented and processed through the contractor’s HSE-MS. The mobilisation audit usually is structured against the elements of the HSE-MS or, more specifically against the HSE Plan elements (as outlined in Appendix V). 7.3 Mobilisation audit
  22. 22. 16 International Association of Oil & Gas Producers © 2000 OGP 8 Execution The objectives of this phase are to assure that the work to be performed is conducted according to the agreed- upon HSE Plan, and that additional HSE needs, identi- fied during the work, are properly addressed. 8.1 Objectives The nature of the work determines the level of supervi- sion necessary. For example, within or in close proximity to operating plant, hazardous area zones or acknowl- edged high risk operations, more direct company super- vision may be required than on a new construction site or the contractors own premises, i.e. MODU, lay barge, etc. Only in particular circumstances should contractors be directly supervised because too much instruction/ direction from the client tends to relieve the contractor of the responsibilities stipulated in the contract. Where responsibility for supervision rests with the con- tractor, the company’s role should be to monitor com- pliance to contractual terms and systems defined within the contract. Unless the contract holder has a perma- nent presence on site, it is usual to appoint representa- tives from line management to monitor and verify that contract HSE obligations are being met. The contract holder and representative should have access to special- ist HSE advice where needed, but accountability for contract HSE lies with the contract holder. Responsibil- ity may be delegated to the representative, but account- ability needs to remain with the contract holder. 8.2 Responsibilities The roles and functions of the company contract holder includes assurance of: • the contractor’s line management commitment to HSE issues • compliance with all HSE related clauses in the con- tract and the HSE Plan • the existence of contractor’s internal HSE control system • the contractor’s monitoring of the quality, condi- tion and integrity of his Plan equipment and tools • the contractor’s holding of toolbox and regular HSE meetings • contractor’s implementation and participation in emergency exercises and drills • proper management of HSE risks which arise from changes to the Plan • compliance with incident and near-miss reporting, investigation and follow-up. • the resolution of interface problems between con- tractors. An HSE audit and review programme should be pre- pared, stating specifically what is expected of the com- pany contract holder in ensuring that the HSE Plan is finalised and adhered to, together with details of how the performance of the contractor is to be measured. 8.3 Contractor compliance
  23. 23. 17 HSE management - guidelines for working together in a contract environment © 2000 OGP During execution of the work, the company contract holder must monitor the continued competence of the contractor. This refers to any associated training com- mitment undertaken. Where necessary, the company should also determine if any additional competence assurance is needed as a result of local circumstances. Monitoring should include a verification that the con- tractor complies with his management system that may include: • competence and close monitoring of the replace- ment of personnel • provision of the necessary induction courses • training of contractor personnel in job related activ- ities and procedures • completion of all agreed-upon HSE training, includ- ing any specified statutory training requirements • availability of HSE documents, instruction and information leaflets with special attention to use of local language reinforced with simple visual mes- sages. 8.4 Competence assurance Inspections and audits provide the methods for moni- toring contractor HSE activities. Regular inspections by company representatives provide a means of checking compliance with contract requirements. The frequency of such inspections/verifications depends on the size of the work and the risks involved. Auditing provides the more formal and comprehensive assessments of adher- ence to the HSE Plan. Inspections and audits should be performed by both contractor and company. Joint inspection/audit pro- grams may have the advantage of aligning sometimes divergent objectives, enhancing common understand- ing and promoting constructive participation. Findings of inspections and audits should be shared between client and contractor with positive commit- ment from both parties to use the findings for improv- ing performance. 8.5 Inspection and HSE auditing/reviews
  24. 24. 18 International Association of Oil & Gas Producers © 2000 OGP 9 De-mobilisation The objectives of this phase are to identify the hazards associated with demobilisation and identify and imple- ment controls to minimise the risks. The HSE Plan should be modified, if need be, to address new or unex- pected hazards. 9.1 Objectives The contractor’s HSE Plan should continue to be the vehicle for managing the HSE activities in this phase. Demobilisation often is a phase of the project having an increased chance of incidents as the project infrastruc- ture and contractor HSE management structures are being dismantled with people moving off the project to new assignments. Assurance should be sought that the appropriate organisational structures remain intact until associated activities have been completed. These should include: • emergency response • site restoration • waste management and disposal. Due consideration should be taken of any learning points from mobilisation, the problems encountered and solutions found. The company and contractor should continue to moni- tor performance against the Plan, including attention to incident reporting. It is important to maintain vigi- lance on HSE matters to the very end of the contract. The close out report should be made after all activities have been completed. 9.2 Responsibilities
  25. 25. 19 HSE management - guidelines for working together in a contract environment © 2000 OGP 10 Final evaluation and close-out The objectives of this phase are to conduct a joint evalu- ation of the contractor’s and company’s HSE perform- ance and to provide feedback to the contractor(s) and company which can be a reference for future work. 10.1 Objectives Contracts should be closed out with a report of HSE performance, providing feedback for future knowledge and learning. Ideally, HSE performance should be tracked on a regu- lar basis throughout the contract with the final report being the distillation of the regular monitoring process and the end of contract review. This may take the form of a close-out meeting where all parties are represented. Thus, throughout the contract, contractor performance should be monitored against Plan and any deviations, positive or negative, annotated for reference in the close- out report/summary. The format of the close-out report should reflect the agreed Plan and contractual obligations between the company and the contractor(s). However, there should be sufficient flexibility to take account of mutually agreed changes to the contract. 10.2 Final evaluation and report The analysis and summary of conclusions should address: • quality of the original HSE Plan and its relevance to the overall contractor(s) performance, stipulating what was learned and how future contracts should be structured. • highlighting positive aspects of learning and how they can be applied in the future. This learning should be shared with the contractor. • incorporation of any new hazards identified into the hazard identification and evaluation process for future contracts. • analysis of both the client and contractor’s HSE performance for mutual improvement. • information on the contractor to be added as a ref- erence for the client bid list and which may pro- vide advice for improvements in assessing future tenders. The HSE close-out data should be recorded and made accessible for future reference. A documented record of HSE Performance should be kept on each contractor. The contractor will again be advised that his overall performance and HSE record will be taken into account when being considered for future work.
  26. 26. 20 International Association of Oil & Gas Producers © 2000 OGP Appendix I: HSE responsibilities for company and contractor key personnel Contract Holder should: • conduct a structured HSE assessment of the antici- pated contract • pre-qualify contractors for the bidders list using standard HSE criteria • prepare contract HSE specifications for inclusion in the tender documentation • prepare an HSE monitoring programme defining the role of company representative(s) in ensuring that the contractor’s HSE Plan is finalised and fol- lowed • prepare company audit and review programme and secure appropriate resources • evaluate contractor’s HSE Plans • assure the adequacy of the contractor’s HSE Plan • appoint competent company representative(s) • supervise company representative(s) • conduct a pre-execution HSE audit • authorise the contractor to commence work if the pre-execution HSE requirements are met • monitor performance of the contractor against his HSE Plan • authorise deviations from the contractor’s HSE Plan • authorise additional HSE requirements as deemed necessary • apply sanctions in the event of unauthorised devia- tions from the contractor’s HSE Plan • prepare HSE close-out report and distribute to appropriate company and contractor personnel for feedback Company Representative should: • perform assurance checks on contractor’s review and inspections and follow up • verify hazards and effects management controls, as specified in the contractor’s HSE Plan, are imple- mented • identify deficiencies in contractor’s HSE Plan and agree to remedial action with contractor or instigating sanctions in consultation with Contract Holder. Company Site Representative: Where a contractor may be working in a number of areas it is common for a company to nominate some- one who is responsible for the supervision of the physi- cal work being executed under the contract at a specific appointed site. The Site Representative’s HSE responsi- bilities follow those of the company Representative, but are specific to the site. Company HSE Adviser: Where there is access to company HSE advisers or spe- cialists, it is important that the role of the adviser is understood to be indeed that of an adviser. Advice, sup- port or services may be sought from an HSE Adviser on a routine or periodic basis but the responsibility for HSE matters must remain unmistakably with the Con- tract Holder and Representatives. Normally, the HSE adviser provides: • advice and support in HSE issues as requested • review/audit services as requested • additional advisory support, where needed, to small contractors. In the case of a small local contractor a decision may have been taken to provide additional supervisory sup- port and assistance in HSE matters. The company HSE Adviser and related specialists may be tasked with pro- viding support but must exercise care (unless other- wise provided for by the contract or agreed to in the HSE Plan) that this is recognised as a temporary phase and that the contractor must be encouraged to develop quickly to a point where such assistance is no longer required. Company
  27. 27. 21 HSE management - guidelines for working together in a contract environment © 2000 OGP Contractor Manager should: • prepare and assure quality of contractor’s HSE Plan • define competencies required for HSE critical posi- tions • assign appropriate personnel to HSE critical posi- tions • assure adequate resources and time in the schedule to manage the contract in accordance with the con- tractor’s HSE Plan • notify the Contract Holder in writing of his nom- inated contractor representative(s) and contractor Site Representative(s) • provide resources to implement remedial actions following audits in an expeditious manner. Contractor Representative should: • fulfil the pre-execution HSE requirements • implement the contractor’s HSE Plan • seek formal approval from the Contract Holder for any proposed deviations from or amendments to the contractor’s HSE Plan • implement additional requirements as agreed upon with the Contract Holder. Contractor Site Representative: Where a contractor may be working in a number of areas it is common for the contractor to appoint a person or persons to assume responsibility on behalf of the contractor representative to supervise the work being executed under the contract in the specific area. The HSE responsibilities are as for the contractor represent- ative but with responsibility for a specific site. Contractor
  28. 28. 22 InternationalAssociationofOil&GasProducers ©2000OGP AppendixII People (fatal, inj, occptnl health) Assets*, equipment Environment Reputation Severity Potential Definition Potential Definition Potential Definition Contamination Potential Definition rating impact impact impact (litres) impact sensitive areas offshore 0 No injury/ No injury or damage to health Zero No damage to Zero effect No financial Several Zero No public awareness illness equipment consequences; impact no environmental risk 1 Slight injury/ Not detrimental to individual Slight No disruption to the Slight effect Negligible financial <10 0-100 Slight Public awareness of the illness employability or to the damage process, minimum cost consequences; local impact incident may exist; performance of present work. of repair (<$10,000) environmental risk; there is no public Agents which are not hazardous within the fence concern to health and within systems 2 Minor injury/ Detrimental to the performance Minor Possible brief disruption Minor effect Contamination; <100 100-1,000 Limited Some local public illness of present work, such as damage of the process; isolation damage sufficiently impact concern; slight local curtailment of activities or some of equipment for repair large to attack the media and/or local days abscence to recover fully, (estimated cost environment; single political attention with maximum one week. below $100,000) excedence of statutory potentially negative Agents which have limited health or prescribed criteria; aspects for company effects which are reversible, e.g. single complaint; no operations irritants, many food poisoning permenant effect on bacteria. the environment 3 Major injury/ Leading to permanent partial Local Plant partly down; Local effect Limited loss of 100 - 1,000 - Consider- Regional public illness disablement or unfitness for damage process can (possibly) discharges of 1,000 10,000 able concern. Extensive work or detrimental to be restarted (estimated known toxicity; impact negative attention in performance of work over cost of repair below repeated excedence local media; slight extended period, such as long $1,000,000) of statutory or national media and/or term absence. Agents which are prescribed limit and local/regional political capable of irreversable damage beyond fence/ attention with possibly without serious disability, e.g. neighbourhood negative stance of noise, poorly designed manual local government handling tasks. and/or action groups 4 Single fatality/ Also includes the possibility of Major Partial loss of plant; Major effect Severe env. dmg; 1,000 - 10,000 - Major National public permanent multiple fatalities (maximum 3) damage plant shut down (for the company is 10,000 100,000 national concern. Extensive total disability in close succession dur to the at most two weeks required to take impact negative attention in or unfitness incident, e.g. explosion. and/or estimated extensive measures national media and/or for work Agents which are capable of repair costs below to restore the regional national (small irreversible damage with $10,000,000) contaminated area policies with potentially exposed serious disability or death, e.g. to its original state. restrictive measures population) corrosives, known carcinogens Extended excedence and/or impact on grant of statutory or of licences,mobilisation prescribed limit of action groups Definition of consequence – severity of risk
  29. 29. 23 HSEmanagement-guidelinesforworkingtogetherinacontractenvironment ©2000OGP People (fatal, inj, occptnl health) Assets*, equipment Environment Reputation Severity Potential Definition Potential Definition Potential Definition Contamination Potential Definition rating impact impact impact (litres) impact sensitive areas offshore 5 Multiple May include four fatalities in close Extensive Total loss of the plant; Massive Persistent severe >10,000 >100,000 Major International public fatalities succession due to the incident or damage extensive damage effect environmental inter- attention. Extensive multiple fatalities (four or more) (estimated cost of damage or severe national negative attention in each at different points and/or repair exceeds nuisance extending impact international media with different activities. Agents $10,000,000) over a large area. In and national/internat- with potential to cause multiple terms of commercial ional policies with pot- fatalities, e.g. chemicals with or recreational use or entially severe impact acute toxic effects (e.g. H2 S, CO) nature conservancy, on access to new areas, known human carcinogens a major economic loss grants of licences and/ for the company. Constant or tax legislation high excedence of statutory or prescribed limit *Assets are understood as referring to: the oil and gas reservoirs, production facilities, pipelines, money, capital, and other company, contractor and third party property. *Incidents relating to air, noise, smell, light and soil vibrations should be addressed on the basis of expert judgement and, in the case of uncertainty, local expertise may be called in.
  30. 30. 24 International Association of Oil & Gas Producers © 2000 OGP 1 The questionnaire should cover the information required to assess the extent to which HSE and its management are organised by the contractor. 2 The contractor should be advised to cover all (including support) relevant activities and not just those conducted on company sites. 3 The questionnaire should be validated by a responsible contractor line manager prior to sub- mission. 4 Emphasis should be placed on the need for complete answers substantiated by supporting documentation as far as is practicable. Responses and any supporting documentation must relate specifically to the policy and organisational arrangements of the company that would be the signatory of any contract. 5 Submissions should be assessed by a scoring mechanism that can be used in the evaluation process. 6 If necessary, follow-up discussion with the contractor’s management may be needed. 7 The contractor should be encouraged to identify where he exceeds company requirements and this excellence should be recognised. Appendix III: Contractor HSE pre-qualification General guidelines for preparation of questionnaire Section 1: Leadership and Commitment (i) Commitment to HSE through leadership a) How are senior managers personally involved in HSE management? b) Provide evidence of commitment at all levels of the organisation? c) How do you promote a positive culture towards HSE matters? Section 2: Policy and Strategic Objectives (i) HSE policy documents a) Does your company have an HSE policy document? If the answer is YES please attach a copy. b) Who has overall and final responsibility for HSE in your organisation? c) Who is the most senior person in the organisation responsible for this policy being carried out at the premises and on site where his employees are working? Provide name, title and experience. (ii) Availability of policy statements to employees a) Itemise the methods by which you have drawn your policy statement to the attention of all your employees? b) What are your arrangements for advising employees of changes in the policy? Table III: Questionnaire for contractor HSE pre-qualification
  31. 31. 25 HSE management - guidelines for working together in a contract environment © 2000 OGP Section 3: Organisation, Responsibilities, Resources, Standards and Documentation (i) Organisation - commitment and communication a) How is management involved in HSE activities, objective-setting and monitoring? b) How is your company structured to manage and communicate HSE effectively? c) What provision does your company make for HSE communication meetings? (ii) Competence and Training of managers/ supervisors/senior site staff/ HSE advisers Have the managers and supervisors at all levels who will plan, monitor, oversee and carry out the work received formal HSE training in their responsibilities with respect to conducting work to HSE requirements? If YES please give details. Where the train- ing is given in-house, please describe the content and duration of courses. (iii) Competence and General HSE training a) What arrangements does your company have to ensure new employees have knowledge of basic industrial HSE, and to keep this knowledge up to date? b) What arrangements does your company have to ensure new employees also have knowledge of your HSE policies and prac- tices? c) What arrangements does your company have to ensure new employees have been instructed and have received information on any specific hazards arising out of the nature of the activities? What training do you provide to ensure that all employees are aware of company requirements? d) What arrangements does your company have to ensure existing staff HSE knowledge is up to date? (If training is provided in- house please give details of content.) (iv) Specialised training a) How have you identified areas of your company’s operations where specialised training is required to deal with potential haz- ards? (Please itemise and provide details of training given.) b) If the specialised work involves radioactive, asbestos removal, chemical or other occupational health hazards, how are the haz- ards identified, assessed and controlled? (v) HSE qualified staff - additional training Does your company employ any staff who possess HSE qualifications that aim to provide training in more than the basic require- ments? (vi) Assessment of suitability of subcontractors/ other companies a) How do you assess: i) HSE competence ii) HSE record of the subcontractors and companies with whom you place contracts? b) Where do you spell out the standards you require your contractors to meet? c) How do you ensure these standards are met and verified?
  32. 32. 26 International Association of Oil & Gas Producers © 2000 OGP (vii) Standards a) Where do you spell out the HSE performance standards you require to be met? b) How do you ensure these are met and verified? c) How do you identify new industry or regulatory standards that may be applicable to your activities? d) Is there an overall structure for producing, updating and disseminating standards? Section 4: Hazards and Effects Management (i) Hazards and effects assessment What techniques are used within your company for the identification, assessment, control and mitigation of hazards and effects? (ii) Exposure of the workforce What systems are in place to monitor the exposure of your workforce to chemical or physical agents? (iii) Handling of chemicals How is your workforce advised on potential hazards (chemicals, noise, radiation, etc.) encountered in the course of their work? (iv) Personal protective equipment What arrangements does your company have for provision and upkeep of protective equipment and clothing, both standard issue, and that required for specialised activities? (v) Waste management What systems are in place for identification, classification, minimisation and management of waste? (vi) Drugs and alcohol Do you have a drugs and alcohol policy in your organisation? If so, does it include pre-employment and random testing? Section 5: Planning and Procedures (i) HSE or operations manuals a) Do you have a company HSE manual (or Operations Manual with relevant sections on HSE) which describes in detail your company approved HSE working practices relating to your work activities? If the answer is YES please attach a copy of supporting documentation. b) How do you ensure that the working practices and procedures used by your employees on-site are consistently in accordance with your HSE policy objectives and arrangements? (ii) Equipment control and maintenance How do you ensure that plant and equipment used within your premises, on-site, or at other locations by your employees are correctly registered, controlled and maintained in a safe working condition? (iii) Road Safety Management What arrangements does your company have for combating road and vehicle incidents?
  33. 33. 27 HSE management - guidelines for working together in a contract environment © 2000 OGP Section 6: Implementation and Performance Monitoring (i) Management and performance monitoring of work activities a) What arrangements does your company have for supervision and monitoring of performance? b) What type of performance criteria are used in your company; give examples c) What arrangements does your company have for passing on any results and findings of this supervision and monitoring to your: i) base management ii) site employees? (ii) HSE performance achievement awards Has your company received any award for HSE performance achievement? (iii) Statutory notifiable incidents /dangerous occurrences Has your company suffered any statutory notifiable incidents in the last five years (safety, occupational health and environmen- tal)? (Answers with details including dates, country, most frequent types, causes and follow-up preventative measures taken.) (iv) Improvement requirement and prohibition notices Has your company suffered any improvement requirement or prohibition notices by the relevant national body, regulatory body for HSE or other enforcing authority or been prosecuted under any HSE legislation in the last five years? (If your answer is YES please give details.) (v) HSE performance records a) Have you maintained records of your incidents and HSE performance for the last five years? (If YES, please provide the follow- ing: Number of Fatalities, Lost Time Injuries, Lost Workday Cases, Medical Treatment Cases and Restricted Work Day Cases. Also include the Fatal Accident Rate, Lost Time Injury Frequency and Total Recordable Incident Rate for each year. (NOTE: Please include your company definitions of a the above mentioned terms - for clarification refer to the OGP Safety Performance Accident Data Report.) b) How is health performance recorded? c) How is environmental performance recorded? d) How often is HSE performance reviewed? By whom? (vi) Incident investigation and reporting a) Who conducts incident investigations? b) How are the findings following an investigation, or a relevant incident occurring elsewhere, communicated to your employees? c) Are near miss safety learnings reported?
  34. 34. 28 International Association of Oil & Gas Producers © 2000 OGP Section 7: Auditing and Review (i) Auditing a) Do you have a written policy on HSE auditing? b) How does this policy specify the standards for auditing (including unsafe act auditing) and the qualifications for auditors? c) Do your company HSE Plans include schedules for auditing and what range of auditing is covered? d) How is the effectiveness of auditing verified and how does management report and follow up audits? Section 8: HSE Management - Additional Features (i) Memberships of Associations Describe the nature and extent of your company’s participation in relevant industry, trade, and governmental organisations? (ii) Additional features of your HSE management Does your company have any other HSE features or arrangements not described elsewhere in your response to the question- naire? Section 9: Company Specific Information
  35. 35. 29 HSE management - guidelines for working together in a contract environment © 2000 OGP Appendix IV: HSE pre-qualification points system The contractor’s tender should be evaluated by attaching a score to the selected response for each category (see Appendix III). A suggested scoring system would be as follows (see Table II.1): Scoring Table IV: Rating of contractors’ pre-qualification by a point scoring system (headings and item numbers refer to Appendix III) A B C D 0 0 3 7 6 14 10 20 HSE Plan documentation [sections 1-5, 7, 8] A B C D Performance and experience factors (HSE incidents) [section 6] Elements scoring 0 should normally disqualify a contractor from being included in a pre-qualifi- cation list. Any elements rated so must be highlighted as a qualification on the tender if it is still to be considered. Section 1: Leadership and Commitment Commitment to HSE through leadership: item 1 (i) No commitment from senior management HSE disciplines delegated to line managers - no direct involve- ment by senior management Evidence of active senior man- agement involvement in HSE aspects Evidence of a positive HSE cul- ture in senior management and at all levels Section 2: Policy and strategic objectives HSE policy documents and availabilityL items 2(i) and 2(ii) No written HSE policy A policy statement exists but not in a widely distributed doc- ument HSE policy establishes respon- sibility for HSE, but not widely distributed Policy with clearly established responsibility and accountabil- ity; is distributed to all employ- ees; and is visible on notice boards Section 3: Organisation, responsabilities, resources, standards and documentation HSE communication and meeting programmes: item 3(i) None Periodic HSE meetings for spe- cial operations only HSE meetings performed on a regular basis at management and supervisor level In addition to C, employees are assigned topics to discuss on a rotational basis Staff HSE training item 3(ii) No specialised staff training HSE training assigned to a spe- cific person on location HSE training applied to man- agement but not comprehen- sively covered HSE training given formally to all relevant staff on their respec- tive responsibilities Employee orientation and training programme: item 3(iii) (a)-(d) No formal programme Verbal instructions on company procedures only Employee handbook provided and supervisor outlines, explains and demonstrates new employee’s job All under ‘C’ together with: follow-up observation of the new employee’s work is also included. Employee has explained to him safe practices and emergency duties
  36. 36. 30 International Association of Oil & Gas Producers © 2000 OGP A B C D Standards: items 3(vii)(a)-(c) No HSE standards available Basic HSE standards exist Contractor has written HSE standards to cover all hazard- ous operations Contractor has a system of spec- ifying, monitoring compliance and updating standards Section 4: Hazards and effects management Hazards and effects assessment: item 4(i) Company’s HSE system does not include hazards and effects management Company’s HSE system makes reference to the need to assess hazards and effects but has no comprehensive structure to carry this out Company’s HSE system includes methods for the assessment of major hazards and effects Company’s HSE system has a comprehensive set of methods for the assessment of all HSE hazards and effects and applies them to all of its contracts with documentation Exposure of the workforce: item 4(ii) Company does not actively advise the workforce nor moni- tor exposure Company advises the workforce of the major hazards that they are likely to be exposed to but only monitors exposure ran- domly Company has formal methods for monitoring exposure to the major hazards Company has a set of formal methods for monitoring expo- sure to all foreseeable hazards (linked to its hazards and effects assessment method) and applies them to all contracts Potential hazards (chemical, physical and biological hazards such as noise, radiation, vapours, fumes, temperature extremes, etc.): item 4(iii) Company makes no special provision for advising the workforce about properties of potential hazards Company provides information to workforce in the workplace on properties of potential haz- ards but has no active fol- low-up Company distributes informa- tion to individuals in the workforce at start of their involvement on-site Company maintains a database of the properties of all poten- tial hazards encountered in its contracts and has formal meth- ods of information distribution to all personnel and trains its workforce in handling, etc. Personal protective equipment: item 4(iv) Basic PPE provided to person- nel but no corporate procedure for assessing individual needs PPE requirements formally assessed but little effort made to ensure correct usage PPE requirements formally assessed with spot checks on usage Procedures in place to assess all PPE requirements, monitor and enforce usage and replace- ment needs. Stock inventories monitored, kept above demand levels. Training in use provided where needed No HSE training established On-site basic training con- ducted occasionally HSE training is given for spe- cialised operations, but no rou- tine training conducted Formal HSE training pro- grammes have been developed in all areas and are conducted on a regular basis. Retraining periods are established Section 3 (continued): Organisation, responsabilities, resources, standards and documentation Specialised training: items 3(iv) (a)&(b), 3(v) No written arrangements Written arrangements in place for basic HSE matters only HSE arrangements incorpo- rated in HSE manual but not in a format which is distributed to all employees HSE arrangements exist in handbook form, distributed to all employees, subcontractors, sub-contractor employees and are enforced. Follow-up audits held with discussion/feedback to management and employ- ees Subcontractors: items 3(vi) (a)-(c)
  37. 37. 31 HSE management - guidelines for working together in a contract environment © 2000 OGP Section 5: Planning and procedures HSE or operations manuals: item 5(i) (a)&(b) No HSE procedures available Basic HSE procedures exist Contractor has written HSE pro- cedures to cover all hazardous operations Contractor has procedures to cover all HSE precautions, typical contractor HSE Plan requirements with a system of updating and dissemination to employees A B C D Equipment control and maintenance: item 5(ii) No defined programme to identify or evaluate hazardous practices and equipment con- ditions Plan relies on outside sources, i.e. company inspections. Supervisory inspection of equip- ment confined to worksite per- sonnel only A written programme outlining supervisory guidelines, respon- sibilities, frequency and fol- low-up is in effect In addition to C, periodic inspections conducted by top management or by teams of specialists Road safety management: item 5(iii) No special attention paid to road safety as an area of haz- ardous activities Importance of road safety acknowledged but left to core business managers/supervisors to enact individually Company has a general man- agement strategy with some procedures for its component issues Company has a complete strat- egy and set of plans and proce- dures covering vehicles, drivers and operations management Section 6: Implementation and performance monitoring Management and performance monitoring of work activities: items 6(i) & 6(ii) No system for formally monitor- ing HSE performance Performance monitoring in a few areas carried out Company has a system for mon- itoring HSE performance in key areas Company has a comprehensive system for monitoring perform- ance in all areas with feedback to employers for improvement and has received awards for achievement Statutory notifiable incidents, dangerous occurrences, improvement requirements and prohibition notices: items 6(iii) and 6(iv) More than one occurrence of major incident in last five years One occurrence of a major inci- dent in the last five years Occurrences relate to minor incident(s) only No occurrences in the last five years HSE performance records (latest year injury rate comparison to contractor’s three preceding years average): items 6(v) (a)-(d) Contractor supplied insuffi- cient Rate is not improving Shows only minor rate improve- ment Rate steadily improving by more than 20 per cent per year Criteria for absolute performance Rate over 200 per cent that of company Rate under 200 per cent that of company Rate under 120 per cent that of company Rate better than that of com- pany Incident investigation and reporting: item 6(vi) (a)-(c) Findings not generally commu- nicated Findings communicated to key personnel only via limited com- pany internal memo or similar media Findings communicated to all employees via specific company notice As in C but with the addition of details of implication for improv- ing HSE performance Company has no formal meth- ods for the control of waste Company has general proce- dures for waste disposal Company has procedures for the disposal of each of the main categories of site wastes but makes no provision for minimis- ing environmental impact Company has a formal system for waste management (includ- ing identification, minimisation and classification), which actively seeks to minimise envi- ronmental impact Section 4 (continued): Hazards and effects management Waste management: item 4(v)
  38. 38. 32 International Association of Oil & Gas Producers © 2000 OGP Section 7: Auditing and review Auditing: item 7(i) (a)-(c) Audit process is cursory only - HSE documents are not explicit about auditing Company HSE documents include reference to auditing but there are no specific details about scheduling and cover- age Company HSE documents include details of how audit- ing is to be implemented with schedules/coverage for the key areas As in C but additionally speci- fies management’s role in audit and follow-up on action items A B C D Section 8: HSE management - additional features Membership of associations: items 8(i) and (ii) No memberships Company has membership of at least one association but with no prominence given to HSE Company is a member of at least one HSE association Company is an active partici- pant in at least one HSE asso- ciation
  39. 39. 33 HSE management - guidelines for working together in a contract environment © 2000 OGP Appendix V: HSE plan guidelines for major contracts When the contracted activities are covered by a con- tractor HSE Management System (e.g. in line with the E&P Forum guidelines on HSE Management Systems), including HSE Cases for contracted installations, the HSE Plan should only address those issues that are unique for the contract under consideration. It should focus on contract specific risks and the management of controls to eliminate, reduce or mitigate these risks. Other contract specific issues that may be addressed in the Plan are: • organisation and personnel for the project • project specific procedures • project audit and review Plan • compliance with local rules and legislation The checklist in Tables V.1 to V.7 can be used to check the HSE plans for the project specific issues, but can also be used to assess the HSE Management System if this has not been certified or assessed in any other manner. When the contractor does not have an HSE Manage- ment System, the HSE Plan should be developed in line with the principles of the E&P Forum guidelines for HSE Management Systems or other comparable guide- lines. The HSE Plan should follow principal headings with an expansion into key checklist items (Tables V.1 to V.7) given on the following pages under the respec- tive headings. The detail included in the tender should be in keeping with the complexity of the contract and should additionally include prompts for specific action plans, target dates and action parties. HSE plan definition guideline
  40. 40. 34 International Association of Oil & Gas Producers © 2000 OGP Section 1 Leadership and commitment • Leadership and Commitment Section 2 Policy and strategic objectives • HSE Policy Statement Section 3 Organisation, responsibilities, resources, standards and documentation • HSE Organisation • HSE Professionals • Subcontractors • HSE Communications • HSE meeting programme • HSE promotion and awareness • HSE competence requirements • Employee orientation programme • HSE training (general) • HSE training (professionals) • HSE legislation • HSE standards Section 4 Evaluation and risk management • Methods and procedures for hazards and effects management • Assessment of exposure of the workforce to hazards and effects • Material data sheets for safe handling of chemicals • Hazards and effects management and the assess- ment of PPE requirements • Methods and procedures for waste management Section 5 Planning and procedures • HSE procedures • Basic HSE rules • Emergency response procedures • HSE equipment and equipment HSE inspection • Occupational health • Environmental • Road transport Section 6 Implementation and performance monitoring • HSE performance - general • Incident investigation Section 7 Auditing and review • HSE auditing HSE Management system
  41. 41. 35 HSE management - guidelines for working together in a contract environment © 2000 OGP Detailed checklists for HSE plan Table V.1 Checklist for HSE plan: section 1 leadership and commitment Leadership and commitment Commitment to HSE aspects through leadership Senior management should engender commitment to HSE issues at all levels through their personal style of leadership and manage- ment. Key elements include: • Visible expressions of commitment by senior people • HSE matters should be placed high on personal and collective agenda • All senior managers should set a personal example to others. They should be, and seen to be actively involved in HSE matters, e.g. attendance at HSE meetings, personal instigation of HSE audits and reviews, etc. • A feedback system should be established to encourage and facilitate employee feedback on HSE mat- ters • A positive culture should be promoted at all levels • Policies and standards should be endorsed and implemented at the local level HSE policy statement General Written HSE policy Dated and signed by Chief Executive Policy statements: • specific to individual parts of the contract (e.g. locations/sites/plants) • cover specialised aspects (e.g. alcohol and drugs) • consistent with company guidelines • clear, concise and motivating Content Importance of HSE as a contract objective Incidents and injuries are unacceptable HSE established as a line management responsibility Everyone is responsible for their own and their colleagues’ HSE at work Distribution/availability HSE policy distributed to all concerned, i.e. • handed to each employee by their line manager when issued • all new employees handed a copy by their line manager • displayed on notice boards at each work location (worksites and offices) • copies provided for each company on the contract (including subcontractors, suppliers and agents) • available to company and contractor employees in their working languages) Discussion Policy and its implementation when issued discussed by line managers with each employee Table V.2 Checklist for HSE plan: section 2 policy and strategic objectives
  42. 42. 36 International Association of Oil & Gas Producers © 2000 OGP HSE organisation Key personnel Personnel responsible for the implementation of HSE objectives clearly identified in an organisation chart Responsibility adequately covered during all phases of the contract Job descriptions in place showing each team member’s HSE competencies, responsibilities and function Organisation clearly shows position of HSE professionals Contract objectives/accountability Defined to meet health, safety and environmental objectives as well as those of time, cost and quality Accountability for HSE success and equally of any failure clearly stated Focal point within the team structure ensuring that all HSE matters have been identified Designated team leader to produce HSE objectives, tasks and targets for the contract Targets, etc. to be realistic and consistent Establish procedures for distribution, reporting and reviewing HSE issues Manning/communications Manpower philosophy Manpower level to be defined correctly so as not to compromise HSE Effective means to communicate HSE issues to the company, contractor and subcontractors Organisation staffed by competent personnel with sufficient appreciation of HSE where necessary with specific training in the issues involved Corporate structure/responsibility Company’s expectations on HSE management to be communicated in depth Access of contractor’s line management to their corporate management structure on HSE issues to be defined Level of handling project HSE issues by the contractor corporate structure (middle or senior management or board level) In the contractor’s corporate organisation, individuals charged with responsibility for HSE at middle senior manager or board member level Access to specialist HSE advice for line management, e.g. • provision of HSE documentation for small contracts • employment of HSE specialist for large contracts HSE professionals Job definition Role of the contractor’s HSE advisers well defined Job definition drafted Reporting/follow-up Reporting relationship with line management Direct access to the Chief Executive Does line management follow-up on advice offered HSE department Contractor’s HSE department involved in: • preparing and monitoring departmental action plans • formulation and suitability of HSE rules • planned inspections and audits together with line management • promotional material Table V.3 Checklist for HSE plan: section 3 organisation, responsibilities, resources, standards and documentation

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