The document discusses contractor management best practices for organizations transitioning to the new ISO 45001 occupational health and safety standard. It introduces ISO 45001 and its key differences from the previous standard. The document outlines 10 strategic elements for best-in-class contractor management when applying ISO 45001, including establishing clear communication, measuring performance, conducting risk assessments, vetting contractors, and fostering a strong safety culture. It provides examples of how organizations can integrate contractor management into their business processes to facilitate the transition to ISO 45001.

1. © 2019 ISN Software Corporation
5 September 2019
www.isn.com
Contractor Management and the
Transition to ISO 45001
ISN
© 2019 ISN Software Corporation

2. © 2019 ISN Software Corporation
Agenda
ISN Introduction
ISO 45001 Overview
Contractor Management
Background
Strategic Elements for Best-In-
Class Contractor Management
within ISO 45001
1
2
3
4

3. © 2019 ISN Software Corporation
ISN
Introduction
S E C T I O N O N E

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Web-based Contractor &
Supplier Information
Management for collection
and review of QHSE,
Procurement, Compliance
and Training data.
I S N I N T R O D U C T I O N
What is ISNetworld?
600+
Hiring Clients Worldwide
• Aerospace
• Agriculture
• Automotive
• Beverage
• Chemical
• Construction
• Consumer Products
• Exploration & Production
• Facilities Management
• Fertilizer Products
• Food
• Manufacturing
• Midstream, Pipelines
& Terminals
• Mining
• Paper, Packaging & Building
Products
• Pharmaceutical & Healthcare
• Public Sector & Public Works
• Retail
• Refining
• Renewable Energy
• Steel & Metals
• Technology
• Transportation
• Utilities, Power Generation
& Distribution
70,000+
Contractors/Suppliers
Industries:

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ISO 45001
Overview
S E C T I O N T W O

6. © 2019 ISN Software Corporation
• The new international ISO Occupational Health and
Safety (OH&S) standard
• Adopted in Australia October 2018
• The transition period before removing certification
with AS/NZS 4801 is October 2021
• A framework for all organisations (including
contractors) to improve their OH&S performance
• Directed at the top management of an organisation
• Goal is to provide a safe and healthy workplace for
employees and visitors
WhatisISO45001?
I S O 4 5 0 0 1 O V E R V I E W

7. © 2019 ISN Software Corporation
• Participated in the development of the standard
• Hosted and lead ISO Technical Advisory Group
• Reviewed the Standard
• Overlapped ISO 45001 standard and reviewed
requirements to:
• OSHAS 18001
• AS/NZ 4801
• IOGP 423-01
• Established a transition plan with 9 clients in
Western Australia to introduce the changes to
contractors
ISNApproach
I S O 4 5 0 0 1 O V E R V I E W

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AS/NZS4801vsISO45001
ISO 45001 AS/NZS 4801
OH&S Policy Occupational Health and Safety Policy
Risks and Opportunities Hazard Identification and Risk Assessment
OH&S Objectives Key Performance Indicators
Leadership and Commitment Leadership and Commitment
Competence Training and Competency
Awareness and Communication OHS Meetings
Document Control Document Control
Emerg. Preparedness and Response Emergency Preparedness and Response
Incidents and Nonconformities Incident Investigation and Reporting
Audits Inspections and Audits
Management Review Review of Management System
Consultation and Participation Partly covered in OHS Meetings and leadership and commitment
Performance Evaluation Partly covered in Key Performance Indicators
I S O 4 5 0 0 1 O V E R V I E W

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Contractor
Management
Background
S E C T I O N T H R E E

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C O N T R A C T O R M A N A G E M E N T B A C K G R O U N D
Contractorisation–OpportunityandChallenge
• Global industry trends indicate continued growth of outsourcing
non-core business activities to third party contractors
• Allows for qualified, well equipped and specialised organisations
• Enables safe and sustainable operations
• Prime duty for safe operations and environmental stewardship
lies with the owner organisation
• Robust strategy needed
• Better risk mitigation
• Streamline operations to focus on core competencies

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Strategic Elements
for Best-In-Class
Contractor
Management
utilising ISO 45001
S E C T I O N F O U R

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10 Strategic
Elements
1. Establish a clear communication strategy
2. Designed to measure performance
3. Incorporate a risk-ranking process
4. Follow a four-step due-diligence process
5. Maintain a qualified contractor list
6. Establish consequences
7. Address subcontractor management
8. Follow standardized and transparent guidelines
9. Integrate with internal business processes
10. Take safety culture to the next level

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EngagementHow?
1 0 S T R A T E G I C E L E M E N T S
What?
Zero Incident Goals
1.EstablishaClearCommunicationStrategy
Golden Rules
Scorecard Status
Performance and Audit Gaps
Timely and Consistent
Traceable and Auditable
Community MeetingsMailings, Emails and Handbooks
Top-down Communication
Electronic Platforms
Workshops
One-on-One Meetings
Management Review
Management Participation
Site Observations

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1 0 S T R A T E G I C E L E M E N T S
Applicationof ISO 45001
ISO 45001 Best-In-Class Contractor Management Utilising ISO 45001
OH&S Policy
Establish a clear policy and communicate to all workers and stakeholders, especially
contractors
OH&S Objectives
Clearly define, communicate and measure objectives, KPI’s and targets incorporating
contractors
Leadership & Commitment Strong internal safety leadership and commitment and set expectations of contractors
Awareness and Communication
Ensure relevant communications to employees about safety is also communicated to
contractors

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1 0 S T R A T E G I C E L E M E N T S
9.IntegratewithInternalBusinessProcesses
• Contractor management should be seen as:
• An integral part of the complete business processes
• A goal is to drive end-to-end risk management
• Examples of Key Performance Indicator (KPI) integration:
• Purchase orders issued only to qualified contractors
• Site entry ID badges tied to contractor approval status

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1 0 S T R A T E G I C E L E M E N T S
Applicationof ISO 45001
ISO 45001 Best-In-Class Contractor Management Utilising ISO 45001
Awareness and Communication
Ensure relevant employee communications are also communicated to contractors. It is
important to maintain safety awareness with all stakeholders
Document Control
An on-line document control process and removal of obsolete documents ensures that integration
of a safety process regarding contractors remains key to consistent implementation of internal
businesses
Management Review
Senior management, including contractor senior management, must be involved in reviewing
safety processes before, whilst and post site activities
Consultation and Participation
Consultation and participation is to include all stakeholders regarding ISO 45001 and
should be integrated into all businesses processes and communications

17. © 2019 ISN Software Corporation
1 0 S T R A T E G I C E L E M E N T S
10. TakeSafety Culture to the Next Level
• Veteran HSE Professionals point to
multi-employer worksites as a
significant health and safety
concern within the industry
• Best-in-class organisations identify
the safety attitude of their sites and
modify as needed
• Periodic culture assessments and
benchmarking maintain consistent
focus for contractor workforces

18. © 2019 ISN Software Corporation
1 0 S T R A T E G I C E L E M E N T S
10. TakeSafety Culture to the Next Level
• Best in Class Organisations:
• See contractors as partners to
promote ownership in safety
• Include contractor safety metrics
in company-wide goals
• Support site mentorship program
with contractors
• Conduct regular meetings with
contractors to build site
engagement and reinforce culture

19. © 2019 ISN Software Corporation
1 0 S T R A T E G I C E L E M E N T S
Applicationof ISO 45001
ISO 45001 Best-In-Class Contractor Management Utilising ISO 45001
OH&S Objectives Set and effectively review objectives for contractors that “raise the bar” regarding safety.
Leadership & Commitment Ensuring leadership has a strong commitment to continual improvement of safety outcomes.
Awareness and Communication
Ensures communications relevant to an employee regarding safety business processes, are
also communicated to contractors.
Audits
Improve safety outcomes by using a have it - know it - use it approach to safety
procedures.
Management Review
All senior management must be involved in this process, reviewing safety processes at a
management level should also be expected of contractors.
Consultation and Participation
ISO 45001 takes participation to the next level; all stakeholders must be integrated into
businesses process and participate in consultation.

20. © 2019 ISN Software Corporation
Key
Takeaways
Learn the ISO 45001 standard and
its key differences
Understand how the key
differences in the ISO standard
apply to contractors
Best in class contractor
management applied correctly can
help your organisation transition to
ISO 45001
1
2
3

21. © 2019 ISN Software Corporation
Contact Information:
James McGuire
Senior Safety Specialist
jmcguire@isn.com
www.isnetworld.com
© 2019 ISNetworld
Questions?

22. © 2019 ISN Software Corporation
5 September 2019
www.isn.com
Contractor Management and the
Transition to ISO 45001
ISN
© 2019 ISN Software Corporation