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Construction Contractors/Subcontractors


Driving Safety Best
Practices and
Performance
Tuesday December 11, 2012
Presented by: Eyad Sallam
Divisional QHSE Manager / Leighton MiddleDecember 2012 | 1
                           Habtoor Leighton Group |
                                                    East
HLG

   One of the leading diversified international construction groups in the Middle
    East and North Africa
   The largest construction group in the UAE
   The Group employs around 25,000 people, including labour
   Part of the Leighton Group, Australia‟s largest project development and
    contracting group
   In the Kingdom of Saudi Arabia, HLG operates as Leighton Middle East




 “Occupational Health and Safety is a priority for HLG and we are committed to
providing a safe, healthy and positive working environment for all our employees
                           and those under our care.”




                                                         Habtoor Leighton Group | December 2012 | 2
Top 5 Safety Violations by Contractors in KSA

1.    Speeding and Reckless Driving ( No. 1 fatalities)
2.    Guardrails not provided at open-sided floors or platforms or no protection
      system on excavation (No. 2 fatalities)
3.    Personal protective equipment not used
4.    Poor housekeeping
5.    Poorly maintained heavy earth moving equipment


Source : World Health Organization 2011 Report.


We all have an important role to play in working with contractors and
subcontractors to educate them on best practice solutions and establish practices
to safeguard against violations.



                                                          Habtoor Leighton Group | December 2012 | 3
Highlights: Keys to success

   Realizing the costs of poor safety
   Steps to reduce the impact of poor safety
   Controlling contractor‟s safety
   Working collaboratively
   The Health Safety and Environment (HSE) Committee Meeting




                                                   Habtoor Leighton Group | December 2012 | 4
Realizing the costs of poor safety: Costs

   Direct costs associated with contractor non-compliance:
     –   Lost time for injured employees
     –   Lost crew time resulting from disruptions
     –   Damaged equipment, material
     –   Investigation costs
     –   Low productivity


 Compensation (medical & wages) + Actual Costs (lost time, fines,
  management and additional training) = hundreds of thousands of riyals.




                                                       Habtoor Leighton Group | December 2012 | 5
Reducing the impact of poor safety

   Management can reduce the cost impact of subcontractors:
     –   during the bid period (e.g. mandating safety items cost to bear)
     –   before subcontract work begins (e.g. training and induction)
     –   while on-site (audits, reward and discipline program, on-the-job training)
     –   before completion (site readiness, no hazards, etc.)


   The importance of having a good written program, including:
     –   Safety Policy
     –   Bid & Contractor Evaluation System
     –   Kick-off & Orientation Program
     –   Auditing Program
     –   Pro-active involvement
     –   Discipline & reward


                                                                Habtoor Leighton Group | December 2012 | 6
Controlling contractor’s safety

   Add safety rules in contract and get the subcontractor to sign an addendum
   Safety plan for entire site
   Presence of a competent person in charge of jobsite safety
   Site HSE induction
   Special current emphasis areas, such as driving safety, fall protection,
    excavations, PPE, housekeeping, safe systems of work
   Weekly jobsite safety meetings
   Reward and Consequences system
   Use of behavioral safety program Joint site safety inspections regularly




                                                         Habtoor Leighton Group | December 2012 | 7
Working collaboratively

   Stress HSE goals and expectations,
    document, mutually agree on them
    and communicate them
   Include contractors in site audits
   When you audit contractors, explain
    the audit is a win-win process
   Treat contractors like your own
    employees
   Praise and reward
   If you apply penalties, apply it
    according to pre-agreed contract
    clauses rather than case-to-case or as
    the project or safety manager wishes




                                             Habtoor Leighton Group | December 2012 | 8
The HSE Steering Meeting

   HSE Steering Meetings are coordinated by a „Safety Champion‟ who is
    an elected HSE representative of the contractor
   They are held regularly and senior representatives from the main
    contractor and subcontractor includes:
     –   Senior management
     –   Health & safety manager
     –   Human resources
     –   Line management ( construction and project managers).
   It is a motivating meeting, with a positive safety message, where
    contractors are encouraged to chair the meeting and contribute to the
    meeting agenda
   The agenda is sent to the contractor‟s representative/s in advance, and
    upon start of meeting, a business case is presented
   After the meeting, a site visit is organized to conduct joint HSE audit
    along with contractor and come up with a common action plan to
    remediate any non-compliances found



                                                           Habtoor Leighton Group | December 2012 | 9
The role of the Safety Champion

At the first meeting, the contractor‟s HSE representative is appointed by the
steering meeting members as the elected safety champion who will:


   Call for the next meetings
   Organises and facilitates meetings
   Documents decisions and communicate minutes of meeting




                                                       Habtoor Leighton Group | December 2012 | 10
Typical Steering Meeting agenda

   Planning for new activities, including risk assessments
   HSE Policy Statement is circulated. Are we following it?
   Implementing the HSE plan – obstacles and suggested remedies
   Effectiveness of HSE training program for new employees
   Reporting unsafe acts and accident prevention program
   Project HSE responsibilities
   Transparency & no blame culture
   PPE compliance
   Motor vehicle and driving safety rules/policies
   Fall protection
   Joint HSE audits




                                                       Habtoor Leighton Group | December 2012 | 11
Sample Business Case

   Employee commitment to work
   Review of existing safety operational controls
   Staff performance and productivity
   LTIs (Lost time incidents) and levels of near misses and mitigation
    measures
   Staff HSE induction
   HSE Plan implementation




                                                        Habtoor Leighton Group | December 2012 | 12
Benefits of HSE Steering Meetings

   Agreed methods of communication:
     –   Telephone and fax lines
     –   Notice boards
     –   Email
     –   Individual memos and letters
   Increased commitment from contractor on HSE matters
   Reduced LTI (Lost time incidents)
   Easier and quicker responses to requests for HSE inductions
   Generation of more leading indicators ( like prompt elimination of unsafe
    acts before they become incidents)
   Long term relationship and more potential for prequalification of
    contractor for future jobs
   Increased productivity



                                                        Habtoor Leighton Group | December 2012 | 13
Impressions of HSE Steering Meetings

   The Trust now expects managers to thank staff
   These initiatives require managers to take ownership of their staff
   This has been a positive experience for all involved
   The efforts of effective HSE management on site would have been very
    slow without these meetings
   Contractors have been given a voice and the opportunity to use it
   As a client, we have already seen an increase in staff motivation and a
    decrease in Lost time Incidents reduction




                                                           Habtoor Leighton Group | December 2012 | 14
Best practice examples
   Contractor safety doesn‟t happen from behind a desk. Observe
    contractors in their work areas and engage them in discussions about
    their safety programs and procedures
     –   Leadership needs to be visible on the front line
     –   Questions asked by leaders set the tone for whats important in terms of safety

   Build main contractor capability by training them on how to conduct
    contractor safety reviews and engage more effectively with their
    subcontractors
     –   Make sure the main contractor has the capacity to spend adequate time with their
         contractors
     –   Opportunity to solve safety issues in a collaborative way
     –   Build trust between the main contractor and their subcontractors

   Have simple action tracking tools and regular contractor meetings to
    review how well performance gaps are being closed.
     –   Create leading and lagging indicators based on the interactions of the contractor and the
         contract holder
     –   Have a clear CSMP governance process at the local level



                                                                     Habtoor Leighton Group | December 2012 | 15
Overview of International Occupational
Safety Standards
 Saudi Arabia construction contractors and regulatory authorities may benchmark with best
 international occupational safety standard, these include:


 International Labour Organization Standards:
 http://www.ilo.org/global/standards/


 European health and safety legislation:
 https://osha.europa.eu/en/legislation/index_html


 British Standards:
 http://www.hse.gov.uk/pubns/ohindex.htm
 OHSAS 18001:2004 : Occupational Safety Management Systems Standard


 American health and safety standards:
 www.osha.gov


 ISO Organization ( ISO 14001:2004 Environmental management systems standard)

                                                                          Habtoor Leighton Group | December 2012 | 16
Construction Contractors/Subcontractors


Driving Safety Best
Practices and
Performance
Tuesday December 11, 2012

                            Habtoor Leighton Group | December 2012 | 17

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Eyad Sallam International IFSEC and OSH Arabia conference presentation

  • 1. Construction Contractors/Subcontractors Driving Safety Best Practices and Performance Tuesday December 11, 2012 Presented by: Eyad Sallam Divisional QHSE Manager / Leighton MiddleDecember 2012 | 1 Habtoor Leighton Group | East
  • 2. HLG  One of the leading diversified international construction groups in the Middle East and North Africa  The largest construction group in the UAE  The Group employs around 25,000 people, including labour  Part of the Leighton Group, Australia‟s largest project development and contracting group  In the Kingdom of Saudi Arabia, HLG operates as Leighton Middle East “Occupational Health and Safety is a priority for HLG and we are committed to providing a safe, healthy and positive working environment for all our employees and those under our care.” Habtoor Leighton Group | December 2012 | 2
  • 3. Top 5 Safety Violations by Contractors in KSA 1. Speeding and Reckless Driving ( No. 1 fatalities) 2. Guardrails not provided at open-sided floors or platforms or no protection system on excavation (No. 2 fatalities) 3. Personal protective equipment not used 4. Poor housekeeping 5. Poorly maintained heavy earth moving equipment Source : World Health Organization 2011 Report. We all have an important role to play in working with contractors and subcontractors to educate them on best practice solutions and establish practices to safeguard against violations. Habtoor Leighton Group | December 2012 | 3
  • 4. Highlights: Keys to success  Realizing the costs of poor safety  Steps to reduce the impact of poor safety  Controlling contractor‟s safety  Working collaboratively  The Health Safety and Environment (HSE) Committee Meeting Habtoor Leighton Group | December 2012 | 4
  • 5. Realizing the costs of poor safety: Costs  Direct costs associated with contractor non-compliance: – Lost time for injured employees – Lost crew time resulting from disruptions – Damaged equipment, material – Investigation costs – Low productivity  Compensation (medical & wages) + Actual Costs (lost time, fines, management and additional training) = hundreds of thousands of riyals. Habtoor Leighton Group | December 2012 | 5
  • 6. Reducing the impact of poor safety  Management can reduce the cost impact of subcontractors: – during the bid period (e.g. mandating safety items cost to bear) – before subcontract work begins (e.g. training and induction) – while on-site (audits, reward and discipline program, on-the-job training) – before completion (site readiness, no hazards, etc.)  The importance of having a good written program, including: – Safety Policy – Bid & Contractor Evaluation System – Kick-off & Orientation Program – Auditing Program – Pro-active involvement – Discipline & reward Habtoor Leighton Group | December 2012 | 6
  • 7. Controlling contractor’s safety  Add safety rules in contract and get the subcontractor to sign an addendum  Safety plan for entire site  Presence of a competent person in charge of jobsite safety  Site HSE induction  Special current emphasis areas, such as driving safety, fall protection, excavations, PPE, housekeeping, safe systems of work  Weekly jobsite safety meetings  Reward and Consequences system  Use of behavioral safety program Joint site safety inspections regularly Habtoor Leighton Group | December 2012 | 7
  • 8. Working collaboratively  Stress HSE goals and expectations, document, mutually agree on them and communicate them  Include contractors in site audits  When you audit contractors, explain the audit is a win-win process  Treat contractors like your own employees  Praise and reward  If you apply penalties, apply it according to pre-agreed contract clauses rather than case-to-case or as the project or safety manager wishes Habtoor Leighton Group | December 2012 | 8
  • 9. The HSE Steering Meeting  HSE Steering Meetings are coordinated by a „Safety Champion‟ who is an elected HSE representative of the contractor  They are held regularly and senior representatives from the main contractor and subcontractor includes: – Senior management – Health & safety manager – Human resources – Line management ( construction and project managers).  It is a motivating meeting, with a positive safety message, where contractors are encouraged to chair the meeting and contribute to the meeting agenda  The agenda is sent to the contractor‟s representative/s in advance, and upon start of meeting, a business case is presented  After the meeting, a site visit is organized to conduct joint HSE audit along with contractor and come up with a common action plan to remediate any non-compliances found Habtoor Leighton Group | December 2012 | 9
  • 10. The role of the Safety Champion At the first meeting, the contractor‟s HSE representative is appointed by the steering meeting members as the elected safety champion who will:  Call for the next meetings  Organises and facilitates meetings  Documents decisions and communicate minutes of meeting Habtoor Leighton Group | December 2012 | 10
  • 11. Typical Steering Meeting agenda  Planning for new activities, including risk assessments  HSE Policy Statement is circulated. Are we following it?  Implementing the HSE plan – obstacles and suggested remedies  Effectiveness of HSE training program for new employees  Reporting unsafe acts and accident prevention program  Project HSE responsibilities  Transparency & no blame culture  PPE compliance  Motor vehicle and driving safety rules/policies  Fall protection  Joint HSE audits Habtoor Leighton Group | December 2012 | 11
  • 12. Sample Business Case  Employee commitment to work  Review of existing safety operational controls  Staff performance and productivity  LTIs (Lost time incidents) and levels of near misses and mitigation measures  Staff HSE induction  HSE Plan implementation Habtoor Leighton Group | December 2012 | 12
  • 13. Benefits of HSE Steering Meetings  Agreed methods of communication: – Telephone and fax lines – Notice boards – Email – Individual memos and letters  Increased commitment from contractor on HSE matters  Reduced LTI (Lost time incidents)  Easier and quicker responses to requests for HSE inductions  Generation of more leading indicators ( like prompt elimination of unsafe acts before they become incidents)  Long term relationship and more potential for prequalification of contractor for future jobs  Increased productivity Habtoor Leighton Group | December 2012 | 13
  • 14. Impressions of HSE Steering Meetings  The Trust now expects managers to thank staff  These initiatives require managers to take ownership of their staff  This has been a positive experience for all involved  The efforts of effective HSE management on site would have been very slow without these meetings  Contractors have been given a voice and the opportunity to use it  As a client, we have already seen an increase in staff motivation and a decrease in Lost time Incidents reduction Habtoor Leighton Group | December 2012 | 14
  • 15. Best practice examples  Contractor safety doesn‟t happen from behind a desk. Observe contractors in their work areas and engage them in discussions about their safety programs and procedures – Leadership needs to be visible on the front line – Questions asked by leaders set the tone for whats important in terms of safety  Build main contractor capability by training them on how to conduct contractor safety reviews and engage more effectively with their subcontractors – Make sure the main contractor has the capacity to spend adequate time with their contractors – Opportunity to solve safety issues in a collaborative way – Build trust between the main contractor and their subcontractors  Have simple action tracking tools and regular contractor meetings to review how well performance gaps are being closed. – Create leading and lagging indicators based on the interactions of the contractor and the contract holder – Have a clear CSMP governance process at the local level Habtoor Leighton Group | December 2012 | 15
  • 16. Overview of International Occupational Safety Standards Saudi Arabia construction contractors and regulatory authorities may benchmark with best international occupational safety standard, these include: International Labour Organization Standards: http://www.ilo.org/global/standards/ European health and safety legislation: https://osha.europa.eu/en/legislation/index_html British Standards: http://www.hse.gov.uk/pubns/ohindex.htm OHSAS 18001:2004 : Occupational Safety Management Systems Standard American health and safety standards: www.osha.gov ISO Organization ( ISO 14001:2004 Environmental management systems standard) Habtoor Leighton Group | December 2012 | 16
  • 17. Construction Contractors/Subcontractors Driving Safety Best Practices and Performance Tuesday December 11, 2012 Habtoor Leighton Group | December 2012 | 17