95-0110 Management of Contractors HSE [PDF]

Zitiervorschau

Shell International Exploration and Production B.V.

Management of Contractor HSE

EP 95-0110

HSE MANUAL Revision 0: 18 October 1995

EP HSE Manual Amendment Record Sheet Section Number: EP 95-0110 Section Title: Management of Contractor HSE

Rev. No. 0

Chapter Nos. All

Description of amendment

Date dd/mm/yy

Original hard copy and CD-ROM issue

18/10/95

Amended by EPO/61

Contents

CONTENTS

33

7

Execution

7.1

Objectives

33

7.2

Supervision

33

Summary

iii

1

Introduction

1

7.3

Competence Assurance

34

1.1

Objectives of This Document

1

7.4

Inspection and HSE Auditing/Reviews

35

1.2

Objectives of Management of Contractor HSE

1

8

Demobilisation

37

1.3

Background

2

9

Close-Out

39

1.4

Scope

2

2

Overview

5

2.1

Contract Phases and HSE Planning

5

2.2

Planning for HSE: Timing

6

2.3

Planning for HSE: Scope

7

2.4

Management of Contractor HSE and HSE MS

11

2.5

HSE Case Joint Preparation

12

3

Planning and Invitation to Tender

3.1

Objectives

15

3.2

Outline Scope of Work or Services

16

3.3

Contract Scope, Schedule and Strategy

19

3.4

Contract HSE Assessment

3.5

15

Appendices I

Contractor HSE Prequalification

41

II

Prequalification HSE Evaluation Guideline Points System

47

HSE Responsibilities for Opco and Contractor Key Personnel

53

IV

HSE Plan Guideline for Major Contracts

57

V

HSE Plan Guideline for Small Contracts

77

VI

Contract Execution HSE Audit Guidelines

81

III

Glossary

87

20

References

89

Contract HSE Specification

21

Index

91

3.6

Contractor Prequalification

23

4

The Tender Period

4.1

Objectives

25

4.2

Contractor's HSE Plan

25

4.3

HSE Costs

26

4.4

Incentive Schemes for HSE

26

5

Evaluation and Contract Award

5.1

Objectives

27

5.2

Evaluation

27

6

Mobilisation

6.1

Objectives

29

6.2

Kick-off Meetings

29

6.3

Mobilisation

31

6.4

Pre-execution Audit

32

EP 95-0110 Revision 0 18 October 1995

25

27

29

i

HSE Manual EP 95-0110 Management of Contractor HSE This page intentionally left blank

i

EP 95-0110 Revision 0 18 October 1995

Summary

SUMMARY This document identifies and describes the activities associated with the management of contractor HSE by Opcos within the formal framework of a contract, both prior to and after award. The specific objectives and mandatory requirements for each phase are stated, and thereafter guidelines are provided as an aid to achieving the objectives. The appendices provide illustrative examples of guidelines for the principal features of each phase. The extent to which these guidelines are applied will be influenced by the scale and HSE criticality of the contracts. Management of Contractor HSE sets out guidance on how to achieve the same or higher HSE standards as those required by Shell EP Opcos for their own operations. It is based on a planned approach with attention being paid to the early project phases. This is to provide early awareness of the HSE issues that need to be included by the Contract Holder in the tender documents. It is targeted principally at Contract Holders and personnel tasked with planning HSE in contracts, with tender preparation, evaluation and subsequent contractor management. It contains the following chapters: 1

Introduction

A basic introduction to the objectives, background and scope of coverage.

2

Overview

An overall picture of the sequence of phases involved, planning the work, the HSE issues involved and the links with HSE MS.

3

Planning and Invitation to Tender

The main steps necessary in the Opco's definition of HSE requirements in the contract and the prequalification of contractors.

4

Tender period

The HSE proposals expected in the contractor's bid in response to the tender documents and the clarification of these proposals.

5

Bid evaluation and contract award

The assessment of the contractor's HSE Plan against the required criteria.

6

Mobilisation

The contract kick-off, assessment of the contractor's HSE performance during the mobilisation phase and pre-execution audit.

7

Execution

The HSE monitoring and supervision of the contractor during contract execution.

8

Demobilisation

The HSE monitoring of the contractor during demobilisation.

9

Close-Out

The reporting and feedback of Opco and contractor HSE performance.

EP 95-0110 Revision 0 18 October 1995

ii

HSE Manual EP 95-0110 Management of Contractor HSE This page left intentionally blank

iii

EP 95-0110 Revision 0 18 October 1995

1 Introduction

1

INTRODUCTION

1.1

Objectives of This Document

The overall objectives of this document are to:



define the minimum HSE objectives to be met at each stage of a contract



develop a strategy for proactive management of Contractor HSE



highlight the benefit of effective proactive approaches, particularly prior to tendering and mobilisation



describe a planned approach to Management of Contractor HSE that will ensure a continuing improvement in HSE performance for all contractor activities



describe the role and responsibilities of key personnel in contractor HSE management.

1.2

Objectives of Management of Contractor HSE

The overall objectives of Management of Contractor HSE are:



high contractor HSE standards

All contractor activities carried out on behalf of Shell Group EP companies should achieve the same or higher HSE standards as those required by Shell EP for its own operations.



adherence to hazards and effects management process (HEMP)

All hazards to the health and safety of the contractor's personnel, Shell staff and the public, to the environment and to the assets of the contractor, Shell or public should be:





identified, assessed systematically and eliminated where possible



controlled through formal procedures and planning methods



covered by contingency plans in place to deal with identified consequences of potential loss of control.

mutual HSE awareness

Both the contractor and the Contract Holder should be mutually aware of both parties' minimum obligations to achieve the above and these obligations should be within mutually agreed contractual terms.



means to monitor the contract HSE management

The means to monitor the contract HSE management system should be mutually defined, understood, accepted and agreed by both parties as contractually binding.



equal attention to H, S and E

Equal attention should be paid to health and environmental matters as well as safety.



controls in place for hazards and effects management

The controls necessary for the management of hazards and effects should be in place and working. Where they are not, this should be speedily remedied or in extreme cases, work should be stopped.

1.3

Background

EP 95-0110 Revision 0 18 October 1995

1

HSE Manual EP 95-0110 Management of Contractor HSE Over 80 per cent of Shell EP activities depend on contractors to carry out a wide variety of works throughout the world. The majority of these activities are carried out in and around workplaces of relatively high risk. Efforts to achieve the required HSE standards must often overcome problems of language, culture, inhospitable environments whilst meeting the laws and regulations of the various countries in which Shell operates. Statistical analysis of HSE performance in global EP activities shows improvement though the trends are inconsistent. Of particular concern is the rate of serious incidents in activities such as transportation, security and construction. The past approach to Management of Contractor HSE has tended to concentrate on monitoring/control of HSE activity after contract award, where reactive measures in response to incidents and audits predominated. More recently the emphasis has shifted to the earlier phases of tender evaluation and mobilisation. In line with a more proactive approach this document aims to provide guidelines that give even greater emphasis to 'upfront' HSE management by focusing increased attention on the initial project phases. This HSE activity phasing is represented in Figure 1.1. 'Partnering' arrangements with contractors are now more familiar. These longer term contracts with the responsibility for meeting shared common objectives emphasise the need for early identification of clear HSE objectives from the onset and inclusion of these in the contract. Figure 1.1

HSE activity phasing for contracts

HSE activity level

FUTURE PRESENT PAST

Project Definition

Front End

Tender

Evaluation

Mob

Execution

Activity levels dependent upon statistics/audit, etc

Demob/Close-out

Contract award PROJECT PHASES

1.4

Scope

This document covers health, safety and environmental issues for all types and forms of contract services, including but not limited to the following:



drilling



design and engineering



well services

2

EP 95-0110 Revision 0 18 October 1995

1 Introduction



fabrication



diving



construction



NDT/inspection



commissioning services



seismic



marine transportation



land transportation



air transportation (fixed wing and helicopter)



marine assistance



catering



office services



chemicals supply



environmental services (eg waste management)



residential area services



security



specialist services



vendors (service engineers).

The extent to which each of the phases shown in Figure 1.1 is applicable will depend on the type of contract services under consideration. In turn, this will influence the extent to which the full details of the guidelines presented in Chapters 3 through 9 may need to be applied.

EP 95-0110 Revision 0 18 October 1995

3

HSE Manual EP 95-0110 Management of Contractor HSE This page intentionally left blank

4

EP 95-0110 Revision 0 18 October 1995

2 Overview

2

OVERVIEW

2.1

Contract Phases and HSE Planning

The influence and inclusion of HSE issues in the preparation of tender and contract documents and the subsequent HSE management of a contractor can be described within the context of an identifiable series of phases:



planning and invitation to tender



tender period



bid evaluation and contract award



mobilisation



execution



demobilisation



close-out.

The chapters of this document follow this chronological sequence of events in contractor management. Each of the phases and the corresponding key HSE contract activities are shown in summary in Figure 2.1 and expanded in detail in subsequent chapters. The detailed guidance in the appendices follows the standard set of headings for HSE management with a further heading to cover those general issues of the work activities themselves.

EP 95-0110 Revision 0 18 October 1995

5

HSE Manual EP 95-0110 Management of Contractor HSE

2.2

Planning for HSE: Timing

The main HSE targets of each phase together with the way in which the HSE activities are divided between the Opco and the contractor are shown in Table 2.1. The emphasis on HSE considerations in the early phases is for the following reasons:

  

to improve contract HSE definition and awareness



to (re)confirm that contractors can fulfil HSE obligations, partly based on past HSE performance.

6

to provide early identification of HSE issues for inclusion in the tender documents to provide a framework before contract award for continued performance of HSE to agreed standards in subsequent execution

EP 95-0110 Revision 0 18 October 1995

2 Overview

2.3

Planning for HSE: Scope

There are two main points to be considered in determining the application of HSE issues:

 

the extent of the HSE coverage required the importance of specific HSE issues.

EP 95-0110 Revision 0 18 October 1995

7

HSE Manual EP 95-0110 Management of Contractor HSE Figure 2.1

Management of Contractor HSE: overall flowchart

Definition

Establish contract scope / schedule / strategy P L A N N IN G A N D IN IT IA T IO N T O TEN D ER

Prequalify Contractors Assessment of each contract

Finalise tender document

Contractor prepares HSE plan

TENDER PERIOD

Review tender E V A L U A T IO N A N D C O N TR A C T AW A R D

CONTRACT AWARD

Hold local kick-off meeting

Confirm HSE plan

MOBILIZATION

Monitor HSE plan implementation and performance

EXECUTION

Maintain same level of vigilance as during execution

HSE close out report

8

DE-MOBILIZATION

F e e d b a c k to R e g is te r o f A p p r o v e d C o n tr a c to r s f o r p r e q u a lific a tio n o f c o n tr a c to r s

CLOSE-OUT

EP 95-0110 Revision 0 18 October 1995

2 Overview

Table 2.1

Management of Contractor HSE: key targets and Opco and contractor activities

Phase

Target

Opco

Contractor

Planning and

Major hazards identified with

Qualitative HSE assessment of the

Opco/contractor dialogue

Invitation to tender

assurance that they can be managed

work

Respond to prequalification

Confirmation of major hazards with

HSE sensitivities

Discuss HSE responsibilities and

outline targets criteria and methods

Hazard identification/quantification

staffing

for control

Health risk assessment

Confirmation that prequalified

Environmental impact assessment

contractors can achieve targets

HSE policies and approach

Review of previous HSE record of

Opco/contractor dialogue

contractors HSE tender evaluation criteria specified and agreed with Tender Board Tender period

Contractor preparation of HSE Plan

Respond to clarification requests

Prepare contract HSE Plan

in accordance with Opco criteria/

Meetings

Clarification requests

HSE Case input

Site visits

Meetings

Evaluation and

Confirmation that contractor HSE

Evaluate bids

Respond to clarifications

contract award

Plan will meet Opco criteria

Clarifications

Meetings

Agreement with contractor on

Meetings

methods to be used, performance

Finalise contractor's HSE Plan

Site visits

measurement criteria and audit/review strategy Mobilisation

Confirmation that contractor's HSE

Kick-off meeting

Kick-off meeting

Plan has achieved pre-execution

Confirm contractor's HSE Plan

Confirm contractor's HSE Plan

targets

activities

activities

Supervision

Supervision

Pre-execution audit

Induction Training Meetings Inspection Pre-execution status achievement

Execution

Assurance and verification that

Supervision

Supervision

contractor systems are performing in

Meetings

Inspection

line with contractor's HSE Plan

Promotion of HSE issues

Induction

Milestone reviews

HSE performance review

Training/Drills

Investigation of incidents

Meetings

Auditing

HSE performance review Investigation of incidents Auditing Correction of defects

Demobilisation

Management of final activities

Supervision

Supervision

Close-Out

Analysis and feedback of Opco and

Close-out report

Close-out report and feedback (to

Contractor HSE performance

Feedback for future contract HSE

own management)

Plans/clauses

The material presented in the remaining chapters of this document is sufficiently extensive and detailed to cover large contracts, for example, major engineering/ procurement/construction (EPC) contracts, which involve significant elements of all the phases outlined above in 2.1. The appendices similarly contain further details that could be relevant to such a contract and, in some circumstances, all of the items listed may need to be considered. For small contracts, and those where the extent of planning work is much less, the need for such a comprehensive coverage will be correspondingly reduced. However, even for small or short duration

EP 95-0110 Revision 0 18 October 1995

9

HSE Manual EP 95-0110 Management of Contractor HSE contracts, HSE planning must not be ignored or treated superficially. In such cases, the work is likely to include the use of basic practices (eg scaffolding, welding, excavating, erecting formwork, etc) and the contractor should be able to demonstrate good general HSE management in each of these basic practices. In addition, the contractor should be able to understand and carry out hazard assessment when these practices are put together in different combinations, particularly in association with the hazards of the workplace (eg working in confined spaces, over water, etc) and live plant (eg presence of H2S, isolating electrical systems, etc). Preparations for contracts, large or small, must include the same systematic process of hazard identification, assessment, control and recovery, together with the evidence that a system is in place to manage these hazards. In a major project this HSE Plan will be a comprehensive document and form a large part of a HSE Case. In the other extreme, eg for the one-man contract undertaking a simple repetitive task, a short proforma completed to show that the hazards are recognised and understood is likely to be adequate.

10

EP 95-0110 Revision 0 18 October 1995

2 Overview

2.4

Management of Contractor HSE and HSE MS

In an Opco corporate HSE MS, Part 1 presents the elements of the Opco's management system as they apply to HSE and Part 2 the detailed breakdown of business processes into the HSE-critical activities. For an operation-specific situation, these two parts are translated into a demonstration of the HSE MS in action (as part of an HSE Case). Where such operations require contracted work or services, the HSE Case must show how the Opco manages contractor HSE and how the contractor achieves HSE management of his own workforce and his subcontractors. Major contractors providing services to Opcos must be able to demonstrate that they already have an HSE MS and are prepared to contribute to HSE Cases. Whilst it is not intended that their HSE MS should be identical to that of the Opco, it should exhibit the same degree of application and assurance of safe operations, without damage to health and the environment. A contractor familiar with the guidelines on HSE Management Systems in EP 95-0100 and who uses these as the basis for his management system should be able to align immediately with this requirement. Smaller (minor) contractors, who may not have formalised systems, must still have a basic understanding of managing HSE in their operations and be prepared to provide a simple but effective system. Service contracts are often used as a means of executing work. Initially such contracts often have no defined scope beyond a general description of the services, skills, plant, etc that the contractor must be able to provide. However, the ability of the contractor to mange HSE on a job-by-job basis is an essential requirement. For example, he should be able to make hazard assessments, apply and enforce controls to manage residual HSE hazards and effects, apply local HSE legislation correctly, respond effectively to emergency situations, etc. All these elements must be demonstrated prior to contract award. In Opco operations, the HSE-critical activities represent those activities for which the principles of hazards and effects management must be applied and documented as part of the HSE MS. For work contracted out, these same principles should be applied to the activities carried out by the contractor. Detailed guidance on HSE management of hazards and effects in a specific business area (eg drilling, maintenance, construction, transport services, etc) can be found in the relevant section of Volume 2 of the HSE Manual. General contractor HSE management principles, (such as his approach to hazard assessment, use of PPE, HSE inspection of plant and equipment, etc), are included in this document. Throughout this document, reference is made to the 'HSE Plan' which essentially defines the combination of the HSE MS and a description of how the HSE-critical activities are to be managed. The term 'HSE Plan' has deliberately been retained for a wider understanding of management of contractor HSE, particularly with smaller contractors. An important element of the HSE Plan is to show how the Opco and the contractor intend to link their organisations for the purpose of HSE management of the contract. It should be recognised that in many situations, particularly for larger contracts, this HSE Plan will effectively form a significant part of a full HSE Case. By the Opco clearly defining what is required, the contractor can then provide the necessary details of his system and show how he intends to fulfil the HSE requirements. The way that this occurs in a typical contract is shown in Figure 2.2. Guidelines for headings and contents for an HSE Plan for major contracts are given in Appendix IV, with those for smaller contracts, such as office services, in Appendix V.

EP 95-0110 Revision 0 18 October 1995

11

HSE Manual EP 95-0110 Management of Contractor HSE

2.5

HSE Case Joint Preparation

In major projects or projects in a critical area, it is necessary to combine the contractor and Opco elements to form an effective overall HSE MS and HSE Case for the planned operation. To achieve this it is necessary:



for the Opco to provide the contractor with details of the hazards and hazardous operations which the contractor will encounter



for the Contractor to describe his HSE MS and how he will manage HSE-critical activities identified by the Opco and those additional activities, critical to HSE performance and known to the contractor, which are inherent in undertaking the specified work



to complete the HSE hazards and effects register and activities catalogue with the contractor ensuring that this is compatible with that of the Opco



to complete the HSE Case with joint input



to prepare a monitoring and audit plan



to audit the HSE Case and contractor HSE MS.

Typically, the various parts of an HSE Case, which is jointly prepared by contractor and Opco, might be expected to have relative input from the two parties as follows:

12

EP 95-0110 Revision 0 18 October 1995

2 Overview

Table 2.2

HSE Case Components and Contractor-Opco Input HSE Case Components

Percentage input Contractor

Opco

Introduction and Management Summary

50

50

Operations HSE MS

80

20

Activity Catalogue

70

30

Operations Description

90

10

Hazards and Effects Analysis

70

30

Remedial Work Plan

50

50

Conclusions and Statement of Fitness

50

50

EP 95-0110 Revision 0 18 October 1995

13

HSE Manual EP 95-0110 Management of Contractor HSE

Figure 2.2

Development of contract HSE requirements

Clearly the above will vary significantly from contract to contract. The degree of delegation will ultimately require the sanction of the final signatory of the statement of fitness who must satisfy himself on behalf of the Opco that all appropriate aspects have been considered and action taken.

14

EP 95-0110 Revision 0 18 October 1995

3 Planning and Invitation to Tender

3

PLANNING AND INVITATION TO TENDER

3.1

Objectives

The HSE activities carried out during the planning and invitation to tender phase fall under the following headings:



determine the HSE impacts on scope, schedule and strategy for the contracts required



assess HSE content of each contract



confirm suitability of contract scope, schedule and strategy against HSE assessments



prepare HSE-related contract documents



prequalify potential contractors for HSE suitability, having reviewed their past HSE performance



prepare the outline contract with appropriate milestone hold points.

Ahead of any defined contract scope, Opco/contractor dialogue may be considered to discuss possible contractor involvement, especially the technical and other difficulties that might influence HSE performance. Clearly at this stage no discussion on cost issues is appropriate. The sequence of activities is shown in Figure 3.1.

EP 95-0110 Revision 0 18 October 1995

15

HSE Manual EP 95-0110 Management of Contractor HSE

3.2

Outline Scope of Work or Services

The starting point for the planning of contractor HSE management is the definition of work or services in sufficient detail to identify the major hazards and HSE impacts. This should be determined from a separate appraisal of the business area and activities themselves and would include aspects such as:



type of activities



location of site(s) and the workplace



timing and sequence



personnel



plant and equipment used



materials and consumables.

Experience gained from previous projects should be utilised by reference to:



close-out reports from similar projects



formal records of previous HSE performance by contractors on similar projects



similar activities in relevant and/or nearby countries



HSE audits carried out in recent years on relevant activities



general background information on planned areas of operations.

This definition should include an HSE management system deriving specific tasks and targets with clear deliverables by the contractor and, where relevant, the Opco.

16

EP 95-0110 Revision 0 18 October 1995

3 Planning and Invitation to Tender Figure 3.1

Management of Contractor HSE flowchart: planning

D e f i n i t io n I d e n t if y w o r k s c o p e

E s t a b li s h n o t io n a l c o n t r a c t s tr a te g y

C an an e x is t in g c o n t r a c t be used

Yes

N o

D R A W U P P O T E N T IA L B ID D E R S L IS T F R O M R E G IS T E R O F A P P R O V E D C O N TR AC TO R S . F o r m a in c o n t r a c t o r . F o r s u b - c o n tr a c to r( s )

T a k e t h is in t o a c c o u n t d u r in g HS E assessm ent

A r e p o te n tia l c o n tra c to rs p r e q u a lifie d ?

Ye s

S C R E E N P O T E N T IA L C O N TR AC TO RS FO R HS E S U I T A B IL I T Y . P r e v io u s e x p e r ie n c e . P r e v io u s r e p o r t s

BASED O N THE HS E ASSESS MENT . D e t e r m in e s c o p e f o r ( s u p p l e m e n t a r y ) s a f e t y p la n . U p g r a d e c u r r e n t r e g u l a t io n s . D e t e r m in e n e e d f o r a d d it io n a l s u p e r v is io n ( O p c o /c o n t r a c t o r ) . D i t t o t r a i n in g

F in a l is e H S E a s p e c t s f o r in c lu s io n in a v a r i a t io n o r d e r

N o

M a ke a n H S E a ssessm e nt fo r e a c h c o n tr a c t

S C R E E N P O T E N T IA L C O N TR AC TO RS FO R HS E S U I T A B IL I T Y

R e v ie w H S E a s s e s s m e n t a g a in s t c o n t r a c t s c h e d u le a n d s t r a t e g y

R e v ie w / m o d i f y s c h e d u le Is c o n t r a c t s c h e d u le a n d s t r a t e g y s u it a b le ?

. . . .

P r e v io u s e x p e r ie n c e P r e v io u s r e p o r t s Q u e s t io n n a i r e V is it s , in t e r v ie w s , a u d it s

N o

O b t a in f in a l a p p r o v a l fo r b id lis t

Ye s

BASE D O N THE HS E ASS ESS MENT

. . . . . . . .

D e f in e s c o p e o f c o n t r a c t o r ' s H S E p l a n I d e n t if y p e r t in e n t H S E r e g u la t io n s f o r t h e c o n t r a c t A g r e e O p c o s u p e r v is io n s t r a t e g y Id e n t if y a n d s c h e d u le O p c o / c o n t r a c t o r t r a in in g n e e d s D e t e r m i n e e x t e n t o f p r e v a il i n g i n f l u e n c e I n c o r p o r a t e H S E r e la t e d c o s t s in c o n t r a c t F i x m i n i m u m p r e - e x e c u t io n r e q u i r e m e n t s H o ld p r e t e n d e r m e e t i n g if c o n s i d e r e d n e c e s s a r y

A g r e e H S E b id e v a lu a tio n c r ite r ia a n d o b t a in te n d e r b o a r d e n d o r s e m e n t

F i n a lis e H S E a s p e c t s f o r c o n t r a c t d o c u m e n ts

It should therefore address these issues; which are the main elements of an HSE MS: Leadership and commitment

Define how senior management set personal examples, demonstrate involvement and participation, communicate to employees, etc on HSE.

Policy and strategic objectives

Draw up the policy statements on HSE that are to be observed.

EP 95-0110 Revision 0 18 October 1995

17

HSE Manual EP 95-0110 Management of Contractor HSE

Organisation etc

Define the formal structure for organisation, allocating resources, defining communications and responsibilities on HSE issues between the Opco and the contractor, setting minimum competence levels and training requirements in HSE expected on the project for Opco and contractor staff and specifying documentation control.

Hazards and effects management

Describe how hazards and effects are to be identified, assessed, controlled and how recovery in the event of loss of control will be carried out.

Planning and procedures

Describe how the controls for hazards and effects management are to be implemented, develop a comprehensive listing of HSE standards and procedures applicable to the project, describe change management proposals and emergency response procedures.

Implementation and Monitoring

Define how HSE performance is monitored, the criteria for HSE performance and how corrective action is to be taken.

Audit and Management review

Define the basis under which internal and external HSE auditing and management reviews will be conducted.

18

EP 95-0110 Revision 0 18 October 1995

3 Planning and Invitation to Tender

3.3

Contract Scope, Schedule and Strategy

The contract scope identifies those project activities that may be contracted out. For each contract, a short but comprehensive description of the work should be produced, from mobilisation to demobilisation. A contract schedule should be derived with due consideration of the HSE issues 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. The contract strategy adopted can be the single most important strategic management decision of a project. The factors to be considered in formulating strategy include:



number of contracts (and hence the number of Opcocontractor interfaces)



availability of suitable existing contracts (eg service, call-off, etc)



contractor resources and skills



Opco supervision resources and skills



Opco/contractor responsibilities



local environment



project schedule



competitive situation



rules and regulations of the host country



prevailing influence Prevailing influence allows the Opco to impose its own HSE requirements. In contrast, negligible influence only allows the imposition of relevant national HSE legislation.

The interface between Opco and contractor is an area that needs careful review and clear definition. The following two examples illustrate the problem: Example 1: a small contractor uses Opco-owned mobile access equipment for electrical modifications on various sites. Responsibility for ensuring the maintenance of the equipment and the competency of the personnel using it should be defined. Example 2: An EPC contract for the expansion of a plant requires the new facilities to be brought on stream with no interruption to production on the existing plant. The Opco/contractor interfaces are likely to be complex on start-up and the scope must specify the format and type of detail required for the start-up stage. A primary consideration in determining strategy is the extent to which project management is relinquished to the contractor. For HSE issues this will be particularly important for those aspects associated with project organisation and communications. Additional details on contracting strategy can be obtained by reference to Principles of Project Management (Ref. 1). Contract strategy should consider provisions for delay or forfeit of contract payments pending results of HSE audit findings and satisfactory completion of action items. Non or late submission of key HSE Plans and documents should be linked to contract payments.

EP 95-0110 Revision 0 18 October 1995

19

HSE Manual EP 95-0110 Management of Contractor HSE

3.4

Contract HSE Assessment

A structured, formal HSE assessment should be developed for each anticipated contract. The details should be formally recorded with future actions identified and, wherever possible, action parties nominated. This will comprise elements of the HSE management system, together with aspects associated with the particular activities of the work, described in 3.2 above. The main objective of the formal assessment is to generate a plan that incorporates all Opco and contractor HSE aspects relevant to the contract workscope. This plan will ultimately provide the framework for the contractor's HSE Plan. The main headings of the assessment are:



carry out HEMP for HSE Follow the process of identifying, assessing and controlling hazards and establishing methods for recovery in the event of loss of control. If the contract relates to a development project then the HEMP process will be underway and the hazards already identified will be added to those identified as project-specific and included in the project hazards and effects register. If the contract relates to a common or recurring activity then the Contract Holder can access the hazards and effects register for that activity.



identify the applicable HSE laws and regulations and Opco regulations and standards



identify the Opco's HSE project organisation/interfaces and define supervision requirements, roles and responsibilities (see Appendix III for key personnel)



examine carefully areas where critical time schedules and resource limitations may call for extra attention to HSE



determine communication needs including scope and schedules for meetings



identify minimum induction and training requirements: for both Opco and contractor, prepare a training schedule, paying particular attention to training needs for exceptional activities.

Whilst major hazards associated with the operational phase of the project will have been identified earlier, the assessment at this stage will build up the level of detail and should involve the people who will participate in the project. The suitability of the notional contract scope, schedule and strategy should then be confirmed against the HSE assessment. It may be appropriate to have dialogue with potential bidders as a further means of ensuring comprehensive coverage of HSE issues in the contract HSE assessment.

20

EP 95-0110 Revision 0 18 October 1995

3 Planning and Invitation to Tender

3.5

Contract HSE Specification

The HSE assessment results may now be translated into a specification for inclusion in the tender as follows:



define the scope of the HSE Plan and in particular the hazards to be addressed



identify the HSE regulations and procedures for the contract



define the Opco/contractor interfaces and the Opco supervision strategy



identify and schedule Opco and contractor training requirements



determine the minimum 'pre-execution' requirements.

Appendix IV and V provide guidelines for defining the requirements of an HSE Plan for major and small contracts respectively (refer to 2.4). The tender HSE documentation should be compiled, with due attention to the following:



Opco responsibilities It is the Opco's responsibility to ensure that the tender documents comprehensively cover the HSE requirements for the contract. Assumptions that the contractor already knows the issues are dangerous. Time must be spent to make comprehensive, clear and concise tender documents. Knowledge about hazards already identified by the Opco must be passed on to the contractor.



Minimum requirements The hazardous activities that need addressing by the contractor should be listed by the Opco. Selection of these activities should be based on due consideration of the known exposure and frequency presented by these hazardous activities.



Contractor responsibility The contractor must have independent responsibility for his own HSE Plan, but documents must make clear provision for the Opco to perform HSE audits on the contractor in order to confirm compliance.



Contractor reporting The contractor must report to the Opco on HSE performance.



Contractor performance The documents must include provision for the Opco to suspend work if the contractor does not observe the HSE requirements and, in particular at mobilisation, to withhold permission to start execution and hold payments until a satisfactory pre-execution audit has been achieved.



Special HSE provisions Where special HSE provisions are to be provided, the documents should specify these clearly and identify where the contractor is to price for them.

In preparing his bid, the contractor must demonstrate compliance with such requirements by preparing his own HSE Plan within the Opco framework. Contractors must be allowed the freedom to use industry HSE standards, eg those of the International Association of Drilling Contractors (IADC) or International Association of Geophysical Contractors (IAGC), E&P Forum, if they are equivalent to or exceed the Opco's standards. The Opco must ensure the availability of expertise and resources to evaluate the alternatives proposed. The tender documents must permit the flexibility for the contractor to take on ownership of his HSE responsibilities under the contract with the Opco retaining the ability

EP 95-0110 Revision 0 18 October 1995

21

HSE Manual EP 95-0110 Management of Contractor HSE to manage the contract effectively. Short lead times for tender preparation could compromise the establishment of a sound basis for HSE management. The following aspects should be considered:



use standard contracts, where possible



ensure adequacy of document coverage



make the documentation appropriate for the contract without unnecessary bureaucracy



specify any constraints on the methods of working



identify where concurrent Opco operations could be impacted



take account and state the limits of the Opco's prevailing influence.

This last aspect is of special concern in mobilisation and demobilisation phases. Influence can be exerted by ensuring that these 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 Opco).

22

EP 95-0110 Revision 0 18 October 1995

3 Planning and Invitation to Tender

3.6

Contractor Prequalification

The general practice in Opcos for selecting contractors is through the competitive tendering process. In the prequalification stage, potential contractors are screened to establish that they have the necessary experience and capability to undertake the contract in question. Only those meeting the necessary HSE criteria should be included on the prequalified list. A formal historical record of the HSE performance of all contractors previously employed should be maintained by the Opco for use at prequalification. Prequalification is usually achieved by issuing a standard 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 or emphasise requirements specific to the contract. Of special importance is the management by contractors of their subcontractors and the need for the main contractor to demonstrate his understanding and commitment to having full responsibility in this area. Appendix I provides guidelines for an HSE prequalification questionnaire. This questionnaire is directed towards establishing the status of the contractor's HSE MS. A points system method, which minimises subjective judgement, may be used to evaluate contractors' submissions. Contractors who achieve a predefined acceptable score will then be judged to have met the HSE precontract requirements. Appendix II provides guidelines for a points evaluation system. Opcos should aim to be fully satisfied that contractors, eventually invited to bid, can perform the work to the required HSE standards. When prequalifying new or unknown contractors, it will generally be necessary to arrange for inspection visits to the contractor's base site (with particular emphasis being placed on ensuring that the contractor has the resources and management structure to meet the Opco HSE standards). Where considered necessary, the contractor's existing sites should be audited to verify that he is achieving the HSE standards proposed for the new contract. Exclusion of a contractor from a bid list may be necessary as a result of his unsatisfactory HSE record. The contractor should be clearly informed of the deficiencies in his HSE management performance and that inclusion in subsequent bid lists will require improved HSE performance. Contractor prequalification as described above is necessary for large or specialised contracts where new contractors or existing contractors must be vetted with respect to their capabilities to manage HSE matters against a particular scope of work. For more routine contracts it is likely that an Opco will maintain a 'Register of Approved Contractors' whereby contractors are registered once considered capable of undertaking certain types of work effectively including the management of the HSE aspects. The contractors are initially reviewed or prequalified in a manner similar to that described above. Once the Opco is satisfied that the contractors have the necessary systems in place to manage certain types of contracts satisfactorily they are permitted to bid for these. It is important to maintain an Opco-wide system that can record up-to-date details on the HSE performance of these contractors on contracts awarded to them. This system should also prompt the initiation of periodic HSE reassessments of contractors who have not been successful in bidding to ensure that HSE information is current. In a large Opco, where a contractor may be working for a number of functions, it has been found necessary to assign a focal point within the Opco to oversee the activities of that particular contractor in terms of work undertaken, resources available, potential overcommitment. The focal point will be fully familiar with the contractor's structure, the intended spread of resources and ultimately his HSE performance. He is also in a position to provide Opco management with an assessment of status before commitment to any particular strategy involving that contractor. Where there is a policy to encourage small local contractors to develop and these contractors have little or no background in HSE Management then a plan to overcome the shortcomings must be

EP 95-0110 Revision 0 18 October 1995

23

HSE Manual EP 95-0110 Management of Contractor HSE developed. Such a plan may require additional supervision, more explicit procedures or additional training. The HSE requirements must be met before work commences. The scale of the contract and the exposure must be matched accordingly. Again, the details of the progress of such contractors should be recorded.

24

EP 95-0110 Revision 0 18 October 1995

4 The Tender Period

4

THE TENDER PERIOD

4.1

Objectives

The HSE activities carried out in the tender phase fall under the following main headings:



contractor's preparation of his HSE Plan to Opco framework



Opco responses to contractor's HSE clarification requests

Copies of queries and replies should be circulated to all contractors.



clarification meetings

These may be held with contractors individually or in groups and all such meetings should be recorded by the Opco.



site visits by contractors (as necessary).

All meetings and visits should be recorded by the Opco. The lead times for tender response should be sufficient for tenderers to provide a sound basis for HSE management.

4.2

Contractor's HSE Plan

The principal activity in this phase is the preparation of the HSE Plan by the contractor. For a major contract this will probably form a significant part of the HSE Case (refer to 2.4). The HSE Plan must cover all contract phases from mobilisation to demobilisation and should provide a clear indication of the policies, procedures, standards, etc to be adopted during each phase of the contract. The contractor should use as the basis the Opco contract HSE documents as described above in Chapter 3. However, as part of his submission, the contractor is required to state his own proposals within the framework described. In particular, the contractor should:



develop his own hazard assessment of the work described for the contract



define his execution proposals

The contractor should confirm his proposed use of policies, procedures, standards, etc and show that these comply with Opco requirements or add to them where he believes the contract guidelines are insufficient.



demonstrate familiarity with the type of work involved



confirm his understanding that the Opco guidelines represent minimum standards.

The guidelines are designed to indicate the key features of the HSE Plan but are not necessarily exhaustive. The contractor may add to the list where needed. Conversely, items in the guidelines may not apply to some contracts.

4.3

HSE Costs

The main objective should be to provide a clear means of assessing the weight each contractor is giving to HSE in his submission and for him to demonstrate that he has allocated sufficient resources to implement the HSE Plan satisfactorily. The tender documentation should, where possible, provide a mechanism to allocate costs of implementing HSE requirements and for the contractor to indicate these costs separately. However,

EP 95-0110 Revision 0 18 October 1995

25

HSE Manual EP 95-0110 Management of Contractor HSE care should be exercised to ensure that costs are not included here for work which should be carried out as part of normal good practice. The contract might, for example, include for time and costs associated with producing a new HSE procedure. HSE pricing would normally be expected for such items as:



audits



meetings



induction and training



medical facilities, first-aid training, Medevac, safety equipment



waste disposal



incentive schemes



personal protective equipment (PPE)



emergency resources



health surveillance



journey management in logistics.

4.4

Incentive Schemes for HSE

Incorporating an incentive scheme for HSE, involving additional payment in a contract, needs very careful consideration. It can absorb a significant degree of effort to administer and the longer term effectiveness can be questionable. To be effective such a scheme should:



not discourage or suppress the reporting of incidents



be proactive and therefore reward effort, eg audits and follow-up rather than 'after the event' statistics



ensure that incentives are enjoyed and valued by the personnel who are in a position to influence the performance and maintain the systems



be culturally adapted to the local environment.

A contract which has no incidents may reflect a considerable effort by personnel and a good HSE management system; on the other hand it can equally indicate a period of good fortune. With a better definition of what is expected from contractors in terms of the HSE Plan, it is easier to link contractual payments to the satisfactory development of the HSE Plans and the subsequent adherence to them. This, together with a more objective end-of-contract rating against the plan (used in evaluations for future work), is an effective long-term incentive for the contractor.

26

EP 95-0110 Revision 0 18 October 1995

5 Evaluation and Contract Award

5

EVALUATION AND CONTRACT AWARD

5.1

Objectives

The evaluation phase should:



evaluate thoroughly each contractor's HSE Plan This evaluation should check that the HSE Plan achieves the minimum acceptable standards, including reference to proposed key personnel competencies, subcontractors, manning levels, plant and equipment resources, etc.



clarify each contractor's HSE Plan where necessary and record all clarifications for inclusion in contract



establish the costs included in each bid for HSE activities



evaluate and provide rating and comparison of HSE aspects in the bids to determine acceptability on HSE requirements.

5.2

Evaluation

The main focus of the HSE evaluation is the contractor's HSE Plan although other aspects of the bid should be scrutinised. In particular, aspects of the contractor's execution plan may be inconsistent with his stated intent regarding the fulfilment of HSE requirements and may need clarification (including site visits). It is important to establish the current status of the contractor's preparedness for HSE in the contract and to ascertain if further action is necessary on his and the Opco's part before proceeding. In this regard, the Opco should assess HSE costs and resources required for a specific contractor as well as those stated in the contractor's bid. Such Opco requirements vary depending on the preparedness and HSE competence of the contractor. Where a tender is considered, even though it has HSE deficiencies, the Opco should include an estimate of the cost of additional Opco or contractor resources and the time needed to bring performance up to standard and take this into consideration when evaluating bids. The extent of the evaluation of HSE depends on the degree of HSE requirements for the contract but will have been determined by the level of work in the previous phases. Appendix II describes a guideline evaluation method for prequalification based on a points system. This method may also be followed for tender evaluation by utilising the expanded headings in the Opco contract HSE documentation.

EP 95-0110 Revision 0 18 October 1995

27

HSE Manual EP 95-0110 Management of Contractor HSE This page intentionally left blank

28

EP 95-0110 Revision 0 18 October 1995

6 Mobilisation

6

MOBILISATION

6.1

Objectives

In the mobilisation phase the principal activities are as follows:



hold kick-off meeting (Opco and contractor jointly)



commence mobilisation (contractor)



review and finalise the contractor's HSE Plan (Opco and contractor jointly)



commence induction and training (Opco and contractor jointly)



supervise, inspect and monitor progress (Opco)



fulfil pre-execution milestone requirements (contractor)



hold pre-execution HSE audit (Opco).

Prior to mobilisation, it is likely that the full HSE Plan is known only to the principal members of the Opco's and contractor's project management teams. During mobilisation the HSE Plan has to be implemented by the management of both the Opco and the contractor. Depending on the circumstances, additional Opco supervisory staff may be required to allow rapid set-up and implementation of the HSE Plan. The resources required at this stage should not be underestimated. During mobilisation the Opco must ensure that the contractor sets up a method of operation that is in accordance with the HSE Plan. It is at this stage that the implementation and ownership of the HSE Plan by the contractor begins and this needs careful control. Aligning all these interests requires the introduction of a good working relationship between Opco and contractor and between contractor and subcontractors. The effective transfer of HSE responsibilities to any subcontractors, particularly if their activities are difficult to monitor (eg transportation), is particularly important. The HSE activities that will be implemented during mobilisation are indicated in Figure 6.1.

6.2

Kick-off Meetings

An HSE kick-off meeting should be held with the contractor immediately after contract award and before the execution of any work. For a new contractor, the kick-off process should include both Opco Contract Holder and the contractor's local management. If the contractor mobilises locally at the worksite, the kick-off meeting can similarly be held locally. If not, it may be necessary to hold the initial kick-off meeting at the contractor's base office, subsequently authorise mobilisation of his key personnel to site and follow up with a further local kick-off meeting. The local meeting should be held immediately prior to the start of any work. It should ensure that the contractor's workforce and supervisors are aware of the site hazards of the operation detailed in the scope of work and are familiar with HSE working procedures, rules and regulations, alarms and signals, emergency communications and procedures.

EP 95-0110 Revision 0 18 October 1995

29

HSE Manual EP 95-0110 Management of Contractor HSE Figure 6.1

Management of Contractor HSE flowchart: mobilisation

Contract Award

Contractor mobilises locally ?

Yes

Hold 'kick-off' meeting at contractor's base office

Hold 'kick-off' meeting 'locally'

MOBILISATION - LOCAL TO WORKS VICINITY

MOBILISATION - REMOTE FROM WORKS VICINITY Company : Review HSE plan Monitor pre-execution status Supervise, inspect, audit

Company : Review HSE plan Monitor pre-execution status Supervise, inspect, audit

Contractor : Confirm HSE plan Fulfill pre-execution procedure

Contractor : Contract HSE plan Fulfill pre-execution procedure All : Commence (or continue) induction and training Attend progress meetings

All : Commence (or continue) induction and training Attend progress meetings

Contractor (and sub-contractor(s)) mobilise key personnel and equipment to vicinity of works

Continue Mobilisation

Hold 'kick-off' meeting 'locally'

Pre-Execution HSE Audit

Has the contractor met the specified milestone requirements ?

No

No

Yes

Proceed to execution

30

EP 95-0110 Revision 0 18 October 1995

6 Mobilisation Additional topics to be covered should include:



confirmation of the HSE Plan to be implemented



confirmation of contractor employees' competence in HSE



confirmation of HSE performance objectives



distribution and explanation of the Opco HSE policy statement, basic HSE rules and work procedures



confirmation of the scope and schedule of activities to pre-execution milestone, HSE meetings, audits and reviews



Opco and contractor contingency plans



contact with third parties to ensure their role in emergency response plans is known



confirmation that HSE induction and training plans are in place and ready for startup



briefing of subcontractors on HSE requirements



incident reporting and investigation procedures.

The meeting may be structured as an HSE workshop, with participation by both Opco and contractor management. At the same time as the kick-off meeting, the opportunity should be taken to check the physical evidence that HSE systems are in place, for example:



HSE equipment



communications



environmental protection



health hazard identification and assessment, medical facilities, Medevac procedures



HSE awareness and promotional material



HSE documentation manuals.

The kick-off meeting should not be used as an opportunity to raise new HSE issues that should have been covered in the contract documentation.

6.3

Mobilisation

Once mobilisation activities have commenced, the Opco should begin its supervision, monitoring, inspection and audit functions of the contractor's pre-execution activities to ensure the contractor's HSE Plan is being implemented. The Opco supervisory function should ensure that the contractor has deployed his supervisory staff and is implementing the briefing and training that are required for his supervisors and employees. During the early part of the mobilisation phase it is likely that all personnel (Opco and contractor) assigned to the project will attend an employee HSE orientation programme. During mobilisation the contractor should finalise the HSE Plan. He should incorporate the agreements reached with the Opco at the kick-off meeting. The final HSE Plan for the contract will then be produced. Progress meetings should then be used as the formal method of reviewing HSE implementation.

EP 95-0110 Revision 0 18 October 1995

31

HSE Manual EP 95-0110 Management of Contractor HSE

6.4

Pre-execution Audit

At this stage of the mobilisation (known also as milestone zero) an audit against the contractor'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. Achievement of HSE Plan targets should represent the first milestone of the project to which first stage payments may be associated. A contract clause reserving the right to terminate on failure to meet this milestone should be considered. The extent of the audit will again depend on the size and complexity of the contract. For a small contract an audit may be conducted by means of a simple checklist. For a large and complex contract a more analytical approach may be required. 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

For relatively 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

In the more serious omissions the option of withholding permission to proceed or even terminating the contract may be necessary.

32

EP 95-0110 Revision 0 18 October 1995

7 Execution

7

EXECUTION

7.1

Objectives

Under the contract, the responsibility for proper supervision of the contractor's personnel on HSE matters rests with the contractor himself. However, the Opco Representative should ensure that the contractor's supervision complies with the requirements defined in the contractor's HSE Plan. Such checks should include confirmation of the following:



the contractor's line management commitment to the HSE issues



reinforcement of the HSE targets as defined in the contractor's HSE Plan



the provision of training as needed for specific contractor employees



the regular checking and review of the contractor's performance by the Opco Contract Holder



the contractor's monitoring of the quality, condition and integrity of his plant, equipment and tools



the contractor's holding of daily toolbox meetings and regular HSE meetings (minimum-weekly)



the contractor's implementation of exercises and drills of contingency plans with maintenance of an effective audit trail, including follow-up and close-out of action items



monitoring of the contractor's incident investigation and follow-up



performance of HSE inspections/audits and reviews of the contractor's activities (including contractor's internal HSE control system)



any deviations from the HSE Plan formally assessed and approved.

7.2

Supervision

The Opco's commitment to sound working practices in HSE matters should be visibly demonstrated in contract execution by providing a representative or representatives from line management to fulfil the HSE obligations of the Opco as described in the contract. Where there is access to Opco HSE advisers or specialists, then it is important that the role of the adviser is understood to be indeed that of an adviser. The Contract Holder or Opco Representative(s) may seek advice, support or services from an HSE Adviser on a routine or periodic basis but the responsibility for HSE matters on the contract must remain unmistakably with the assigned Contract Holder or Opco Representative(s). The extent of supervision will depend on the local circumstances and nature of the work. If the worksite is on or close to operating plant, more supervision may be required than, for example, on a new construction site. However a balance must be struck: too much instruction and direction by the Opco tends to relieve the contractor of responsibilities stipulated in the contract. Demonstration of the Opco's commitment to sound HSE management should be provided by:



verification that all HSE-related clauses in the contract are being complied with



regular and random site inspections by both the Contract Holder and the Opco Representative(s)



attendance at regular HSE meetings with the contractor



follow-up of all incident reports

EP 95-0110 Revision 0 18 October 1995

33

HSE Manual EP 95-0110 Management of Contractor HSE



prompt provision of resources and advice for HSE matters



not cutting corners on costs for HSE aspects of the work



regular evaluation reports of the contractor's HSE performance



measures to promote improvements in HSE performance



in extreme circumstances exercise of the right to curtail or suspend work for HSE reasons.

An HSE audit and review programme should be prepared, stating specifically what is expected of the Opco Representative(s) in ensuring that the HSE Plan is finalised and adhered to, together with details of how the performance of the Opco Representative(s) is to be measured. In certain circumstances it may be necessary to provide additional HSE specialist personnel to ensure the requisite level of supervision.

7.3

Competence Assurance

During execution of the work the Opco should monitor the competence assurance and associated training programme of the contractor and ensure that it meets the requirements of the HSE Plan. Where necessary the Opco should also determine any additional needs which may occur as a result of local circumstances. Monitoring by the Opco should include confirmation of the contractor's commitment to the following:



adherence to the contractor's personnel recruitment criteria



demonstration of personnel qualifications, ability and skills



provision of the necessary induction courses

Such courses should make personnel fully aware of the nature of the potential work hazards, instruct them in the use of protective and emergency equipment and explain/practise emergency drills.



training of contractor's personnel in the standards and procedures to be followed



completion of the necessary HSE, first-aid, survival and job-related training (particularly permit-to-work system (PTW) and house rules) required by law and Opco practices prior to starting work and the provision of certificates to that effect



provision where appropriate for contractor's personnel to attend on-going HSE courses (preferably as mixed groups of Opco and contractor staff)



availability of HSE documents, instruction and information leaflets and newsletters with special attention to use of local language and simple visual messages.

7.4

Inspection and HSE Auditing/Reviews

Inspection and auditing provide the methods for monitoring contractor HSE activities. Regular inspections provide the day-to-day means of checking compliance with contract requirements. Auditing provides the more formal and comprehensive assessments of adherence to the written framework of the contract (the contractor's HSE Plan). The contractor will have defined in his HSE Plan his own audit/review plan for his work and that of his subcontractors. The documented evidence of these audits should be available to the Opco together with the follow-up action taken. Inspections should be used to cover such aspects as:



34

compliance with PTW system

EP 95-0110 Revision 0 18 October 1995

7 Execution



operational condition of HSE equipment



HSE features on plant and equipment



reliability, serviceability and maintenance of work tools and equipment



emergency and contingency plan readiness and drills including use of firefighting equipment and first-aid



correct use of protective equipment



employee HSE awareness and demonstrated use of safe work practices.

The effectiveness of inspections can often be enhanced by the use of unannounced spot checks and involvement of the contractor's responsible supervisory personnel. Inspection and auditing is the primary responsibility of the contractor. However, Opco supervisory staff should be tasked to monitor the implementation of the contractor's HSE Plan and ensure that the contractor's systems are in place. In doing so, however, it must be clear to the contractor that the responsibility for management of HSE is his. Auditing practices may be used to examine specific technical areas in more detail or to provide indepth HSE management assessments (eg the contractor's internal HSE controls). Further details on auditing are given in EP 95-0130. The findings of all inspections and audits together with follow-up reports should be fed back to the contractor's site and office management. Effectiveness of audits may be enhanced by linking contract payment to completion of audit action items. Appendix VI provides a list of reference headings which can be used to derive topics for audit evaluations.

EP 95-0110 Revision 0 18 October 1995

35

HSE Manual EP 95-0110 Management of Contractor HSE This page intentionally left blank

36

EP 95-0110 Revision 0 18 October 1995

8 Demobilisation

8

DEMOBILISATION

The contractor's HSE Plan continues to be the vehicle for monitoring his HSE activities in this phase. Two new areas figure prominently:



site restoration



waste management and disposal.

The contractor's HSE Plan should be reviewed as a first step before work commences. Due consideration should be taken of any similar activities with mobilisation, the problems encountered and solutions found. The Opco should continue to monitor the contractor's performance against his plan, including attention to incident reporting. It is important to maintain vigilance on HSE matters to the very end of the contract.

EP 95-0110 Revision 0 18 October 1995

37

HSE Manual EP 95-0110 Management of Contractor HSE This page intentionally left blank

38

EP 95-0110 Revision 0 18 October 1995

9 Close-Out

9

CLOSE-OUT

The close-out report provides the formal method of providing feedback to Opco management and for recording a concise history of the contract for future use. The report should derive the majority of its content by extracts from factual documentation collected during the entire life of the contract. The analysis and summary at the conclusion should address the following:



assess the effectiveness of the contractor's HSE Plan



identify those areas unanticipated in the plan, how they were overcome and the future approach to be taken



highlight successful positive aspects that should be used in the future



provide a concise analysis of both the Opco's and the contractor's HSE performance for discussion with the contractor's management for means of improvement



provide input information on the contractor for Opco bid list to identify actions needed in assessments for future tenders.

The HSE close-out data should be recorded and fed back into the Register of Approved Contractors or another easily accessible form for future reference. A formal record of HSE performance should be kept on each contractor and be fully discussed with the contractor's management.

EP 95-0110 Revision 0 18 October 1995

39

HSE Manual EP 95-0110 Management of Contractor HSE This page intentionally left blank

40

EP 95-0110 Revision 0 18 October 1995

Appendix I Contractor HSE Prequalification

APPENDIX I CONTRACTOR HSE PREQUALIFICATION General guidelines for preparation of questionnaire 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) activities and not just those conducted on Shell sites.

3

The questionnaire should be completed by contractor line management.

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 Opco requirements and this excellence should be recognised.

Table I.1

Questionnaire for contractor HSE prequalification Questionnaire items

Responses

Section 1: Leadership and Commitment (i)

Commitment to HSE through leadership

a)

Are senior managers personally involved in HSE management?

b)

Is there evidence of commitment at all levels of the organisation?

c)

Is there 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)

EP 95-0110 Revision 0 18 October 1995

Who has overall and final responsibility for HSE in your organisation?

41

HSE Manual EP 95-0110 Management of Contractor HSE

Table I.1

Questionnaire for contractor HSE prequalification (continued) Questionnaire items c)

Responses

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?

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 training is given in-house please describe the content and duration of courses.

(iii) Competence and General HSE training

42

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 practices?

EP 95-0110 Revision 0 18 October 1995

Appendix I Contractor HSE Prequalification

Table I.1

Questionnaire for contractor HSE prequalification (continued) Questionnaire items 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 Opco requirements?

d)

What arrangements does your company have to ensure existing staff HSE knowledge is up to date?

Responses

(If training is provided in-house please give details of content.) (iv) Specialised training

a)

Have you identified areas of your company's operations where specialised training is required to deal with potential dangers? (If YES 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 hazards identified, assessed and controlled?

(v) HSE qualified staff additional training

(vi) Assessment of suitability of subcontractors/ other companies

(vii) Standards

Does your company employ any staff who possess HSE qualifications that aim to provide training in more than the basic requirements? 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 to be met?

c)

How do you ensure these are met and verified?

a)

Where do you spell out the standards you require to be met?

b)

How do you ensure these are met and verified?

c)

Is there an overall structure for producing, updating and disseminating standards?

EP 95-0110 Revision 0 18 October 1995

43

HSE Manual EP 95-0110 Management of Contractor HSE

Table I.1

Questionnaire for contractor HSE prequalification (continued) Questionnaire items

Responses

Section 4: Hazards and Effects Management (i)

Hazards and effects assessment

What techniques are used within your company for the identification, assessment, control and recovery of hazards and effects?

(ii) Exposure of the workforce

Do you have in place any systems to monitor the exposure of your workforce to chemical or physical agents?

(iii) Handling of chemicals

How is your workforce advised on the properties of chemicals encountered in the course of their work?

(iv) Personal protective equipment

What arrangements does your company have for provision and upkeep of protective clothing, both standard issue, and that required for specialised activities?

(v) Waste management

Does your company have in place systems for identification, classification and management of waste? 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, onsite, 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?

44

EP 95-0110 Revision 0 18 October 1995

Appendix I Contractor HSE Prequalification

Table I.1

Questionnaire for contractor HSE prequalification (continued) Questionnaire items

Responses

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 environmental)? (Answers with details including dates, most frequent types, causes and followup 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 give following details for each year, number of Non Lost Time Injuries, number of Lost Time Injuries, number and type of injuries, total hours worked by workforce for each corresponding year, Frequency Rates, your company definition of a Lost Time incident).

b)

EP 95-0110 Revision 0 18 October 1995

How is health performance recorded?

45

HSE Manual EP 95-0110 Management of Contractor HSE

Table I.1

Questionnaire for contractor HSE prequalification (continued) Questionnaire items

(vi) Incident investigation and reporting

Responses

c)

How is environmental performance recorded?

d)

How often is HSE performance reviewed? By whom?

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 misses reported?

Section 7: Auditing and Review (i)

Auditing

a)

Do you have a written policy on HSE auditing and how does this policy specify the standards for auditing (including unsafe act auditing)?

b)

Do your company HSE Plans include schedules for auditing and what range of auditing is covered?

c)

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

Does your company hold membership of any industry, trade or HSE organisation?

(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 questionnaire?

46

EP 95-0110 Revision 0 18 October 1995

Appendix II Prequalification HSE Evaluation Guideline - Points System

APPENDIX II PREQUALIFICATION HSE EVALUATION GUIDELINE: POINTS SYSTEM Scoring The contractor's tender should be evaluated by attaching a score to the selected response for each category (see Appendix I). A suggested scoring system would be as follows (see Table II.1): HSE Plan documentation (sections 1 to 5, 7, 8): A

B

C

D

0

3

6

10

Performance and experience factors (HSE incidents) (section 6): 0

7

14

20

Elements scoring 0 should normally disqualify a contractor from being included in a prequalification list. Any elements rated so must be highlighted as a qualification on the tender if it is still to be considered. Table II.1

Rating of contractors' prequalification by a points scoring system (headings and item numbers refer to Appendix I) A

B

C

D

Evidence of active senior management involvement in HSE aspects

Evidence of a positive HSE culture in senior management and at all levels

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 involvement by senior management

Section 2: Policy and Strategic Objectives HSE policy documents and availability: Items 2(i) and 2(ii) No written HSE policy

A policy statement exists but not in a widely distributed document

EP 95-0110 Revision 0 18 October 1995

HSE policy establishes responsibility for HSE, but not widely distributed

Policy with clearly established responsibility and accountability; is distributed to all employees; and is visible on notice boards

47

HSE Manual EP 95-0110 Management of Contractor HSE

Table II.1

Rating of contractors' prequalification by a points scoring system (headings and item numbers refer to Appendix I) (continued) A

B

C

D

Section 3: Organisation, Responsibilities, Resources, Standards and Documentation HSE communication and meeting programmes: Item 3(i) None

Periodic HSE meetings for special 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

HSE training applied to management but not comprehensively covered

HSE training given formally to all relevant staff on their respective responsibilities

Staff HSE training Item 3(ii) No specialised staff training

HSE training assigned to a specific person on location

Employee orientation and training programme: Item 3(iii)(a) - (d) No formal programme

Verbal instructions on Opco procedures only Orientation booklet provided for new employees but no on-thejob orientation by supervisor

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

HSE training is given for specialised operations, but no routine training conducted

Formal HSE training programmes have been developed in all areas and are conducted on a regular basis. Retraining periods are established

HSE arrangements incorporated 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, subcontractor employees and are enforced. Follow-up audits held with discussion/feedback to management and employees

Specialised training: Items 3(iv) (a) and (b) and 3(v) No HSE training established

On-site basic training conducted occasionally

Subcontractors: Item 3(vi) (a) - (c) No written arrangements

48

Written arrangements in place for basic HSE matters only

EP 95-0110 Revision 0 18 October 1995

Appendix II Prequalification HSE Evaluation Guideline - Points System

Table II.1

Rating of contractors' prequalification by a points scoring system (headings and item numbers refer to Appendix I) 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 hazardous operations

Contractor has a system of specifying, monitoring compliance and updating standards

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

Company has formal methods for monitoring exposure to the major hazards

Company has a set of formal methods for monitoring exposure to all foreseeable hazards (linked to its hazards and effects assessment method) and applies them to all contracts

Company distributes information to individuals in the workforce at start of their involvement on-site

Company maintains a database of the properties of all chemicals encountered in its contracts and has formal methods of information distribution to all personnel and trains its workforce in handling, etc

Section 4: Hazards and Effects Management Hazards and Effects Assessment : Item 4(i) Company's HSE system does not include hazards and effects assessment

Company's HSE system makes reference to the need to assess hazards and effects but has no comprehensive structure to carry this out

Exposure of the workforce: Item 4(ii) Company does not actively advise the workforce nor monitor exposure

Company advises the workforce of the major hazards that they are likely to be exposed to but only monitors exposure randomly

Handling of chemicals: Item 4(iii) Company makes no special provision for advising the workforce about properties of chemicals

Company provides information to workforce in the workplace on properties of chemicals but has no active followup

EP 95-0110 Revision 0 18 October 1995

49

HSE Manual EP 95-0110 Management of Contractor HSE

Table II.1

Rating of contractors' prequalification by a points scoring system (headings and item numbers refer to Appendix I) A

B

C

D

Personal protective equipment : Item 4(iv) Basic PPE provided to personnel 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 replacement needs. Stock inventories monitored, kept above demand levels. Training in use provided where needed

Company has procedures for the disposal of each of the main categories of site wastes but makes no provision for minimising environmental impact

Company has a formal system for waste management (including identification and classification), which actively seeks to minimise environmental impact

Contractor has written HSE procedures 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 written programme outlining supervisory guidelines, responsibilities, frequency and follow-up is in effect

In addition to C periodic inspections conducted by top management or by teams of specialists

Company has a general management strategy with some procedures for its component issues

Company has a complete strategy and set of plans and procedures covering vehicles, drivers and operations management

Waste management: Item 4(v) Company has no formal methods for the control of waste

Company has general procedures for waste disposal

Section 5: Planning and Procedures HSE or operations manuals : Item 5(i) (a) and (b) No HSE procedures available

Basic HSE procedures exist

Equipment control and maintenance : Item 5(ii) No defined programme to identify or evaluate hazardous practices and equipment conditions

Plan relies on outside sources, ie Opco inspections. Supervisory inspection of equipment confined to worksite personnel only

Road Safety Management : Item 5(iii) No special attention paid to road safety as an area of hazardous activities

50

Importance of road safety acknowledged but left to core business managers/supervisors to enact individually

EP 95-0110 Revision 0 18 October 1995

Appendix II Prequalification HSE Evaluation Guideline - Points System

Table II.1

Rating of contractors' prequalification by a points scoring system (headings and item numbers refer to Appendix I) A

B

C

D

Section 6: Implementation and Performance Monitoring Management and performance monitoring of work activities : Items 6(i) and 6(ii) No system for formally monitoring HSE performance

Performance monitoring in a few areas carried out

Company has a system for monitoring HSE performance in key areas

Company has a comprehensive system for monitoring performance in all areas with feedback to employers for improvement and has received awards for achievement

Statutory notifiable incidents/dangerous occurrences and 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 incident 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 contractors three preceding years average) : Item 6(v) (a) - (d) Contractor supplied insufficient information to establish rate or rate increases

Rate is not improving

Shows only minor rate improvement

Rate steadily improving by more than 20 per cent per year

Rate under 120 per cent that of Opco

Rate better than that of Opco

Criteria for absolute performance Rate over 200 per cent that of Opco

Rate under 200 per cent that of Opco

Incident Investigation and reporting : Item 6(vi) (a) - (c) Findings not generally communicated

Findings communicated to key personnel only via limited company 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 improving HSE performance

Company HSE documents include details of how auditing is to be implemented with schedules/coverage for the key areas

As in C but additionally specifies management's role in audit and follow-up on action items

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 coverage

EP 95-0110 Revision 0 18 October 1995

51

HSE Manual EP 95-0110 Management of Contractor HSE

Table II.1

Rating of contractors' prequalification by a points scoring system (headings and item numbers refer to Appendix I) A

B

C

D

Section 8: HSE Management - Additional Features Membership of Associations : Items 8(i) and 8(ii) No memberships

52

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 participant in at least one HSE association

EP 95-0110 Revision 0 18 October 1995

Appendix III HSE Responsibilities for Opco and Contractor Key Personnel

APPENDIX III HSE RESPONSIBILITIES FOR OPCO AND CONTRACTOR KEY PERSONNEL Opco Contract Holder 

conducting a structured HSE assessment of the anticipated contract



HSE prequalification of contractors for the bidders list



preparation of the Contract HSE specification for inclusion in the tender documentation



preparation of an HSE monitoring programme defining the role of Opco Representative(s) in ensuring that the contractor's HSE Plan is finalised and followed



preparation of Opco audit and review programme and securing appropriate resourcing for this programme in consultation with Opco management



evaluation of the contractor's HSE Plans in the contractor bids



ensuring the adequacy of the contractor's HSE Plan at contract award



appointment in writing of competent Opco Representative(s)



supervision of Opco Representative(s)



conducting a pre-execution HSE audit and authorising the contractor to commence work if the pre-execution HSE requirements have been met



monitoring the performance of the contractor against his HSE Plan



authorisation of deviations from the contractor's HSE Plan



application of sanctions in the event of unauthorised deviations from the contractor's HSE Plan



preparation of HSE close-out report.

Opco Representative 

making quality assurance checks on contractor's review and inspections and follow up



verifying that hazards and effects management controls as specified in the contractor's HSE Plan are implemented



identifying deficiencies against the contractor's HSE Plan and agreeing remedial action with contractor or instigating sanctions in consultation with Contract Holder.

EP 95-0110 Revision 0 18 October 1995

53

HSE Manual EP 95-0110 Management of Contractor HSE

Opco Site Representative Where a contractor may be working in a number of areas it is common for an Opco to nominate someone who is responsible for the supervision of the physical work being executed under the contract at a specific appointed site. The Site Representative's HSE responsibilities follow those of the Opco Representative, but are specific to the site.

Opco HSE Adviser Where there is access to Opco HSE advisers or specialists, it is important that the role of the adviser is understood to be indeed that of an adviser. Advice, support or services may be sought from an HSE Adviser on a routine or periodic basis but the responsibility for HSE matters on the contract must remain unmistakably with the assigned Contract Holder and representatives.



provide advice and support in HSE issues as requested



provide review/audit services as requested



provide 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 support and assistance in HSE matters. The Opco HSE adviser may be tasked with providing support but must exercise care 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.

Contractor Contract Manager 

preparation and quality of contractor's HSE Plan



definition of competencies required for HSE critical positions



assignment of appropriate personnel to these positions



ensuring adequate resources and provision in the schedule to manage the contract in accordance with the contractor's HSE Plan



notifying the Contract Holder in writing of his nominated Contractor Representative(s) and Contractor Site Representative(s)



provision of the resources to implement remedial actions following audits in an expeditious manner.

Contractor Representative 

fulfilling the pre-execution HSE requirements



implementing the contractor's HSE Plan



seeking formal approval from the Contract Holder for any proposed deviations from or amendments to the contractor's HSE Plan



implementation of any additional requirements imposed by the Contract Holder.

54

EP 95-0110 Revision 0 18 October 1995

Appendix III HSE Responsibilities for Opco and Contractor Key Personnel

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 for the activity of supervising the physical work being executed under the contract in the specific area. The HSE responsibilities are as for the Contractor Representative but with responsibility for a specific site.

EP 95-0110 Revision 0 18 October 1995

55

HSE Manual EP 95-0110 Management of Contractor HSE This page intentionally left blank

56

EP 95-0110 Revision 0 18 October 1995

Appendix IV HSE Plan Guideline for Major Contracts

APPENDIX IV HSE PLAN GUIDELINE FOR MAJOR CONTRACTS HSE Plan Definition Guideline This appendix provides headings and subject material that the Contract Holder should use as the basis for his contract document preparation to define the scope and requirements of a contractor's HSE Plan. It can be used to check both the coverage by the Opco in the tender documents and the plans defined in response by the contractor in his bid. The following is a checklist of the principal headings with an expansion into key checklist items (Tables IV.1 to IV.7) given on the following pages under the respective headings. The detail included in tender documentation should be in keeping with the complexity of the contract and should additionally include prompts for specific action plans, target dates and action parties. A contractor familiar with the guidelines on HSE Management Systems in EP 95-0100 and who uses these as the basis for his management system will align immediately with these headings.

HSE Management System 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

EP 95-0110 Revision 0 18 October 1995

57

HSE Manual EP 95-0110 Management of Contractor HSE

Section 4 Hazards and Effects 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 assessment 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 

58

HSE auditing

EP 95-0110 Revision 0 18 October 1995

Appendix IV HSE Plan Guideline for Major Contracts

Detailed checklists for HSE Plan Table IV.1

Checklist for HSE Plan: Section 1 Leadership and Commitment Checklist items

Checked

Leadership and commitment Commitment to HSE aspects through leadership

Table IV.2

Senior management should engender commitment to HSE issues at all levels through their personal style of leadership and management. 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, eg 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 matters



a positive culture should be promoted at all levels

Checklist for HSE Plan: Section 2 Policy and Strategic Objectives Checklist items

Checked

HSE policy statement General

Written HSE policy Dated and signed by Chief Executive Policy statements:

Content



specific to individual parts of the contract (eg locations/sites/plants)



cover specialised aspects (eg alcohol and drugs)



consistent with Opco guidelines



clear, concise and motivating

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

EP 95-0110 Revision 0 18 October 1995

59

HSE Manual EP 95-0110 Management of Contractor HSE

Table IV.2

Checklist for HSE Plan: Section 2 Policy and Strategic Objectives (continued) Checklist items

Distribution/ availability

HSE policy distributed to all concerned, ie

Discussion

Table IV.3

Checked



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 Opco and contractor employees in their working language(s)

Policy and its implementation when issued discussed by line managers with each employee

Checklist for HSE Plan: Section 3 Organisation, Responsibilities, Resources, Standards and Documentation Checklist items

Checked

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

60

EP 95-0110 Revision 0 18 October 1995

Appendix IV HSE Plan Guideline for Major Contracts

Table IV.3

Checklist for HSE Plan: Section 3 Organisation, Responsibilities, Resources, Standards and Documentation (continued) Checklist items

Manning/ communications

Checked

Manpower philosophy Manpower level to be defined correctly so as not to compromise HSE Effective means to communicate HSE issues between the Opco, 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, eg 

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 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



HSE training

EP 95-0110 Revision 0 18 October 1995

61

HSE Manual EP 95-0110 Management of Contractor HSE

Table IV.3

Checklist for HSE Plan: Section 3 Organisation, Responsibilities, Resources, Standards and Documentation (continued) Checklist items

Checked



subcontractor assessment



training and auditing



health risk assessment, health performance monitoring and health surveillance



environmental monitoring



supporting incident investigation by line management

Guidance given by the contractor's HSE management in preparing and implementing: 

operating and emergency manuals



emergency plans



training for firefighting teams, first-aiders, etc



emergency drills and exercises



protective equipment and rescue

Contact and liaison with government departments maintained Subcontractors Management

To be well integrated and identified in contract HSE Plans With own plans if carrying out a large portion of the work HSE Plans to be vetted for suitability by main contractor Main contractor to communicate that subcontractor subject to the same rigorous HSE standards as main contractor

Identification/ vetting

Subcontractors to be identified at this stage of the project Method of vetting those still to be identified to be stated Vetting of past subcontractor records Maintenance of approved subcontractor lists where HSE has been considered

HSE communications Coverage/ Set up appropriate lines of communication to handle HSE awareness issues, eg such items as: 

direct access to emergency services



nearest hospital



helicopter availability



air ambulance, etc

Authorisation and implementation procedures fully understood Emergency services: those organisations that would be expected to provide support in a major incident aware of requirements Briefed as to their likely role

62

EP 95-0110 Revision 0 18 October 1995

Appendix IV HSE Plan Guideline for Major Contracts

Table IV.3

Checklist for HSE Plan: Section 3 Organisation, Responsibilities, Resources, Standards and Documentation (continued) Checklist items

External links

Checked

Lines established to communicate externally incidents that may endanger those on a site Government agency reporting procedures and the associated responsibilities of Opcos and contractors Contractor able to communicate with all his workforce in an emergency Communications take into account the diversity of languages amongst the workforce Ability of base to mobilise in an emergency, eg doctors, hospital facilities

Emergency communications

Appropriate for incidents envisaged Strengthened, duplicated or backed up by other means

HSE meeting programme Scheduling

Contractor to establish a regular schedule for HSE meetings Define responsible management person for scheduling such meetings Procedure to maintain records of personnel attendance

Management participation

Meeting structure

Managers seen to be involved by employees in: 

HSE activities, objective setting and monitoring



taking action and providing resources to support their stated policies and objectives

HSE meeting structure Effective to manage and communicate on HSE Allow employees full involvement and their own ideas to be heard Typical agenda and meeting formats

Follow-up actions

Meeting actions Where action is agreed, is it seen to be carried out? Where action is not agreed, is it explained why?

Communication

Results of HSE activities, both successful and less successful, openly communicated to all employees Meeting programme consistent with the rest of the management structure to communicate effectively HSE issues Meetings recorded clearly and consistently Structured to differentiate between health, safety and environment

EP 95-0110 Revision 0 18 October 1995

63

HSE Manual EP 95-0110 Management of Contractor HSE

Table IV.3

Checklist for HSE Plan: Section 3 Organisation, Responsibilities, Resources, Standards and Documentation (continued) Checklist items

Checked

HSE promotion and awareness Techniques

Appropriate communications techniques used to make the personnel aware of HSE issues How this is to be implemented, eg 

personal contact



interactive video



notice-boards



newsletters (suitable for large sites)



bulletins



posters

Performance

HSE performance boards (eg at worksite gates)

Promotional methods

Possibilities include:

Part of business



small 'give-aways' with the HSE message



competitions



suggestion schemes

HSE activities seen as an intrinsic part of running an efficient business rather than a costly and time-consuming 'extra'

HSE Competence requirements Fitness of personnel

Confirmation of medical fitness from a recognised and approved medical facility of all proposed employees for contract

Employee orientation programme Approach

Provision of a comprehensive handbook for all new employees On-the-job orientation for supervisory staff Established procedure in relation to follow-up of all new employees at the worksite

New employees

Adequately trained and confident of their own abilities Coached to improve their work practices rather than blamed for mistakes

Accountability

Employees know they are accountable for HSE performance Aware that their HSE performance is part of the contractor's appraisal and reward system Know that flagrant or frequent breaks of published HSE rules will result in disciplinary action

Procedures

Required for new employee orientation consistent with existing Opco guidelines

Reappraisal

Programme subject to appraisal and review

64

EP 95-0110 Revision 0 18 October 1995

Appendix IV HSE Plan Guideline for Major Contracts

Table IV.3

Checklist for HSE Plan: Section 3 Organisation, Responsibilities, Resources, Standards and Documentation (continued) Checklist items

Checked

HSE training (general) Contract standards

Statement on the current standard of workforce and training requirements to meet contract standard

Established training programme

Including: 

HSE management



job procedures



road safety



health (first-aid, health hazards, medical services, alcohol and drugs, health promotion, use of PPE)



auditing



incident investigation and reporting



HSE adviser skills



supervisory development



HSE meetings



environmental protection

Supervisory training

Supervisory development training promotes man-management skills and communication skills

Formalised programme

Formal HSE orientation programme for employees working onsite Records kept of employees who have been through the programme Employees trained before starting work Training covers those joining as a contract is being implemented

Coverage

Supervisors' participation

HSE training of employees coverage (including): 

safety



fire and explosion



road transport/driving



first-aid



work procedures/PTW



hazard awareness and reporting



occupational health



security



basic HSE rules



legislative requirements



environmental protection

Supervisors required to brief and debrief staff before and after training courses

EP 95-0110 Revision 0 18 October 1995

65

HSE Manual EP 95-0110 Management of Contractor HSE

Table IV.3

Checklist for HSE Plan: Section 3 Organisation, Responsibilities, Resources, Standards and Documentation (continued) Checklist items

Course content

Checked

Effective system for establishing the need for and the content of training courses Determining course effectiveness and relevance of training assessed

Specialised training

Relevant training given to personnel prior to the execution of hazardous operations Training gained through course attendance supplemented by onthe-job training as necessary Records kept of attendees of the training courses and qualifications gained by employees

Emergency training

Training covers the actions to be implemented and the employees' responsibilities in an emergency

HSE content in other courses

HSE included in: 

induction courses



craft training



supervisory training



line management training



auditing techniques

HSE training (Professionals) Selection

Procedure in place for introducing competent HSE personnel on to the contract Criteria used by the contractor to select his HSE supervisory staff (eg career development, professional status)

Training

Training is received by HSE professional Required specialisation (eg drilling, radiation, chemicals) Appropriate levels of:

Qualifications

66



institute training



HSE management

Knowledge and experience of the contractor's HSE professional: 

match for competence for the job being carried out



match for the advice required

EP 95-0110 Revision 0 18 October 1995

Appendix IV HSE Plan Guideline for Major Contracts

Table IV.3

Checklist for HSE Plan: Section 3 Organisation, Responsibilities, Resources, Standards and Documentation (continued) Checklist items

Checked

HSE legislation Coverage

HSE Plan to include: 

a comprehensive list of applicable legislation



government, national and international codes



Opco regulations, codes and standards



contractor's identification of regulations, codes and standards

Hierarchical precedence stated Definition of the legislation, codes, standards, etc reflecting the Opco's previous experience For contracts carried out in separate countries:

Waivers



different legislation requirements



Opco assistance for foreign contractors

Procedure for seeking waivers indicated

HSE standards Availability

Contractor in possession of HSE manual/set of standards Identifying minimum criteria for achievement during contract implementation Available in writing to all users in consistent, concise and clear form Users involved in the development Standards in line with Opco requirements

Control/ authorisation

Controlled documents Updated regularly Approval level indicated Procedure for obtaining deviations from standards Responsibility for authorisation Mechanism for recording approved deviations

Coverage

Clear reference to national and international standards Setting minimum requirements on health, safety and environmental issues

EP 95-0110 Revision 0 18 October 1995

67

HSE Manual EP 95-0110 Management of Contractor HSE

Table IV.4

Checklist for HSE Plan: Section 4 Hazards and Effects Management Checklist items

Checked

Methods and procedures for hazards and effects management Coverage

Opco assessment used as a starting point with additional hazards identified by the contractor Contractor's assessment carried out in accordance with his formal methods and procedures Analysis techniques used in preliminary form where appropriate Contractor covers all parts of the contract with assessments for the specific scope and locations of the contract

Experience and awareness

Contractor able to use material from previous similar projects and demonstrate awareness from past experience

Assessment of exposure of workforce to hazards and effects Coverage

Contractor develops assessment of the scope and degree of exposure of workforce to hazards from the hazards and effects management process

Handling of chemicals Coverage

Contractor demonstrates availability and distribution of guidance/information on the safe handling of chemicals, likely to be encountered in the contract, and proposals for confirming adherence to guidance during contract

Hazards and effects management and the assessment of PPE requirements Hazard assessment/ PPE requirements

All processes identified that require use of PPE Statutory requirements similarly identified Procedure in place for recording issue to personnel together with follow-up inspection and replacement/re-certification Storage of PPE adequate and secure with procedure for ensuring adequacy of stock

PPE instruction/ training

Requirements identified for all personnel Instruction and training in its use provided where needed Procedure for checking its use been specified

Renewal/ replacement

Schedule and criteria for renewing PPE Schedule for re-certification Responsibility for payment

68

EP 95-0110 Revision 0 18 October 1995

Appendix IV HSE Plan Guideline for Major Contracts

Table IV.5

Checklist for HSE Plan: Section 5 Planning and Procedures Checklist items

Checked

HSE procedures Availability/control

Written procedures available to cover hazardous operations on HSE Include HSE precautions to be taken Consistent with Company guidelines Controlled documents Appropriate level Coverage: include health and environment Written procedures:

Deviations



familiar to all employees including subcontractors



available in their working language



contents related to individual job descriptions

Procedure for obtaining Responsibility and level Recording of authorised deviations

Omissions

Identify whether there are any areas where procedures for hazardous operations are not drafted Commitment to prepare

Permit to work (PTW)

System in place

Training/ qualification

Training standards and qualifications set for personnel allowed to implement procedures

If the contractor's own system is utilised, is it consistent with industry norms and in line with Opco guidelines?

Basic HSE rules Availability

Set of rules available and distributed to all employees Users acknowledge receipt New employees given a copy before starting work Method of discussion and verifying understanding

Coverage

Covers health and environment as well as safety Set of rules provided tailored to specific contracts Identify hazards likely to be encountered Address basic housekeeping and hygiene Cover signals that will be encountered on site

EP 95-0110 Revision 0 18 October 1995

69

HSE Manual EP 95-0110 Management of Contractor HSE

Table IV.5

Checklist for HSE Plan: Section 5 Planning and Procedures (continued) Checklist items

Production/ updating

Checked

Structure for producing updating and disseminating rules Frequency Personnel participation Involvement of users

Emergency response procedures Coverage

Identification of potential major emergency scenarios, and procedures to use in such scenarios, eg 

fire



abandon rig/location



storm



oil/chemical spill



aircraft incident



emergency communications



Medevac



blowout



diving emergency



search and rescue (SAR)



explosions



H2 S



well control



man overboard



evacuation



terrorism

Potential use of Opco guidelines Awareness

Plans

By employees of procedures 

Orientation



Schedule of drills and testing



Medical contingency plan included



Review frequency



Responsibility of employees for own and colleagues' HSE



Monitoring mechanism



Drills to be carried out without warning

Contingency plans allowed for in emergency situations Recovery procedures in place to be activated in event of emergency scenarios Drills to be held to demonstrate preparedness for response

70

EP 95-0110 Revision 0 18 October 1995

Appendix IV HSE Plan Guideline for Major Contracts

Table IV.5

Checklist for HSE Plan: Section 5 Planning and Procedures (continued) Checklist items

Checked

HSE equipment and equipment HSE inspection HSE equipment

List drawn up of all HSE equipment to be used on the project Identified by type, capacity and reference to standards Requirements identified for each item of HSE equipment, including:

Critical items for HSE inspection



registry



classification



licensing



survey



test certification

List drawn up of critical items of equipment that must be the subject of an HSE inspection Procedure established for carrying out HSE inspection of equipment (covering health, safety and environmental aspects to be reviewed) Procedure established for checking standards where tools have been provided personally by tradesmen

Schedule

HSE equipment inspection schedule established for the duration of the project Inspection frequency clearly identified for critical items of plant

Occupational Health Facilities available

Facilities defined as part of contract Occupational health programme established to: 

identify hazards



assess hazards



control hazards, eg engineering controls, procedural controls, PPE, vaccinations, etc



maintain emergency procedures

Appropriate for the site conditions Welfare programme meets the needs of isolated sites Local medical facilities evaluated in detail to assess: 

range and quality of equipment and supplies



hygiene standards



administration procedures and standards



transportation and communication

Sufficient for day-to-day needs and consistent with relevant health programmes Adequate provision for supply of drugs, antidotes, etc

EP 95-0110 Revision 0 18 October 1995

71

HSE Manual EP 95-0110 Management of Contractor HSE

Table IV.5

Checklist for HSE Plan: Section 5 Planning and Procedures (continued) Checklist items

Staffing

Checked

Availability of adequately trained, experienced staff Access to medical treatment facilities (if external)

Contingency plans

Defined for possible incidents beyond capability of site facilities

Accommodation and catering facilities

Where provided, facilities to meet normally accepted standards of hygiene at site location Facilities to be operated in line with government hygiene regulations and to meet Opco guidelines Rules in force to maintain cleanliness of site and other facilities

Promotion

Promotional material available to assist in maintaining standards Appropriate for the contractor's workforce in terms of:

Hygiene and housekeeping



language



clarity, etc

Procedure on on-site cleanliness and maintenance

Environmental Awareness

Of the workforce to protect the environment whilst executing contract

Control

Identify potential environmental hazards Develop procedures for handling materials and performing operations that may damage the environment Contingency plans

Aims

Focus for the environmental protection team At what level Line management responsibility for environmental protection been defined as well as other job objectives Development and enhancement of environmental impact statements for the contract

Monitoring/ restoration

Environmental monitoring to gauge the impact of operations Plans appropriate and sufficiently detailed Recovery and restoration of site after contract completion

Audits

Environmental audits of operations during the contract Carried out by experienced individuals or companies

72

EP 95-0110 Revision 0 18 October 1995

Appendix IV HSE Plan Guideline for Major Contracts

Table IV.5

Checklist for HSE Plan: Section 5 Planning and Procedures (continued) Checklist items

Checked

Road Transport Drivers : competence and selection

Assess physical, mental and psychological capability Character and background Qualities and experience, medical examination, document checks, driving tests Special skills such as terrain and climatic experience and first-aid knowledge

Driving Permits

Should record personal and employment details, types of vehicle licensed to drive and types of cargo licensed to carry

Driver induction

Local area characteristics and regulations

Driver training

This should test vehicle operation and use, operating conditions (terrain, climate), off-loading and positioning, emergency situations, and vehicle inspection

Driver improvement

Techniques should identify deficiencies, analyse causes and select appropriate retraining

Vehicle selection

Ensure correct type, capacity and size for facilities Good manoeuvrability and serviceability

Vehicle specification

The job description should be clearly defined before the vehicle is chosen, to ensure work operations do not exceed the manufacturer's specifications Safety equipment and communications on board the vehicle need to be checked

Passengers

Is the vehicle designed to carry passengers?

Freight

Design of vehicle and load limits Segregation, positioning and securing of freight

Vehicle maintenance

Conducted on a regular basis

Ops management need and approval

Define the journey and justify the need

Ops management journey routing and scheduling

Awareness of hazards involved Allocation of vehicles, written authorisation, verification of employees' driving standards Full awareness of route (hazards, conditions) Realistic schedules

Journey management

Logging of actions

Roles and

Roles and responsibilities defined for:

EP 95-0110 Revision 0 18 October 1995

73

HSE Manual EP 95-0110 Management of Contractor HSE responsibilities

74

management, supervisors, drivers, passengers

EP 95-0110 Revision 0 18 October 1995

Appendix IV HSE Plan Guideline for Major Contracts

Table IV.5

Checklist for HSE Plan: Section 5 Planning and Procedures (continued) Checklist items

Contracting

Checked

Prequalification of contractors and contractor HSE management treating road transport with equal importance to main activity Standards for scope of operations included in tender operation Control and review mechanisms included in contracts Policy of no subcontracting without written authority

Procedures

Ensure procedures are in place for all transport operations Monitor and review mechanisms in place

Emergency services

Table IV.6

In place and tested

Checklist for HSE Plan: Section 6 Implementation and Performance Monitoring

HSE performance - General Measurement

Proposed plan to measure performance, ie 

performance indicators



progress against targets



HSE initiatives/incentive schemes



achievement of milestones



numbers and types of training courses



numbers and results of audits



clearance of action items

Use will be made of reactive statistical indicators, eg

Feedback/ analysis



LTIF/TRCF



numbers of first-aid and minor injuries



material losses



vehicle incidents



spillages



occupational illnesses



sickness absenteeism

Availability and use of performance records Feedback/review/discussion at HSE meetings Presentation and distribution to employees

Comparison of performance

Comparison of performance With other similar contract work Frequency Involvement of Opco personnel

EP 95-0110 Revision 0 18 October 1995

75

HSE Manual EP 95-0110 Management of Contractor HSE

Table IV.6

Checklist for HSE Plan: Section 6 Implementation and Performance Monitoring (continued) Checklist items

Checked

Incident Investigation Coverage

Reporting procedure for the contract Covering not only injuries to and time lost by personnel but also:

Methods



health incidents (diseases, exposures to hazardous substances, near misses, etc)



environmental incidents (spillages, releases, contamination, etc)



other safety incidents (safety equipment failures, loss of capital equipment)



material loss

Incident investigation method established to determine and correct causes Incidents first reported to the direct supervisor Incident investigation teams led by the relevant managers Differentiation made between numbers of first-aid treatments and other minor injuries Procedure in place on vehicle incidents Methods to be used for collecting incident statistics

Table IV.7

Checklist for HSE Plan: Section 7 Auditing and Review Checklist items

Checked

HSE auditing Availability

Established HSE procedure outlining responsibilities, frequency, methods and follow-up

Scope

Compliance with the HSE Plan including:

76



HSE management



departmental personnel HSE



technical personnel HSE



subcontractor



occupational health



unsafe acts



audit training



environmental



own activities and those of his subcontractors

EP 95-0110 Revision 0 18 October 1995

Appendix IV HSE Plan Guideline for Major Contracts

Table IV.7

Checklist for HSE Plan: Section 7 Auditing and Review (continued) Checklist items

Coverage

Checked

Consistent with Opco guidelines Schedule for full contract duration Involvement of personnel in audit teams from outside the location Carried out by a wide cross-section of the workforce including Opco and subcontractor personnel

Effectiveness

How verified Involvement of the contractor's corporate management in review of findings Intention to publish findings Discussion with personnel on contract and at HSE meetings Lessons used to improve operations across the contract

Follow-up

Any numerical treatment made of findings Frequency of review of implementation progress Rejections of audit findings properly authorised and documented

EP 95-0110 Revision 0 18 October 1995

77

HSE Manual EP 95-0110 Management of Contractor HSE

APPENDIX V HSE PLAN GUIDELINE FOR SMALL CONTRACTS HSE Plan Definition Guideline This provides headings and subject material that the Contract Holder should use as a basis for his contract document preparation to define the scope and requirements of a contractor's HSE Plan. It can be used to check both the coverage by the Opco in the tender documents and the plans defined in response by the contractor in his bid. The following provides a series of checklist items under the normal HSE MS headings. Table V.1

Checklist for HSE Plan Checklist items

Checked

Leadership and commitment

Senior management should reinforce the importance of HSE at all levels in the organisation and should be seen to be setting a personal example.

Policy and Strategic Objectives

Contractor has a policy which makes reference to the importance of HSE. It is formalised by the Chief Executive's or the Manager's signature.

Organisation, Responsibilities, Resources, Standards and Documentation

A focal point in the organisation for HSE. Simple procedure for distributing information on HSE issues to the workforce. A procedure for determining/enacting HSE training. Provision for obtaining HSE advice should this be outside the capability of the contractor's personnel. Simple procedure for ensuring any subcontractor adheres to same HSE standards. Simple advice on the importance of the links with client (or third party) emergency services on contracts. Typical agenda for any HSE items in meetings and how to ensure they are covered effectively. A statement of how HSE competence is assessed for personnel with HSE-critical activities to perform. Statement of requirements for employees to indicate that they have the necessary appreciation of the HSE issues in the contractor's business activities. This should include reference to potential client HSE induction sessions and HSE training. Such training could include items from the following list (as relevant to the contract):

78



fire and explosion hazards



road transport/driving



first-aid



work procedures/PTW

EP 95-0110 Revision 0 18 October 1995

Appendix V HSE Plan Guideline for Small Contracts

Table V.1

Checklist for HSE Plan (continued) Checklist items 

hazard awareness and reporting



security



basic HSE rules



legislative requirements



occupational health



environmental protection

Hazards and Effects Management



HSE targets set in clear quantifiable terms



a system in place to assess workplace hazards

Planning and Procedures

Contractor has a document with simple procedures/rules covering the HSE issues in his business activities with a method for review and update. This should include the following: 

HSE hazard awareness



Basic HSE precautions to be observed in the workplace



HSE hazards of tasks and operations encountered in his business



HSE hazards of equipment used



Use of PTW system



Communications with supervisory personnel on site

Checked

Contractor has a document that:

Implementation and Performance Monitoring



outlines the activities of his business



identifies those areas that are HSE-critical



finds a method how individual contract scopes can be simply appraised to determine where the attention to HSE issues need to be focused



identifies how to determine PPE requirements



identifies a simple set of steps for road transport management

Contractor has a procedure for recording incidents, for advising legislative bodies where necessary and for making annual reviews of performance. Contractor has a procedure for investigating incidents.

Auditing and Review

Contractor has a method for the management to carry out simple audits of his contract operations.

EP 95-0110 Revision 0 18 October 1995

79

HSE Manual EP 95-0110 Management of Contractor HSE

Small Contract Typical HSE Plan Proforma This provides guidance for a set of headings for a typical HSE Plan for use on small contracts. The list of headings should be determined individually for the contract concerned. Table V.2

Small contract typical HSE Plan proforma

Category

Item

Details

GENERAL Shell Opco Project Contract Title/Number Contractor details Site location Opco Contract Holder/ Representative(s) Opco Representative(s) Contract Manager/Contractor Representative(s) HAZARD ASSESSMENT Contract scope description Expected hazards identified (including adjacent operations, etc) Alternatives considered Procedures to be followed for hazard control (list documents or describe details here) Access/escape provisions (alarms, muster stations, etc) Emergency service provisions (including first-aid, nearest medical treatment, emergency phone numbers, etc) Competence standards for contractor's personnel Standards for contractor's equipment Training requirements (including site HSE induction) JOB/SERVICES DESCRIPTION Contractor's personnel assigned Contractor's equipment/consumables/services assigned Opco's personnel assigned

80

EP 95-0110 Revision 0 18 October 1995

Appendix V HSE Plan Guideline for Small Contracts

Table V.2

Small contract typical HSE Plan proforma (continued)

Category

Item

Details

Opco's equipment/consumables/ services assigned Subcontractor details Responsibilities/interfaces defined PPE and any special HSE equipment to be used Working hours/job duration Site description/limits PTW provisions applicable Conditions for suspending work (eg weather, adjacent site operations, etc)

EP 95-0110 Revision 0 18 October 1995

81

HSE Manual EP 95-0110 Management of Contractor HSE

APPENDIX VI CONTRACT EXECUTION HSE AUDIT GUIDELINES Table VI.1

Heading checklist for contract execution audits Checklist item

Checked

Section 1: Leadership and Commitment Commitment

Is there a feedback system to monitor reports/comments from the workforce? Are senior managers personally involved in HSE meetings and audits?

Section 2: Policy and Strategic Objectives Policy

Distributed/available to all employees on contract particularly new personnel and including subcontractors, buyers and agents, in their working languages Displayed on notice-boards at each work location Policy explains how further information should be obtained Implementation discussed by line managers with each employee as part of induction Supervisors and managers actively involved in implementing policy (eg via unannounced site HSE tours, investigation of incidents) Revisions brought to attention of all employees

Section 3: Organisation, Responsibilities, Resources, Standards and Documentation HSE organisation

Key personnel executing their responsibilities and job functions Line management responsibility for HSE being enforced Contract objectives being achieved Manpower levels sufficient so as not to compromise HSE issues Staffing by competent personnel, with training where necessary Contractor's corporate management actively involved in HSE as well as other contract aspects

82

EP 95-0110 Revision 0 18 October 1995

Appendix VI Contract Execution HSE Audit Guidelines

Table VI.1

Heading checklist for contract execution audits (continued) Checklist items

Subcontractors

Checked

Only approved subcontractors identified in contract being used Subcontractor HSE Plans where identified in contract, being monitored by main contractor Liaison between contractor and subcontractors including discussion of HSE issues

HSE communications

Lines of communication to handle HSE issues in place and functioning Emergency services External links Back-up facilities provided where needed Meetings being held in accordance with contract schedule with management involvement targeting objectives Meeting structure encouraging employee participation Follow-up actions being cleared Communications being documented correctly

Occupational health and welfare

Confirmation of medical fitness of all employees

Employee orientation programme

Handbook issue to all new employees On-the-job orientation taking place New employees being selected on basis of competency and are adequately trained Employees to be aware of importance of accountability rather than blaming culture Programme subject to appraisal and review

HSE promotion and awareness

Communications for promotion being actively used Policy posted prominently Promotional methods used where appropriate

HSE training programme

Recruitment standards being maintained Training programme in place for all areas identified in contract Briefing and debriefing of workforce by supervisors before and after training courses Course content being monitored to determine effectiveness and relevance Course training being supplemented by on-the-job training where needed Proper records being kept

EP 95-0110 Revision 0 18 October 1995

83

HSE Manual EP 95-0110 Management of Contractor HSE

Table VI.1

Heading checklist for contract execution audits (continued) Checklist items

Checked

HSE being addressed in other courses such as induction, craft training, supervisory, line management , auditing HSE professionals

Use of competent personnel, adequately qualified, with correct training including, where necessary, specialised training Reporting relationship with line management in place and effective Active involvement of HSE department in support of the contract

Legislation and standards

Available to all relevant personnel - nominated representative charged with keeping legislation, standards, procedures, rules up to date. Documentation produced where omissions previously identified Statutory requirements being observed

Section 4: Hazards and Effects Management The workplace

For such examples as working in confined spaces, working at heights, working over water, HSE in offices, site workshops, working near overhead and underground services, traffic routing, working in adverse weather

Access to the workplace

Access method selection, scaffolding, mobile platforms, etc, ladders and staging

Working with plant and equipment

For such examples as fork-lift trucks, excavators, abrasive wheels, portable tools, hand tools, etc

Tasks and operations

For such examples as demolition, excavations, lifting operations, materials handling, formwork, erection of structures, welding, piling, high pressure water jetting, grit blasting, stressing operations

Working with services and consumables

For such examples as electricity, compressed air, steam, fuels, etc

Working with hazardous substances

For such examples as dust, fumes, smoke, asbestos, H2S,

PPE

Availability of PPE for the hazards of the job

PCBs, radioactive sources

In adequate quantities and to the required standards Procedures being followed for recording issue to personnel with follow-up inspection and replacement where defective Secure storage available Training in PPE use provided

84

EP 95-0110 Revision 0 18 October 1995

Appendix VI Contract Execution HSE Audit Guidelines

Table VI.1

Heading checklist for contract execution audits (continued) Checklist items

Checked

Section 5: Planning and Procedures Emergency response procedures

Awareness and practice of all drills in accordance with contract schedules with feedback of results and recommendations for improvement

HSE Procedures

PTW system in place and working effectively

HSE equipment and equipment HSE inspection

HSE equipment identified in contract provided on site and to the required standards

Occupational health and welfare

Inspection being carried out on all critical items according to schedule Potentially hazardous equipment targeted including: 

compressed air tools



electricity



portable tools



mechanical plant



rotating machinery



vehicles



maintenance of all equipment

Facilities defined in contract in place and operating effectively with staffing by adequately trained personnel and with access to medical staff by all employees Contingency plans in place and tested

Hygiene and housekeeping

Site cleanliness and maintenance being observed with management instrumental in keeping adequate standards Accommodation and catering facilities meeting the required standards Promotional material being used to assist in maintaining standards

Environmental

Monitoring and protective measures in place and being followed Contingency plans in place and tested Focus on environmental as well as other job issues.

EP 95-0110 Revision 0 18 October 1995

85

HSE Manual EP 95-0110 Management of Contractor HSE

Table VI.1

Heading checklist for contract execution audits (continued) Checklist items

Checked

Section 6: Implementation and Performance Monitoring HSE performance

Use of proposed plan to measure performance Achievements of milestones Numbers and results of audits Clearance of action items Potential use of TRIPOD technique to measure performance feedback of results and discussion at HSE meetings Performance on environmental protection and health issues

Incident investigation and reporting

All forms of incidents being investigated promptly, health and environment as well as safety Incident investigation method being followed with relevant managers taking a lead Root causes being pursued Results communicated to employees and where appropriate subcontractors and other parties Improvement in performance being targeted Statistics being collected

Section 7: Auditing and Review Auditing

86

Being carried out in accordance with schedule in contract, with the correct personnel (including management involvement), review of findings and the necessary follow-up and clearance of action items

EP 95-0110 Revision 0 18 October 1995

Appendix VI Contract Execution HSE Audit Guidelines This page intentionally left blank

EP 95-0110 Revision 0 18 October 1995

87

HSE Manual EP 95-0110 Management of Contractor HSE

GLOSSARY A glossary of commonly used terms in HSE is given in both EP 95-0100 HSE Management System and EP 95-0300 Overview Hazards and Effects Management. Any additional terms used specifically in this section are defined below. Contract

A formal business agreement detailing the terms and conditions for the supply of products or the provision of services.

Contractor

A firm which has entered into a legal contract to supply services or material to Company (Opco). (The term is also frequently applied to suppliers who are available to provide services but are not currently in a contractual relationship with Company [Opco]).

Contracts Board

A Committee of Senior Company Staff which ensures the implementation of the Company's contracting principles and objectives.

Contract Holder

Person within the Contract Sponsor's department who is responsible for managing all aspects of the Contract as regards the Contractor and all Company (Opco) departments concerned.

Contract Manager

The person named in the contract to represent the Contractor in respect of the contract and to be responsible for the management of the contract.

Contractor Representative

The person appointed in writing by the Contract Manager to supervise the execution of the contract activities.

Contractor Site Representative

The person appointed in writing by the Contract Manager to assist the Contractor Representative in supervising the execution of the contract activities on a given site.

Contract Sponsor

The department or section which has budget and management authority to execute the Contract.

Contractor's HSE Plan

A contractor's proposal as to how he intends to implement the HSE requirements as outlined initially by the Opco. For the selected contractor, this becomes the plan on which the HSE terms in the contract are based.

HSE Plan

A formal document showing how it is intended to manage the hazards determined by the four-stage Hazards and Effects Management Process (HEMP). It is usually drafted initially by the Opco. It should be recognised that in many situations, particularly for larger contracts, this HSE Plan will effectively form a significant part of a full HSE Case.

Opco HSE Adviser

An HSE specialist responsible for providing line management with current HSE guidance on technical and human matters, including where appropriate, advice on techniques, equipment, HSE auditing, training, incident investigation, emergency procedures; the Adviser's responsibilities do not include HSE performance in the line.

Opco Representative

The person appointed in writing by the Contract Holder to supervise the execution of the contract activities.

Opco Site Representative

The person appointed in writing by the Contract Holder to assist the Opco Representative in supervising the execution of the contract activities on a given site.

88

EP 95-0110 Revision 0 18 October 1995

Glossary Procurement

A term used to cover the whole cycle of activities which need to be performed to acquire and deliver to a user an item of material or a service, from conception of the need through design, purchasing, storage and delivery to ultimate disposal.

Scope of work

The description in established parameters of the work required to achieve the objectives of a project or activity.

Tender Board

Synonym for Contracts Board, but with more emphasis on tendering as the process to achieve contracts.

EP 95-0110 Revision 0 18 October 1995

89

HSE Manual EP 95-0110 Management of Contractor HSE

REFERENCES 1

90

EP 95-4000 Principles of Project Management, SIPM, 1995 (in development).

EP 95-0110 Revision 0 18 October 1995

References This page intentionally left blank

EP 95-0110 Revision 0 18 October 1995

91

HSE Manual EP 95-0110 Management of Contractor HSE

INDEX

HSE meetings, 7, 29, 31-32, 46, 58, 62, 64, 73, 75, 82, 86 HSE MS, 8-11, 20, 76

A

HSE objectives, 1, 2, 59

Alcohol, 58, 64

HSE promotion, 7, 29, 56, 60, 63, 83, 85

Asbestos, 41

HSE standards, 1, 2, 16, 19, 47, 57, 61, 66, 76

C

HSE targets, 5, 7, 14, 30, 31, 56, 59, 73, 78, 83

Chemicals, 3, 41-42, 47, 57, 65, 67, 69

I

Clarification, 7, 23, 25

Incentive schemes, 24, 73

Close-out, 7, 13, 37, 51

Induction, 7, 18, 24, 27, 29, 32, 65, 72, 76, 79, 82, 84

Concurrent operations, 19

Injuries, general, 43, 49, 58, 73-74

Construction, 2, 3, 9, 31

Injuries, lost time, 43

Contingency, 1, 29, 31, 33, 69, 71, 85

Inspection of contractor, 20, 29, 31-33

Contract Holder, 1, 17, 27, 31, 51-56, 76, 79, 88

Inspection, plant, 9, 48, 57, 70, 85

Contract Manager, 52, 79

Inspection, PPE, 9, 84

Contract strategy, 1, 7, 13, 16-18, 21

Interfaces, 16-18, 81

Contract termination, 30 Contractor Representative, 52, 79 Contractor Site Representative, 52-54

J Job descriptions, 46, 59, 60, 65, 68, 71, 72, 79-81

Contractor, main, 20, 61, 83

K

Corrective action, 16, 30

Key personnel, 1, 25, 27, 49, 51, 59, 82

Culture, 2, 39, 45, 58, 83

D

L Language, 2, 33, 59, 62, 68, 71, 82

Deficiencies, 20, 25, 30, 51, 72

Laws, 2, 17

Drugs, 58, 64, 70

Line management, 31, 39, 58, 60-61, 65, 71, 82, 84

E

Local contractors, 21, 52

E&P Forum, 19

M

F

Material data sheets, 57

First-aid, 24, 32, 33, 61, 64, 72-74, 79 Fitness, 63, 72, 83 Focal point, 20, 59, 76

H Hazard identification, 7-8, 29, 42

Medical facilities, 24, 29, 70, 79, 85 Meetings, kick-off, 7, 27, 29-30 Milestone, 7, 13, 27, 29-30, 73, 86

N Notifiable incidents, 43, 49

HEMP, 17, 88

O

HSE Advisers, 31, 40, 52, 60, 64

Opco Representative, 51-52, 79

HSE Case, 7-9, 23

opco representative, 89

HSE costs, 24, 25, 32

92

EP 95-0110 Revision 0 18 October 1995

Index

P Payments, 17, 19, 24, 30 Permit-to-work, 32, 33, 68, 85 Plant and equipment, 9, 13, 25, 31, 33, 42, 70, 84 PPE, 48, 57, 67, 70, 78, 81, 84 Pre-execution, 7, 18-19, 27, 29, 30, 51-52 Prequalification, 7, 20, 25, 39, 45, 51, 73 Project management, 17, 27

R Recruitment, 32, 83 Register of Approved Contractors, 20, 37 Regulations, 2, 16-18, 27, 66, 71

S Security, 2, 3, 64, 78 Standard contract, 19

T Tender board, 7 Toolbox meetings, 31 Tools, 31, 33, 70, 84 Transport, air, 3 Transport, general, 2, 9, 27, 70 Transport, marine, 3 Transport, road, 3, 57, 64, 76-78

U Unsafe acts, 44, 74

W Waste management, 3, 35, 42, 48, 57 Welfare, 70, 83, 85 Work suspension, 19, 32, 81 Workplace, 2, 47, 78, 84

EP 95-0110 Revision 0 18 October 1995

93