1

PETRONAS TECHNICAL STANDARDS

HEALTH, SAFETY AND ENVIRONMENT

CONTRACTOR HSE MANAGEMENT

(GUIDELINE)

PTS 60.0305

JUNE 2006
Rev 1

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PREFACE

Petronas Technical Standards (PTS) are based on the experience acquired during the involvement with the
design, construction, operation and maintenance of processing units and facilities. Where appropriate they are
based on, or reference is made to, national and international standards and codes of practice. The objective is to
set the recommended standard for good technical practice applied by PETRONAS in oil and gas production
facilities, oil refinery, gas processing, chemical plants, marketing facilities or any other such facility, and
thereby to achieve maximum technical and economic benefit from standardisation.

The information set forth in these publications is provided to users for their consideration and decision to
implement. This is of particular importance where PTS may not cover every requirement or diversity of
condition at each locality. The system of PTS is expected to be sufficiently flexible to allow individual
operating units to adapt the information set forth in PTS to their own environment and requirements.

When Contractors or Manufacturers/Suppliers use PTS they shall be solely responsible for the quality of work
and the attainment of the required design and engineering standards. In particular, for those requirements not
specifically covered, the Principal will expect them to follow those design and engineering practices which will
achieve the same level of integrity as reflected in the PTS. If in doubt, the Contractor or Manufacturer/Supplier
shall, without detracting from his own responsibility, consult the Principal or its technical advisor.

The right to use PTS rests with three categories of users:

1) PETRONAS and its affiliates.

2) Other parties who are authorised to use PTS subject to appropriate contractual arrangements.

3) Contractors/subcontractors and Manufacturers/Suppliers under a contract with users referred

to under 1) and 2) which requires that tenders for projects, materials supplied or generally
work performed on behalf of the said users comply with the relevant standards.

Subject to any particular terms and conditions as may be set forth in specific agreements with users,
PETRONAS disclaims any liability of whatsoever nature for any damage (including injury or death) suffered
by any company or person whomsoever as a result of or in connection with the use, application or
implementation of any PTS, combination of PTS or any part thereof. The benefit of this disclaimer shall inure
in all respects to PETRONAS and/or any company affiliated to PETRONAS that may issue PTS or require the
use of PTS.

Without prejudice to any specific terms in respect to confidentiality under relevant contractual arrangements,
PTS shall not, without the prior written consent of PETRONAS, be disclosed by users to any company or
person whomsoever and the PTSs shall be used exclusively for the purpose they have been provided to the user.
They shall be returned after use, including any copies, which shall only be made by users with the express prior
written consent of PETRONAS. The copyright of PTS vests in PETRONAS. Users shall arrange for PTS to be
held in safe custody and PETRONAS may at any time require information satisfactory to PETRONAS in order
to ascertain how users implement this requirement.

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AMENDMENTS RECORD SHEET

Chap Section Description Issue Date Rev No. Date Approve

No. No. No. by:
(initial)
All All PTS 60.0304 1 June 05 0 0 IGA
Contractor
HSE
Managment
All All Renumbering June 06 1 June IGA
PTS 60.0305 06

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CONTENTS

PREFACE 2
AMENDMENTS RECORD SHEET 3
Summary 6

1 INTRODUCTION 7
1.1 Objectives of This Document 7
1.2 Objectives of Management of Contractor HSE 7
1.3 Background 8
1.4 Scope 9

2 OVERVIEW 11
2.1 Contract Phases and HSE Planning 11
2.2 Planning for HSE: Timing 11
2.3 Planning for HSE: Scope 12
2.4 Management of Contractor HSE and HSE MS 14
2.5 HSE Case Joint Preparation 16

3 PLANNING AND INVITATION TO TENDER

18
3.1 Objectives 18
3.2 Outline Scope of Work or Services 18
3.3 Contract Scope, Schedule and Strategy 21
3.4 Contract HSE Assessment 23
3.5 Contract HSE Specification 24
3.6 Contractor Prequalification 25

4 THE TENDER PERIOD 27

4.1 Objectives 27
4.2 Contractor's HSE Plan 28
4.3 HSE Costs 28
4.4 Incentive Schemes for HSE 29

5 EVALUATION AND CONTRACT AWARD 30

5.1 Objectives 30
5.2 Evaluation 30

6 MOBILISATION 31
6.1 Objectives 31
6.2 Kick-off Meetings 31
6.3 Mobilisation 34
6.4 Pre-execution Audit

7 EXECUTION 35
7.1 Objectives 36
7.2 Supervision 36
7.3 Competence Assurance 37
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7.4 Inspection and HSE Auditing/Reviews 38

8 DEMOBILISATION 39

9 CLOSE-OUT 39

APPENDIX I - CONTRACTOR HSE PREQUALIFICATION 41

APPENDIX II - PREQUALIFICATION HSE EVALUATION GUIDELINE:

POINTS SYSTEM 46

APPENDIX III - HSE RESPONSIBILITIES FOR OU AND CONTRACTOR KEY

PERSONNEL 52

APPENDIX IV HSE Plan Guideline for Major Contracts 55

APPENDIX V - HSE Plan Guideline for Small Contracts 76

APPENDIX VI - Contract Execution HSE Audit Guidelines 80

GLOSSARY 84

REFERENCES 87

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SUMMARY

This document identifies and describes the activities associated with the management of
contractor HSE by OPU / JV 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 OPU / JV 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 The main steps necessary in the OPU / JV definition of
Invitation to HSE requirements in the contract and the prequalification
Tender 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 The assessment of the contractor's HSE Plan against the
and contract required criteria.
award
6 Mobilisation The contract kick-off, assessment of the contractor's HSE
performance during the mobilisation phase and pre-
execution assurance
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 OPU / JV and contractor
HSE performance.

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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 OPU/JV should achieve the same or
higher HSE standards as those required by PETRONAS for its own operations.

• adherence to hazards and effects management process (HEMP)

All hazards to the health and safety of the contractor's personnel, PETRONAS staff
and the public, to the environment and to the assets of the contractor, PETRONAS 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

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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

Over 80 per cent of PETRONAS 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 PETRONAS operates.

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.

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Figure 1.1 HSE activity phasing for contracts

HSE
activity
level

FUTURE Activity levels

dependent upon
PRESENT
statistics/audit,
PAST etc

Project Front Tender Evaluation Mob Demob/Close-out

Execution
Definition End

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
• 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 (e.g. 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
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extent to which the full details of the guidelines presented in Chapters 3 through 9
may need to be applied.

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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.

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 OPU / JV 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 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

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

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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.

Figure 2.1 Management of Contractor HSE: overall flowchart

Definition

Establish contract
scope / schedule /
strategy
PLANNING AND
Prequalify Contractors INITIATION TO
TENDER

Assessment of
each contract

Finalise
tender
document

Contractor
prepares TENDER PERIOD
HSE plan

Review
tender
EVALUATION AND
CONTRACT AWARD

CONTRACT AWARD

Confirm HSE plan Hold local kick-off

MOBILIZATION
meeting

Monitor HSE plan

implementation EXECUTION
and performance

Maintain same level

of vigilance as DE-MOBILIZATION
during execution

Feedback to Register of
HSE close out Approved Contractors CLOSE-OUT
report for prequalification
of contractors

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Table 2.1 Management of Contractor HSE: key targets and OPU and
contractor activities

Phase Target OPU / JV Contractor

Planning Major hazards Qualitative HSE OPU/JVcontractor
and identified with assessment of the dialogue
Invitation assurance that they work Respond to
to tender can be managed HSE sensitivities prequalification
Confirmation of major Hazard Discuss HSE
hazards with outline identification / responsibilities and
targets criteria and quantification staffing
methods for control Health risk
Confirmation that assessment
(prequalified) Environmental
contractors can impact assessment
achieve targets HSE policies and
Review of contractors approach
previous HSE record OPU/JV/contractor
HSE tender evaluation dialogue
criteria specified and
agreed with Tender
Board
Tender Contractor preparation Respond to Prepare contract HSE
period of HSE Plan in clarification Plan
accordance with OPU requests Clarification requests
/ JV criteria/ HSE Meetings Meetings
Case input Site visits Site visits
Evaluation Confirmation that Evaluate bids Respond to
and contractor HSE Plan Clarifications clarifications
contract will meet OPU/JV Meetings Meetings
award criteria Finalise
Agreement with contractor's HSE
contractor on methods Plan
to be used,
performance
measurement criteria
and audit/review
strategy
Mobilisati Confirmation that Kick-off meeting Kick-off meeting
on contractor's HSE Plan Confirm Confirm contractor's
has achieved pre- contractor's HSE HSE Plan activities
execution targets Plan activities Supervision
Supervision Induction
Pre-execution Training
audit Meetings
Inspection
Pre-execution status
achievement

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Execution Assurance and Supervision Supervision

verification that Meetings Inspection
contractor systems are Promotion of HSE Induction
performing in line issues Training/Drills
with contractor's HSE HSE performance Meetings
Plan review HSE performance
Milestone reviews Investigation of review
incidents Investigation of
Assurance incidents
Assurance
Correction of defects
Demobilis Management of final Supervision Supervision
ation activities
Close-Out Analysis and feedback Close-out report Close-out report and
of OPU / JV and Feedback for feedback (to own
Contractor HSE future contract management)
performance HSE 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 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 contracts, HSE planning must not be ignored or
treated superficially. In such cases, the work is likely to include the use of basic
practices (e.g. 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 (e.g.
working in confined spaces, over water, etc) and live plant (e.g. 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, e.g. for the one-man contract undertaking a simple repetitive task, a short
pro forma completed to show that the hazards are recognised and understood is likely
to be adequate.

2.4 MANAGEMENT OF CONTRACTOR HSE AND HSE MS

In an OPU / JV HSE Manual, Part 1 presents the elements of the OPU / JV's
management system as they apply to HSE and Part 2 the detailed breakdown of
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business processes into the HSE-critical activities. For an operation-specific

situation, these two parts are translated into a demonstration of the HSEMS in action
(as part of an HSE Case). Where such operations require contracted work or services,
the HSE Case must show how the OPU / JV manages contractor HSE and how the
contractor achieves HSE management of his own workforce and his subcontractors.

Major contractors providing services to OPU / JV 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 OPU / JV, 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 PTS 60.0101 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 manage 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 OPU / JV 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 (e.g. drilling,
maintenance, construction, transport services, etc) can be found in the PTS 60.0401
Hazards and Effects Management. 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 OPU / JV 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.

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By the OPU / JV 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.

2.5 HSE CASE JOINT PREPARATION

In major projects or projects in a critical area, it is necessary to combine the

contractor and OPU / JV elements to form an effective overall HSE MS and HSE
Case for the planned operation. To achieve this it is necessary:

• for the contractor to identify the hazards and hazardous operations it will
encounter

• for the Contractor to describe his HSE MS and how he will manage the HSE-
critical activities identified

• to complete the HSE hazards and effects register and activities catalogue with
the contractor ensuring that this is compatible with that of the OPU / JV

• to complete the HSE Case with joint input

• to prepare a monitoring and assurance plan

• to assess the HSE Case and contractor HSE MS.

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

Table 2.2 HSE Case Components and Contractor-OPU / JV Input

HSE Case Components Percentage input

Contractor OPU / JV
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

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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 OPU / JV that all appropriate
aspects have been considered and action taken.

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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, OPU/JV 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.

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.

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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 OPU /
JV.

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Figure 3.1 Management of Contractor HSE flowchart: planning

Definition
Identify workscope

Establish notional contract

strategy

DRAW UP POTENTIAL
Can an BIDDERS LIST FROM
Yes existing contract No REGISTER OF APPROVED
be used CONTRACTORS
. For main contractor
. For sub-contractor(s)

Take this into account during Are potential

HSE assessment contractors
Yes No
prequalified?
SCREEN POTENTIAL
BASED ON THE HSE ASSESSMENT CONTRACTORS FOR HSE
SUITABILITY
. Determine scope for (supplementary) safety
plan . Previous experience
. Upgrade current regulations . Previous reports
. Determine need for additional supervision
(Opco/contractor)
. Ditto training Make an HSE assessment
for each contract SCREEN POTENTIAL
CONTRACTORS FOR HSE
SUITABILITY
Finalise HSE aspects for inclusion in a
Review HSE assessment against . Previous experience
variation order
contract schedule and strategy . Previous reports
. Questionnaire
Review / modify . Visits, interviews, audits
schedule

Is contract
schedule and No
strategy suitable ? Obtain final approval for
bid list

Yes

BASED ON THE HSE ASSESSMENT

. Define scope of contractor's HSE plan

. Identify pertinent HSE regulations for the contract
. Agree Opco supervision strategy
. Identify and schedule Opco / contractor training needs
. Determine extent of prevailing influence
. Incorporate HSE related costs in contract
. Fix minimum pre-execution requirements
. Hold pre tender meeting if considered necessary

Agree HSE bid evaluation criteria and

obtain tenderboard endorsement

Finalise HSE aspects for contract

documents

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

Leadership and Define how senior management set personal examples,

commitment demonstrate involvement and participation, communicate to
employees, etc on HSE.
Policy and Draw up the policy statements on HSE that are to be
strategic objectives observed.
Organisation etc Define the formal structure for organisation, allocating
resources, defining communications and responsibilities on
HSE issues between the OPU / JV and the contractor,
setting minimum competence levels and training
requirements in HSE expected on the project for OPU / JV
and contractor staff and specifying documentation control.
Hazards and Describe how hazards and effects are to be identified,
effects assessed, controlled and how recovery in the event of loss
management of control will be carried out.
Planning and Describe how the controls for hazards and effects
procedures 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 Define how HSE performance is monitored, the criteria for
and Monitoring HSE performance and how corrective action is to be taken
Assurance and Define the basis under which internal and external HSE
Management assurance and management reviews will be conducted
review

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 OPU/JV−contractor interfaces)

• availability of suitable existing contracts (e.g. service, call-off, etc)

• contractor resources and skills

• OPU/JV supervision resources and skills

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• OPU/JV/contractor responsibilities

• local environment

• project schedule

• competitive situation

• rules and regulations of the host country

• prevailing influence

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

The interface between OPU/JV 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 OPU/JV-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
OPU/JV/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. Error! Reference source not found.).

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.

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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
OPU/JV 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 OPU/JV regulations and
standards

• identify the OPU/JV'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 OPU/JV 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.

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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 OPU/JV contractor interfaces and the OPU / JV supervision strategy

• identify and schedule OPU / JV 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:

• OPU / JV responsibilities

It is the OPU / JV responsibility to confirm that the tender documents

comprehensively cover the HSE requirements for the contract. It is inappropriate
to assume that the contractor already knows the issues. Time must be spent to
make comprehensive, clear and concise tender documents. Knowledge about
hazards already identified by the OPU / JV must be passed on to the contractor.

• Minimum requirements

The hazardous activities that need to be addressed by the contractor should be

listed by the OPU / JV. 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 OPU / JV to perform HSE
assurances to confirm compliance.

• Contractor reporting

The contractor must report to the OPU / JV on HSE performance.

• Contractor performance

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The documents must include provision for the OPU / JV 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 OPU / JV framework.
Contractors must be allowed the freedom to use industry HSE Standards, e.g. those
of the International Association of Drilling Contractors (IADC) or International
Association of Geophysical Contractors (IAGC), OGP, ISO, API etc., if they are
equivalent to or exceed the OPU / JV standards. The OPU / JV 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 OPU / JV retaining the ability
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 OPU / JV operations could be impacted

• take account and state the limits of the OPU / JV 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 OPU / JV)

3.6 CONTRACTOR PREQUALIFICATION

The general practice in OPU / JV 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
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included on the prequalified list. A formal historical record of the HSE performance
of all contractors previously employed should be maintained by the OPU / JV 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.

OPU / JV 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 OPU / JV 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. However past performance may not necessarily reflect
recent efforts by contractors’ management in HSE towards improvement in
performance i.e. embarking on the HSE journey but not yet there. The person
assessing the tender submission must be familiar with the hazards embedded in the
contract and the respective management process to assess the capability to operate at
the desired standard. Where the contractor has been assessed lacking, 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 OPU / JV 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 OPU / JV is satisfied that the contractors have the
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necessary systems in place to manage certain types of contracts satisfactorily they are
permitted to bid for these. It is important to maintain an OPU / JV -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 OPU / JV, where a contractor may be working for a number of functions, it
has been found necessary to assign a focal point within the OPU / JV 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 OPU / JV 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 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.

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 OPU / JV framework

• OPU / JV 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 OPU / JV.

• site visits by contractors (as necessary).

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

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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 is 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 OPU/JV 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 OPU / JV 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 OPU / JV 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, 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:

• assurances

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• attending HSE forums / meetings

• induction and training

• medical facilities, first-aid training, Medevac arrangements, 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 reporting of incidents

• be proactive and therefore reward effort, e.g. assurances 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 incident 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.

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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 OPU / JV
part before proceeding. In this regard, the OPU / JV should assess HSE costs and
resources required for a specific contractor as well as those stated in the contractor's
bid. Such OPU / JV requirements vary depending on the preparedness and HSE
competence of the contractor.

Where a tender is considered, even though it has HSE deficiencies, the OPU / JV
should include an estimate of the cost of additional OPU / JV 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 OPU / JV contract HSE documentation.

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6 MOBILISATION

6.1 OBJECTIVES

In the mobilisation phase the principal activities are as follows:

• hold kick-off meeting (OPU / JV and contractor jointly)

• commence mobilisation (contractor)

• review and finalise the contractor's HSE Plan (OPU / JV and contractor
jointly)

• commence induction and training (OPU / JV and contractor jointly)

• supervise, inspect and monitor progress (OPU / JV)

• fulfil pre-execution milestone requirements (contractor)

• hold pre-execution HSE audit (OPU / JV).

Prior to mobilisation, it is likely that the full HSE Plan is known only to the principal
members of the OPU / JV and contractor's project management teams. During
mobilisation the HSE Plan has to be implemented by the management of both the
OPU / JV and the contractor. Depending on the circumstances, additional OPU / JV
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 OPU / JV 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 OPU / JV and contractor and between contractor and
subcontractors. The effective transfer of HSE responsibilities to any subcontractors,
particularly if their activities are difficult to monitor (e.g. 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 OPU / JV Contract Holder and the contractor's local
management.

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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.

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Figure 6.1 Management of Contractor HSE flowchart: mobilisation

Contract Award

Contractor
Yes mobilises No
locally ?

Hold 'kick-off' meeting 'locally' Hold 'kick-off' meeting at

contractor's base office

MOBILISATION - REMOTE FROM

WORKS VICINITY
MOBILISATION - LOCAL TO WORKS VICINITY
Company :
Company : Review HSE plan
Review HSE plan Monitor pre-execution status
Monitor pre-execution status Supervise, inspect, audit
Supervise, inspect, audit
Contractor :
Confirm HSE plan
Contractor :
Fulfill pre-execution procedure
Contract HSE plan
Fulfill pre-execution procedure All :
Commence (or continue) induction and
All :
training
Commence (or continue) induction and training
Attend progress meetings
Attend progress meetings

Contractor (and sub-contractor(s))

mobilise key personnel and equipment to
Continue Mobilisation
vicinity of works

Pre-Execution HSE Audit Hold 'kick-off' meeting 'locally'

Has the contractor

met the specified milestone No
requirements ?

Yes

Proceed to execution

Additional topics to be covered should include:

• confirmation of the HSE Plan to be implemented

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• confirmation of contractor employees' competence in HSE

• confirmation of HSE performance objectives

• distribution and explanation of the OPU / JV 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

• OPU / JV 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
start-up

• briefing of subcontractors on HSE requirements

• incident reporting and investigation procedures.

The meeting may be structured as an HSE workshop, with participation by both OPU
/ JV 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

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Once mobilisation activities have commenced, the OPU / JV should begin its
supervision, monitoring, inspection and assurance functions of the contractor's pre-
execution activities to ensure the contractor's HSE Plan is being implemented.

The OPU / JV 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 (OPU /
JV 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 OPU / JV 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.

6.4 PRE-EXECUTION ASSURANCE

At this stage of the mobilisation (known also as milestone zero) an assurance 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 assurance will again depend on the size and complexity of the
contract. For a small contract an assurance may be conducted by means of a simple
checklist. For a large and complex contract a more analytical approach may be
required.

If the assurance proves to be unsatisfactory then the status of the contractor's progress
should be carefully reviewed. The options available at this stage are:

Minor For relatively minor deficiencies the contractor should be

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

7 EXECUTION

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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 OPU / JV
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 OPU / JV
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 OPU/JV'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 OPU / JV
as described in the contract.

Where there is access to OPU / JV 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 OPU / JV 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 OPU /
JV Representative(s).

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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 OPU / JV tends to relieve the
contractor of responsibilities stipulated in the contract.

Demonstration of the OPU / JV 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 OPU /
JV Representative(s)

• attendance at regular HSE meetings with the contractor

• follow-up of all incident reports

• 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 OPU / JV Representative(s) in ensuring that the HSE Plan is finalised
and adhered to, together with details of how the performance of the OPU / JV
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 OPU / JV 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 OPU / JV should also
determine any additional needs which may occur as a result of local circumstances.
Monitoring by the OPU / JV 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

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• 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
OPU / JV 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 OPU / JV 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 ASSURANCE/REVIEWS

Inspection and assurance provide the methods for monitoring contractor HSE
activities. Regular inspections provide the day-to-day means of checking compliance
with contract requirements. Assurance 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 assurance / review plan for
his work and that of his subcontractors. The documented evidence of these audits
should be available to the OPU / JV together with the follow-up action taken.

Inspections / assurance should be used to cover such aspects as:

• compliance with PTW system

• 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 fire-
fighting equipment and first-aid

• correct use of protective equipment

• employee HSE awareness and demonstrated use of safe work practices.

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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 assurance is the primary responsibility of the contractor. However,
OPU / JV 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.

Assurance practices may be used to examine specific technical areas in more detail or
to provide in-depth HSE management assessments (e.g. the contractor's internal HSE
controls). Further details on assurance are given in PTS 60.0301.

The findings of all inspections and assurances 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 assurance action
items.

Appendix VI provides a list of reference headings which can be used to derive topics
for assurance evaluations.

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 OPU / JV 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.

9 CLOSE-OUT

The close-out report provides the formal method of providing feedback to OPU / JV
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

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• 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 OPU / JV and the contractor's HSE
performance for discussion with the contractor's management for means of
improvement

• provide input information on the contractor for OPU / JV 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.

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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 onOPU/JV 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 OPU / JV

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 a) Are senior managers personally involved
HSE through in HSE management?
leadership 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 a) Does your company have an HSE policy
documents document?
If the answer is YES please attach a copy.
b) Who has overall and final responsibility
for HSE in your organisation?
c) Who is the most senior person in the
organisation responsible for this policy
being carried out at the premises and on site
where his employees are working?
Provide name, title and experience.
(ii) Availability of a) Itemise the methods by which you have
policy statements to drawn your policy statement to the attention
employees of all your employees?
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b) What are your arrangements for advising

employees of changes in the policy?
Section 3: Organisation, Responsibilities, Resources, Standards and Documentation
(i) Organisation - a) How is management involved in HSE
commitment and activities, objective-setting and monitoring?
communication 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 Have the managers and supervisors at all
Training of levels who will plan, monitor , oversee and
managers / carry out the work received formal HSE
supervisors / senior training in their responsibilities with respect
site staff/ HSE to conducting work to HSE requirements?
advisers If YES please give details. Where the
training is given in-house please describe
the content and duration of courses.
(iii)Competence a) What arrangements does your company
and General HSE have to ensure new employees have
training 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.
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 OPU / JV
requirements?
d) What arrangements does your company
have to ensure existing staff HSE knowledge
is up to date?
(If training is provided in-house please give
details of content.)
(iv) Specialised a) Have you identified areas of your
training 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 a) Does your company employ any staff
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staff - additional who possess HSE qualifications that aim to

training provide training in more than the basic
requirements?
(vi) Assessment of a) How do you assess:
suitability of i) HSE competence
subcontractors/ ii) HSE record of the subcontractors and
other companies 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?
(vii) Standards 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?
Section 4: Hazards and Effects Management
(i) Hazards and How do you identify, assess a hazard
effects assessment How do you control the hazard and recover
from its release?
(ii) Exposure of the How do you monitor the exposure of your
workforce workforce to chemical or physical agents?
(iii) Handling of Do you have the Material / Chemical Safety
chemicals Data Sheet for all chemicals you use in this
contract?
How does you people get to know of this
document?
(iv) Personal Are ppe provided as standard issue to all
protective personnel?
equipment How do you make sure they remains
suitable and fit for use?
Section 5: Planning and Procedures
(i) HSE or a) Do you have a company HSE manual (or
operations manuals 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 a) How do you ensure that plant and
control and equipment used within your premises, on-
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maintenance site, or at other locations by your employees

are correctly registered, controlled and
maintained in a safe working condition?
(iii) Road Safety a) What arrangements does your company
Management have for combating road and vehicle
incidents?
Section 6: Implementation and Performance Monitoring
(i) Management and a) What arrangements does your company
performance have for supervision and monitoring of
monitoring of work performance.
activities 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 a) Has your company received any award
performance for HSE performance achievement?
achievement awards
(iii) Statutory a) Has your company suffered any statutory
notifiable incidents notifiable incidents in the last five years
/dangerous (safety, occupational health and
occurrences environmental)?
b) (Answers with details including dates,
most frequent types, causes and follow-up
preventative measures taken.)
(iv) Improvement a) Has your company suffered any
requirement and improvement requirement or prohibition
prohibition notices 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?
b) (If your answer is YES please give
details.)

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(v) HSE a) Do you keep a record of your incidents

performance and HSE performance for the last five
records 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) How do you monitor your health
performance?
c) How do you monitor your environmental
performance?
d) Who reviews your company’s HSE
performance and how often?
(vi) Incident a) Who investigate an incident and has he
investigation and been trained to identify root / underlying
reporting causes (in accordance with PTS 60.0501)
b) How are the findings following an
investigation, or a relevant incident
occurring elsewhere, communicated to your
employees?
c) Do you report near misses?
Section 7: Assurance and Review
(i) Assurance a) Do you have a written policy on HSE
assurance and how does this policy specify
the standards for assurance (including
Hazard Hunt)?
b) Do your company HSE Plans include
schedules for assurance and what range of
assurance is covered?
c) How is the effectiveness of assurance
verified and how does management report
and follow up assurances?
Section 8: HSE Management - Additional Features
(i) Memberships of Does your company hold membership of
Associations any industry, trade or HSE organisation?
(ii) Additional Does your company have any other HSE
features of your features or arrangements not described
HSE management elsewhere in your response to the
questionnaire?

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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
Section 1: Leadership and Commitment
Commitment to HSE through leadership: Item 1(i)
No commitment HSE disciplines Evidence of active Evidence of a positive
from senior delegated to line senior HSE culture in senior
management managers - no management management and at all
direct involvement involvement in levels
by senior HSE aspects
management
Section 2: Policy and Strategic Objectives
HSE policy documents and availability: Items 2(i) and 2(ii)
No written HSE A policy statement HSE policy Policy with clearly
policy exists but not in a establishes established responsibility
widely distributed responsibility for and accountability; is
document HSE, but not distributed to all
widely distributed employees; and is visible
on notice boards

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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 HSE meetings In addition to C
meetings for performed on a employees are assigned
special operations regular basis at topics to discuss on a
only management and rotational basis
supervisor level
Staff HSE training Item 3(ii)
No specialised HSE training HSE training HSE training given
staff training assigned to a applied to formally to all relevant
specific person on management but staff on their respective
location not responsibilities
comprehensively
covered
Employee orientation and training programme: Item 3(iii)(a) - (d)
No formal Verbal instructions Employee All under C together with:
programme on OPU / JV handbook follow-up observation of
procedures only provided and the new employee's work
Orientation supervisor is also included.
booklet provided outlines, explains Employee has explained
for new employees and demonstrates to him safe practices and
but no on-the-job new employee's emergency duties
orientation by job
supervisor
Specialised training: Items 3(iv) (a) and (b) and 3(v)
No HSE training On-site basic HSE training is Formal HSE training
established training conducted given for programmes have been
occasionally specialised developed in all areas and
operations, but no are conducted on a regular
routine training basis. Retraining periods
conducted are established
Subcontractors: Item 3(vi) (a) - (c)
No written Written HSE arrangements HSE arrangements exist in
arrangements arrangements in incorporated in handbook form,
place for basic HSE manual but distributed to all
HSE matters only not in a format employees,
which is subcontractors,
distributed to all subcontractor employees
employees and are enforced. Follow-
up audits held with
discussion/feedback to
management and
employees

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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 Basic HSE Contractor has Contractor has a system of
standards standards exist written HSE specifying, monitoring
available standards to cover compliance and updating
all hazardous standards
operations
Section 4: Hazards and Effects Management
Hazards and Effects Assessment : Item 4(i)
Company's HSE Company's HSE Company's HSE Company's HSE system
system does not system makes system includes has a comprehensive set
include hazards reference to the methods for the of methods for the
and effects need to assess assessment of assessment of all HSE
assessment hazards and effects major hazards and hazards and effects and
but has no effects applies them to all of its
comprehensive contracts with
structure to carry documentation
this out
Exposure of the workforce: Item 4(ii)
Company does Company advises Company has Company has a set of
not actively the workforce of formal methods for formal methods for
advise the the major hazards monitoring monitoring exposure to all
workforce nor that they are likely exposure to the foreseeable hazards
monitor exposure to be exposed to major hazards (linked to its hazards and
but only monitors effects assessment
exposure randomly method) and applies them
to all contracts
Handling of chemicals: Item 4(iii)
Company makes Company provides Company Company maintains a
no special information to distributes database of the properties
provision for workforce in the information to of all chemicals
advising the workplace on individuals in the encountered in its
workforce about properties of workforce at start contracts and has formal
properties of chemicals but has of their methods of information
chemicals no active follow- involvement on- distribution to all
up site personnel and trains its
workforce in handling, etc

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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 PPE requirements PPE requirements Procedures in place to
provided to formally assessed formally assessed assess all PPE
personnel but no but little effort with spot checks requirements, monitor and
corporate made to ensure on usage enforce usage and
procedure for correct usage replacement needs. Stock
assessing inventories monitored,
individual needs kept above demand levels.
Training in use provided
where needed
Waste management: Item 4(v)
Company has no Company has Company has Company has a formal
formal methods general procedures procedures for the system for waste
for the control of for waste disposal disposal of each of management (including
waste the main identification and
categories of site classification), which
wastes but makes actively seeks to minimise
no provision for environmental impact
minimising
environmental
impact

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 5: Planning and Procedures
HSE or operations manuals : Item 5(i) (a) and (b)
No HSE Basic HSE Contractor has Contractor has procedures
procedures procedures exist written HSE to cover all HSE
available procedures to precautions, typical
cover all contractor HSE Plan
hazardous requirements with a
operations system of updating and
dissemination to
employees

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Equipment control and maintenance : Item 5(ii)

No defined Plan relies on outside A written In addition to C periodic
programme to sources, i.e. OPU / programme inspections conducted by
identify or JV inspections. outlining top management or by
evaluate Supervisory supervisory teams of specialists
hazardous inspection of guidelines,
practices and equipment confined responsibilities,
equipment to worksite personnel frequency and
conditions only follow-up is in
effect
Road Safety Management : Item 5(iii)
No special Importance of road Company has a Company has a complete
attention paid to safety acknowledged general strategy and set of plans
road safety as an but left to core management and procedures covering
area of hazardous business strategy with vehicles, drivers and
activities managers/supervisors some procedures operations management
to enact individually for its
component
issues

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 Performance Company has a Company has a
formally monitoring in a few system for comprehensive
monitoring HSE areas carried out monitoring HSE system for
performance performance in key monitoring
areas 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 One occurrence of a Occurrences relate to No occurrences in the
occurrence of major incident in the minor incident(s) last five years
major incident in last five years only
last five years

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HSE Performance records (Latest year injury rate comparison to contractors three
preceding years average) : Item 6(v) (a) - (d)
Contractor Rate is not improving Shows only minor Rate steadily
supplied rate improvement improving by more
insufficient than 20 per cent per
information to year
establish rate or
rate increases
Criteria for absolute performance
Rate over 200 per Rate under 200 per Rate under 120 per Rate better than that
cent that of OPU / cent that of OPU / JV cent that of OPU / JV of OPU / JV
JV
Incident Investigation and reporting : Item 6(vi) (a) - (c)
Findings not Findings Findings As in C but with the
generally communicated to key communicated to all addition of details of
communicated personnel only via employees via implication for
limited company specific company improving HSE
internal memo or notice performance
similar media
Section 7: Assurance and Review
Assurance: Item 7(i) (a) - (c)
Assurance Company HSE Company HSE As in C but
process is cursory documents include documents include additionally specifies
only - HSE reference to details of how management's role in
documents are assurance but there assurance is to be assurance and follow-
not explicit about are no specific details implemented with up on action items
auditing about scheduling and schedules/coverage
coverage for the key areas

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 membership Company has Company is a Company is an
membership of at member of at least active participant
least one association one HSE association in at least one
but with no HSE association
prominence given to
HSE

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APPENDIX III - HSE RESPONSIBILITIES FOR OPU / JV AND

CONTRACTOR KEY PERSONNEL

OPU / JV

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 OPU / JV

Representative(s) in ensuring that the contractor's HSE Plan is finalised and followed

• preparation of OPU / JV assurance and review programme and securing appropriate

resourcing for this programme in consultation with OPU / JV 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 OPU / JV Representative(s)

• supervision of OPU / JV 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.

OPU / JV 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.
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OPU / JV SITE REPRESENTATIVE

Where a contractor may be working in a number of areas it is common for an OPU / JV 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 OPU / JV Representative, but are specific to the site.

OPU / JV HSE ADVISER

Where there is access to OPU / JV 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 OPU / JV 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

Project Manager

• preparation and quality of contractor's HSE Plan

• definition of competencies required for HSE critical positions

• assignment of appropriate personnel to these positions

• make resource provision in the schedule to manage the contract in accordance with the
contractor's HSE Plan

• provision of the resources to implement remedial actions following audits in an

expeditious manner.

• 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

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• implementation of any additional requirements imposed by the Contract Holder.

CONTRACTOR SITE REPRESENTATIVE

Where a contractor may be working in a number of areas it is common for the contractor to
appoint a person or persons to assume responsibility on behalf of the Project Manager for the
activity of supervising the physical work being executed under the contract in the specific
area. The HSE responsibilities are as for the Project Manager but with responsibility for a
specific site.

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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 OPU / JV 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
PTS 60.0101 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

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

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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 Assurance and Review

• HSE assurance

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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 Senior management should engender commitment to
HSE aspects HSE issues at all levels through their personal style of
through leadership and management. Key elements include:
leadership • visible expressions of commitment by senior
people
• HSE matters should be placed high on personal
and collective agenda
• All senior managers should set a personal
example to others. They should be, and seen to
be actively involved in HSE matters, e.g.
attendance at HSE meetings, personal
instigation of HSE audits and reviews, etc.
• a feedback system should be established to
encourage and facilitate employee feedback on
HSE matters
• a positive culture should be promoted at all
levels

Table IV.2 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:
• specific to individual parts of the contract (e.g.
locations/sites/plants)
• cover specialised aspects (e.g. alcohol and
drugs)
• consistent with OPU / JV guidelines
• clear, concise and motivating
Content Importance of HSE as a contract objective
Incidents and injuries are unacceptable
HSE established as a line management responsibility
Everyone is responsible for their own and their
colleagues' HSE at work

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Table IV.2 Checklist for HSE Plan: Section 2 Policy and Strategic Objectives
(continued)
Checklist items Checked
Distribution/ HSE policy distributed to all concerned, i.e.
availability • 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 OPU / JV and contractor employees
in their working language (s)
Discussion Policy and its implementation when issued discussed
by line managers with each employee

Table IV.3 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 Defined to meet health, safety and environmental
objectives/ objectives as well as those of time, cost and quality
accountability 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

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Table IV.3 Checklist for HSE Plan: Section 3 Organisation, Responsibilities,

Resources, Standards and Documentation
Checklist items Checked
Manning/ Manpower philosophy
communications Manpower level to be defined correctly so as not to
compromise HSE
Effective means to communicate HSE issues between
the OPU / JV, contractor and subcontractors
Organisation staffed by competent personnel with
sufficient appreciation of HSE
Where necessary with specific training in the issues
involved
Corporate Company's expectations on HSE management to be
structure/ communicated in depth
responsibility Access of contractor's line management to their
corporate management structure on HSE issues to be
defined
Level of handling project HSE issues by the contractor
corporate structure (middle or senior management or
board level)
In the contractor's corporate organisation, individuals
charged with responsibility for HSE at middle senior
manager or board member level
Access to specialist HSE advice for line management,
e.g.
• provision of HSE documentation for small
contracts
• employment of HSE specialist for large
contracts
HSE professionals
Job definition Role of the contractor's HSE advisers well defined
Job definition drafted
Reporting/ Reporting relationship with line management
follow-up 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

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Table IV.3 Checklist for HSE Plan: Section 3 Organisation, Responsibilities,

Resources, Standards and Documentation
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 fire-fighting 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/ Subcontractors to be identified at this stage of the
vetting 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

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HSE communications
Coverage/ Set up appropriate lines of communication to handle
awareness HSE issues, e.g. 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

Table IV.3 Checklist for HSE Plan: Section 3 Organisation, Responsibilities,

Resources, Standards and Documentation
Checklist items Checked
External links Lines established to communicate externally incidents
that may endanger those on a site
Government agency reporting procedures and the
associated responsibilities of OPU / JV 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, e.g.
doctors, hospital facilities
Emergency Appropriate for incidents envisaged
communications 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 Managers seen to be involved by employees in:
participation • HSE activities, objective setting and monitoring
• taking action and providing resources to support
their stated policies and objectives
Meeting HSE meeting structure
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 Meeting actions
actions Where action is agreed, is it seen to be carried out?
Where action is not agreed, is it explained why?
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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

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Table IV.3 Checklist for HSE Plan: Section 3 Organisation, Responsibilities,

Resources, Standards and Documentation
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, e.g.
• personal contact
• interactive video
• notice-boards
• newsletters (suitable for large sites)
• bulletins
• posters
Performance HSE performance boards (e.g. at worksite gates)
Promotional Possibilities include:
methods • 'give-aways' with the HSE message
• competitions
• suggestion schemes
Part of business 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 Confirmation of medical fitness from a recognised and
personnel 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 OPU / JV guidelines
Reappraisal Programme subject to appraisal and review

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Table IV.3 Checklist for HSE Plan: Section 3 Organisation, Responsibilities,

Resources, Standards and Documentation
Checklist items Checked
HSE training (general)
Contract Statement on the current standard of workforce and
standards training requirements to meet contract standard
Established Including:
training • HSE management
programme • job procedures
• road safety
• health (first-aid, health hazards, medical services,
alcohol and drugs, health promotion, use of PPE)
• assurance
• incident investigation and reporting
• HSE adviser skills
• supervisory development
• HSE meetings
• environmental protection
Supervisory Supervisory development training promotes man-
training management skills and communication skills
Formalised Formal HSE orientation programme for employees
programme working on-site
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 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' Supervisors required to brief and debrief staff before
participation and after training courses

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Table IV.3 Checklist for HSE Plan: Section 3 Organisation, Responsibilities,

Resources, Standards and Documentation
Checklist items Checked
Course content Effective system for establishing the need for and the
content of training courses
Determining course effectiveness and relevance of
training assessed
Specialised Relevant training given to personnel prior to the
training execution of hazardous operations
Training gained through course attendance
supplemented by on-the-job training as necessary
Records kept of attendees of the training courses and
qualifications gained by employees
Emergency Training covers the actions to be implemented and the
training employees' responsibilities in an emergency
HSE content in HSE included in:
other courses • 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 (e.g. career development,
professional status)
Training Training is received by HSE professional
Required specialisation (e.g. drilling, radiation,
chemicals)
Appropriate levels of:
• institute training
• HSE management
Qualifications Knowledge and experience of the contractor's HSE
professional:
• match for competence for the job being carried
out
• match for the advice required

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Table IV.3 Checklist for HSE Plan: Section 3 Organisation, Responsibilities,

Resources, Standards and Documentation
Checklist items Checked
HSE legislation
Coverage HSE Plan to include:
• a comprehensive list of applicable legislation
• government, national and international codes
• OPU / JV regulations, codes and standards
• contractor's identification of regulations, codes
and standards
Hierarchical precedence stated
Definition of the legislation, codes, standards, etc
reflecting the OU's previous experience
For contracts carried out in separate countries:
• different legislation requirements
• OPU / JV assistance for foreign contractors
Waivers 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 OPU / JV requirements

Control/ Controlled documents

authorisation 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

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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 OPU / JV 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 Contractor able to use material from previous similar
awareness 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 All processes identified that require use of PPE
assessment/ Statutory requirements similarly identified
PPE Procedure in place for recording issue to personnel
requirements together with follow-up inspection and replacement/re-
certification
Storage of PPE adequate and secure with procedure for
ensuring adequacy of stock
PPE instruction/ Requirements identified for all personnel
training Instruction and training in its use provided where
needed
Procedure for checking its use been specified
Renewal/ Schedule and criteria for renewing PPE
replacement Schedule for re-certification
Responsibility for payment

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Table IV.5 Checklist for HSE Plan: Section 5 Planning and Procedures
Checklist items Checked
HSE procedures
Availability / Written procedures available to cover hazardous
control operations on HSE
Include HSE precautions to be taken
Consistent with Company guidelines
Controlled documents
Appropriate level
Coverage: include health and environment
Written procedures:
• familiar to all employees including subcontractors
• available in their working language
• contents related to individual job descriptions
Deviations 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 System in place
(PTW) If the contractor's own system is utilised, is it
consistent with industry norms and in line with OPU /
JV guidelines?
Training/ Training standards and qualifications set for personnel
qualification allowed to implement procedures
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

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Table IV.5 Checklist for HSE Plan: Section 5 Planning and Procedures (continued)
Checklist items Checked
Production/ Structure for producing updating and disseminating
updating rules
Frequency
Personnel participation
Involvement of users
Emergency response procedures
Coverage Identification of potential major emergency scenarios,
and procedures to use in such scenarios, e.g.
• fire
• abandon rig/location
• storm
• oil/chemical spill
• aircraft incident
• emergency communications
• Medevac
• blow-out
• diving emergency
• search and rescue (SAR)
• explosions
• H2S
• well control
• man overboard
• evacuation
• terrorism
Potential use of OPU / JV guidelines
Awareness 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
Plans 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

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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:
• registry
• classification
• licensing
• survey
• test certification
Critical items List drawn up of critical items of equipment that must
for HSE be the subject of an HSE inspection
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 Facilities defined as part of contract
available Occupational health programme established to:
• identify hazards
• assess hazards
• control hazards, e.g. 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

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Table IV.5 Checklist for HSE Plan: Section 5 Planning and Procedures (continued)
Checklist items Checked
Staffing Availability of adequately trained, experienced staff
Access to medical treatment facilities (if external)
Contingency Defined for possible incidents beyond capability of site
plans facilities
Accommodatio Where provided, facilities to meet normally accepted
n and catering standards of hygiene at site location
facilities Facilities to be operated in line with government
hygiene regulations and to meet OPU / JV 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:
• language
• clarity, etc
Hygiene and Procedure on on-site cleanliness and maintenance
housekeeping
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/ Environmental monitoring to gauge the impact of
restoration operations
Plans appropriate and sufficiently detailed
Recovery and restoration of site after contract
completion
Assurances Environmental audits of operations during the contract
Carried out by experienced individuals or companies

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Table IV.5 Checklist for HSE Plan: Section 5 Planning and Procedures (continued)
Checklist items Checked
Road Transport
Drivers : Assess physical, mental and psychological capability
competence and Character and background
selection 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 Techniques should identify deficiencies, analyse
improvement causes and select appropriate retraining
Vehicle Ensure correct type, capacity and size for facilities
selection Good manoeuvrability and serviceability
Vehicle The job description should be clearly defined before
specification 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 Conducted on a regular basis
maintenance
Ops Define the journey and justify the need
management - Awareness of hazards involved
need and Allocation of vehicles, written authorisation,
approval verification of employees' driving standards
Ops Full awareness of route (hazards, conditions)
management - Realistic schedules
journey routing
and scheduling
Journey Logging of actions
management
Roles and Roles and responsibilities defined for:
responsibilities management, supervisors, drivers, passengers

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Table IV.5 Checklist for HSE Plan: Section 5 Planning and Procedures (continued)
Checklist items Checked
Contracting 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 In place and tested
services
Table IV.6 Checklist for HSE Plan: Section 6 Implementation and Performance
Monitoring
HSE performance - General
Measurement Proposed plan to measure performance, i.e.
• 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, e.g.
• LTIF/TRCF
• numbers of first-aid and minor injuries• material
losses
• vehicle incidents
• spillages
• occupational illnesses
• sickness absenteeism
Feedback/ Availability and use of performance records
analysis Feedback/review/discussion at HSE meetings
Presentation and distribution to employees
Comparison of Comparison of performance
performance With other similar contract work
Frequency
Involvement of OU personnel

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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:
• 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
Methods 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 Assurance and Review
Checklist items Checked
HSE assurance
Availability Established HSE procedure outlining responsibilities,
frequency, methods and follow-up
Scope Compliance with the HSE Plan including:
• HSE management
• departmental personnel HSE
• technical personnel HSE
• subcontractor
• occupational health
• Hazard Hunt
• assurance training
• environmental
• own activities and those of his subcontractors
Coverage Consistent with OPU / JV 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 OPU / JV and subcontractor personnel

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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

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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 OPU / JV 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 Senior management should reinforce the importance
commitment of HSE at all levels in the organisation and should be
seen to be setting a personal example.
Policy and Contractor has a policy which makes reference to the
Strategic importance of HSE. It is formalised by the Chief
Objectives Executive's or the Manager's signature.
Organisation, A focal point in the organisation for HSE. Simple
Responsibilities, procedure for distributing information on HSE issues
Resources, to the workforce.
Standards and A procedure for determining/enacting HSE training.
Documentation 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):
• fire and explosion hazards
• road transport/driving
• first-aid
• work procedures/PTW

Table V.1 Checklist for HSE Plan (continued)

Checklist items Checked
• hazard awareness and reporting
• security
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• basic HSE rules

• legislative requirements
• occupational health
• environmental protection
Hazards and • HSE targets set in clear quantifiable terms
Effects • a system in place to assess workplace hazards
Management
Planning and Contractor has a document with simple
Procedures 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
Contractor has a document that:
• 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
Implementation Contractor has a procedure for recording incidents, for
and Performance advising legislative bodies where necessary and for
Monitoring making annual reviews of performance.
Contractor has a procedure for investigating incidents.
Assurance and Contractor has a method for the management to carry
Review out simple assurances of his contract operations.

SMALL CONTRACT TYPICAL HSE PLAN PRO FORMA

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 pro forma

Category Item Details
GENERAL
OPU / JV
Project
Contract Title/Number

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Contractor details
Site location
OPU / JV Contract Holder
Representative(s)
OPU / JV Representative(s)
Project Manager
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/serv
ices assigned
OPU / JV personnel assigned
Table V.2 Small contract typical HSE Plan pro forma (continued)
Category Item Details
OPU / JV
equipment/consumables/
services assigned
Subcontractor details
Responsibilities/interfaces
defined
PPE and any special HSE
equipment to be used
Working hours/job duration
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Site description/limits
PTW provisions applicable
Conditions for suspending
work (e.g. weather, adjacent
site operations, etc)

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APPENDIX VI - CONTRACT EXECUTION HSE ASSURANCE GUIDELINES

Table VI.1 Heading checklist for contract execution assurance

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 (e.g. via unannounced site HSE
tours, investigation of incidents)
Revisions brought to attention of all employees
Section 3: Organisation, Responsibilities, Resources, Standards and
Documentation
HSE Key personnelexecuting their responsibilities and
organisation 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

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Table VI.1 Heading checklist for contract execution assurance (continued)

Checklist items Chec
ked
Subcontractors 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 Lines of communication to handle HSE issues in
communications 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 Confirmation of medical fitness of all employees
and welfare
Employee Handbook issue to all new employees
orientation On-the-job orientation taking place
programme 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 Communications for promotion being actively used
awareness Policy posted prominently
Promotional methods used where appropriate
HSE training Recruitment standards being maintained
programme 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

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Table VI.1 Heading checklist for contract execution assurance (continued)

Checklist items Checked
HSE being addressed in other courses such as
induction, craft training, supervisory, line
management , auditing
HSE Use of competent personnel, adequately qualified,
professionals 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 Available to all relevant personnel - nominated
and standards 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 For such examples as working in confined spaces,
workplace 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 Access method selection, scaffolding, mobile
workplace platforms, etc, ladders and staging
Working with For such examples as fork-lift trucks, excavators,
plant and abrasive wheels, portable tools, hand tools, etc
equipment
Tasks and For such examples as demolition, excavations,
operations lifting operations, materials handling, formwork,
erection of structures, welding, piling, high pressure
water jetting, grit blasting, stressing operations
Working with For such examples as electricity, compressed air,
services and steam, fuels, etc
consumables
Working with For such examples as dust, fumes, smoke, asbestos,
hazardous H2S, PCBs, radioactive sources
substances
PPE Availability of PPE for the hazards of the job
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

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Table VI.1 Heading checklist for contract execution assurance (continued)

Checklist items Checked
Section 5: Planning and Procedures
Emergency Awareness and practice of all drills in accordance
response with contract schedules with feedback of results and
procedures recommendations for improvement
HSE PTW system in place and working effectively
Procedures
HSE HSE equipment identified in contract provided on
equipment and site and to the required standards
equipment Inspection being carried out on all critical items
HSE according to schedule
inspection
Potentially hazardous equipment targeted including:
• compressed air tools
• electricity
• portable tools
• mechanical plant
• rotating machinery
• vehicles
• maintenance of all equipment
Occupational Facilities defined in contract in place and operating
health and effectively with staffing by adequately trained
welfare personnel and with access to medical staff by all
employees
Contingency plans in place and tested
Hygiene and Site cleanliness and maintenance being observed
housekeeping 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.

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Table VI.1 Heading checklist for contract execution assurance (continued)

Checklist items Checked
Section 6: Implementation and Performance Monitoring
HSE Use of proposed plan to measure performance
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 All forms of incidents being investigated promptly,
investigation health and environment as well as safety
and reporting 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: Assurance and Review
Assurance 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

GLOSSARY

A glossary of commonly used terms in HSE is given in both PTS 60.0101 HSE Management
System Manual and PTS 60.0401 Hazards and Effects Management Process.

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Any additional terms used specifically in this section are defined below.

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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 OPU / JV. (The term is also frequently applied to
suppliers who are available to provide services but are not currently
in a contractual relationship with OPU / JV).
Contracts Board A Committee of Senior OPU / JV Staff which ensures the
implementation of the OPU / JV 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 OPU / JV departments concerned.
Project 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 Site The person appointed in writing by the Project Manager to assist the
Representative 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 A contractor's proposal as to how he intends to implement the HSE
Plan requirements as outlined initially by the OPU / JV. 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
OPU / JV. 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.
OPU / JV HSE An HSE specialist responsible for providing line management with
Adviser 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.
OPU / JV The person appointed in writing by the Contract Holder to supervise
Representative the execution of the contract activities.
OPU / JV Site The person appointed in writing by the Contract Holder to assist the
Representative OPU / JV Representative in supervising the execution of the
contract activities on a given site.
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.

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

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