hse management guidelines

Report No. 6.64/291September 1999

HSE management - guidelines for working together in a contract environment

IMCA

HEALTH, SAFETY AND ENVIRONMENTAL MANAGEMENT SYSTEMS

page 4

Terminology

The document has two main sections, Guidelines and Supplementary.The Guidelines describe the elements of the HSEMS model and their inter-relationships. Theseor similarelements are described by some regula-tors and companies as performance standards. This term should not,however, be confused with performance criteria, which are lower-levelspecifications for the performance of operations.

The Supplementary section contains additional advisory material underthe same headings, including examples of the manner in which theGuidelines may be applied. For convenience, the sections are numberedas in the Guidelines, but with the prefix S.

Different health, safety and environmental management systems andstrategies have been developed by different companies and organisa-tions, leading to a diversity of terminology. The terms which are used inthis document, are defined in an Annex to the Guidelines section.

Particular attention should be paid to the definition and usage in theseGuidelines of the terms risk, hazard, performance criteria, audit andreview. References in the Guidelines to a company may be taken to referto a particular facility or division operating a local HSEMS, as well to thecorporate HSEMS. Most of these Guidelines refer to an operating organi-sation directly responsible for HSE management and performance.Company also includes any contracting organisation which provides ser-vices to the E&P industry, and which wishes to develop and operate anHSEMS following these Guidelines.

Structure of the document

The Model Health,Safety and

EnvironmentalManagement System

(HSEMS)

leadershipand

commitment

policy andstrategic

objectives

organisation,resources and

documentation

evaluation and risk

management

planning

implementationand monitoring

review

a u d i t

leadershipand

commitment

policy andstrategic

objectives

organisation,resources and

documentation

evaluation and risk

management

planning

implementationand monitoring

review

a u d i t

P ublications

Global experience

The International Association of Oil & Gas Producers (formerly the E&P Forum) has access to a wealth of technical knowledge and experience with its members operating around the world in many different terrains. We collate and distil this valuable knowl-edge for the industry to use as guidelines for good practice by individual members.

Consistent high quality database and guidelines

Our overall aim is to ensure a consistent approach to training, management and best practice throughout the world.

The oil and gas exploration and production industry recognises the need to develop con-sistent databases and records in certain fields. The OGPs members are encouraged to use the guidelines as a starting point for their operations or to supplement their own policies and regulations which may apply locally.

Internationally recognised source of industry information

Many of our guidelines have been recognised and used by international authorities and safety and environmental bodies. Requests come from governments and non-government organisations around the world as well as from non-member companies.

Disclaimer

Whilst every effort has been made to ensure the accuracy of the information contained in this publication, neither the OGP nor any of its members will assume liability for any use made thereof.

Copyright OGP

Material may not be copied, reproduced, republished, downloaded, posted, broadcast or transmitted in any way except for your own personal non-commercial home use. Any other use requires the prior written permission of the OGP.

These Terms and Conditions shall be governed by and construed in accordance with the laws of England and Wales. Disputes arising here from shall be exclusively subject to the jurisdic-tion of the courts of England and Wales.


Report No: 6.64/291

September 1999

These guidelines have been prepared for OGP by the Safety, Health and Personnel Competence Committee (SHAPCC), through its Contractor HSE Task Force, in consultation with the International Association of Geophysical Contractors (IAGC), and the International Marine Contractors Association (IMCA), who both endorse the use of these guidelines.

Task Force membership

R Kratsas Arco Chairman

R Moschetta Arco

C Preston Baker Hughes

R Shields BG Plc

D Laing BP Amoco

ER Moir BP Amoco

L Simpson BP Amoco

M Alexander Chevron

TL Thoem Conoco

Y Guenard Elf E&P

JL Monopolis Esso

D Krahn IADC

M Covil IAGC

JC Sanchez PDVSA

B Stene Saga Petroleum

A Kjelaas Saga Petroleum

G Kubala Schlumberger

P Mann Shell

R Sykes Shell Chairman

G Van der Graaf Shell

HJ Grundt Statoil

P Guyonnet Total

LA Tranie Total

DK Hide OGP Secretary

Following the Task Force work on developing the guidelines, Bob Moschetta undertook the role of Technical Editor to review and address comments and suggested amendments.

iHSE management - guidelines for working together in a contract environment

2000 OGP

Purpose/Intent..................................................................................................................................................................... iiDescription ....................................................................................................................................................................... ii

1 Introduction 11.1 Background ...................................................................................................................................................................11.2 Interrelationship with other systems ..............................................................................................................................2

2 Overview of process 3

3 Planning 43.1 Objectives ......................................................................................................................................................................43.2 Description of work .......................................................................................................................................................43.3 Risk identification .........................................................................................................................................................43.4 Contracting strategy ......................................................................................................................................................53.5 Contract schedule ..........................................................................................................................................................6

4 Pre-qualification 74.1 Objective .......................................................................................................................................................................74.2 Purpose and responsibilities...........................................................................................................................................74.3 Standard pre-qualification documents ...........................................................................................................................74.4 Screening .......................................................................................................................................................................84.5 From pre-qualification to selection ................................................................................................................................8

5 Selection 95.1 Objective .......................................................................................................................................................................95.2 Bid documentation prepared by company .....................................................................................................................95.3 Bid preparation by contractor ......................................................................................................................................105.4 Pre-award meetings .....................................................................................................................................................105.5 Incentive schemes for HSE ..........................................................................................................................................115.6 Contract award............................................................................................................................................................11

6 Pre-mobilisation activities 126.1 Objectives ....................................................................................................................................................................126.2 Kick-off meeting..........................................................................................................................................................126.3 Pre-job audits...............................................................................................................................................................13

7 Mobilisation 147.1 Objectives ....................................................................................................................................................................147.2 General ......................................................................................................................................................................147.3 Mobilisation audit .......................................................................................................................................................15

8 Execution 168.1 Objectives ....................................................................................................................................................................168.2 Responsibilities ............................................................................................................................................................168.3 Contractor compliance ................................................................................................................................................168.4 Competence assurance.................................................................................................................................................178.5 Inspection and HSE auditing/reviews .........................................................................................................................17

9 De-mobilisation 189.1 Objectives ....................................................................................................................................................................189.2 Responsibilities ............................................................................................................................................................18

10 Final evaluation and close-out 1910.1 Objectives ....................................................................................................................................................................1910.2 Final evaluation and report..........................................................................................................................................19APPENDIX I: HSE responsibilities for company and contractor key personnel................................................................ 20APPENDIX II: Definition of consequence - severity of risk .............................................................................................. 22APPENDIX III: Contractor HSE pre-qualification............................................................................................................24APPENDIX IV: HSE pre-qualification points system ........................................................................................................29APPENDIX V: HSE Plan guideline for major contracts.....................................................................................................33APPENDIX VI: HSE Plan guideline for small contracts....................................................................................................50

Table of contents

ii

International Association of Oil & Gas Producers

2000 OGP

The overall objective of this guideline is to improve the company and contractor health, safety and environ-mental (HSE) performance regarding exploration and production activities. Active and ongoing participation by both the company and contractors are essential to achieve this goal. While each has a distinct role to play in ensuring the ongoing safety of all involved, there is an opportunity to further enhance the company/contractor relationship by clearly defining roles and responsibili-ties, establishing expectations and maintaining com-munication throughout the relationship. For example, one role of the company is to review and assess the con-tractors HSE Management System and Programmes, while one role of the contractor is to provide HSE infor-mation as requested by the company. Often the infor-mation requests vary from company to company. By establishing a standard format, which streamlines the bidding process, company and contractor resources can be devoted to improving specific HSE issues.

This guideline is designed to:

1 improve workplace safety, health and environmen-tal performance by assisting the company and con-tractors in administering an effective HSE program for the contract;

2 assist contractors in administering programs which are consistent with the clients expectations;

3 facilitate the interface of contractors activities with those of the company, other contractors and sub-contractors.

These programs should be designed to protect both company and contractor personnel from workplace inju-ries and illness as well as from losses associated with the incidents, while preserving the independent contractor relationship.

This information is provided to assist company and contractor management to visualise the process of man-aging contractor HSE programs. This document is not intended to replace the necessary professional judge-ment needed to recommend the specific strategy to follow. Each reader must analyse their particular situa-tion, tailor the information in this document and obtain the appropriate technical support.

Due to the rapid change that is occurring in the oil and gas industry, together with the various company-contractor interface systems and management practices that are evolving, this guideline will be reviewed every two years. The Safety Health and Personnel Compe-tency Committee will make updates and modifications based upon review.

Purpose/Intent

Description

The main section of the document covers various phases of the contracting process and the associated HSE tasks and responsibilities of the company and contractors. This is an eight-phase process, which begins with plan-ning, and ends in final evaluation and close out. The objectives, roles and responsibilities are defined for each phase.

A key part of the planning phase is risk identification. It is also the prime factor in determining contracting strategy. During this step the level of risk is assessed and the most appropriate measures are identified to pre-vent incidents from occurring. Included in the appendi-ces are additional tools such as checklists for HSE Plan development, severity of risk definitions, and guidelines for small and large contracts.

1HSE management - guidelines for working together in a contract environment

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Within the oil and gas explo-ration and production industry, the pattern of use of contractors has changed significantly over the last ten years. Figure 1 shows the pattern of company and contractor hours reported to E&P Forum for the period 1985-1998.

Prior to 1985 the work force was predominately company employ-ees. Since 1990 there has been a significant increase in the use of contractor staff, with a resulting shift in responsibility and risk from the company to the con-tractor population.

It can be seen from figure 2 that there have been significant improvements in the safety performance of both the Companies and their contrac-tors during this period.

Historically the contractor Lost Time Injury Frequency (LTIF) has not been as good as that of companies, though the gap is narrowing. The trend is encouraging, since contractor personnel generally have a higher expo-

1 Introduction

1.1 Background

0

2

4

6

8

10

Overall

Company

Contractor

1998199719961995199419931992199119901989

8.1

3.0 2.73.4

2.5

3.1

6.1

5.24.7

4.1 3.9

6.6

2.83.3 3.0

2.5 2.61.92.0 2.0

0

200

400

600

800

1000

1200

Manhours Contractor

Manhours Company

1997199519931991198919871985

Figure 1 Company contractor hours worked (millions of hours)

sure to risk, and it is important this trend continues, particularly as use of contractors in the E&P industry increases.

These guidelines have been produced to assist man-agement of the company-contractor interface in this changing environment and to help in the achievement of further joint improvements in safety performance.

Figure 2 LTIF performance of E and P companies and contractors (number of lost workday cases, including fatalities, per million hours worked)

2International Association of Oil & Gas Producers

2000 OGP

1.2 Interrelationship with other systems

While this document is designed to focus on improv-ing contractor health, safety and environmental (HSE) performance, it is an extension of the previous efforts within the E&P Industry and various governmental efforts around the globe to improve overall industrial HSE performance.

This effort has utilised and built upon the E&P Forums Guidelines for the Development and Application of Health, Safety and Environmental management sys-tems; and the API recommended practices documents 2220 and 2221, which address contractor-client inter-actions and how to build an effective contractor HSE program. Additional influences are the UK Health and Safety Executive publication, Successful Health and Safety Management; the U.S. Occupational Safety and Health Administrations Process Safety Management Guidelines; the ISO 9000 and 14000 systems; and numerous E&P Forum Member programs.

All of these documents/programs utilise the same basic model for a system starting with leadership and com-mitment and flowing to testing and evaluation in a con-tinuous cycle. Loss of any portion results in a system failure.

This guideline follows the wording and structure used in the Forums Guidelines for the Development and Application of HSE-MS. However, by following the guidelines in this document, a user should meet the basic requirements of various industry associations, gov-ernmental entities and the users own requirements.

These guidelines were developed for the normal activi-ties expected in E&P operations. Each operation is, however, unique. Therefore, the user should critically evaluate these guidelines for his activities and their asso-ciated risks, and may need to adapt them for the par-ticular circumstances of the work.

This guidance is primarily developed for those responsi-ble for contracting out activities, and personnel responsi-ble for interface and operational oversight of contractors, their employees and subcontractors.

This guidance document is mainly for activities with a medium to high risk although similar principles may be applicable to all contracted activities.

These guidelines in no way supplant a host countrys requirements.


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2 Overview of process

Management of HSE in a business environment where two or more companies work together requires co-oper-ation between them and a clear definition of the tasks and responsibilities of each of the parties.

The typical phases of a contracting process are shown in Figure 3. The sectional headings addressing the phases are shown on the right. Each section describes the tasks and responsibilities showing a clear distinction between the company and contractor(s). An overview of respon-sibilities is given in Appendix I.

Joint company / contractor activities

Contractor Company

Description of work &risk identification

Contracting strategy

Planning

Shortlist andscreen contractors

Establish bidevaluation criteria

Contractor responds toquestionnaire and

provides HSE information

Pre-qualification

Contractordatabase

Bid evaluationand clarification

Contract award

SelectionContractor preparesbid and HSE plan

Pre-mob audits

Pre-mobilisation

Preparations

Joint completion of HSE and execution plans

Pre-execution auditMobilisation

Kick-off meeting Mobilisation

Execution

De-mobilisation

Review of de-mobilisation HSE plans De-mobilisation

Final evaluation and report

Review Close-out

Execution, supervisionand reporting

Monitoring, auditsand inspection

Acceptance of workand restored site

Report

Figure 3 Phases of the contracting process


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The objectives of this phase are to describe the work and to assess the HSE risks associated with the work. The contracting strategy is to be selected on the nature and size of the work, and the risk involved.

3 Planning

3.1 Objectives

The planning phase is generally a company activity, but can be enhanced by use of specialised advisers. The company is responsible for describing the work to be executed. The description should be supported by doc-umentation in the form of standards, drawings, etc. allowing selected contractors to obtain a full under-standing of the work required. The company may also specify HSE requirements to be met; examples include, but are not limited to, the following:

Emissions and waste generated by the activities

Timing of the activities

Location of the work

Requirements for site restoration

Reporting requirements, applicable laws and regu-lations etc.

Training expectations

Competence assurance

Materials to be utilised

Alcohol and drug testing policies

Medical policies

Prohibited work practices.

3.2 Description of work

The company is responsible for making an initial assess-ment of the HSE risks involved in execution of the work. This will aid the contractor and company in developing programs and safe work practices to protect all workers. The focus of the assessment during this phase should be to evaluate the inherent hazards in con-ducting the work. In addition, the assessment addresses the potential adverse consequences of an accident and the potential adverse consequences of an incident to the workforce, the public, the environment, company and contractor assets and reputations. The level of risk assessed for the proposed work should be the prime factor in selecting a contracting strategy (as outlined in Section 3.4) and in determining which measures are most appropriate for consideration by the contractor to prevent incidents from occurring and to minimise the consequences of an event should it occur. The level of risk is also indicative of the amount of time and effort to be spent at later phases to provide assurance that con-trols are in place to reduce the risks to as low as reason-ably practicable.

As a minimum, a risk assessment should include con-sideration of the following:

Nature of the work - materials to be utilised

Location of the work

Potential for exposure to worksite hazards (H2S, Asbestos, etc.)

Potential exposure to hazards for all personnel involved in the activities

Potential consequences of incidents (environmen-tal damage, delays of project development, delay in production operations, legal claims)

Exposure to negative publicity.

The risks assessed can be characterised as low, medium or high in accordance with the Risk Assessment Matrix approach shown in Figure 4. Definitions for the ratings are provided in Appendix II.

3.3 Risk identification


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Figure 4 Risk assessment matrix

Seve

rity

Peo

ple

Ass

ets

Envi

ron

men

t

Rep

uta

tion

0

1

2

3

4

5

Consequence Increasing probability

A B C D E

Never heardof in E&Pindustry

Heard ofin E&P

industry

Incident hasoccurred in

our company

Happensseveral timesper year in

our company

Happensseveral timesper year in a

location

No healtheffect/injury

Slight healtheffect/injury

Minor healtheffect/injury

Major healtheffect/injury

Singlefatality

Multiplefatalities

Nodamage

Slightdamage

Minordamage

Localiseddamage

Majordamage

Extensivedamage

No effect

Slighteffect

Minoreffect

Localisedeffect

Majoreffect

Massiveeffect

Noimpact

Slightimpact

Limitedimpact

Considerableimpact

Nationalimpact

Internationalimpact

Intolerable

Manage for continuous improvement

Incorporate riskreduction measures

3.4 Contracting strategy

One of the most important strategic contract manage-ment decisions to be made by the company is on the way in which the contractor, or alliance of contractors, is held responsible for the management of HSE. Two distinctly different modes are described below.

Mode 1 The contractor provides people and tools for the execution of work under the supervision, instructions and HSE-MS of the company. The contractor has a management system to pro-vide assurance that the personnel for whom he is responsible are qualified and healthy for the job and that the tools and machinery he is pro-viding are properly maintained and suitable for the job.

Mode 2 The contractor executes all aspects of the job under its own HSE Management System, pro-vides the necessary instructions and supervi-sion and verifies the proper functioning of its HSE Management System. The company is responsible for verifying the overall effective-ness of the HSE management controls put in place by the contractor, and assuring that both the companys and the contractors HSE-MS are appropriately compatible.

Selection of one of these modes is preferred. However, in certain situations it may be necessary to adopt a mix-ture of the two modes. This can be accomplished by following Section 3.5 of the E&P Forum Guideline for the development and application of health, safety and environmental management systems, report number 6.36/210. This section outlines the interfacing of con-tractors activities with those of the company and with those of other contractors as appropriate. This may be accomplished by means of a specific interface document between the company and the contractor so that dif-ferences may be resolved and procedures agreed before work commences. Examples of such situations are given below.

Operations in an area where there is a limited selec-tion of contractors able to meet the evaluation crite-ria. For example an alliance may have to be formed between the company and available contractors with the objective to develop, improve and imple-ment an HSE Management System for the contrac-tor while executing work under the management system of the company. The management system will initially aim at working under Mode 1.


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Operations too large or diverse for a single contrac-tor may require a number of contractors and sub-contractors (a consortium) to work together under the supervision of one main contractor working for the company under Mode 2.

The work is intimately associated with the activities of the company, or presents such a high risk to the company that the work is to be executed using the companys management system under Mode 1.

The contractor executes most aspects of the job under its own HSE Management System; however, certain support activities such as transportation and emergency response are provided by the company.

A Drilling Contractor is responsible for identify-ing and supplying personal protective equipment to its personnel. A Fluids Contractor designs the mud program for the Operator, with new additives included in the well plan. In this case the company has an interface procedure that details the respon-sibilities of the drilling contractor and requires the fluid contractor to provide chemical hazard infor-mation to the Operator and drilling contractor before shipping the materials. The interface pro-cedure further requires the on-site fluids engineer to communicate chemical hazards during the pre-spud meeting.

Also, when working with an alliance of contractor(s) or a consortium, it should be made clear in advance whether the alliance or the lead contractor is fully responsible for all instructions and supervision or whether that is the responsibility of the company. If the alliance or con-sortium is responsible, it should be made clear in the contract how this is organised. In addition, the person responsible for critical activities has to be clearly identi-fied. Joint responsibilities should be avoided by break-ing down the work into smaller identifiable activities, each with a party assigned to it with responsibility for the HSE aspects.

Usually Mode 2 is preferred except in High Risk situ-ations where the work is highly interactive with compa-nys activities.

Example:On an offshore production platform, a modification requiring welding and grinding has to be made in a hazardous area. This is considered a High Risk oper-ation. Moreover, the essential controls and emergency response are arranged by the company. Typically Mode 1 would be used.

Example:A consortium of contractors with one lead contractor is responsible for the construction of a new onshore production facility. Construction activities are always High Risk. However, until the moment that hydro-carbons are introduced, the lead contractor can be held accountable for managing all aspects of the job pro-vided the construction contractor can demonstrate its capability to manage all HSE aspects. Typically Mode 2 would be used.

Low Risk contracted operations, e.g., deliveries of non-critical materials, food, stationery, etc., are usually covered by Mode 2 whereby the contractor provides the HSE controls. Usually the company controls on such low risk activities are minimal and Mode 2 is typical. However, contractors working on company premises are normally under the control of company personnel and should follow company instructions.

Issues in setting a contract strategy might include: number of contracts, contract schedule, rules and regu-lations, and the use of company HSE standards and/or relevant national HSE legislation and international con-ventions.

3.5 Contract schedule

A contract schedule should be developed with due con-sideration of the HSE issues and deliverables involved, paying particular attention to allow adequate time for mobilisation/demobilisation. This evaluation may well highlight HSE issues that require special emphasis in later contract phases.


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4 Pre-qualification

4.1 Objective

The objective of the Pre-qualification phase is to screen potential contractors to establish that they have the nec-essary experience, capability and financial viability to undertake the activities in question safely and in an environmentally sound manner.

4.2 Purpose and responsibilities

The general practice in Companies for selecting con-tractors is through competitive tendering. In the pre-qualification stage, potential contractors are screened to establish that they have the necessary experience and capability to undertake the activities in question. Only those being able to demonstrate that they can manage in a fully satisfactory manner the HSE risks of the work, should be included on the pre-qualified list. A formal historical record of the HSE performance, including findings of audits and inspections, of all contractors previously employed, should be maintained by the com-pany for use during the pre-qualification process.

The pre-qualification process is a crucial step in which assurance is sought that the risks of the work will be managed. The purpose of the pre-qualification stage is for the company to agree on a list of contractors that will be invited to bid, and a list of HSE bid evalu-ation criteria to be met. Pre-qualification is one of the last safeguards in identifying suitable contractors. Once contractors are qualified to bid, they are eligible for award of a contract.

The company contract manager is responsible for pre-qualification and providing assurance that the contrac-tors invited to bid can manage the HSE risks associated with the work.

4.3 Standard pre-qualification documents

Pre-qualification is usually achieved by issuing a stand-ard format document for the contractor to complete, supported where necessary by historical performance records. It may be necessary to review the content before issue and to add, remove or emphasise requirements specific to the activity.

As a means to streamline the pre-qualification process, the E&P Forum recommends that companies adopt the pre-qualification questionnaire, located in Appendix III. Requests for additional or company specific infor-mation that is not included in the questionnaire can be inserted into Section 9. By implementing this standard format, both the company and contractors can devote their resources to improving HSE performance rather than reformatting existing information into a variety of formats.

Of special importance is the management by contrac-tors of their subcontractors and the need for the main contractor to demonstrate understanding and commit-ment to having full responsibility in this area. Similarly, when contractors are working in an alliance or consor-tium, it is of special importance to demonstrate that each entity fully understands, and is committed to, the HSE management of the assigned HSE critical activi-ties.

A points system method, which minimises subjective judgement, may be used to evaluate contractors submis-sions. Contractors who achieve a pre-defined acceptable score will then be judged to have met the HSE pre-con-tract requirements. Appendix IV provides guidelines for such a rating system.


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The screening process should be designed to assure that the contractors invited to bid can perform the work to the required HSE criteria.

The general approach is to send a uniform question-naire to all potential contractors, initially assess their HSE capabilities based on the questionnaire using an equitable measuring system (see Appendix III) and sup-plementing this with site inspections of current contrac-tor work sites.

Contractors which have been used by the company pre-viously can be assessed through the use of close out reports and other historical records. A review of any potential changes to the contractors organisation, pro-grammes and systems should also be conducted.

During pre-qualification of large contractors, especially those with many divisions in numerous countries, the use of the record of the Corporation may not be appro-

priate. In such a case, the focus should be on the divi-sion bidding for the work.

For those contractors not qualifying, a feedback mecha-nism should be in place to inform them why they did not qualify and that by correcting the identified defi-ciencies; they may qualify for future work.

Where there is a policy to encourage selected contrac-tors to develop an HSE management Plan, and these contractors have little or no background in HSE man-agement, then a plan to overcome the shortcomings should be developed. Such a plan may require addi-tional company supervision, more explicit procedures or additional training. The HSE requirements should be met before work commences. The scale of the con-tract and the exposure must be matched accordingly. Again, the details of the program and performance of such contractors should be recorded and retained for future reference.

4.4 Screening

Before entering the selection phase the company should document the pre-qualified contractors and the ration-ale for the selection. At this time, the company specifies the minimum evidence to be produced during the selec-tion phase by the potential contractors demonstrating that a sound Plan exists for implementing HSE man-agement during the potential contract work to control risks to as low as reasonably practicable. This informa-tion should be prepared by the contractor as part of the HSE Plan.

Appendices V and VI provide requirements for an HSE Plan for major and small contracts, respectively.

Dependent on the level of risk involved in the con-tracted work, the company should establish yardsticks to measure the quality of the contractors HSE Plan and criteria to be met. These measuring methods and crite-ria should be documented prior to the selection process in the form of Bid Evaluation Criteria.

4.5 From pre-qualification to selection


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5 Selection

The objective of the selection phase is to assess whether the HSE Plan and the Bid Evaluation Criteria have been met and to select, where necessary on the basis of clari-fication meetings, the successful bidder.

Pre-qualification is the most important screening tool for the selection of contractors. All contractors that are pre-qualified should be fully capable of managing all HSE aspects of the job.

5.1 Objective

5.2 Bid documentation prepared by company

The selection criteria used should consider significant aspects such as costs, technical ability, reputation, and the ability to meet schedules. The overall risk of con-tract and HSE management should be given appropriate weighting along with other considerations when selec-tion criteria are evaluated. This section outlines some key considerations specific to the HSE portion of the selection process.

Contractors should be given copies of the companys HSE documentation relevant to the contract. Docu-mentation in the tender package may include:

company HSE goals and objectives.

company HSE-MS.

definition of the scope of the HSE Plan and the known hazards to be addressed.

list of HSE controls procedures and compliance issues for the contract.

definition of the company/contractor anticipated interfaces, the company supervision strategy and interaction with company operations, interaction with specific company plans such as emergency response.

type and schedule of company and contractor train-ing requirements and competencies.

specification of the minimum pre-execution require-ments.

The HSE tender documentation should be compiled, with due attention to the following:

It is the companys responsibility to assure that the tender documents address the HSE requirements for the contract and that knowledge about hazards already identified by the company are passed on to the contractor. The company should not assume that the contractor knows of the hazards in the workplace, which are associated with the execution of contracted activities.

The contractor has independent responsibility for his own HSE Plan, but documents should make clear provision for the company to perform HSE audits on the contractor in order to assess compli-ance.

The documents should include provision for the company to suspend work if the contractor does not observe the HSE criteria spelled out in the con-tract HSE Plan or HSE Case and, in particular at mobilisation, to withhold permission to start exe-cution and hold payments until a satisfactory pre-execution audit has been achieved. Before any work is suspended, the company should liaise with the contractor to allow them the opportunity to rectify any non-conformances.

Where special HSE provisions are to be provided, the documents should specify these clearly and identify who is to pay for them. Any constraints on the methods of working should also be specified.

10


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In preparing their bid, the contractor should demon-strate compliance with such requirements and illustrate their process for preparing their own HSE Plan within the required framework. The actual plan will be devel-oped after the contract is awarded. This may be accom-plished by developing a system which facilitates the interfacing of company, contractor and sub-contractor activities, as described in section 3.5 of OGPs Guide-lines for the development & application of health, safety and management systems. Contractors should be allowed the freedom to use industry HSE guidelines/recommended practices/standards, e.g., those of the International Association of Drilling contractors (IADC) or International Association of Geophysical contractors (IAGC), or the International Marine Con-tractors Association (IMCA), or of OGP, API and IMO, if they are equivalent to or exceed the companys

requirements. The company should have the expertise and resources to evaluate the alternatives proposed. The tender documents should allow flexibility for the con-tractor to take ownership of HSE responsibilities under the contract but allow for the company to effectively manage the contract. Adequate lead times for tender preparation should be allowed to avoid compromising the establishment of a sound basis for HSE manage-ment.

The company should assure that the mobilisation and demobilisation phases are adequately covered in the HSE Plan. In some instances the ability to exercise influence may be limited (for example when work is being carried out in a yard or factory where only a small percentage of the contractors workload is for the com-pany).

Some HSE requirements will have been supplied at the pre-qualification stage. An important element that the contractor should provide is their process for develop-ing a written HSE Plan commensurate with the level of risk involved in the work. This plan will be the main element considered when carrying out evaluation of the bid and should be regarded as the top document that drives the specific HSE program for major contracts. The HSE Plan could be developed along the lines pre-sented in Appendices V and VI.

Examples of typical HSE Plans and Programs used in similar contracts in which the contractor has been involved may be submitted.

The contractors HSE Plan should clearly identify where he believes his HSE-MS interacts with the HSE-MS of the company and other contractors. A proposal should

be made by the contractor on the approach to manag-ing these interactions and the allocation of responsibili-ties for overlapping areas.

The interface document should demonstrate that both parties have the necessary procedures (e.g., Permit to Work, Hazard and Risk Assessment, Operating Instruc-tions, Contingency Plans) and controls in place to achieve the work program without compromising HSE performance. These systems should be harmonised where possible to minimise the potential for misunder-standing.

If there is a considerable amount of time between pre-qualification and the bid submission, contractors should be asked to provide evidence of documenting their cur-rent HSE systems and performance.

5.3 Bid preparation by contractor

The companys internal pre-award meetings should con-centrate on reviewing the HSE program prepared by the contractor, and on assessing how effective the con-tractor has been in providing assurance that all haz-ards have been identified & that suitable controls are planned to reduce the risk to a level as low as reasonably practicable.

A joint company and contractor pre-award meeting with contractors should be used to clarify and further

assess the suitability of contractors HSE Plans and how that plan interacts with the HSE MS of the company and of other contractors.

Following these pre-award meetings the company should assess whether the HSE Plan and acceptance cri-teria, as defined in Section 4.5 (Bid Evaluation Criteria), have been met. This appraisal should be documented as it is one of the crucial conditions for awarding the contract.

5.4 Pre-award meetings

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2000 OGP

The best incentive scheme is one which values HSE per-formance and which results in a continuing long-term relationship between company and the contractor based on good HSE performance.

The need for additional incentives should be carefully considered. To be effective a scheme should:

not discourage or suppress the reporting of inci-dents.

be proactive and reward effort, eg, audits and fol-low-up rather than after the event statistics.

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

be culturally sensitive to the local environment.

motivate personnel to change those behaviours that detract from HSE performance.

appreciate the HSE culture of the contractor

5.5 Incentive schemes for HSE

Award of the contract should consider a number of areas such as technical competence, ability to meet schedule, and cost. The documented appraisal of the contractors capability to manage HSE should be available from pre-vious phases. This appraisal provides a go- no go cri-

terion, i.e., if a contractor does not meet the minimum criteria, he should not be awarded a contract.

Once the award has been made, joint meetings should be held as soon as possible to agree on the final HSE Plan and detailed programmes.

5.6 Contract award

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2000 OGP

6 Pre-mobilisation activities

The objectives here are to ensure that the relevant aspects of the contract risk assessment and any other HSE aspects of the contract are communicated and understood by all parties prior to implementation of the contract. Several activities such as reviews, meetings and audits can be used. The amount of detail and effort for pre-job activities should be commensurate with the level of risk.

6.1 Objective

A kick-off meeting should be used as an opportunity for the contractor(s) to become familiar with the location, facility, personnel, and other work information. The kick-off meeting is generally recognised as an impor-tant bridging step in working together to prevent inci-dents and resolve any health, safety and environmental issues.

The kick-off meeting should be held immediately after contract award and before the execution of any work. For a new contractor, the kick-off meeting may include the companys and contractors local management.

If the contractor mobilises locally at the work site, the kick-off meeting may be held locally. If not, it may be necessary to hold the initial kick-off meeting at the contractors base office. This should be followed by a subsequent mobilisation of key contractor and subcon-tractor personnel to the work site and possibly addi-tional local kick-off meeting(s). The local meeting(s) should be held immediately prior to the start of any work as part of the mobilisation process.

The topics covered by the kick-off meetings might include:

review of associated major hazards

confirmation of HSE Plan to be implemented including confirmation that roles and responsibili-ties have been clearly defined and understood

confirmation of worker competence; this includes both company and contract workers who are exposed to workplace hazards as defined in the description of work and risk assessment phases.

confirmation of any HSE performance objectives and targets

distribution and explanation of the companys HSE policy statement, basic HSE rules and work proce-dures in as far as the contractor works under the company HSE-MS

confirmation of the scope and schedule of HSE activities for example; HSE meetings, audits and reviews

interaction of companys and contractors contin-gency plans

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

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

briefing of subcontractors on HSE requirements

incident reporting and investigation procedures

The meeting(s) may be structured as an HSE work-shop, with participation by both company and contrac-tor management.

The kick-off meeting(s) should be used as an opportu-nity to clarify or raise new HSE issues that may not have been covered in the contract documentation. Account should be taken in the meeting discussions of the con-tractors own HSE Management System, work culture and working practices.

6.2 Kick-off meeting

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2000 OGP

The kick-off meeting may provide an opportunity to discuss the mechanisms that will be involved to certify that HSE systems are in place. It may also provide an opportunity to check the condition of the equipment and worksite in as far as is possible. It is important to keep in mind that equipment and site may still be in use for other jobs. The items listed under Section 6.2 can be parts of the pre-job audit. Supplemental audit areas might include the provision and maintenance of:

equipment and site to be used for the work

HSE equipment

communication systems and procedures

environmental protection systems

health hazard identification and assessment, medi-cal facilities, Medivac procedures.

The audit should provide recommendations to be imple-mented prior to commencing the work. The scope and duration of the pre job audit can be determined by the company and contractor, this determination is based upon the job description and associated hazards.

6.3 Pre-job audits

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2000 OGP

7 Mobilisation

The objectives of this phase are to assure that the HSE Plan is modified, if warranted, and communicated to all relevant personnel, both company and contractor.

7.1 Objectives

Prior to mobilisation, it is likely that the full HSE Plan is known only to the principal members of the companys and contractors project management teams. During mobilisation, the HSE Plan should be commu-nicated by the management of both the company and the contractor to all relevant personnel.

In the mobilisation phase some of the principal activi-ties are:

local kick-off meeting(s)

mobilisation of contract staff and equipment

finalise the contractors HSE Plan

commence induction and site-specific training

hold mobilisation HSE audit.

During mobilisation the company and contractor assure that each sets up a method of operation that is in accord-ance with the agreed HSE Plan. It is at this stage that implementation of the HSE Plan by the contractor for-mally begins. For contracts under Mode 1 strategy, the contractors operations should be fully compatible with the companys HSE-MS. For contracts under a Mode 2 strategy, any HSE Plan requirements should be integrated into the contractors HSE-MS.

The company and contractor should confirm that each has deployed his supervisory staff and is implementing the agreed-upon briefing and training for his supervi-sors and employees.

Depending on the circumstances, additional supervi-sory staff from the contractor may be required to allow rapid set-up and implementation of the HSE Plan. The company and contractor may want to have addi-tional staff available to verify that the HSE Plans are fully implemented. This can be accomplished by a joint company/contractor HSE field review or audit.

During the initial part of the mobilisation phase all key personnel assigned to the project should attend an HSE orientation program that should be used to com-municate the HSE Plan and any other significant HSE aspects of the contract.

Progress meetings should then be used as a formal method of reviewing HSE implementation, along with frequent walk-throughs by company personnel.

Aligning the various interests and areas of responsibility requires good working relationships between the com-pany and contractors, among contractors and between contractors and sub-contractors. This is particularly true if the subcontractor activities are difficult to moni-tor (e.g. distributed work groups, transportation).

Once mobilisation activities have commenced, the company should begin monitoring of the contractors pre-execution activities to assure the HSE Plan is imple-mented.

7.2 General

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2000 OGP

In the final stages of the mobilisation, an audit or review against the projects HSE Plan should be completed to determine whether the contractor has achieved the necessary targets stated in the HSE Plan and whether mobilisation can be considered complete. This can be accomplished by a joint company/contractor HSE field review or audit.

Achievement of HSE Plan targets for this stage should represent the first milestone of the project.

Usually, the extent of the audit depends on the level of risk associated with the activity. For a relatively low risk contract, an audit may be conducted by means of a simple checklist. For high-risk contracts, a more ana-lytical approach may be used.

If the audit proves to be unsatisfactory, then the status of the contractors progress should be carefully reviewed.

The options available at this stage are:

Minor deficiencies: the contractor should be requested to implement corrective action and the audit repeated. It may be possible to allow this to take place in parallel with initiating the execution phase.

Serious omissions: the option of withholding per-mission to proceed or even terminating the contract may be necessary.

To minimise the possibility that the company could be perceived as assuming responsibility for HSE supervi-sion, the results of the mobilisation audit are documented and processed through the contractors HSE-MS.

The mobilisation audit usually is structured against the elements of the HSE-MS or, more specifically against the HSE Plan elements (as outlined in Appendix V).

7.3 Mobilisation audit

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2000 OGP

8 Execution

The objectives of this phase are to assure that the work to be performed is conducted according to the agreed-upon HSE Plan, and that additional HSE needs, identi-fied during the work, are properly addressed.

8.1 Objectives

The nature of the work determines the level of supervi-sion necessary. For example, within or in close proximity to operating plant, hazardous area zones or acknowl-edged high risk operations, more direct company super-vision may be required than on a new construction site or the contractors own premises, i.e. MODU, lay barge, etc. Only in particular circumstances should contractors be directly supervised because too much instruction/direction from the client tends to relieve the contractor of the responsibilities stipulated in the contract.

Where responsibility for supervision rests with the con-tractor, the companys role should be to monitor com-pliance to contractual terms and systems defined within the contract. Unless the contract holder has a perma-nent presence on site, it is usual to appoint representa-tives from line management to monitor and verify that contract HSE obligations are being met. The contract holder and representative should have access to special-ist HSE advice where needed, but accountability for contract HSE lies with the contract holder. Responsibil-ity may be delegated to the representative, but account-ability needs to remain with the contract holder.

8.2 Responsibilities

The roles and functions of the company contract holder includes assurance of:

the contractors line management commitment to HSE issues

compliance with all HSE related clauses in the con-tract and the HSE Plan

the existence of contractors internal HSE control system

the contractors monitoring of the quality, condi-tion and integrity of his Plan equipment and tools

the contractors holding of toolbox and regular HSE meetings

contractors implementation and participation in emergency exercises and drills

proper management of HSE risks which arise from changes to the Plan

compliance with incident and near-miss reporting, investigation and follow-up.

the resolution of interface problems between con-tractors.

An HSE audit and review programme should be pre-pared, stating specifically what is expected of the com-pany contract holder in ensuring that the HSE Plan is finalised and adhered to, together with details of how the performance of the contractor is to be measured.

8.3 Contractor compliance

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2000 OGP

During execution of the work, the company contract holder must monitor the continued competence of the contractor. This refers to any associated training com-mitment undertaken. Where necessary, the company should also determine if any additional competence assurance is needed as a result of local circumstances. Monitoring should include a verification that the con-tractor complies with his management system that may include:

competence and close monitoring of the replace-ment of personnel

provision of the necessary induction courses

training of contractor personnel in job related activ-ities and procedures

completion of all agreed-upon HSE training, includ-ing any specified statutory training requirements

availability of HSE documents, instruction and information leaflets with special attention to use of local language reinforced with simple visual mes-sages.

8.4 Competence assurance

Inspections and audits provide the methods for moni-toring contractor HSE activities. Regular inspections by company representatives provide a means of checking compliance with contract requirements. The frequency of such inspections/verifications depends on the size of the work and the risks involved. Auditing provides the more formal and comprehensive assessments of adher-ence to the HSE Plan.

Inspections and audits should be performed by both contractor and company. Joint inspection/audit pro-grams may have the advantage of aligning sometimes divergent objectives, enhancing common understand-ing and promoting constructive participation.

Findings of inspections and audits should be shared between client and contractor with positive commit-ment from both parties to use the findings for improv-ing performance.

8.5 Inspection and HSE auditing/reviews

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2000 OGP

9 De-mobilisation

The objectives of this phase are to identify the hazards associated with demobilisation and identify and imple-ment controls to minimise the risks. The HSE Plan should be modified, if need be, to address new or unex-pected hazards.

9.1 Objectives

The contractors HSE Plan should continue to be the vehicle for managing the HSE activities in this phase.

Demobilisation often is a phase of the project having an increased chance of incidents as the project infrastruc-ture and contractor HSE management structures are being dismantled with people moving off the project to new assignments. Assurance should be sought that the appropriate organisational structures remain intact until associated activities have been completed. These should include:

emergency response

site restoration

waste management and disposal.

Due consideration should be taken of any learning points from mobilisation, the problems encountered and solutions found.

The company and contractor should continue to moni-tor performance against the Plan, including attention to incident reporting. It is important to maintain vigi-lance on HSE matters to the very end of the contract. The close out report should be made after all activities have been completed.

9.2 Responsibilities

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2000 OGP

10 Final evaluation and close-out

The objectives of this phase are to conduct a joint evalu-ation of the contractors and companys HSE perform-ance and to provide feedback to the contractor(s) and company which can be a reference for future work.

10.1 Objectives

Contracts should be closed out with a report of HSE performance, providing feedback for future knowledge and learning.

Ideally, HSE performance should be tracked on a regu-lar basis throughout the contract with the final report being the distillation of the regular monitoring process and the end of contract review. This may take the form of a close-out meeting where all parties are represented. Thus, throughout the contract, contractor performance should be monitored against Plan and any deviations, positive or negative, annotated for reference in the close-out report/summary.

The format of the close-out report should reflect the agreed Plan and contractual obligations between the company and the contractor(s). However, there should be sufficient flexibility to take account of mutually agreed changes to the contract.

10.2 Final evaluation and report

The analysis and summary of conclusions should address:

quality of the original HSE Plan and its relevance to the overall contractor(s) performance, stipulating what was learned and how future contracts should be structured.

highlighting positive aspects of learning and how they can be applied in the future. This learning should be shared with the contractor.

incorporation of any new hazards identified into the hazard identification and evaluation process for future contracts.

analysis of both the client and contractors HSE performance for mutual improvement.

information on the contractor to be added as a ref-erence for the client bid list and which may pro-vide advice for improvements in assessing future tenders.

The HSE close-out data should be recorded and made accessible for future reference. A documented record of HSE Performance should be kept on each contractor.

The contractor will again be advised that his overall performance and HSE record will be taken into account when being considered for future work.

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2000 OGP

Appendix I: HSE responsibilities for company and contractor key personnel

Contract Holder should:

conduct a structured HSE assessment of the antici-pated contract

pre-qualify contractors for the bidders list using standard HSE criteria

prepare contract HSE specifications for inclusion in the tender documentation

prepare an HSE monitoring programme defining the role of company representative(s) in ensuring that the contractors HSE Plan is finalised and fol-lowed

prepare company audit and review programme and secure appropriate resources

evaluate contractors HSE Plans

assure the adequacy of the contractors HSE Plan

appoint competent company representative(s)

supervise company representative(s)

conduct a pre-execution HSE audit

authorise the contractor to commence work if the pre-execution HSE requirements are met

monitor performance of the contractor against his HSE Plan

authorise deviations from the contractors HSE Plan

authorise additional HSE requirements as deemed necessary

apply sanctions in the event of unauthorised devia-tions from the contractors HSE Plan

prepare HSE close-out report and distribute to appropriate company and contractor personnel for feedback

Company Representative should:

perform assurance checks on contractors review and inspections and follow up

verify hazards and effects management controls, as specified in the contractors HSE Plan, are imple-mented

identify deficiencies in contractors HSE Plan and agree to remedial action with contractor or instigating sanctions in consultation with Contract Holder.

Company Site Representative:

Where a contractor may be working in a number of areas it is common for a company to nominate some-one who is responsible for the supervision of the physi-cal work being executed under the contract at a specific appointed site. The Site Representatives HSE responsi-bilities follow those of the company Representative, but are specific to the site.

Company HSE Adviser:

Where there is access to company HSE advisers or spe-cialists, it is important that the role of the adviser is understood to be indeed that of an adviser. Advice, sup-port or services may be sought from an HSE Adviser on a routine or periodic basis but the responsibility for HSE matters must remain unmistakably with the Con-tract Holder and Representatives.

Normally, the HSE adviser provides:

advice and support in HSE issues as requested

review/audit services as requested

additional advisory support, where needed, to small contractors.

In the case of a small local contractor a decision may have been taken to provide additional supervisory sup-port and assistance in HSE matters. The company HSE Adviser and related specialists may be tasked with pro-viding support but must exercise care (unless other-wise provided for by the contract or agreed to in the HSE Plan) that this is recognised as a temporary phase and that the contractor must be encouraged to develop quickly to a point where such assistance is no longer required.

Company

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2000 OGP

Contractor Manager should:

prepare and assure quality of contractors HSE Plan

define competencies required for HSE critical posi-tions

assign appropriate personnel to HSE critical posi-tions

assure adequate resources and time in the schedule to manage the contract in accordance with the con-tractors HSE Plan

notify the Contract Holder in writing of his nom-inated contractor representative(s) and contractor Site Representative(s)

provide resources to implement remedial actions following audits in an expeditious manner.

Contractor Representative should:

fulfil the pre-execution HSE requirements

implement the contractors HSE Plan

seek formal approval from the Contract Holder for any proposed deviations from or amendments to the contractors HSE Plan

implement additional requirements as agreed upon with the Contract Holder.

Contractor Site Representative:

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

Contractor

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2000 OGP

Appendix II

People

(fa

tal, inj,

occ

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l h

ealt

h)

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quip

men

t En

vir

on

men

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tion

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ty P

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al

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nit

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tam

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(lit

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/ N

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age

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23


2000 OGP

People

(fa

tal, inj,

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it

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: th

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lled

in.

24


2000 OGP

1 The questionnaire should cover the information required to assess the extent to which HSE and its management are organised by the contractor.

2 The contractor should be advised to cover all (including support) relevant activities and not just those conducted on company sites.

3 The questionnaire should be validated by a responsible contractor line manager prior to sub-mission.

4 Emphasis should be placed on the need for complete answers substantiated by supporting documentation as far as is practicable. Responses and any supporting documentation must relate specifically to the policy and organisational arrangements of the company that would be the signatory of any contract.

5 Submissions should be assessed by a scoring mechanism that can be used in the evaluation process.

6 If necessary, follow-up discussion with the contractors management may be needed.

7 The contractor should be encouraged to identify where he exceeds company requirements and this excellence should be recognised.

Appendix III: Contractor HSE pre-qualification

General guidelines for preparation of questionnaire

Section 1: Leadership and Commitment(i) Commitment to HSE through leadership

a) How are senior managers personally involved in HSE management?

b) Provide evidence of commitment at all levels of the organisation?

c) How do you promote a positive culture towards HSE matters?

Section 2: Policy and Strategic Objectives(i) HSE policy documents

a) Does your company have an HSE policy document? If the answer is YES please attach a copy.

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

c) Who is the most senior person in the organisation responsible for this policy being carried out at the premises and on site where his employees are working? Provide name, title and experience.

(ii) Availability of policy statements to employeesa) Itemise the methods by which you have drawn your policy statement to the attention of all your employees?

b) What are your arrangements for advising employees of changes in the policy?

Table III: Questionnaire for contractor HSE pre-qualification

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2000 OGP

Section 3: Organisation, Responsibilities, Resources, Standards and Documentation(i) Organisation - commitment and communication

a) How is management involved in HSE activities, objective-setting and monitoring?

b) How is your company structured to manage and communicate HSE effectively?

c) What provision does your company make for HSE communication meetings?

(ii) Competence and Training of managers/ supervisors/senior site staff/ HSE advisers Have the managers and supervisors at all levels who will plan, monitor, oversee and carry out the work received formal HSE

training in their responsibilities with respect to conducting work to HSE requirements? If YES please give details. Where the train-ing is given in-house, please describe the content and duration of courses.

(iii) Competence and General HSE traininga) What arrangements does your company have to ensure new employees have knowledge of basic industrial HSE, and to keep

this knowledge up to date?

b) What arrangements does your company have to ensure new employees also have knowledge of your HSE policies and prac-tices?

c) What arrangements does your company have to ensure new employees have been instructed and have received information on any specific hazards arising out of the nature of the activities? What training do you provide to ensure that all employees are aware of company requirements?

d) What arrangements does your company have to ensure existing staff HSE knowledge is up to date? (If training is provided in-house please give details of content.)

(iv) Specialised traininga) How have you identified areas of your companys operations where specialised training is required to deal with potential haz-

ards? (Please itemise and provide details of training given.)

b) If the specialised work involves radioactive, asbestos removal, chemical or other occupational health hazards, how are the haz-ards identified, assessed and controlled?

(v) HSE qualified staff - additional training

Does your company employ any staff who possess HSE qualifications that aim to provide training in more than the basic require-ments?

(vi) Assessment of suitability of subcontractors/ other companiesa) How do you assess:

i) HSE competence

ii) HSE record of the subcontractors and companies with whom you place contracts?

b) Where do you spell out the standards you require your contractors to meet?

c) How do you ensure these standards are met and verified?

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2000 OGP

(vii) Standardsa) Where do you spell out the HSE performance standards you require to be met?

b) How do you ensure these are met and verified?

c) How do you identify new industry or regulatory standards that may be applicable to your activities?

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

Section 4: Hazards and Effects Management(i) Hazards and effects assessment

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

(ii) Exposure of the workforce What systems are in place to monitor the exposure of your workforce to chemical or physical agents?

(iii) Handling of chemicals How is your workforce advised on potential hazards (chemicals, noise, radiation, etc.) encountered in the course of their work?

(iv) Personal protective equipment What arrangements does your company have for provision and upkeep of protective equipment and clothing, both standard

issue, and that required for specialised activities?

(v) Waste management What systems are in place for identification, classification, minimisation and management of waste?

(vi) Drugs and alcohol Do you have a drugs and alcohol policy in your organisation? If so, does it include pre-employment and random testing?

Section 5: Planning and Procedures(i) HSE or operations manuals

a) Do you have a company HSE manual (or Operations Manual with relevant sections on HSE) which describes in detail your company approved HSE working practices relating to your work activities? If the answer is YES please attach a copy of supporting documentation.

b) How do you ensure that the working practices and procedures used by your employees on-site are consistently in accordance with your HSE policy objectives and arrangements?

(ii) Equipment control and maintenance How do you ensure that plant and equipment used within your premises, on-site, or at other locations by your employees are

correctly registered, controlled and maintained in a safe working condition?

(iii) Road Safety Management What arrangements does your company have for combating road and vehicle incidents?

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2000 OGP

Section 6: Implementation and Performance Monitoring(i) Management and performance monitoring of work activities

a) What arrangements does your company have for supervision and monitoring of performance?

b) What type of performance criteria are used in your company; give examples

c) What arrangements does your company have for passing on any results and findings of this supervision and monitoring to your:i) base management

ii) site employees?

(ii) HSE performance achievement awards Has your company received any award for HSE performance achievement?

(iii) Statutory notifiable incidents /dangerous occurrences Has your company suffered any statutory notifiable incidents in the last five years (safety, occupational health and environmen-

tal)? (Answers with details including dates, country, most frequent types, causes and follow-up preventative measures taken.)

(iv) Improvement requirement and prohibition notices Has your company suffered any improvement requirement or prohibition notices by the relevant national body, regulatory body

for HSE or other enforcing authority or been prosecuted under any HSE legislation in the last five years? (If your answer is YES please give details.)

(v) HSE performance recordsa) Have you maintained records of your incidents and HSE performance for the last five years? (If YES, please provide the follow-

ing: Number of Fatalities, Lost Time Injuries, Lost Workday Cases, Medical Treatment Cases and Restricted Work Day Cases. Also include the Fatal Accident Rate, Lost Time Injury Frequency and Total Recordable Incident Rate for each year. (NOTE: Please include your company definitions of a the above mentioned terms - for clarification refer to the OGP Safety Performance Accident Data Report.)

b) How is health performance recorded?

c) How is environmental performance recorded?

d) How often is HSE performance reviewed? By whom?

(vi) Incident investigation and reportinga) Who conducts incident investigations?

b) How are the findings following an investigation, or a relevant incident occurring elsewhere, communicated to your employees?

c) Are near miss safety learnings reported?

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2000 OGP

Section 7: Auditing and Review(i) Auditing

a) Do you have a written policy on HSE auditing?

b) How does this policy specify the standards for auditing (including unsafe act auditing) and the qualifications for auditors?

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

d) How is the effectiveness of auditing verified and how does management report and follow up audits?

Section 8: HSE Management - Additional Features(i) Memberships of Associations

Describe the nature and extent of your companys participation in relevant industry, trade, and governmental organisations?

(ii) Additional features of your HSE management Does your company have any other HSE features or arrangements not described elsewhere in your response to the question-

naire?

Section 9: Company Specific Information

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2000 OGP

Appendix IV: HSE pre-qualification points system

The contractors tender should be evaluated by attaching a score to the selected response for each category (see Appendix III).

A suggested scoring system would be as follows (see Table II.1):

Scoring

Table IV: Rating of contractors pre-qualification by a point scoring system

(headings and item numbers refer to Appendix III)

A B C D

0

0

3

7

6

14

10

20

HSE Plan documentation [sections 1-5, 7, 8]

A B C D

Performance and experience factors (HSE incidents) [section 6]

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

Section 1: Leadership and CommitmentCommitment to HSE through leadership: item 1 (i)

No commitment from senior management

HSE disciplines delegated to line managers - no direct involve-ment by senior management

Evidence of active senior man-agement involvement in HSE aspects

Evidence of a positive HSE cul-ture in senior management and at all levels

Section 2: Policy and strategic objectivesHSE policy documents and availabilityL items 2(i) and 2(ii)

No written HSE policy A policy statement exists but not in a widely distributed doc-ument

HSE policy establishes respon-sibility for HSE, but not widely distributed

Policy with clearly established responsibility and accountabil-ity; is distributed to all employ-ees; and is visible on notice boards

Section 3: Organisation, responsabilities, resources, standards and documentationHSE communication and meeting programmes: item 3(i)

None Periodic HSE meetings for spe-cial operations only

HSE meetings performed on a regular basis at management and supervisor level

In addition to C, employees are assigned topics to discuss on a rotational basis

Staff HSE training item 3(ii)

No specialised staff training HSE training assigned to a spe-cific person on location

HSE training applied to man-agement but not comprehen-sively covered

HSE training given formally to all relevant staff on their respec-tive responsibilities

Employee orientation and training programme: item 3(iii) (a)-(d)

No formal programme Verbal instructions on company procedures only

Employee handbook provided

hse management guidelines

Documents

guidelines section

hse management guidelines

performance criteria

performance of operations

ep industry

performance standards

terms risk

different health