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Shell Exploration & Production

Volume 1HSE Management System

Contractor HSE Management

EP2005-0110

EP BUSINESS HSECONTROL FRAMEWORK

ECCN: Not subject to EAR - No US content

Restricted

Printed copies are uncontrolled

Summary This HSE document is prepared by Shell International Exploration and Production B.V. (SIEP), The Hague as a service under arrangements in existence with companies of the Royal Dutch/Shell Group. It refers to Group standards and provides guidance for the management of Health, Safety and Environmental issues in Shell operations. The EP Business HSE Control Framework replaces the previous EP HSE Manual EP95-0000. The Framework comprises three volumes, each including a number of separate sections. The replacement of the separate sections is being phased during the period 2004-2005, during this time those EP95000 sections that have not be replaced by their EP2005-0000 equivalent will remain valid. The Framework describes the elements necessary to develop, implement and maintain an HSE management System for Exploration and Production activities and describes the tools and techniques available to do this. In line with the Shell strategy to adopt Industry or International Standards wherever possible, the HSE Management System in this Framework has been based on the guidelines prepared by the International Association of Oil & Gas Producers (OGP). Copyright The copyright of the EP Business HSE Control Framework is vested in Shell International Exploration and Production B.V. (SIEP), The Hague, the Netherlands. This document is classified as Restricted to Shell Personnel Only. 'Shell Personnel' includes all staff with a personal contract with a Shell Group Company, designated Associate Companies and Contractors working on Shell projects who have signed a confidentiality agreement with a Shell Group Company. Issuance of this document is restricted to staff employed by a Shell Group Company. Neither the whole nor any part of this document may be disclosed to Non-Shell Personnel without the prior written consent of the copyright owners. Copyright 2004 SIEP B.V. Disclaimer SIEP is not aware of any inaccuracy or omission from this document but no responsibility is accepted by SIEP or by any person or company concerned with furnishing information or data used herein, for the accuracy of any information or advice given in or any omission from this document, nor for any consequences whatsoever resulting directly or indirectly from reliance on or adoption of this document, even if there was a failure to exercise reasonable care on the part of SIEP or any person or company as aforesaid. OGP The International Association of Oil & Gas producers (OGP) encompasses most of the world’s leading publicly traded, private and state-owned oil & gas companies, oil & gas associations and major upstream service companies. The association was formed in 1974 to develop effective communications between the upstream industry and an increasingly complex network of international regulators. Originally called the E&P Forum, in 1999 the name International Association of Oil & Gas Producers (OGP) was adopted. Shell participated in a task force set up by the E&P forum to develop guidelines for the development and application of Health, Safety and Environment Management Systems. These were published in July 1994.

EP2005 Volume 1 HSE Management in the Business

EP2005-0110 Contractor HSE Management Restricted

EP2005 Document Approval Sheet 5 EP2005-0110-ST: Contractor HSE Management 9 0. Revision Information………………………………………………………………………… 9 1. Introduction…………………………………………………………………………………… 9 2. Scope and Application……………………………………………………………………... .9 3. EP Policy………………………………………………………………………………………9 4. EP Standard……….………………………………………………………………………….9 4.1 Key Roles and Responsibilities……………………………………………………………..9 4.2 Planning: Assess HSE Risks and Contractor Capability………………………………. 10 4.3 Execution: Manage Contract………………………………………………………………11 4.4 Analyse/Improve…………………………………………………………………………….12 5. Key Performance Indicators……………………………………………………………….12 6. Related EP Controlling Documents……………………………………………………… 13 5. Other References…………………………………………………………………………...13 App. 1: Activity Responsibility Matrix……………………………………………………….………14 App. 2: HSE Responsibilities……………………………………………………………………….. 15 EP2005-0110-PR-10: Contractor HSE Management (including stoplight) 17 1. Revision Information………………………………………………………………………..17 2. Objective……………………………………………………………………………………..17 3. Scope….…………………………………………………………………………………….. 17 4. Risk Domain and Risk……………………………………………………………………... 17 5. Input to Activity……………………………………………………………………….….…. 17 6. Output to Activity..………………………………………………………………………….. 18 7. Activity Responsibility Matrix……………………………………………………………… 19 8. Task Explanation – Planning………………………………………………….………….. 20 9. Task Explanation – Execution……………………………………………………………..23 10. Task Explanation – Analyse and Improve………………………………………………. 27 11. Records…..…………………………………………………………………………………. 28 13. Related Controlling Documents………………………………………………………….. 29 14. Other References…………………………………………………………………………...29 EP2005-0110-SP-01: Contract Holder and Company Site Representative HSSE

Competences 31 0. Revision Information……………………………………………………………………….. 31 1. Scope…………………………………………………………………….………………….. 31 2. External Requirements……………………………………………………………………..31 3. External References……………………………………………………………………….. 31 4. EP Specification……………………………………………………………………………. 31 4.1 Definitions…………………………………………………………………………………… 31 4.2 Roles………………………………………………………………………………………… 31 4.3 Competence Requirements………………………………………………………………. 32 4.4 Safe Systems of Work/Personal Safety Competences………………………………… 33 5. Related EP Controlling Documents……………………………………………………….33 6. Other References…………………………………………………………………………...33 EP2005-0110-SP-02: Contractor HSE Capability Points System 35 0. Revision Information……………………………………………………………………….. 35 5. Scope…………………………………………………………………….………………….. 35 6. External Requirements……………………………………………………………………..35 7. External References……………………………………………………………………….. 35 8. EP Specification……………………………………………………………………………. 36 4.1 Contractor’s Evaluation……………………………………………………………………. 36 5. EP and External References……………………………………………………………... 41

EP2005 Volume 1 HSE Management in the Business

EP2005-0110 Contractor HSE Management Restricted

EP2005-0151-T0-80: Contractor HSE Capability Questionnaire 43 1. General guidelines for preparation of questionnaire External References………….. 43 2. Questionnaire for Contractor HSE Capability Assessment …………………………… 43 EP2005-0151-T0-81: HSE Plan Checklist for Major Contracts 53 1. HSE Plan Definition Guideline……………………………………………………………. 53 2. HSE Management System ………………………………………………………………..54 3. Detailed checklists for HSE Plan………………………………………………………….55 EP2005-0151-T0-82: HSE Plan Checklist for Small Contracts 71 1. HSE Plan Definition Guideline……………………………………………………………. 71 2. Checklist for HSE Plan………….………………………………………………………….71 3. Small Contract Typical HSE Plan Performa…………………………………………….73

EP2005 Volume 1 Restricted

HSE Tool EP2005 Document Approval

Sheet EP2005-0140-TO-84

Doc. No.: EP200412282462

Version: 2

Date: 30 August 2006

Custodian: EPS-HSE

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C. Optional acknowledgement and review Name Region/

Function Nature of involvement Date Signature

Krishna Bala EPA Principal Author Numpang Suntai EPA Reviewer Suzanne Russel EPE Reviewer Larissa Schapkova EPR Reviewer Billy Stidham EPW Reviewer


HSE Standard Contractor HSE

Management EP2005-0110-ST

STANDARD: CONTRACTOR HSE MANAGEMENT This HSE document may set requirements supplemental to applicable law. However, nothing herein is intended to replace, amend, supersede or otherwise depart from any applicable law relating to the subject matter of this HSE document. In the event of any conflict or contradiction between the provisions of this HSE document and applicable law as to the implementation and governance of this HSE document, the provisions of applicable law shall prevail. This HSE document shall be subject to formal adoption as specified in EP Standard ‘HSE Control Documentation Management’ [9].

0. Revision Information • Amended EP Procedure ‘Contractor HSE Management (including stoplight)’; • Introduced new EP Specification ‘Contract Holder and CSR HSSE Competences’; • Removed EP Specification ‘HSE Contract Modes’*1.

1. Introduction Contracted work accounts for 70-75% of EP’s total exposure hours and much of it involves High HSE Risk hence working with contractors and early planning are essential to improve HSE at the workplace. This Standard is aligned with EP.13 ‘Manage Supply Chain – Global Category Management’ [25] of the EP Business Model (EPBM) and draws heavily on the Oil and Gas Producers Association (OGP) document ‘HSE Management – Guideline for working together in a contract environment’ [22].

2. Scope and Application This Standard and the associated controlling documents set the HSE requirements for contracting in the EP Business and apply to Global and Regional framework arrangements and individual contracts. Italicised terms within this Standard are defined EP Specification ‘EP2005 HSE Glossary of Definitions’ [7].

3. EP Policy • Requires contractors to manage HSE in line with the EP HSE Policy [21]. • Management controls shall be appropriate for the level of risk, the organisational relationship

with the contractor and the capabilities of the contractor.

4. EP Standard Compliance with this Standard shall be achieved by implementing EP Procedure ‘Contractor HSE Management (including stoplight)’ [3]. The activity responsibility matrix of this Procedure is shown in [App. 1].

4.1 Key Roles and Responsibilities The following Supply Chain Management (SCM) roles, defined in [25], have HSE-specific responsibilities see [App. 2] under this Standard and associated controlling documents: 1 The content of the Specification has been integrated into Task 2 of EP Procedure ’Contractor HSE Management (inc. Stoplight) [3].

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• Contract Owner (CO); • Contract Holder (CH); • Company Site Representative (CSR) and Contract Users; • Tender Boards or equivalent (TB); • Global Category Manager (GCM); • Category Focal Point (CFP); • Regional Focal Point (RFP); • Contracting and Procurement staff (C&P); • HSE Adviser.

4.2 Planning: Assess HSE Risks and Contractor Capability Contract HSE Risk Each contract shall be categorised as Low HSE Risk, Medium HSE Risk or High HSE Risk depending on the highest risk inherent in the contract scope determined using the Group (YG) ‘Risk Assessment Matrix’ (RAM) [24, §2.1]. To minimise effort and to ensure consistency reference shall be made to the relevant hazard & environmental aspects registers of the EP Company and other HSE risk assessments maintained at the SCM category level or by industry (e.g. OGP). Contract Mode Accountability for HSE management shall be clearly defined between the EP Company and the contractor and between the contractor and their subcontractors for the duration of the contract or individual phases of the contract. On the basis of these accountabilities contracts and subcontracts shall be categorised as Mode 1, Mode 2 or Mode 3: Mode 1 contracts: ‘The contractor provides people and tools for the execution of the work under the supervision, instructions and HSE Management System of the company. The contractor has a Management System to provide assurance that the personnel for whom he is responsible are qualified and healthy for the job and that the tools and machinery he is providing are properly maintained and suitable for the job’2. Mode 2 contracts: ‘The contractor executes all aspects of the job under its own HSE Management System, provides the necessary instructions and supervision and verifies the proper functioning of its HSE Management System. The company is responsible for verifying the overall effectiveness of the HSE management controls put in place by the contractor, and assuring that both the company’s and the contractor’s HSE-MS are appropriately compatible’2. Mode 3 contracts: Contractor operates within its own HSE MS that has no interfaces with the EP Company HSE MS and is not required to report HSE performance data including incidents to EP. However, this does not exclude the possibility that the EP Company may wish to guide and influence HSE performance under the contract. Appointment of Contract Holders

The task of being a CH of Mode 1 and Mode 2 Medium HSE Risk and High HSE Risk contracts is deemed to be an HSE critical task and hence subject to the requirements of EP Specification ‘Contract Holder and CSR HSSE Competences’ [1].

Contract HSE Clauses HSE clauses for each contract shall be selected, with advice from SCM and the relevant HSE Adviser, to suit the: • Type of activity; 2Definition from OGP HSE Management – ‘Guideline for working together in a contract environment [22]’

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• Contract-specific HSE risks; • Contract mode. Contractor Capability Assessment An HSE capability assessment shall be made of all contractors considered for Mode 1 or Mode 2 Medium HSE Risk or High HSE Risk contracts to assess their ability to manage the HSE risks associated with the contract work scope. The HSE capability assessment shall be based on: • A standardised HSE capability questionnaire; • Past HSE performance (completeness and effectiveness of their HSE MS implementation

using previous performance closeout reports and historical HSE incident statistics); • On-site audits (if deemed required). On the basis of this HSE capability assessment contractors shall be categorised into three ‘stoplight’ bands (green, amber and red, reflecting reducing HSE management capabilities) for use in selection of eligible contractors to bid and during bid evaluation. The HSE Capability Assessment is not required for: • Mode 1 or Mode 2 Low HSE Risk contracts. However, contractors’ ability to manage the

HSE risks associated with the contract work scope and their historical HSE performance shall be evaluated and deemed acceptable;

• Mode 3 (Low/Medium/High HSE Risk).

Tendering/Bidding or Negotiating and Award of Contract The banding of a contractor in the red ‘stoplight’ band implies an HSE management capability below EP Company requirements and hence a red-banded contractor shall not be invited to tender/bid or enter into negotiations or be awarded a contract if an amber or green-banded contractor is available on the short list. Any deviations to this rule shall be authorised by the relevant Tender Board.

4.3 Execution: Manage Contract Contract HSE Plans For all Mode 1 and Mode 2 contracts a Contract HSE Plan shall be approved by the EP Company before contracted work is started. The plan shall indicate those pre-start-up activities, which must be completed before contracted work may start. These activities shall include communicating the requirements of the Contract HSE Plan to the relevant responsible parties. Contract HSE Plans shall document the level of HSE risk inherent in the contract scope: • For Mode 2 Medium HSE Risk and Mode 2 High HSE Risk contracts the Contract HSE Plan,

using the check list in [5], shall: o Provide a demonstration that the HSE risks of the contract hazards and effects are

identified and reduced to as low as reasonably practicable (ALARP) in accordance with EP Standard ‘ Hazards and Effects Management System (HEMP)’[10]; and

o Include the contract specific HSE objectives in line with the phasing of the contract; • For Mode 1 (Low, Medium or High HSE Risk) and Mode 2 Low HSE Risk contracts the

Contract HSE Plan shall document how the HSE risks of the contract scope will be managed in accordance with [6].

Pre-mobilisation and Mobilisation Activities For all Mode 1 and Mode 2 contracts completion of pre-start-up activities in the Contract HSE Plan shall be verified prior to commencement of work and a kick-off meeting shall be held. Pre-job inspections shall be held for all Mode 1 and Mode 2 contracts, which are Medium HSE Risk or High HSE Risk. Start-up HSE audits may be required depending on the contract size and complexity.

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Monitoring Effective Implementation of the Contract HSE Plan For all Mode 1 and Mode 2 contracts the effectiveness of implementation of the Contract HSE Plan shall be monitored during project execution to verify compliance and identify risk changes. Incident Reporting Mode 1 and Mode 2 contracts: Incidents during work shall be classified as ‘Work Related’ as defined by the Group (YG) ‘Incident Classification, Investigation and Reporting’ [23]. Mode 3 Contracts Under this classification, contractors’ exposure hours and HSE incidents shall not be reported to EP/Group. However, any incidents involving contractor personnel working under Mode 3 contracts at EP Company assets or on EP Company sites and on business trips and field visits shall be classified as ‘Work Related’ under [23].

4.4 Analyse/Improve Contractor HSE performance for Mode 1 and Mode 2 contracts shall be analysed and opportunities for improvement identified, implemented and verified by a combination of activities at both the contract and at the SCM category levels as follows: Contract Level • For Medium HSE Risk and High HSE Risk contracts the contractor’s HSE performance shall

be documented and face-to-face review meetings with the Contractor Representative should be held periodically and/or during the contract closeout phase;

• The HSE performance of contracts irrespective of risk level shall be entered into the relevant contractor databases and/or vendor rating systems.

Category Level • The banding of the active contractor list shall be updated annually and reviewed for HSE

improvement opportunities; • Improvements to the contractor’s HSE MS, which have been identified by the contractor or

the EP Company, shall be reviewed by the GCM/RFP/CFP. The closeout of these improvements shall be monitored in the relevant contracts.

5. Key Performance Indicators • Contractor HSE performance; • Banding profile information (e.g. number of red banded contractors).

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6. Related EP Controlling Documents No. Title Reference [1] EP Specification ‘Contract Holder and CSR HSSE

Competences’ EP2005-0110-SP-01

[2] EP Specification ‘Contractor HSE Capability Points System’ EP2005-0110-SP-02 [3] EP Procedure ’Contractor HSE Management (inc. Stoplight)’ EP2005-0110-PR-10 [4] EP Tool ‘Contractor HSE Capability Questionnaire’ EP2005-0110-TO-80 [5] EP Tool ‘HSE Plan Checklist for Major Contracts’ EP2005-0110-TO-81 [6] EP Tool ‘HSE Plan Checklist for Small Contracts’ EP2005-0110-TO-82 [7] EP Specification ‘EP2005 HSE Glossary of Definitions’ EP2005-0100-SP-01 [8] EP Standard ‘EP2005 HSE Roles and Responsibilities’ EP2005-0103-SP-01 [9] EP Standard ‘HSE Control Documentation Management’ EP2005-0140-ST [10] EP Standard ‘Hazards and Effects Management Process

(HEMP)’ EP2005-0300-ST

Note: EP Specification ‘HSE Contract Modes’ has been removed; see Revision Information for further information.

7. Other References No. Title Reference [21] EP HSE Policy, June 2004 SWW [22] OGP HSE management – ‘Guideline for working together in a

contract environment’; Report No. 6.64/291; September 1999 WWW

[23] Group (YG)3 ‘Incident Classification, Investigation and Reporting’; February 2002

SWW

[24] Group (YG)3 ‘Risk Assessment Matrix’ (RAM); April 2006 SWW [25] EP.13 ‘Manage Supply Chain – Global Category Management’ SWW

3 Group Yellow Guide, issued by the Health, Safety and Environment Advisers Panel

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http://knowledge.europe.shell.com/GetDoc?dataid=335608&instance=publsiep&guest=true&action=fetch







http://knowledge.europe.shell.com/GetDoc?dataid=215665&instance=publsiep&guest=true&action=view


http://swwep-w.shell.com/hse/hse_docs/docs/11.pdf

http://knowledge.europe.shell.com/GetDoc?dataid=807330&instance=publsiep&guest=true

http://sww.siep.shell.com/hse/hse_docs/docs/05.pdf

http://sww.shell.com/hse/group/hse/hse_publications/downloads/Risk Assessment Matrix (2001).pdf

http://swwep-w.shell.com/ep_supply_chain_management/template/dox/GlobalCategoryMgmt_1.htm




Appendix 1: Activity Responsibility Matrix

Task definition

HSE Advisor

EP/Dir/Reg/OpCo

Contract Holder

(CH)

SCM/C&P staff plus

RFP*/CFP* and GCM*

(Tasks 15-17)

Contract Owner(CO)

Tender Board(TB)

EP Company Site Rep

(CSR)Contract

User

Remarks/Ref to other EP 2005-0110

documents

Planning1 Assess and analyse

HSE risksContract User to be consulted particularly for call-off type contracts

2 Categorise mode of contract

3 Verify CH competence If M/H HSE Risk, Refer to EP2005-0110-SP-03

4 Select contract HSE clauses

5 Identify eligible contractors

If contract is Mode 1/2 Low HSE Risk go toTask 10. If contract is Mode 3 remaining Tasks 6 -18 are not required.

6 Evaluate HSE capability questionnaire

Refer toEP2005-0110-TO-80 EP2005-0110-SP-02

7 Evaluate historical HSE performance

8 Evaluate the need for/execute an HSE audit/review

Refer to EP2005-0180-ST

9 Band contractorsGreen, Amber or Red - decreasing capability to manage HSE risks in contract

10 Define evaluation criteria and issue tender/bidor negotiate

Define type of Contract HSE Plan to be prepared by contractors (TO-81or TO-82 )

11 Evaluate bids/offers & select contractor for award

Execution

12 Define and approve Contract HSE Plan

Contractor updates draft plan TO-81or TO-82

13 Execute pre-mob. and mob. activities

14 Monitor implem. of Contract HSE Plan

CSR/Contract User responsible for day to day monitoring

Analyse/Improve15 Sharing learning and

good practice (contractor HSE forums)

16 Report to the Tender Board

17

18 Closeout of contract

Steer HSE performance improvements

Contractors submit draft Contract HSE Plan: how HSE risks will be managed and the HSE management capabilities of any subcontractors

RFP/CFP

GCM/RFP/CFP

RFP/CFP

*EP/Dir/Reg/OpCo: EP/Directorate/Region/Operating Company GCM: Global Category Manager SCM/C&P: Supply Chain Management/Contracting & Procurement CFP: Category Focal Point RFP: Regional Focal Point

Execute (executing); Performing a task Approve (Approving); Approve results Contribute (contributory); Contribute to a task Receiving information Check (controlling); Check, verify results

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Appendix 2: HSE Responsibilities Contract Owner (CO): • Appoint competent CH and endorse contract award and approve Contract HSE Plans. Contract Holder (CH): • The CH roles are deemed to be HSE critical for Medium and High HSE Risk contracts and

are therefore subject to EP Standard ‘Competence Assurance of HSE Critical Positions’ [8] (not a requirement for Low HSE Risk contracts);

• Assess and analyse activity HSE risks; • Select contract mode and relevant HSE contract terms and conditions; • Define the stoplight band for eligible contractors; • Support C&P staff in contractor selection (tender, negotiate and award); • Define, discuss and agree Contract HSE Plan with the contractor(s); • Execute pre-mobilisation and mobilisation activities; • Monitor compliance with Contract HSE plan; • Steer HSE performance improvement during the contract and closeout of contract. Company Site Representative/Contract User (CSR/CU): • To have knowledge of the contract work scope and associated HSE risks, HSE capability of

contractor and the required level of supervision; • Perform routine monitoring to verify compliance with Contract HSE Plan; • Support the CH in analysing HSE risks, preparation of Contract HSE Plan and during pre-

mobilisation and mobilisation activities; • Support the HSE Adviser in sharing learning. Tender Board (TB) or equivalent Chairman: • Challenge the CH and/or CO on compliance with EP/Dir/Reg/OpCo HSE standards

including this Standard; • Approve deviations during contract tender, negotiation, bid evaluation and award; • Approve award of contract. Regional Focal Point (RFP) and Category Focal Point (CFP): • Ensure umbrella/frame arrangements and approved contractors at the category level meet

the requirements of the EP HSE Standards (EP2005-0000 suite of HSE Controlling Documents and any HSE requirements specific to the Category/Region). The RFP/CFP shall be supported by discipline expertise at the EP/Regional level (e.g. HSE, Legal, Seismic, Wells, Projects) for the following: o Maintaining general and activity specific HSE clauses; o Performing HSE MS audits or reviews, to assess the HSE capability of key contractors

being assessed and approved at the category Global or Regional level). • Support the HSE Adviser and CH in steering HSE performance improvements. Global Category Manager (GCM): Support the HSE Adviser and CH in steering HSE performance improvements. Contract & Procurement staff (C&P): • Support the CH in assessing HSE risks and in the identification of eligible contractors; • Support the HSE Adviser to assess contractor capability to manage HSE risks; • Define evaluation criteria and issue tender/bid or negotiate; • Evaluate bids/offers & select contractor for award. HSE Adviser (EP/Directorate/Region/OpCo): • Support the CH in assessing HSE risks and categorising contract mode; • Assess contractor capability to manage HSE risks in the contract work scope; • Share learning e.g. using contractor HSE forums and steer HSE performance improvement.

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HSE Procedure Contractor HSE Management

(including Stoplight) EP2005-0110-PR-10

Procedure: Contractor HSE Management (including stoplight)

This HSE document may set requirements supplemental to applicable law. However, nothing herein is intended to replace, amend, supersede or otherwise depart from any applicable law relating to the subject matter of this HSE document. In the event of any conflict or contradiction between the provisions of this HSE document and applicable law as to the implementation and governance of this HSE document, the provisions of applicable law shall prevail. This HSE document shall be subject to formal adoption as specified in EP Standard ‘HSE Control Documentation Management’ [8]. Revision information Description

• Removed EP Specification ‘HSE Contract Modes’*1; • Introduced new EP Specification ‘Contract Holder and CSR HSSE

Competences’; • Amended Roles and Responsibilities of Global Category Manager (GCM),

Category Focal Point (CFP) and Contract Holder (CH); • Introduced Role of Regional Focal Point; • Amended Task 5 and 16. • Updated Risk Domain in accordance with EP BMS update

To work together with contractors to continually improve HSE performance by implementing HSE management controls that are appropriate for the level of HSE risk, the organisational relationship with the contractor and the capabilities of the contractor.

Objective

All contracts awarded by or on behalf of EP Companies. This Procedure is applied in three phases.

Scope

(1) Planning: assess HSE risks and the capability of contractors to manage those risks. The stoplight method is used, in which contractors are categorised into three bands - green, amber and red - according to their HSE management capabilities.

(2) Execution: requires engagement protocols with contractors according to their HSE management capabilities.

(3) Analyse and Improve: capture and share learning at both the contract and Supply Chain Management (SCM) category level.

Risk domain and risk Risk Domain Risk(s): HSE Inadequate management of Contractor HSE Reputation Damage to the Group (license to operate)

because Shell appears not to be able to conduct its activities in a responsible manner.

Input From IT system CH’s individual competence records

CH’s Line Manager CBD/Shell People

Contracted activity and risk information

Process requesting contracted services

-

Contractors’ historical HSE performance (Shell and industry)

Shell databases Vendor databases

Fountain

Input to activity

1 The content of the Specification has been integrated into Task 2 of this Procedure.

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Input From IT system Company/Shell assessments of contractors’ HSE MS

e.g. audit reports, closeout reports

-

Contractor HSE performance feedback

HSE review process -

Output of activity Output To Activity / Doc. No Stoplight band HSE capability and contract

management procedures Contract HSE clauses Contract

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Activity Responsibility Matrix

Details on HSE roles and responsibilities and related abbreviations are contained in ‘EP Supply Chain Management Key Roles’ [22] and EP Specification ‘EP2005 HSE Roles and Responsibilities’ [7].

Task definition

HSE Advisor

EP/Dir/Reg/OpCo

Contract Holder

(CH)

SCM/C&P staff plus

RFP*/CFP* and GCM*

(Tasks 15-17)

Contract Owner(CO)

Tender Board(TB)

EP Company Site Rep

(CSR)Contract

User

Remarks/Ref to other EP 2005-0110

documents

Planning1 Assess and analyse

HSE risksContract User to be consulted particularly for call-off type contracts

2 Categorise mode of contract

3 Verify CH competence If M/H HSE Risk, Refer to EP2005-0110-SP-03

4 Select contract HSE clauses

5 Identify eligible contractors

If contract is Mode 1/2 Low HSE Risk go toTask 10. If contract is Mode 3 remaining Tasks 6 -18 are not required.

6 Evaluate HSE capability questionnaire

Refer toEP2005-0110-TO-80 EP2005-0110-SP-02

7 Evaluate historical HSE performance

8 Evaluate the need for/execute an HSE audit/review

Refer to EP2005-0180-ST

9 Band contractorsGreen, Amber or Red - decreasing capability to manage HSE risks in contract

10 Define evaluation criteria and issue tender/bidor negotiate

Define type of Contract HSE Plan to be prepared by contractors (TO-81or TO-82 )

11 Evaluate bids/offers & select contractor for award

Execution

12 Define and approve Contract HSE Plan

Contractor updates draft plan TO-81or TO-82

13 Execute pre-mob. and mob. activities

14 Monitor implem. of Contract HSE Plan

CSR/Contract User responsible for day to day monitoring

Analyse/Improve15 Sharing learning and

good practice (contractor HSE forums)

16 Report to the Tender Board

17

18 Closeout of contract

Steer HSE performance improvements

Contractors submit draft Contract HSE Plan: how HSE risks will be managed and the HSE management capabilities of any subcontractors

RFP/CFP

GCM/RFP/CFP

RFP/CFP

* EP/Dir/Reg/OpCo: EP/Directorate/Region/Operating Company GCM: Global Category Manager RFP: Regional Focal Point SCM/C&P: Supply Chain Management/Contracting & Procurement CFP: Category Focal Point

Execute (executing); Performing a task Approve (Approving); Approve results Contribute (contributory); Contribute to a task Receiving information Check (controlling); Check, verify results

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Planning Task 1: Assess and analyse HSE risks

Categorise each contract as Low HSE Risk, Medium HSE Risk or

High HSE Risk corresponding to the highest risk inherent in the contract scope as follows:

1. Identify all Hazards associated with activities in the contract work scope, covering but not limited to the following: • Nature of the work - work methods, staffing, materials,

equipment, tools to be used and associated hazards e.g. lifting, working at heights, transport, etc;

• Nature of the product or service i.e. is the contractor required to perform an HSE critical activity (such as the design HSE-critical equipment) as opposed to a hazardous activity (such as working at height);

• Location of the work - vicinity of shops, schools, hospitals, offices, houses; environmentally sensitive locations (beaches, coral reefs, fishing areas, etc), and associated hazards e.g. H2S, asbestos, chemicals and heat;

• Local constraints; • Number of concurrent operations or contractors on site; • Potential consequences – environmental harm, injury,

illness, asset damage, impact on local societal sensitivities, reputation with Non-Governmental Organisations (NGO) or Governments, etc.

To minimise the assessment effort and to ensure consistency assessors shall refer to the relevant hazards & environmental aspects registers of the EP Company, the EP Standard ‘Hazards and Effects Management Process’ (HEMP) [11] and other HSE risk assessments maintained at the SCM Category level or by industry (e.g. OGP).

2. Assess the HSE risk of each Hazard using the Group (YG) ‘Risk Assessment Matrix’ (RAM) [23, §2.1].

3. Document the HSE risk assessment. Task 2: Categorise mode of contract Categorise the contract as Mode1, Mode 2 or Mode 3: Mode 1 contract: ‘The contractor provides people and tools for the execution of the work under the supervision, instructions and HSE Management System of the company. The contractor has a Management System to provide assurance that the personnel for whom he is responsible are qualified and healthy for the job and that the tools and machinery he is providing are properly maintained and suitable for the job’2. Mode 2 contract: ‘The contractor executes all aspects of the job under its own HSE Management System, provides the necessary instructions and supervision and verifies the proper functioning of its HSE Management System. The company is responsible for verifying the overall effectiveness of the HSE management controls put in place by the contractor, and assuring that both the company’s and the contractor’s HSE-MS are appropriately compatible’2.

2Definition from OGP HSE Management – ‘Guideline for working together in a contract environment [25]’

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Mode 3 contract: Contractor operates within its own HSE MS that has no interfaces with the EP Company HSE MS and is not required to report HSE performance data including incidents to EP. However, this does not exclude the possibility that the EP Company may wish to guide and influence HSE performance under the contract. The HSE contract mode is assigned as follows: • Determine whether each activity within the contract scope is a

Work Related Activity as defined by the Group (YG) ‘Incident Classification, Investigation and Reporting’ [24, § 2.1];

• For those Work Related Activities select the accountability for HSE management by assigning them as either Mode 1 or Mode;

• Assign those activities, which are not Work Related as Mode 3; • Assign a contract mode based on the aggregated modes

assigned to the activities in the contract scope taking into account the numbers and significance of those activities and their HSE risks;

• In mixed mode contracts identify and document those elements with a mode different from the overall contract mode.

Subcontracts shall also be assigned a mode, in which case the contractor who subcontracts one or more of the scope elements is responsible for assigning the mode to each subcontract according to this Task. Task 3: Verify Contract Holder’s competence For Mode 1 or Mode 2 Medium HSE Risk or High HSE Risk contracts verify the Contract Holder’s (CH) competence according to EP Specification ‘Contract Holder and CSR HSSE Competences’ [2] and their ability to execute their assigned tasks in this Procedure. Task 4: Select contract HSE clauses Select HSE contract clauses based on: • Output from Task 1 (HSE risks of work activities); and • Output from Task 2 (mode of contract). Refer to SCM/C&P staff and consult with the relevant HSE Adviser (EP/Dir/Reg/OpCo) for guidance on the formulation of activity specific clauses and technical requirements. Task 5: Identify eligible contractors Prepare a list of eligible contractors: • List eligible contractors on the basis of historical experience or

expert judgment or as directed by JV agreements or local regulation;

• Mode 1 or Mode 2 Medium HSE Risk or High HSE Risk contracts - Eligible contractors who have not had their HSE capability assessed within the last three years and who wish to be considered shall complete and submit the questionnaire in EP Tool ‘Contractor HSE Capability Questionnaire’ [4];

• Mode 1 or Mode 2 Low HSE Risk contracts - Eligible contractors’ ability to manage the HSE risks associated with the contract work scope and their historical HSE performance shall be evaluated and deemed acceptable. However they are exempt from the HSE capability assessment (see Tasks 6 - 9); the next relevant task for them is Task 10. This exemption may also be applied at the discretion of the Contract Owner (CO) to Medium

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HSE Risk contracts which are Mode 1 and have a restricted scope of work (e.g. one or two person welding job or a one week painting job using scaffolding);

• Mode 3 (L/M/H HSE Risk) contracts - Eligible contractors are exempt from the HSE capability assessment. The remaining Tasks 6 -18 are not required.

Task 6: Evaluate HSE capability questionnaire Evaluate contractors’ ‘HSE Capability Questionnaire’ [4] and associated supporting documents. Task 7: Evaluate historical HSE performance • Evaluate the contractors’ HSE performance in previous work for

EP Companies. Verify answers given in contractors’ HSE capability questionnaire returns where possible, using information from previous audit reports, contract closeout reports, feedback forms, RFPs, CFPs and SCM/C&P staff.

• Evaluate the contractors’ historical HSE statistics taking into account the following: o The relevance of the data to the work locations and HSE

risks of the activities within the contract scope; o The level and quality of near-miss/unsafe condition/unsafe

act reporting and other pro-active indicators being tracked and reported;

o Use 12 month rolling average data to avoid statistical anomalies;

o The severity of typical incident reportable cases [24, App. 1], total exposure hours and possible differences in performance between Corporate, Regional and Local contractor entities;

o Treat internal Shell statistics as leading benchmarks, if available. External statistics may be less specific to the EP Business than internal Shell statistics.

Task 8: Evaluate the need for/execute an HSE MS audit/review For contractors being considered for Mode 2 High HSE Risk contracts conduct an HSE MS audit/review if little recent (less than three years old) independent information held at EP/Dir/Reg/OpCo level (e.g. audit reports) is available on their HSE capabilities. It is recommended that when the contract scope is significant in terms of exposure hours or area of operations or contact with local stakeholders or impact on EP Company assets that this requirement is extended to Mode 2 Medium HSE Risk contracts. The HSE MS review/audit has three main objectives: 1. To verify the completeness and degree of implementation of the

contractor’s HSE MS and identify where to supplement the monitoring of the contractor’s work.

2. To provide the contractor with a deeper understanding of the EP Company’s HSE MS requirements.

3. To verify the contractor’s responses to the HSE Capability Questionnaire [4].

The HSE MS audits/reviews shall meet the following requirements: • Audit/review leader is nominated by the EP Company;

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• Auditor(s) meet the HSE auditor competence criteria for Internal

HSE Audits as defined in EP Specification ‘HSE Auditor Competence Criteria’ [10, §4.2.3];

• The Terms of Reference (TOR) for the HSE MS audit/review are to be based on [4];

• Conducted on the contractor’s premises/sites; • Findings are discussed with the contractor and agreed

improvement actions should be included in the contractor’s HSE MS improvement plan(s);

• The relevant CHs with RFP and/or CFP and HSE Adviser support shall monitor the contractor’s follow-up of the HSE MS improvement plan. If a contractor has multiple active EP Company contracts the relevant CHs shall support this monitoring along with their routine monitoring of their specific Contract HSE Plan(s).

Task 9: Band Contractors Adjudicated scoring is a consolidation of the outputs from Tasks 6, 7 and 8. The output is a score based on EP Specification ‘Contractor HSE Capability Points System’ [3]. This is not intended to be a purely quantitative process, but one where experience is brought to bear on the contractors’ responses:

1. Based on [3] the contractors are banded on adjudicated scores for each question (based on max. points = 280). They are categorised in red (<103) points), amber (103 – 177) or green (>or equal to 178 points) bands: • Red denotes ‘capability is below Company requirements’; • Amber denotes ‘capability conditionally meets Company

requirements’; • Green denotes ‘capability unconditionally meets Company

requirements’.

2. Inform the contractors in writing of their stoplight banding.

3. Document the results of the capability assessment including any audit/reviews and record or reference in the relevant SCM contractor management database/system(s). Documentation shall include but not limited to: • Audit/review reports; • Responses to the HSE Capability Questionnaire [4] and the

results of applying the Contractor HSE Capability Points System [3];

• HSE performance data used for the capability assessment; • Stoplight band.

4. Share the results of the HSE capability assessment across EP/Dir/Reg/OpCo as this will help to leverage best practice learning and reduce effort/cost in performing contractor HSE capability assessments.

Note: Tasks 1 - 9 can be performed at the SCM category level when establishing umbrella/frame arrangements or a list of globally approved contractors. The RFP and/or CFP shall ensure that: • Umbrella/frame arrangements and/or approved contractors

maintained at the category level meet the requirements of the EP HSE standards (EP2005-0000 suite of HSE Controlling

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Documents and any HSE requirements specific to the Category/Region). The CFP and/or RFP shall be supported by discipline expertise at the EP/Regional level (e.g. HSE, Legal, Seismic, Wells, Projects) for the following: o Maintaining general and activity specific HSE clauses; o Performing HSE MS audits or reviews, to assess the HSE

capability of key contractors being assessed and approved at the category Global or Regional level).

If a CH plans to invite bids from a contractor on such an approved list maintained by the relevant RFP and/or CFP, Tasks 4 - 9 do not have to be repeated for their specific contract unless the contractor has not performed work for an EP Company for more than three years. Task 10: Define evaluation criteria, issue tender/bid or negotiate 1. Red-banded contractor shall not be invited to tender/bid or enter

into negotiation if amber or green-banded contractors are available on the potential bid/negotiation list. Any deviations to this rule shall be authorised by the relevant Tender Board (TB) and the justification shall be clearly documented in the TB meeting minutes.

2. Provide candidate contractors with access to the contract specific HSE requirements, including the type of Contract HSE Plan to be prepared in draft.

3. Provide candidate contractors the opportunity to assess for themselves the HSE risks of the contract scope (e.g. site visits, access to EP Companies HSE risk assessments and require them as part of their submission to document how they will manage the specific HSE risks of the contract as part of their draft Contract HSE Plan.

4. Bid evaluation models shall make provision for additional resources (e.g. supervision, training, equipment), which in the opinion of the CH are required for red and amber banded contractors to meet the HSE requirements of the contract.

5. Bid evaluation models which are based on points/weightings for the different evaluation aspects (e.g. commercial, technical, HSE) then the HSE element shall have a total contribution as follows: • High HSE Risk contracts: Not less than 30%; • Medium HSE Risk contracts: Not less then 15%; • Low HSE Risk contracts: Not less than 5%. Deviations from these percentages shall be authorised by the relevant TB and the justification shall be clearly documented in the TB meeting minutes.

Task 11: Evaluate bids/offers & select contractor for award Make the selection based on consolidation of commercial, technical, HSE and local aspects in line with [21] with the condition that a contract shall not be awarded to a red-banded contractor if an amber or green-banded contractor is available on the short list. Any deviations to this rule shall be authorised by the relevant TB and the justification shall be clearly documented in the TB meeting minutes.

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Task 12: Define and approve Contract HSE Plan Execution

(not required for Mode 3 contracts)

The contractor, in conjunction with the CH, prepares a documented Contract HSE Plan before contracted work is started: • For Mode 1 contracts the plan is owned by the CH with input

from the contractor and approved by the CO; • For Mode 2 contracts the plan is owned by the contractor with

input from the CH/CSR/HSE Adviser and approved by the CO; • This HSE Plan shall document the level of HSE risk in the

contract scope (including work in subcontractor yards and workshops if they are Mode 1/2 activities) and document the interface arrangements for HSE management between parties (e.g. contractor, subcontractors and EP Company) to ensure that responsibilities for maintaining HSE controls are complete and understood;

• The plan shall indicate those pre-start-up activities, which must be complete before contracted work may start, including communicating the requirements of the Contract HSE Plan to the relevant responsible parties;

• The plan shall list conditions and circumstances that could change the HSE risk profile of the contract scope i.e. updating the HSE risk assessment from Low HSE Risk to Medium/High HSE Risk.

Specific requirements for HSE Plans depend on the contract mode and contract HSE risk as follows: 1. Mode 2 Medium HSE Risk or Mode 2 High HSE Risk contracts:

Document the HSE hazard/risk control requirements in a Contract HSE Plan which provides a demonstration that the HSE risks of the contract hazards and effects are identified and reduced to as low as reasonably practicable (ALARP) in accordance with [11] and EP Tool ‘HSE Plan Checklist for Major Contracts’ [5] and the following: • Identify subcontractors and categorises their HSE contract

mode as Mode 1, Mode 2 or Mode 3; • Make reference to the relevant HSE MS or HSE Case(s) or

EP Company project HSE Plan(s) to avoid unnecessary duplication;

• Include HSE improvement targets; • Include a periodic review (at least quarterly for red-banded

contractors) of HSE improvement progress and performance against Contract HSE Plan;

• Include on-site HSE supervision by EP Company for red-banded contractors. The CO shall approve deviations to this rule.

2. Mode 1 (Low/Medium/High HSE Risk) or Mode 2 Low HSE Risk contracts: Document the HSE hazard and risk control requirements in a Contract HSE Plan using EP Tool ‘Contract HSE Plan Checklist for Small Contracts’ [6].

Task 13: Execute pre-mobilisation and mobilisation activities 1. The pre-start-up activities defined in the Contract HSE Plan shall

be verified complete prior to commencement of work. The issues covered by this step include:

• Consortium partnership issues (cooperation of a leading contractor with one or more other specialised contractors);

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• Actions to be completed prior to mobilisation; • Number and competence of HSE professionals; • The matrix below defines activities required during pre-

mobilisation, and mobilisation:

Activity Mode 1/Mode 2 Authorisation to start mobilisation/work

Yes

Kick-off meeting Yes Pre-mob/job inspections, Medium HSE Risk and High HSE Risk contracts

Yes

Pre-mob/job inspections, Low HSE Risk contracts

Dependent upon size/ complexity of contract

Start-up Audits for Medium and High HSE Risk work

Dependent upon size/ complexity of contract

Early testing of contingency planning

Yes

2. Hold a kick-off meeting to verify that the contractor's workforce and supervisors are aware of the relevant parts of the Contract HSE Plan including but not limited to: • Promoting the EP Companies commitment to HSE and that

health and safety takes priority over other contract objectives, KPIs and requirements;

• Site hazards of the operation detailed in the scope of work; • Familiar with:

o HSE working procedures; o Rules and regulations; o Alarms and signals; o Emergency communications and procedures.

The meeting may be structured as an HSE workshop, with participation by both EP Company and contractor management.

3. Conduct pre-mobilisation/job inspection(s), using the relevant parts of the Contract HSE Plan as a TOR. Conduct specialist review(s) (e.g. Shell Aircraft International air operations reviews or STASCO vessel inspections) prior to mobilisation.

4. Authorise the contractor to start mobilisation/work.

5. Conduct HSE start-up audits as required: • For Mode 1 contracts, the need for an audit shall depend

upon the size and complexity of the contract; • For Mode 2 contracts it is recommended to conduct an HSE

start-up audit in accordance with the relevant parts of the EP Standard ‘HSE Auditing’ [9] if such contracts are: o High HSE Risk; or o Medium HSE Risk, which are complex operations or

managed by contractors new to EP/Dir/Reg.

6. Ensure inspection and audit findings are followed-up, closed and subject to the following: • Serious/High findings [24, §5]:

Contractor or the EP Company shall take corrective actions before the relevant parts of the work can commence;

• Medium/Low findings [24, §5]: Contractor or the EP Company shall take corrective action

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but this may be allowed to take place in parallel with initiating the execution phase.

Further guidance on Steps 1 to 3 above can be found in §6.1, 6.2 and 6.3 of OGP HSE Management – ‘Guidelines for working together in a contract environment’ [25]. Task 14: Monitor implementation of the Contract HSE Plan and steer performance improvement during the contract The CH/CSR/Contract User to be visible in promoting the EP Companies commitment to HSE (e.g. attending HSE talks and meetings and regularly re-enforcing that health and safety take priority over other contract objectives). The CSR/Contract User shall assist the CH in monitoring the day-to-day implementation of the Contract HSE Plan including closeout of agreed actions, HSE performance, and any changes in the HSE risk profile of the current and future activities within the contract scope:

1. For Mode 1 contracts: The CH/CSR/Contract User supervises the contractor and is directly responsible for the effective implementation of the Contract HSE Plan.

2. For Mode 2 Contracts: The CH/CSR/Contract User is responsible to verify and monitor the contractor.

3. For both Mode 1 and Mode 2 contracts: The CSR/Contract User verifies the agreed handover procedures are implemented for crew changes.

Demonstrate that the HSE MSs of contractors (including subcontractors) are subject to continuous improvement in the course of project execution, which shall include, if applicable, monitoring the contractor’s follow-up of actions agreed at the SCM category level. Task 15: Sharing learning and good practice (contractor HSE forums)

Analyse/Improve (not required for Mode 3 contracts) Hold periodic forum sessions for contractors, grouped by SCM

Category or by project, which are executing Medium HSE Risk or High HSE Risk contracts in order to: • Share learning and best practices; • Address contractor interface issues; • Conduct HSE performance self-assessments. Task 16: Report to the Tender Board Review at least annually with the Tender Board or equivalent the significant changes in stoplight bands of contractors involved with Medium HSE Risk contracts or High HSE Risk contracts. Use these reviews to discuss issues and strategies and obtain guidance from senior management, and to obtain benchmarks from SCM databases. Task 17: Steer HSE performance improvements The CH steers HSE performance improvement during the contract, while the HSE Adviser annually updates and reviews with the CH/CO and GCM/CFP the stoplight bands of the current portfolio of contractors in order to recognise and improve performance. For example, performance improvement can be recognised by a special letter, sustained good performance by a plaque, etc.

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If a contractor has not performed work for an EP Company for more than three years a full HSE capability assessment shall be repeated (i.e. Tasks 1 - 9 of this Procedure) relevant to the contract(s) scope(s) for which they are being assessed. Note: This step shall also be repeated at the EP level for those international contractors who work in several EP contract categories and for those international contractors working in a single EP contract category (e.g. geophysical acquisition, drilling rigs). Task 18: Closeout of contract 1. For Medium HSE Risk and High HSE Risk contracts prepare a

documented report of the HSE performance throughout the project, including lessons learnt. The report should be followed up with face-to-face review meetings with the Contractor Representative who shall agree/sign-off on the report, noting those aspects not agreed. Enter this final closeout report into the relevant contractor databases.

2. For Low HSE Risk, Medium HSE and High HSE Risk contracts enter the HSE performance data into the relevant contractor databases.

For the different stages in the SCM process, minimum HSE record keeping shall include the following:

Records

Record/Document Owner/

Custodian IT system

Planning: Contract scope risk assessment records

CO -

Contractor HSE performance feedback HSE Fountain HSE Capability Questionnaires [4] and associated documents

SCM -

Activity HSE risk assessment record CO - Categorisation (stoplight) record SCM - Execution Original contracts and contract management plans Incl. Contract HSE Plan

SCM -

Reports on contractor HSE performance

CO -

Minutes of meeting with contractor CH - Analyse/Improve HSE performance records HSE Fountain Content of contractor databases SCM e.g. FPAL

Records shall be retained for at least three years after the expiration date.

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Related Controlling Documents

No. Title Reference [1] EP Standard ‘Contractor HSE

Management’ EP2005-0110-ST

[2] EP Specification ‘Contract Holder and CSR HSSE Competences’

EP2005-0110-SP-01

[3] EP Specification ‘Contractor HSE Capability Points System’

EP2005-0110-SP-02

[4] EP Tool ‘Contractor HSE Capability Questionnaire’

EP2005-0110-TO-80

[5] EP Tool ‘HSE Plan Checklist for Major Contracts’

EP2005-0110-TO-81

[6] EP Tool ‘HSE Plan Checklist for Small Contracts’

EP2005-0110-TO-82

[7] EP Specification ‘EP2005 HSE Roles and Responsibilities’

EP2005-0103-SP-01

[8] EP Standard ‘HSE Control Documentation Management

EP2005-0140-ST

[9] EP Standard ‘HSE Auditing’ EP2005-0180-ST [10] EP Specification ‘HSE Auditor

Competence Criteria’ EP2005-0180-SP-03

[11] EP Standard ‘Hazards and Effects Management Process’

EP2005-0300-ST

Note: EP Specification ‘HSE Contract Modes’ has been removed; see Revision Information for further information.

Other references No. Title Reference [21] EP Business Model Process.13

‘Manage Supply Chain – Global Category Management’ (EPBM v4).

SWW

[22] EP Supply Chain Management Key Roles; Version 5, June 2003

SWW

[23] Group (YG)3 ‘Risk Assessment Matrix’ (RAM); 2006

SWW

[24] Group (YG)3 ‘Incident Classification, Investigation and Reporting’; February 2002

SWW

[25] OGP HSE management – ‘Guideline for working together in a contract environment’; Report No. 6.64/291; September 1999

WWW

3 Group Yellow Guide, issued by the Health, Safety and Environment Advisers Panel











http://swwep-w.shell.com/ep_supply_chain_management/template/dox/GlobalCategoryMgmt_1.htm

http://swwep-w.shell.com/ep_supply_chain_management/template/dox/EPSCMRolesAccountabilitiesJune2003.xls

http://sww.siep.shell.com/hse/hse_docs/docs/05.pdf



HSE Specification Contract Holder and CSR HSSE

Competences EP2005-0110-SP-01

SPECIFICATION: CONTRACT HOLDER AND CSR1 HSSE COMPETENCES2

This HSE document may set requirements supplemental to applicable law. However, nothing herein is intended to replace, amend, supersede or otherwise depart from any applicable law relating to the subject matter of this HSE document. In the event of any conflict or contradiction between the provisions of this HSE document and applicable law as to the implementation and governance of this HSE document, the provisions of applicable law shall prevail. This HSE document shall be subject to formal adoption as specified in EP Standard ‘HSE Controlling Documentation Management’ [4].

0. Revision Information First issue in EP Business HSSE Control Framework.

1. SCOPE This Specification sets the HSSE management competences for the roles of Contract Holder (CH) and Company Site Representative (CSR) for contracts with Medium HSE Risks and High HSE Risks in the EP Business. Individual positions (jobs) that include a CH or CSR role have an associated Job Competence Profile (JCP) (Shell People [11] or equivalent HR system), which specifies the Technical, Personal, Business, Leadership and Contracting & Procurement competence requirements and proficiency levels for that position. This document does not change these requirements.

2. External Requirements External requirements set by regulatory bodies and / or contractual parties may supersede any requirement stated in this Specification. These shall be identified on a country-by-country basis as projects or operations are being established.

3. External References None.

4. EP SPECIFICATION

4.1 Definitions Italicised terms within this Specification are defined in the Group (YG) ‘Competence Assurance of HSSE Critical Positions’ [10] and EP Specification ‘EP2005 HSSE Glossary of Definitions’ [2].

4.2 Roles Contract Holders EP Standard ‘Contractor HSE Management’ [1] stipulates that CHs roles are deemed to be HSSE critical for Medium HSE Risks and High HSE Risk contracts only and are subject to the requirements of the EP Standard ‘Competence Assurance of HSSE Critical Positions’ [3].

1 Company Site Representative 2 For Medium HSE Risk and High HSE Risk contracts

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Company Site Representatives EP Standard ‘Contractor HSE Management’ [1] does not stipulate that CSRs roles are deemed to be HSSE critical, but where the HSE Management System (HSE MS) or HSE Case does identify this, then the competence requirements of this Specification and EP Standard ‘Competence Assurance of HSSE Critical Positions’ [3] are to be applied.

4.3 Competence Requirements The competence of CHs and CSRs (where applicable) shall be assured according to [3] for all contracts within the scope of this Specification. CHs and CSRs are required to have at least the HSSE management competences proficiency levels as specified in Table 4.3.1. Table 4.3.1 HSSE Management Competence Requirements for CHs and CSRs Code Competence Element Proficiency Level for

CHs for Medium/High HSE Risk contracts require:

CSRs for Medium /High HSE Risk contracts require:

HSE 1.0 HSSE Leadership and Commitment Knowledge Knowledge

HSE 2.0 HSSE Policy and Strategic Objectives Knowledge Knowledge

HSE 3.0 Organisation, Responsibilities, Resources & HSSE Requirements

Skill Skill

HSE 4.1 HSSE Risk Management Framework Knowledge* Knowledge

HSE 4.2 HEMP for Significant Risks/HSE Cases Knowledge Knowledge

HSE 4.3 Emergency Response Knowledge Knowledge

HSE 4.4 Safe Systems of Work/Personal Safety Skill Skill

HSE 5.0 HSSE Planning and Procedures Skill Knowledge

HSE 6.1 HSSE Performance Management Knowledge Knowledge

HSE 6.2 Incident classification, Investigation and Reporting Knowledge Knowledge

HSE 7.0 HSSE Audit Knowledge Knowledge

HSE 8.0 HSSE Management Review Knowledge Awareness

*HSE 4.1 Knowledge The asterisk is to confirm that CHs require more than a Knowledge proficiency level. Hence, CHs are required to be able to demonstrate the skill to ‘Provide structured support for the systematic application of HEMP to HSSE risks through establishing systematic HSSE management to maintain compliance with HSSE requirements and continuous performance improvement’. A number of approved standard EP JCPs were identified as applicable for the Level 2 HSSE Critical Positions, and therefore these JCPs were developed to contain the requisite HSSE competences. If the HSSE competences of the applicable JCP are less than those stated in Table 4.3.1, they shall be raised to meet the appropriate level. A person who is to be appointed as a CH or CSR for a Medium HSE Risk or High HSE Risk contract shall have the relevant technical discipline competences required for managing the type of work performed under the contract. This shall be included as part of their JCP, or otherwise assessed and assured by the Contract Owner as being appropriate for the person to manage the work. No person should be appointed as CH or CSR unless their HSSE management competence profile satisfies the requirements set out in Table 4.3.1. If, and for as long as, this requirement is not satisfied then additional supervision or support by persons whose competence profile does satisfy the requirements set out in Table 4.3.1 shall be provided. The Contract Owner shall approve the adequacy of these support provisions.

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4.4 Safe Systems of Work/Personal Safety Competences The HSSE profile in Table 4.3.1 for CHs and CSR roles requires the Skill proficiency level in ‘Safe Systems of Work/ Personal Safety’. To do so persons in these roles shall be able to carry out consistently the significant majority of the activities listed below to the required standard: ‘Use structured tools and techniques to control physical work activities, which have associated HSSE hazards: • Identify, assess and record workplace hazards; • Identify the controls necessary to ensure that work can be undertaken with risk at As Low As

Reasonably Practicable; • Manage interfaces with concurrent work activities to avoid conflicts; • Conduct site safety checks and audits; • Integrate the safe system of work in the work procedures and planning process including

changes to work; • Implement safe work systems (e.g. Job Hazard Analysis; Permit To Work); • Provide advice on personal safety controls required for legal /regulatory compliance; • Monitor and implement changes to personal safety requirements (e.g. regulatory changes).’3 These competences needs to be determined in relation to the activities of the work as performed under the contract and may require specific training in these.

5. EP REFERENCES # Title Number [1] EP Standard ‘Contractor HSE Management’ EP2005-0110-ST [2] EP Specification ‘EP2005 HSSE Glossary of Definitions’ EP2005-0100-SP-01 [3] EP Standard ‘Competence Assurance of HSSE Critical Positions’ EP2005–0120-ST [4] EP Standard ‘HSE Controlling Documentation Management’ EP2005-0140-ST

6. OTHER REFERENCES # Title Number [10] Group (YG) ‘Competence Assurance of HSSE Critical Positions’; 2004 SWW [11] Shell People SWW

3 Extract from ‘Safe Systems of Work/ Personal Safety’ in [10]





http://sww05.europe.shell.com/hse/group/hse/hse_publications/downloads/Competence Assurance of HSSE Critical Positions (2004).pdf

http://sww-people.shell.com/


HSE Specification Contractor HSE Capability

Points System EP2005-0110-SP-02

SPECIFICATION: CONTRACTOR HSE CAPABILITY POINTS SYSTEM This HSE document may set requirements supplemental to applicable law. However, nothing herein is intended to replace, amend, supersede or otherwise depart from any applicable law relating to the subject matter of this HSE document. In the event of any conflict or contradiction between the provisions of this HSE document and applicable law as to the implementation and governance of this HSE document, the provisions of applicable law shall prevail. This HSE document shall be subject to formal adoption as specified in EP Standard ‘HSE Control Documentation Management’ [4].

0. Revision Information Aligned with EP2005 Tool ‘Contractor HSE Capability Questionnaire’.

1. Scope All contractors being considered for Mode 1 Medium HSE Risk or High HSE Risk or for Mode 2 Medium HSE Risk or High HSE Risk contracts shall have their capability to manage the HSE risks associated with the activity assessed, including the maturity of their HSE Management System. Contractors being considered for contracts classified as Low HSE Risk or Mode 3 (L/M/H HSE Risk) do not require an HSE capability assessment.

2. External Requirements Local legislative requirements may state requirements regarding the relationship between the EP Company and the contractor regarding the accountability for HSE management and reporting. Each EP Company shall identify such requirements and comply with them.

3. External References • OGP HSE Management – Guidelines for working together in a contract environment; • ISO 14001 Environmental Management Guide.

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4. EP Specification Other than blue text underlined in italics the content in this EP Specification is identical to the App. IV to the ‘OGP HSE Management – Guidelines for working together in a contract environment’ [5, App. 4]. This Specification describes the scoring methodology associated with EP Tool ‘Contractor HSE capability questionnaire’ [3]. 4.1 Contractors’ evaluation The contractors’ capability to manage HSE shall be evaluated by attaching a score to the selected response for each category using [3].

A B C D HSE Plan documentation (sections 1-5, 7, 8)

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 further consideration. Any elements rated so must be highlighted as a qualification on the tender if it is still to be considered. Table 1: Rating of Contractors’ HSE capability by a point scoring system

A B C D

Section 1: Leadership and Commitment

Commitment to HSE through leadership: item 1 [i]

No commitment from senior management

HSE disciplines delegated to line managers – no direct involvement by senior management

Evidence of active senior management in HSE aspects

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

Section 2: Policy and strategic objectives

HSE policy documents and availability of policy statements to employee: items 2 [i] and 2 [ii]

No written HSE policy

A policy statement exists but not in a widely distributed document

HSE policy establishes responsibility for HSE, but not widely distributed

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

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A B C D

Section 3: Organisation, responsibilities, resources, standards and documentation

Organisation - Commitment and Communication: item 3 [i]

None Periodic HSE meetings for special operations only

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

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

Competence and Training of manager/supervisors/ senior site staff/HSE Advisers item 3 [ii]

No specialized staff training

HSE training assigned to a specific person on location

HSE training applied to management but not comprehensively covered

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

Competence and General HSE training: item 3[iii] [a]-[d]

No formal programme

Verbal instruction on company procedures only

Employee handbook provided and supervisor outlines, explains and demonstrates new employee’s job

All under ‘C’ together with follow-up observation of the new employee’s work is also included. Employee has explained to him safe practices and emergency duties

Specialised training and additional training for HSE qualified staff: items 3 [iv] [a], [b] and 3[v]

No HSE training established

On-site basic training conducted occasionally

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

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

Assessment of suitability of subcontractors/other companies: items 3[vi] [a]-[c]

No written arrangements

Written arrangements in place for basic HSE matters only

HSE arrangements incorporated in HSE manual but not in a format which is distributed to all employees

HSE arrangements exist in handbook form, distributed to all employees, Subcontractors, Subcontractor employees and are enforced. Follow-up audits held with discussion/feedback to management and employees

Standards: items 3 [vii] [a]-[c]

No HSE standards available

Basic HSE standards exist

Contractor has written HSE standards to cover all hazardous operations

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

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A B C D

Section 4: Hazards and effects management

Hazards and Effects Assessment: item 4[i]

Company’s HSE system does not include hazards and effects management

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

Company’s HSE system includes methods for the assessment of major hazards and effects

Company’s HSE system has a comprehensive set of methods for the assessment of all HSE hazards and effects and applies them to all of its contracts with documentation

Exposure of the workforce: item 4 [ii]

Company does not actively advise the workforce nor monitor exposure

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

Company has formal methods for monitoring exposure to the major hazards

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

Handling of chemicals (chemical, physical and biological hazards such as noise, radiation, vapours, fumes, temperature extremes, etc.): item 4 [iii]

Company makes no special provision for advising the workforce about properties of potential hazards

Company provides information to workforce in the workplace on properties of potential hazards but has no active follow-up

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

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

Personal protective equipment: item 4 [iv]

Basic PPE provided to personnel but no corporate procedure for assessing individual needs

PPE requirements formally assessed but little effort made to ensure correct usage

PPE requirements formally assessed with spot checks on usage

Procedures in place to assess all PPE requirements monitor and enforce usage and replacement needs. Stock inventories monitored, kept above demand levels, Training in use provided where needed

Waste management: item 4 [v]

Company has no formal methods for the control of waste

Company has general procedures for waste disposal

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

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

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A B C D

Section 5: Planning and Procedures

HSE or operations manuals: item 5 [i] [a] & [b]

No HSE procedures available

Basic HSE procedures exist

Contractor has written HSE procedures to cover all hazardous operations

Contractor has procedures to cover all HSE precautions, typical contractor HSE Plan requirements with a system of updating and dissemination to employees

Equipment control and maintenance: item 5[ii]

No defined programme to identify or evaluate hazardous practices and equipment conditions

Plan relies on outside sources, i.e. company inspections. Supervisory inspection of equipment confined to worksite personnel only

A written programme outlining supervisory guidelines, responsibilities, frequency and follow-up is in effect

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

Road safety management: item 5 [iii]

No special attention paid to road safety as an area of hazardous activities

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

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

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

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A B C D

Section 6: Implementation and performance monitoring

Management and performance monitoring of work activities and HSE performance achievement awards: items 6 [i] & 6 [ii]

No system for formally monitoring HSE performance

Performance monitoring in a few areas carried out

Company has a system for monitoring HSE performance in key areas

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

Statutory notifiable incidents, dangerous occurrences and improvement requirements and prohibition notices: items 6 [iii] and 6 [iv]

More than one occurrence of major incident in last five years

One occurrence of a major incident in the last five years

Occurrences relate to minor incident(s) only

No occurrence in the last five years

HSE performance records (latest year injury rate comparison to Contractor’s three preceding years average): items 6[v] [a]-[d]

Contractor supplied insufficient

Rate is not improving Shows only minor rate improvement

Rate steadily improving by more than 20 per cent per year

Criteria for absolute performance

Rate over 200 per cent that of company

Rate under 200 per cent that of company

Rate under 120 per cent that of company

Rate better than that of company

Incident investigation and reporting: item 6 [vi] [a]-[c]

Findings not generally communicated

Findings communicated to key personnel only via limited company internal memo or similar media

Findings communicated to all employees via specific company notice

As in C with the addition of details of implication for improvement HSE performance

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A B C D

Section 7: Auditing and Review

Auditing: item 7 [i] [a]-[c]

Audit process is cursory only - HSE documents are not explicit about auditing

Company HSE documents include reference to auditing but there are no specific details about scheduling and coverage

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

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

Section 8: HSE Management - Additional features

Membership of Association and additional features of your HSE Management: items 8 [i] and [ii]

No memberships Company has membership of at least one association but with no prominence given to HSE

Company is a member of at least one HSE association

Company is an active participant in at least one HSE association

5. EP and External References # Title Number [1] EP Standard ‘Contractor HSE Management’ EP2005-0110-ST [2] EP Procedure ‘Contractor HSE Management (inc stoplight)’ EP2005-0110-PR-10 [3] EP Tool ‘Contractor HSE Capability Questionnaire’ EP2005-0110-TO-80 [4] EP Standard ‘HSE Control Documentation Management’ EP2005-0140-ST [5] OGP HSE Management ‘Guidelines for working together in a

contract environment’; 1999. WWW







HSE Tool Contractor HSE Capability

Questionnaire Tool EP2005-0110-TO-80

Tool: Contractor HSE Capability Questionnaire References • OGP HSE Management ‘Guidelines for working together in a contract environment’ • EP Specification ‘Contractor HSE Capability Points System’ Other than the blue text underlined in italics the content in this EP Tool is identical to Appendix III of the ‘OGP HSE Management – Guidelines for working together in a contract environment’. 1. General guidelines for preparation of questionnaire • The questionnaire should cover the information required to assess the extent to which HSE and

its management are organised by the Contractor. • The Contractor should be advised to cover all (including support) relevant activities and not just

those conducted on company sites. • The questionnaire should be validated by a responsible Contractor line manager prior to

submission. • 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.

• Submissions should be assessed by the scoring mechanism defined in EP Specification ‘Contractor HSE Capability Points System’.

• If necessary, follow-up discussion with the Contractor's management may be needed. • The Contractor should be encouraged to identify where he exceeds company requirements and

this excellence should be recognised. 2. Questionnaire for Contractor HSE Capability Assessment 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?

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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 employees a) Itemise the methods by which you have drawn your policy statement to the attention

of all your employees?

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

Section 3 Organisation, Responsibilities, Resources, Standards and Documentation (i) Organisation - commitment and communication a) How is management involved in HSE activities, objective-setting and monitoring?

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

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

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(ii) Competence and Training of managers/ supervisors/senior site staff/ HSE

advisers

Have the managers and supervisors at all levels who will plan, monitor, oversee and carry out the work received formal HSE training in their responsibilities with respect to conducting work to HSE requirements? If YES please give details. Where the training is given in house, please describe the content and duration of courses. Provide competence/training matrix

(iii) Competence and General HSE training a) What arrangements does your company have to ensure new employees have

knowledge of basic industrial HSE, and to keep this knowledge up to date?

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

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)

e) What arrangements does your company have to ensure job competency for those jobs involved in managing HSE hazards and risks.

(iv) Specialised training a) How have you identified areas of your company's operations where specialised

training is required to deal with potential hazards? (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?

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(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 requirements?

(vi) Assessment of suitability of Subcontractors/ other companies a) How do you assess:

i) HSE competence? ii) HSE record of the Subcontractors and companies with whom you place contracts?

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

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

(vii) Standards a) 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?

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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?

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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) that 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? Provide a short overview of your preventative maintenance system. Is HSE Critical equipment specifically identified and included in your preventative maintenance system?

(iii) Road Safety Management

What arrangements does your company have for combating road and vehicle incidents?

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: • Base management? • Site employees?

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(ii) HSE performance achievement awards

Has your company received any award for HSE performance achievement?

(iii) Statutory notifiable incidents /dangerous occurrences

Has your company suffered any statutory notifiable incidents in the last five years (safety, occupational health and environmental)? (Answers with details including dates, 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 records a) Have you maintained records of your incidents and HSE performance for the last five

years? (If YES, please provide the following: 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 (TRCF) for each year. (NOTE: Please include your company definitions of 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?

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(vi) Incident investigation and reporting a) Who conducts incident investigations?

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

c) Are near miss safety learning reported?

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?

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

Describe the nature and extent of your company's 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 questionnaire?

Section 9 Company Specific Information


HSE Tool HSE Plan Checklist for

Major Contracts Tool EP2005-0110-TO-81

Tool: HSE Plan Checklist for Major Contracts (Mode 2 Medium HSE Risk and High HSE Risk Contracts)

Other than the blue text underlined in italics the content in this EP Tool is identical to Appendix V of the ‘OGP HSE Management – Guidelines for working together in a contract environment’.

1. HSE Plan Definition Guideline When the contracted activities are covered by a contractor HSE Management System (e.g. in line with the E&P Forum guidelines on HSE Management Systems), including HSE Cases for contracted installations, the HSE Plan should only address those issues that are unique for the contract under consideration. It should focus on contract specific risks and the management of controls to eliminate, reduce or mitigate these risks. Other contract specific issues that may be addressed in the plan are: • Organisation and personnel for the project; • Project specific procedures; • Project audit and review plan; • Compliance with local rules and legislation. The checklist in Tables 3.1 to 3.7 can be used as a tool to check the HSE plans for the project specific issues, but can also be used to assess the HSE Management System if this has not been certified or assessed in any other manner. When the contractor does not have an HSE Management System, the HSE Plan should be developed in line with the principles of the E&P Forum guidelines for HSE Management Systems or other comparable guidelines. The HSE Plan should follow principal headings with an expansion into key checklist items (Tables 3.1 to 3.7) given on the following pages under the respective headings. The detail included in the tender should be in keeping with the complexity of the contract and should additionally include prompts for specific action plans, target dates and action parties.

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2. 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 - Evaluation and risk management Methods and procedures for hazards and effects management Assessment of exposure of the workforce to hazards and effects Material data sheets for safe handling of chemicals Hazards and effects management and the assessment of PPE requirements Methods and procedures for waste management

Section 5 - Planning and procedures HSE procedures Basic HSE rules Emergency response procedures HSE equipment and equipment HSE inspection Occupational health Environmental Road transport

Section 6 - Implementation and performance monitoring HSE performance general Incident investigation

Section 7 - Auditing and review HSE auditing

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3. Detailed checklists for HSE plan Table 3.1: Checklist for HSE plan

Section 1 - Commitment to HSE aspects through leadership Senior management should engender commitment to HSE issues at all levels through their personal style of leadership and management. Key elements include: Visible expressions of commitment by senior people

HSE matters should be placed high on personal and collective agenda

All senior managers should set a personal example to others. They should be, and seen to be actively involved in HSE matters, 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

Policies and standards should be endorsed and implemented at the local level Table 3.2: Checklist for HSE plan

Section 2 - Policy and Strategic Objectives General HSE policy statement:

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 company 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

Right and duty of staff to intervene with unsafe acts and conditions

Everyone is responsible for their own and their colleagues' HSE at work Distribution/availability HSE policy distributed to all concerned, i.e.

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 company and Contractor employees in their working languages) Discussion Policy and its implementation when issued discussed by line managers with each employee

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Table 3.3: Checklist for HSE plan

Section 3 - Organisation, responsibilities, resources, standards and documentation HSE organisation Key personnel Personnel responsible for the implementation of HSE objectives clearly identified in an

organisational chart

Responsibility adequately covered during all phases of the contract

Job descriptions in place showing each team member's HSE competencies, responsibilities and function

Organisation clearly shows position of HSE professionals. Contract objectives/accountability Defined to meet health, safety and environmental objectives as well as those of time, cost and

quality

Accountability for HSE success and equally of any failure clearly stated

Focal point within the team structure ensuring that all HSE matters have been identified

Designated team leader to produce HSE objectives, tasks and targets for the contract

Targets, etc. to be realistic and consistent

Establish procedures for distribution, reporting and reviewing HSE issues Manning/communications Manpower philosophy

Manpower level to be defined correctly so as not to compromise HSE

Effective means to communicate HSE issues to the company, Contractor and Subcontractors

Organisation staffed by competent personnel with sufficient appreciation of HSE where necessary with specific training in the issues involved

Corporate structure/responsibility Company's expectations on HSE management to be communicated in depth

Access of Contractor's line management to their corporate management structure on HSE issues to be defined

Level of handling project HSE issues by the Contractor corporate structure (middle or senior management or board level)

In the Contractors 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/follow-up Reporting relationship with line management

Direct access to the Chief Executive

Does line management follow up on advice offered HSE department Contractor's HSE department involved in: Preparing and monitoring departmental action plans

Formulation and suitability of HSE rules

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Planned inspections and audits together with line management

Promotional material

HSE training

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-alders 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

Have own plans if carrying out a large portion of the work

HSE Plans to be vetted for suitability by main Contractor

Main Contractor to communicate that Subcontractor subject to the same rigorous HSE standards as main Contractor

Identification/vetting Subcontractors to be identified at this stage of the project

Method of vetting those still to be identified to be stated

Vetting of Past Subcontractor records

Maintenance of approved Subcontractor lists where HSE has been considered HSE communications Coverage/awareness Set up appropriate lines of communication to handle 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.

External links Lines established to communicate externally incidents that may endanger those on a site

Individual responsibilities and procedures for the company and Contractor(s) to make government agency reports have been agreed upon and clearly defined

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 communications Appropriate for incidents envisaged

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Strengthened, duplicated or backed up by other means

HSE meeting programme Scheduling Contractor to establish a regular schedule for HSE meetings

Define responsible management person for scheduling such meetings

Procedure to maintain records of personnel attendance Management participation Managers seen to be involved by employees in: HSE activities, objective setting and monitoring

Taking action and providing resources to support their stated policies and objectives Meeting structure HSE meeting structure

Effective to manage and communicate on HSE

Allow employees full involvement and their own ideas to be heard

Typical agenda and meeting formats Follow-up actions Meeting actions

Where action is agreed, is it seen to be carried out?

Where action is not agreed, is it explained why? Communication Results of HSE activities, both successful and less successful, openly communicated to all

employees

Meeting programme consistent with the rest of the management structure to communicate effectively HSE issues

Meetings recorded clearly and consistently

Structured to include health, safety and environmental items 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 methods Possibilities include: Small 'give-aways' with the HSE message

Competitions

Suggestion schemes

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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 personnel Confirmation of medical fitness from a recognised and approved medical facility of all proposed

employees for contract

HSSE Critical Positions Competence Assurance of HSSE Critical Positions Competence assurance process for people performing HSE and Security (HSSE) critical tasks

pursuant to the contract consistent with Group Yellow Guide (YG) ‘Competence Assurance of HSSE Critical Positions’ November 2004

HSSE Critical Positions pursuant to the contract identified

Incumbents of HSSE Critical positions assessed with no significant gaps. 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 company guidelines

Reappraisal Programme subject to appraisal and review

HSE training (general) Contract standards Statement on the current standard of workforce and training requirements to meet contract

standard

Established training programme Including: HSE management

Job procedures

Road safety

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

Auditing

Incident investigation and reporting

HSE adviser skills

Supervisory development

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HSE meetings

Environmental protection. Supervisory training Supervisory development training promotes man-management skills and communication skills

Formalised programme Formal HSE orientation programme for employees working 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' participation Supervisors required to brief and debrief staff before and after training courses

Course content Effective system for establishing the need for and the content of training courses

Determining course effectiveness and relevance of training assessed Specialised training Relevant training given to personnel prior to the execution of hazardous operations

Training gained through course attendance supplemented by on-the job training as necessary

Records kept of attendees of the training courses and qualifications gained by employees Emergency training Training covers the actions to be implemented and the employees' responsibilities in an

emergency

HSE content in other courses HSE included in: Induction courses

Craft training

Supervisory training

Line management training

Auditing techniques

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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 HSE legislation Coverage HSE Plan to include: A comprehensive list of applicable legislation

Government, national and international codes

Company regulations., codes and standards

Contractor's identification of regulations, codes and standards

Hierarchical precedence stated

Definition of the legislation, codes, standards, etc. reflecting the company's previous experience

For contracts carried out in separate countries: Different legislation requirements

Company 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 company requirements Control/authorisation Controlled documents

Updated regularly

Approval level indicated

Procedure for obtaining deviations from standards

Responsibility for authorisation

Mechanism for recording approved deviations Coverage Clear reference to national and international standards

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Setting minimum requirements on health, safety and environmental issues


Section 4 - Evaluation and risk management Methods and procedures for hazards and effects management

Coverage Company assessment used as a starting point with additional hazards identified by the

Contractor

Contractor's assessment carried out in accordance with his formal methods and procedures

Analysis techniques used in preliminary form where appropriate

Contractor covers all parts of the contract with assessments for the specific scope and locations of the contract

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

past experience

Assessment of exposure of workforce to hazards and effects Coverage Contractor develops assessment of the scope and degree of exposure of workforce to hazards

from the hazards and effects management process

Handling of chemicals Coverage Contractor demonstrates availability and distribution of guidance/information on the safe

handling of chemicals., likely to be encountered in the contract, and proposals for confirming adherence to guidance during contract

Hazards and effects management and the assessment of PPE requirements Hazard assessment/PPE requirements All processes identified that require use of PPE

Statutory requirements similarly identified

Procedure in place for recording issue to personnel together with follow-up inspection and replacement/re-certification

Storage of PPE adequate and secure with procedure for ensuring adequacy of stock PPE Instruction/training Requirements identified for all personnel

Instruction and training in its use provided where needed

Procedure for checking its use specified Renewal/replacement Schedule and criteria for renewing PPE

Schedule for re-certification

Responsibility for payment

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Section 5 - Planning and Procedures HSE procedures

Availability/control Written procedures available to cover hazardous operations on HSE

Include HSE precautions to be taken

Consistent with company guidelines

Controlled documents

Appropriate level

Coverage: include health and environment

Written procedures: 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 (PTW) System in place

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

Training/qualification Training standards and qualifications set for personnel 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 Production/updating Structure for producing updating and disseminating rules

Frequency

Personnel participation

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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 ISAR)

Explosions

H2S

Well control

Man overboard

Evacuation

Terrorism

Potential use of company 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

Interface arrangements to company emergency procedures and resources

Drills to be held to demonstrate preparedness for response

Performance indicators defined for drills 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

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Critical Items for HSE Inspection List drawn tip of critical items of equipment that must be the subject of an HSE inspection

(including any HSE critical equipment identified in Preventative Maintenance System)

Procedure established for carrying out HSE inspection of equipment (covering health, safety and environmental aspects to be reviewed)

Procedure established for checking standards where tools have been provided personally by tradesmen

Schedule HSE equipment inspection schedule established for the duration of the project

Inspection frequency clearly identified for critical items of plant Occupational Health Facilities available Facilities defined as part of contract

Occupational health programme established to: Identify hazards

Assess hazards

Control hazards, 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.

Staffing Availability of adequately trained, experienced staff

Access to medical treatment facilities (if external) Contingency plans Defined for possible incidents beyond capability of site facilities

Accommodation and catering facilities Where provided, facilities to meet normally accepted standards of hygiene at site location

Facilities to be operated in line with government hygiene regulations and to meet company 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 housekeeping Procedure on on-site cleanliness and maintenance

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Environmental Awareness Workforce aware of requirement 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 defined as well as other job objectives

Development and enhancement of environmental impact statements for the contract Monitoring/restoration Environmental monitoring to gauge the impact of operations

Plans appropriate and sufficiently detailed

Recovery and restoration of site after contract completion Audits Environmental audits of operations during the contract

Carried out by experienced individuals or companies Logistics (Road, Marine, Air Transportation and Lifting and Hoisting) Compliance with HSE standards (EP2005-0261, EP2005-0262, EP2005-0263, EP2005-0264) Road Transport Drivers: competence and selection Assess physical, mental and psychological capability

Character and background

Qualities and experience, medical examination, document checks, driving tests

Special skills such as terrain and climatic experience and first-aid knowledge Drivers: driving permits Should record personal and employment details, types of vehicle licensed to drive and types of

cargo licensed to carry

Drivers: driver induction

Local area characteristics and regulations Drivers: driver training This should test vehicle operation and use, operating conditions (terrain, climate), off-loading

and positioning, emergency situations, and vehicle inspection

Drivers: driver Improvement Techniques should identify deficiencies, analyse causes and select appropriate retraining

Vehicle: selection Ensure correct type, capacity and size for facilities

Good manoeuvrability and serviceability Vehicle: specification The job description should be clearly defined before the vehicle is chosen, to ensure work

operations do not exceed the manufacturer's specifications

Safety equipment and communications on board the vehicle need to be checked

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Vehicle: passengers Is the vehicle designed to carry passengers?

Vehicle: freight Design of vehicle and load limits

Segregation, positioning and securing of freight In vehicle monitoring system (IVMS) installed in the relevant vehicles

system in place to mange data and feedback result to drivers and management Ops management: need and approval Define the journey and justify the need

Awareness of hazards involved

Allocation of vehicles, written authorisation, verification of employees' driving standards Ops management: journey routing and scheduling Full awareness of route (hazards, conditions)

Realistic schedules Ops management: journey management Logging of actions

Ops management: roles and responsibilities Roles and responsibilities defined for management, supervisors, drivers, passengers

Contracting Pre qualification of Contractors and Contractor HSE management treating road transport with

equal importance to main activity

Standards for scope of operations included in tender operation

Control and review mechanisms included in contracts

Policy of no subcontracting without written authority Procedures Ensure procedures are in place for all transport operations

Monitor and review mechanisms in place Emergency services In place and tested

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Table 3.6 - 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 near misses, unsafe acts and conditions

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.

Lost Time Injury Frequency/Total Recordable incident Rate

Numbers of first-aid and minor injuries

Material losses

Vehicle incidents

Lifting and hoisting incidents

Spillages

Waste generation (e.g. solid, hazardous waste)

Occupational illnesses

Sickness absenteeism

Feedback/analysis Availability and use of performance records

Feedback of trending of near misses, unsafe acts and unsafe conditions

Feedback/review/discussion at HSE meetings

Presentation and distribution to employees

Comparison of performance Comparison of performance:

With other similar contract work

Frequency specified

Involvement of company personnel

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

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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


Section 7 - HSE auditing and review HSE Auditing

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

Unsafe acts

Audit training

Environmental

Own activities and those of his Subcontractors Coverage Consistent with company 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 company and Subcontractor personnel

Effectiveness How verified

Involvement of the Contractor's corporate management in review of findings

Intention to publish findings

Discussion with personnel on contract and at HSE meetings

Lessons used to improve operations across the contract Follow-up Any numerical treatment made of findings

Frequency of review of implementation progress

Rejections of audit findings properly authorised and documented



Small Contracts Tool EP2005-0110-TO-82

Tool: HSE Plan Checklist for Small Contracts (Mode 1 Low / Medium / High HSE Risk Contracts or Mode 2 Low HSE Risk Contracts)

Other than the blue text underlined in italics the content in this EP Tool is identical to Appendix VI of the ‘OGP HSE Management – Guidelines for working together in a contract environment’. 1. HSE Plan Definition Guideline When the contracted activities are covered by a contractor HSE Management System (e.g. in line with the E&P Forum guidelines on HSE MS), including HSE Cases for contracted installations, the HSE Plan should only address those issues that are unique for the contract under consideration. It shall focus on contract specific risks and the management of controls to eliminate, reduce or mitigate these risks. Other contract-specific issues that may be addressed in the Plan shall be but are not limited to: • Organisation and personnel for the project; • Project specific procedures; • Project audit and review plan; • Compliance with local rules and legislation. 2. Checklist for HSE Plan

Leadership and commitment Senior management should reinforce the importance of HSE at all levels in the

organisation and should be seen to be setting a personal example

Policy and Strategic Objectives Contractor has a policy that makes reference to the importance of HSE. It is formalised by

the Chief Executive's or the Manager's signature

• Right and duty of staff to intervene with unsafe acts and conditions Organisation, Responsibilities. Resources, Standards and Documentation A focal point in the organisation for HSE. Simple procedure for distributing information on

HSE issues to the workforce

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

HSSE Critical Positions pursuant to the contract identified

Incumbents of HSSE Critical positions assessed with no significant gaps. A procedure for determining/enacting HSE training. Provision for obtaining HSE advice

should this be out-side 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 VISE 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 Hazard awareness and reporting

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Printed copies are uncontrolled EP200407201489/ EP2005-0110-TO-82/Version 01




Security Basic HSE rules Legislative requirements Occupational health Environmental protection.

Hazards and Effects Management HSE targets set in clear quantifiable terms A system in place to assess workplace hazards Compliance with Logisitics HSE standards (EP2005-0261, -0262, -0263,-0264)

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

HSE hazard awareness Basic USE 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 Recovery procedures in place to be activated in event of emergency scenarios Interface arrangements to company emergency procedures and resources Drills to be held to demonstrate preparedness for response

Implementation and Performance Monitoring List drawn tip of critical items of equipment that must be the subject of an HSE inspection (including any HSE critical equipment identified in Preventative Maintenance System)

Contractor monitors the number and types of near misses, unsafe acts and conditions Contractor has a procedure for recording incidents, for advising legislative bodies where necessary and for making annual reviews of performance

Contractor has a procedure for investigating incidents Auditing and Review Contractor has a method for the management to carry out simple audits of his contract operations

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3. Small Contract Typical HSE Plan Proforma (Mode 1 Low / Medium / High HSE Risk Contracts or Mode 2 Low HSE Risk Contracts) The table below 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.

Subject Details General Company Project Contract title/number Contractor details Site location Company contract holder/representative(s) Company representative(s) Contract manager/Contractor representative(s) Hazard assessment Contract scope description Expected hazards identified (including adjacent operations, etc.)

Alternatives considered Procedures to be followed for hazard control (list documents or describe details here)

Access/escape provisions (alarms, muster stations, etc.)

Emergency service provisions (including first aid, nearest medical treatment, emergency phone numbers, etc.)

Competence standards for Contractor's personnel Standards for Contractor's equipment Training requirements (including site HSE induction)

Job/services description Contractor's personnel assigned Contractor's equipment/ consumables/services assigned

Company's personnel assigned Company's equipment/consumables/services assigned

Subcontractor details Responsibilities/interfaces defined PPE and any special HSE equipment to be used Working hours/job duration Site description/limits PTW provisions applicable Conditions for suspending work (e.g. weather, adjacent site operations, etc.)

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