HSE Management - Guidelines For Working Together in A Contract Environment

HSE Management Guidelines for working
together in a contract
environment
Report No. 6.64/291

October 1999
IMCA
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HSE MANAGEMENT GUIDELINES FOR WORKING

TOGETHER IN A CONTRACT ENVIRONMENT
Report No: 6.64/291

September 1999
Authors
These guidelines have been prepared for OGP by the Safety, Health and Personnel Competence
Committee, SHAPCC, through its Contractor HSE Task Force, in consultation with the International
Association of Geophysical Contractors, IAGC, and the International Marine Contractors Association,
IMCA, who both endorse the use of these Guidelines.
Task Force Membership

R Kratsas
R Moschetta
C Preston
R Shields
D Laing
ER Moir
L Simpson
M Alexander
TL Thoem
Y Guenard
JL Monopolis
D Krahn
M Covil
JC Sanchez
B Stene
A Kjelaas
G Kubala
P Mann
R Sykes
G Van der Graaf
HJ Grundt
P Guyonnet
LA Tranie
DK Hide
Arco
Arco
Baker Hughes
BG Plc
BP Amoco
BP Amoco
BP Amoco
Chevron
Conoco
Elf E&P
Esso
IADC
IAGC
PDVSA
SagaPetroleum
Saga Petroleum
Schlumberger
Shell
Shell
Shell
Statoil
Total
Total
E&P Forum
Chairman
Chairman
Secretary
Following the Task Force work on developing the guidelines, Bob Moschetta undertook the role of
Technical Editor to review and address comments and suggested amendments.
The International Association of Oil & Gas Producers is the international association of oil companies
and petroleum organisations formed in 1974. It was established to represent its members interests at the
International Maritime Organisation and other specialist agencies of the United Nations, and to
governmental and other international bodies concerned with regulating exploration and production of oil
and gas. While maintaining this activity, OGP now concerns itself with all aspects of exploration and
production operations, with particular emphasis on safety of personnel and protection of the
environment, and seeks to establish industry positions with regard to such matters.
As of mid 1999, OGP has 57 members made up of 47 oil companies and 10 national and international
oil industry associations operating in more than 60 different countries. The Safety & Health and
Personnel Competence Committee (SHAPCC) of OGP has observers from IADC, IAGC and IMCA in
its membership.
Contents
Purpose/Intent...................................................................................................................iii
Description........................................................................................................................iii
1.
Introduction ................................................................................................................1
1.1 Background........................................................................................................................ 1
1.2 Interrelationship with other systems ................................................................................... 2
2.
Overview of process .....................................................................................................3
3.
Planning ......................................................................................................................5
3.1
3.2
3.3
3.4
3.5
4.
Pre-qualification ..........................................................................................................9
4.1
4.2
4.3
4.4
4.5
5.
Objective............................................................................................................................ 9
Purpose and responsibilities ............................................................................................... 9
Standard pre-qualification documents ................................................................................ 9
Screening............................................................................................................................ 9
From pre-qualification to selection................................................................................... 10
Selection ....................................................................................................................11
5.1
5.2
5.3
5.4
5.5
5.6
6.
Objectives .......................................................................................................................... 5
Description of work ........................................................................................................... 5
Risk identification .............................................................................................................. 5
Contracting strategy ........................................................................................................... 6
Contract schedule............................................................................................................... 7
Objective.......................................................................................................................... 11
Bid documentation prepared by company ........................................................................ 11
Bid preparation by contractor .......................................................................................... 12
Pre-award meetings .......................................................................................................... 12
Incentive schemes for HSE............................................................................................... 12
Contract award ................................................................................................................ 13
Pre-mobilisation activities..........................................................................................15
6.1 Objectives ........................................................................................................................ 15
6.2 Kick-off meeting .............................................................................................................. 15
6.3 Pre-job audits ................................................................................................................... 16
7.
Mobilisation ..............................................................................................................17
7.1 Objectives ........................................................................................................................ 17
7.2 General ............................................................................................................................ 17
7.3 Mobilisation audit............................................................................................................ 17
8.
Execution ..................................................................................................................19
8.1
8.2
8.3
8.4
8.5
9.
Objectives ........................................................................................................................ 19
Responsibilities ................................................................................................................ 19
Contractor compliance..................................................................................................... 19
Competence assurance...................................................................................................... 19
Inspection and HSE auditing/reviews............................................................................... 20
De-mobilisation.........................................................................................................21
9.1 Objectives ........................................................................................................................ 21
9.2 Responsibilities ................................................................................................................ 21
10. Final evaluation and close-out ...................................................................................23

10.1Objectives ........................................................................................................................ 23
10.2Final evaluation and report............................................................................................... 23
APPENDIX I: HSE responsibilities for company and contractor key personnel............... 25

APPENDIX II: Definition of consequence - severity of risk............................................. 27
APPENDIX III: Contractor HSE pre-qualification.......................................................... 29
APPENDIX IV: HSE pre-qualification points system. ..................................................... 35
APPENDIX V: HSE Plan guideline for major contracts. ................................................. 41
APPENDIX VI: HSE Plan guideline for small contracts. ................................................. 59
ii
Purpose/Intent
The overall objective of this guideline is to improve the company and contractor health, safety and
environmental (HSE) performance regarding exploration and production activities. Active and ongoing
participation by both the company and contractors are essential to achieve this goal. While each has a
distinct role to play in ensuring the ongoing safety of all involved, there is an opportunity to further
enhance the company/contractor relationship by clearly defining roles and responsibilities, establishing
expectations and maintaining communication throughout the relationship. For example, one role of the
company is to review and assess the contractors HSE Management System and Programmes, while one
role of the contractor is to provide HSE information as requested by the company. Often the information
requests vary from company to company. By establishing a standard format, which streamlines the
bidding process, company and contractor resources can be devoted to improving specific HSE issues.
This guideline is designed to:
1. improve workplace safety, health and environmental performance by assisting the company and
contractors in administering an effective HSE program for the contract;
2. assist contractors in administering programs which are consistent with the clients expectations;
3. facilitate the interface of contractors activities with those of the company, other contractors and subcontractors.
These programs should be designed to protect both company and contractor personnel from workplace
injuries and illness as well as from losses associated with the incidents, while preserving the independent
contractor relationship.
This information is provided to assist company and contractor management to visualise the process of
managing contractor HSE programs. This document is not intended to replace the necessary professional
judgement needed to recommend the specific strategy to follow. Each reader must analyse their particular
situation, tailor the information in this document and obtain the appropriate technical support.
Due to the rapid change that is occurring in the oil and gas industry, together with the various companycontractor interface systems and management practices that are evolving, this guideline will be reviewed
every 2 years. The Safety Health and Personnel Competency Committee will make updates and
modifications based upon review.
Description
The main section of the document covers various phases of the contracting process and the associated
HSE tasks and responsibilities of the company and contractors. This is an eight-phase process, which
begins with planning, and ends in final evaluation and close out. The objectives, roles and responsibilities
are defined for each phase.
A key part of the planning phase is risk identification. It is also the prime factor in determining
contracting strategy. During this step the level of risk is assessed and the most appropriate measures are
identified to prevent incidents from occurring. Included in the appendices are additional tools such as
checklists for HSE Plan development, severity of risk definitions, and guidelines for small and large
contracts.
iii
iv
1.
Introduction
1. Introduction
1.1 Background
Within the oil and gas exploration and production industry, the pattern of use of contractors has changed
significantly over the last ten years. Figure 1 shows the pattern of company and contractor hours reported
to E&P Forum for the period
1985-1998.
Figure 1. Company contractor hours worked
Prior to 1985 the work force
was predominately company
employees. Since 1990 there
has been a significant increase
in the use of contractor staff,
with a resulting shift in
responsibility and risk from
the company to the contractor
population.
It can be seen from Figure 2
that
there
have
been
significant improvements in
the safety performance of both
the Companies and their
contractors during this period.
(millions of hours)
1200
1000
800
Manhours
contractor
600
400
Manhours
company
200
0
1985
1987
1989
1991
1993
1995
1997
Historically the contractor

Lost Time Injury Frequency (LTIF) has not been as good as that of companies, though the gap is
narrowing. The trend is encouraging, since contractor personnel generally have a higher exposure to risk,
and it is important this trend continues, particularly as use of contractors in the E&P industry increases.
These guidelines have been produced to assist management of the company-contractor interface in this
changing environment and to help in the achievement of further joint improvements in safety
performance.
Figure 2.
LTIF performance of E and P companies and contractors

(number of lost workday cases, including fatalities, per million hours worked)
10
Overall
8.1
Company
6.6
Contractor
6.1
5.2
4.7
4.1
4
3.4
2.5
1989
1990
2.8
1991
3.3
1992
3.9
3.1
3.0
1993
2.5
1994
2.6
1995
3.0
2.0
1996
2.7
2.0
1997
1.9
1998
HSE Management - Guidelines for working together in a contract environment
1.2 Interrelationship with other systems

While this document is designed to focus on improving contractor health, safety and environmental
(HSE) performance, it is an extension of the previous efforts within the E&P Industry and various
governmental efforts around the globe to improve overall industrial HSE performance.
This effort has utilised and built upon the E&P Forums Guidelines for the Development and
Application of Health, Safety and Environmental management systems; and the API recommended
practices documents 2220 and 2221, which address contractor-client interactions and how to build an
effective contractor HSE program. Additional influences are the UK Health and Safety Executive
publication, Successful Health and Safety Management; the U.S. Occupational Safety and Health
Administrations Process Safety Management Guidelines; the ISO 9000 and 14000 systems; and
numerous E&P Forum Member programs.
All of these documents/programs utilise the same basic model for a system starting with leadership and
commitment and flowing to testing and evaluation in a continuous cycle. Loss of any portion results in a
system failure.
This guideline follows the wording and structure used in the Forums Guidelines for the Development
and Application of HSE-MS. However, by following the guidelines in this document, a user should meet
the basic requirements of various industry associations, governmental entities and the users own
requirements.
These guidelines were developed for the normal activities expected in E&P operations. Each operation
is, however, unique. Therefore, the user should critically evaluate these guidelines for his activities and
their associated risks, and may need to adapt them for the particular circumstances of the work.
This guidance is primarily developed for those responsible for contracting out activities, and personnel
responsible for interface and operational oversight of contractors, their employees and subcontractors.
This guidance document is mainly for activities with a medium to high risk although similar principles
may be applicable to all contracted activities.
These guidelines in no way supplant a host countrys requirements.
2.
Overview of process
2. Overview of process
Management of HSE in a business environment where two or more companies work together requires cooperation between them and a clear definition of the tasks and responsibilities of each of the parties.
The typical phases of a contracting process are shown in Figure 3. The sectional headings addressing the
phases are shown on the right. Each section describes the tasks and responsibilities showing a clear
distinction between the company and contractor(s). An overview of responsibilities is given in Appendix I.
Figure 3. Phases of the contracting process

Joint company / contractor activities
Contractor
Company
Description of work &
risk identification
Planning
Contracting strategy
Contractor responds to
questionnaire and
provides HSE information
Shortlist and
screen contractors
Contractor prepares
bid and HSE plan
Bid evaluation
and clarification
Establish bid
evaluation criteria
Pre-qualification
Contractor
database
Selection
Contract award
Joint completion of HSE and execution plans

Preparations
Pre-mob audits
Kick-off meeting
Mobilisation
Pre-execution audit
Execution, supervision
and reporting
Monitoring, audits
and inspection
Review of de-mobilisation HSE plans
M obilisation
Execution
De-mobilisation
Acceptance of work
and restored site
De-mobilisation
Close-out
Review
Report
Pre-mobilisation
Final evaluation and report
3.
Planning
3. Planning
3.1 Objectives
The objectives of this phase are to describe the work and to assess the HSE risks associated with the work.
The contracting strategy is to be selected on the nature and size of the work, and the risk involved.
3.2 Description of work

The planning phase is generally a company activity, but can be enhanced by use of specialised advisers.
The company is responsible for describing the work to be executed. The description should be supported
by documentation in the form of standards, drawings, etc. allowing selected contractors to obtain a full
understanding of the work required. The company may also specify HSE requirements to be met;
examples include, but are not limited to, the following:
Emissions and waste generated by the activities
Timing of the activities
Location of the work
Requirements for site restoration
Reporting requirements, applicable laws and regulations etc.
Training expectations
Competence assurance
Materials to be utilised
Alcohol and drug testing policies
Medical policies
Prohibited work practices.
3.3 Risk identification

The company is responsible for making an initial assessment of the HSE risks involved in execution of the
work. This will aid the contractor and company in developing programs and safe work practices to protect
all workers. The focus of the assessment during this phase should be to evaluate the inherent hazards in
conducting the work. In addition, the assessment addresses the potential adverse consequences of an
accident and the potential adverse consequences of an incident to the workforce, the public, the
environment, company and contractor assets and reputations. The level of risk assessed for the proposed
work should be the prime factor in selecting a contracting strategy (as outlined in Section 3.4) and in
determining which measures are most appropriate for consideration by the contractor to prevent incidents
from occurring and to minimise the consequences of an event should it occur. The level of risk is also
indicative of the amount of time and effort to be spent at later phases to provide assurance that controls
are in place to reduce the risks to as low as reasonably practicable.
As a minimum, a risk assessment should include consideration of the following:
Nature of the work - materials to be utilised
Location of the work
Potential for exposure to worksite hazards (H2S, Asbestos, etc.)
Potential exposure to hazards for all personnel involved in the activities
Potential consequences of incidents (environmental damage, delays of project development, delay in
production operations, legal claims)
Exposure to negative publicity.

The risks assessed can be characterised as low, medium or high in accordance with the Risk Assessment
Matrix approach shown in Figure 4. Definitions for the ratings are provided in Appendix II.
Figure 4. Risk assessment matrix
Increasing probability
Reputation
Environment
Assets
People
Severity
Consequence
No
health No
effect/injury
damage
No effect
Slight health Slight

effect/injury
damage
Slight effect Slight impact
Minor health Minor

effect/injury
damage
Minor
effect
Major health Localised Localised

effect/injury
damage effect
Considerable
impact
Single fatality
Major
damage
National impact
Multiple
fatalities
Extensive Massive
damage effect
3.4
Major
effect
Never heard
of in E&P
industry
Heard of in
E&P
industry
Incident has
occurred in
our
Company
Happens
several
times per
year in our
Company
Happens
several
times per
year in a
location
No impact
Manage for continuous

improvement
Limited impact
International
impact
Incorporate risk
reduction measures
Intolerable
Contracting strategy
One of the most important strategic contract management decisions to be made by the company is on the
way in which the contractor, or alliance of contractors, is held responsible for the management of HSE.
Two distinctly different modes are described below.
Mode 1. The contractor provides people and tools for the execution of work under the supervision,
instructions and HSE-MS of the company. The contractor has a management system to 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.
Mode 2. 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
companys and the contractors HSE-MS are appropriately compatible.
Selection of one of these modes is preferred. However, in certain situations it may be necessary to adopt a
mixture of the two modes. This can be accomplished by following Section 3.5 of the E&P Forum
Guideline for the Development and Application of Health, Safety and Environmental Management
Systems, Report No. 6.36/210. This section outlines the interfacing of contractors activities with those of
the company and with those of other contractors as appropriate. This may be accomplished by means of a
specific interface document between the company and the contractor so that differences may be resolved
and procedures agreed before work commences. Examples of such situations are given below.
3.
Planning
Operations in an area where there is a limited selection of contractors able to meet the evaluation
criteria. For example an alliance may have to be formed between the company and available
contractors with the objective to develop, improve and implement an HSE Management System for
the contractor while executing work under the management system of the company. The management
system will initially aim at working under Mode 1.
Operations too large or diverse for a single contractor may require a number of contractors and
subcontractors (a consortium) to work together under the supervision of one main contractor working
for the company under Mode 2.
The work is intimately associated with the activities of the company, or presents such a high risk to the
company that the work is to be executed using the company's management system under Mode 1.
The contractor executes most aspects of the job under its own HSE Management System; however,
certain support activities such as transportation and emergency response are provided by the company.
A Drilling Contractor is responsible for identifying and supplying personal protective equipment to its
personnel. A Fluids Contractor designs the mud program for the Operator, with new additives
included in the well plan. In this case the company has an interface procedure that details the
responsibilities of the drilling contractor and requires the fluid contractor to provide chemical hazard
information to the Operator and drilling contractor before shipping the materials. The interface
procedure further requires the on-site fluids engineer to communicate chemical hazards during the prespud meeting.
Also, when working with an alliance of contractor(s) or a consortium, it should be made clear in advance
whether the alliance or the lead contractor is fully responsible for all instructions and supervision or
whether that is the responsibility of the company. If the alliance or consortium is responsible, it should be
made clear in the contract how this is organised. In addition, the person responsible for critical activities
has to be clearly identified. Joint responsibilities should be avoided by breaking down the work into
smaller identifiable activities, each with a party assigned to it with responsibility for the HSE aspects.
Usually Mode 2 is preferred except in "High Risk" situations where the work is highly interactive with
companys activities.
Example:
On an offshore production platform, a modification requiring welding and grinding has to

be made in a hazardous area. This is considered a "High Risk" operation. Moreover, the
essential controls and emergency response are arranged by the company. Typically Mode 1
would be used.
Example:
A consortium of contractors with one lead contractor is responsible for the construction of a
new onshore production facility. Construction activities are always "High Risk". However,
until the moment that hydrocarbons are introduced, the lead contractor can be held
accountable for managing all aspects of the job provided the construction contractor can
demonstrate its capability to manage all HSE aspects. Typically Mode 2 would be used.
"Low Risk" contracted operations, e.g., deliveries of non-critical materials, food, stationery, etc., are
usually covered by Mode 2 whereby the contractor provides the HSE controls. Usually the company
controls on such low risk activities are minimal and Mode 2 is typical. However, contractors working on
company premises are normally under the control of company personnel and should follow company
instructions.
Issues in setting a contract strategy might include: number of contracts, contract schedule, rules and
regulations, and the use of company HSE standards and/or relevant national HSE legislation and
international conventions.
3.5 Contract schedule

A contract schedule should be developed with due consideration of the HSE issues and deliverables
involved, paying particular attention to allow adequate time for mobilisation/demobilisation. This
evaluation may well highlight HSE issues that require special emphasis in later contract phases.
7
4.
Pre-qualification
4. Pre-qualification
4.1 Objective
The objective of the Pre-qualification phase is to screen potential contractors to establish that they have
the necessary experience, capability and financial viability to undertake the activities in question safely and
in an environmentally sound manner.
4.2
Purpose and responsibilities
The general practice in Companies for selecting contractors is through competitive tendering. In the prequalification stage, potential contractors are screened to establish that they have the necessary experience
and capability to undertake the activities in question. Only those being able to demonstrate that they can
manage in a fully satisfactory manner the HSE risks of the work, should be included on the pre-qualified
list. A formal historical record of the HSE performance, including findings of audits and inspections, of
all contractors previously employed, should be maintained by the company for use during the prequalification process.
The pre-qualification process is a crucial step in which assurance is sought that the risks of the work will
be managed. The purpose of the pre-qualification stage is for the company to agree on a list of contractors
that will be invited to bid, and a list of HSE bid evaluation criteria to be met. Pre-qualification is one of
the last safeguards in identifying suitable contractors. Once contractors are qualified to bid, they are
eligible for award of a contract.
The company contract manager is responsible for pre-qualification and providing assurance that the
contractors invited to bid can manage the HSE risks associated with the work.
4.3
Standard pre-qualification documents
Pre-qualification is usually achieved by issuing a standard format document for the contractor to
complete, supported where necessary by historical performance records. It may be necessary to review the
content before issue and to add, remove or emphasise requirements specific to the activity.
As a means to streamline the pre-qualification process, the E&P Forum recommends that companies
adopt the pre-qualification questionnaire, located in Appendix III. Requests for additional or company
specific information that is not included in the questionnaire can be inserted into Section 9. By
implementing this standard format, both the company and contractors can devote their resources to
improving HSE performance rather than reformatting existing information into a variety of formats.
Of special importance is the management by contractors of their subcontractors and the need for the main
contractor to demonstrate understanding and commitment to having full responsibility in this area.
Similarly, when contractors are working in an alliance or consortium, it is of special importance to
demonstrate that each entity fully understands, and is committed to, the HSE management of the
assigned HSE critical activities.
A points system method, which minimises subjective judgement, may be used to evaluate contractors
submissions. Contractors who achieve a pre-defined acceptable score will then be judged to have met the
HSE pre-contract requirements. Appendix IV provides guidelines for such a rating system.
4.4
Screening
The screening process should be designed to assure that the contractors invited to bid can perform the
work to the required HSE criteria.
The general approach is to send a uniform questionnaire to all potential contractors, initially assess their
HSE capabilities based on the questionnaire using an equitable measuring system (see Appendix III) and
supplementing this with site inspections of current contractor work sites.
Contractors which have been used by the company previously can be assessed through the use of close out
reports and other historical records. A review of any potential changes to the contractor's organisation,
programmes and systems should also be conducted.
During pre-qualification of large contractors, especially those with many divisions in numerous countries,
the use of the record of the Corporation may not be appropriate. In such a case, the focus should be on
the division bidding for the work.
For those contractors not qualifying, a feedback mechanism should be in place to inform them why they
did not qualify and that by correcting the identified deficiencies; they may qualify for future work.
Where there is a policy to encourage selected contractors to develop an HSE management Plan, and these
contractors have little or no background in HSE management, then a plan to overcome the shortcomings
should be developed. Such a plan may require additional company supervision, more explicit procedures
or additional training. The HSE requirements should be met before work commences. The scale of the
contract and the exposure must be matched accordingly. Again, the details of the program and
performance of such contractors should be recorded and retained for future reference.
4.5
From pre-qualification to selection
Before entering the selection phase the company should document the pre-qualified contractors and the
rationale for the selection. At this time, the company specifies the minimum evidence to be produced
during the selection phase by the potential contractors demonstrating that a sound Plan exists for
implementing HSE management during the potential contract work to control risks to as low as
reasonably practicable. This information should be prepared by the contractor as part of the HSE Plan.
Appendices V and VI provide requirements for an HSE Plan for major and small contracts, respectively.
Dependent on the level of risk involved in the contracted work, the company should establish yardsticks
to measure the quality of the contractors HSE Plan and criteria to be met. These measuring methods and
criteria should be documented prior to the selection process in the form of "Bid Evaluation Criteria".
10
5.
Selection
5. Selection
Pre-qualification is the most important screening tool for the selection of contractors. All contractors that
are pre-qualified should be fully capable of managing all HSE aspects of the job.
5.1 Objective
The objective of the selection phase is to assess whether the HSE Plan and the Bid Evaluation Criteria
have been met and to select, where necessary on the basis of clarification meetings, the successful bidder.
5.2
Bid documentation prepared by company
The selection criteria used should consider significant aspects such as costs, technical ability, reputation,
and the ability to meet schedules. The overall risk of contract and HSE management should be given
appropriate weighting along with other considerations when selection criteria are evaluated. This section
outlines some key considerations specific to the HSE portion of the selection process.
Contractors should be given copies of the companys HSE documentation relevant to the contract.
Documentation in the tender package may include:
company HSE goals and objectives.
company HSE-MS.
definition of the scope of the HSE Plan and the known hazards to be addressed.
list of HSE controls procedures and compliance issues for the contract.
definition of the company/contractor anticipated interfaces, the company supervision strategy and
interaction with company operations, interaction with specific company plans such as emergency
response.
type and schedule of company and contractor training requirements and competencies.
specification of the minimum pre-execution requirements.
The HSE tender documentation should be compiled, with due attention to the following:
It is the company's responsibility to assure that the tender documents address the HSE requirements
for the contract and that knowledge about hazards already identified by the company are passed on to
the contractor. The company should not assume that the contractor knows of the hazards in the
workplace, which are associated with the execution of contracted activities.
The contractor has independent responsibility for his own HSE Plan, but documents should make
clear provision for the company to perform HSE audits on the contractor in order to assess
compliance.
The documents should include provision for the company to suspend work if the contractor does not
observe the HSE criteria spelled out in the contract HSE Plan or HSE Case and, in particular at
mobilisation, to withhold permission to start execution and hold payments until a satisfactory preexecution audit has been achieved. Before any work is suspended, the company should liaise with the
contractor to allow them the opportunity to rectify any non-conformances.
Where special HSE provisions are to be provided, the documents should specify these clearly and
identify who is to pay for them. Any constraints on the methods of working should also be specified.
In preparing their bid, the contractor should demonstrate compliance with such requirements and
illustrate their process for preparing their own HSE Plan within the required framework. The actual plan
will be developed after the contract is awarded. This may be accomplished by developing a system which
facilitates the interfacing of company, contractor and sub-contractor activities, as described in Section 3.5
of OGP's Guidelines for the Development & Application of Health, Safety and Management Systems.
11
Contractors should be allowed the freedom to use industry HSE guidelines/recommended

practices/standards, e.g., those of the International Association of Drilling contractors (IADC) or
International Association of Geophysical contractors (IAGC), or the International Marine Contractors
Association (IMCA), or of OGP, API and IMO, if they are equivalent to or exceed the company's
requirements. The company should have the expertise and resources to evaluate the alternatives proposed.
The tender documents should allow flexibility for the contractor to take ownership of HSE
responsibilities under the contract but allow for the company to effectively manage the contract. Adequate
lead times for tender preparation should be allowed to avoid compromising the establishment of a sound
basis for HSE management.
The company should assure that the mobilisation and demobilisation phases are adequately covered in the
HSE Plan. In some instances the ability to exercise influence may be limited (for example when work is
being carried out in a yard or factory where only a small percentage of the contractor's workload is for the
company).
5.3 Bid preparation by contractor

Some HSE requirements will have been supplied at the pre-qualification stage. An important element that
the contractor should provide is their process for developing a written HSE Plan commensurate with the
level of risk involved in the work. This plan will be the main element considered when carrying out
evaluation of the bid and should be regarded as the top document that drives the specific HSE program
for major contracts. The HSE Plan could be developed along the lines presented in Appendices V and VI.
Examples of typical HSE Plans and Programs used in similar contracts in which the contractor has been
involved may be submitted.
The contractors HSE Plan should clearly identify where he believes his HSE-MS interacts with the HSEMS of the company and other contractors. A proposal should be made by the contractor on the approach
to managing these interactions and the allocation of responsibilities for overlapping areas.
The interface document should demonstrate that both parties have the necessary procedures (e.g., Permit
to Work, Hazard and Risk Assessment, Operating Instructions, Contingency Plans) and controls in place
to achieve the work program without compromising HSE performance. These systems should be
harmonised where possible to minimise the potential for misunderstanding.
If there is a considerable amount of time between pre-qualification and the bid submission, contractors
should be asked to provide evidence of documenting their current HSE systems and performance.
5.4 Pre-award meetings

The companys internal pre-award meetings should concentrate on reviewing the HSE program prepared
by the contractor, and on assessing how effective the contractor has been in providing assurance that all
hazards have been identified & that suitable controls are planned to reduce the risk to a level as low as
reasonably practicable.
A joint company and contractor pre-award meeting with contractors should be used to clarify and
further assess the suitability of contractors HSE Plans and how that plan interacts with the HSE MS of
the company and of other contractors.
Following these pre-award meetings the company should assess whether the HSE Plan and acceptance
criteria, as defined in Section 4.5 (Bid Evaluation Criteria), have been met. This appraisal should be
documented as it is one of the crucial conditions for awarding the contract.
5.5 Incentive schemes for HSE

The best incentive scheme is one which values HSE performance and which results in a continuing longterm relationship between company and the contractor based on good HSE performance.
12
5.
Selection
The need for additional incentives should be carefully considered. To be effective a scheme should:
not discourage or suppress the reporting of incidents.
be proactive and reward effort, e.g., audits and follow-up rather than 'after the event' statistics.
ensure that incentives are valued by the personnel who are in a position to influence the performance
and maintain the systems.
be culturally sensitive to the local environment.
motivate personnel to change those behaviours that detract from HSE performance.
appreciate the HSE culture of the contractor
5.6 Contract award

Award of the contract should consider a number of areas such as technical competence, ability to meet
schedule, and cost. The documented appraisal of the contractor's capability to manage HSE should be
available from previous phases. This appraisal provides a go- no go criterion, i.e., if a contractor does
not meet the minimum criteria, he should not be awarded a contract.
Once the award has been made, joint meetings should be held as soon as possible to agree on the final
HSE Plan and detailed programmes.
13
14
6.
Pre-mobilisation activities
6. Pre-mobilisation activities
6.1 Objectives
The objectives here are to ensure that the relevant aspects of the contract risk assessment and any other
HSE aspects of the contract are communicated and understood by all parties prior to implementation of
the contract. Several activities such as reviews, meetings and audits can be used. The amount of detail and
effort for pre-job activities should be commensurate with the level of risk.
6.2 Kick-off meeting

A kick-off meeting should be used as an opportunity for the contractor(s) to become familiar with the
location, facility, personnel, and other work information. The kick-off meeting is generally recognised as
an important bridging step in working together to prevent incidents and resolve any health, safety and
environmental issues.
The kick-off meeting should be held immediately after contract award and before the execution of any
work. For a new contractor, the kick-off meeting may include the company's and contractor's local
management.
If the contractor mobilises locally at the work site, the kick-off meeting may be held locally. If not, it may
be necessary to hold the initial kick-off meeting at the contractor's base office. This should be followed by
a subsequent mobilisation of key contractor and subcontractor personnel to the work site and possibly
additional local kick-off meeting(s). The local meeting(s) should be held immediately prior to the start of
any work as part of the mobilisation process.
The topics covered by the kick-off meetings might include:
review of associated major hazards
confirmation of HSE Plan to be implemented including confirmation that roles and responsibilities
have been clearly defined and understood
confirmation of worker competence; this includes both company and contract workers who are
exposed to workplace hazards as defined in the description of work and risk assessment phases.
confirmation of any HSE performance objectives and targets
distribution and explanation of the companys HSE policy statement, basic HSE rules and work
procedures in as far as the contractor works under the company HSE-MS
confirmation of the scope and schedule of HSE activities for example; HSE meetings, audits and
reviews
interaction of company's and contractors contingency plans
contact with third parties to assure their role in emergency response plans is known
confirmation that HSE induction and training plans are in place and ready for start up
briefing of subcontractors on HSE requirements
incident reporting and investigation procedures
The meeting(s) may be structured as an HSE workshop, with participation by both company and
contractor management.
The kick-off meeting(s) should be used as an opportunity to clarify or raise new HSE issues that may not
have been covered in the contract documentation. Account should be taken in the meeting discussions of
the contractor's own HSE Management System, work culture and working practices.
15
6.3 Pre-job audits

The kick-off meeting may provide an opportunity to discuss the mechanisms that will be involved to
certify that HSE systems are in place. It may also provide an opportunity to check the condition of the
equipment and worksite in as far as is possible. It is important to keep in mind that equipment and site
may still be in use for other jobs. The items listed under Section 6.2 can be parts of the pre-job audit.
Supplemental audit areas might include the provision and maintenance of:
equipment and site to be used for the work
HSE equipment
communication systems and procedures
environmental protection systems
health hazard identification and assessment, medical facilities, Medivac procedures.
The audit should provide recommendations to be implemented prior to commencing the work. The
scope and duration of the pre job audit can be determined by the company and contractor, this
determination is based upon the job description and associated hazards.
16
7.
Mobilisation
7. Mobilisation
7.1 Objectives
The objectives of this phase are to assure that the HSE Plan is modified, if warranted, and communicated
to all relevant personnel, both company and contractor.
7.2 General
Prior to mobilisation, it is likely that the full HSE Plan is known only to the principal members of the
company's and contractor's project management teams. During mobilisation, the HSE Plan should be
communicated by the management of both the company and the contractor to all relevant personnel.
In the mobilisation phase some of the principal activities are:
local kick-off meeting(s)
mobilisation of contract staff and equipment
finalise the contractor's HSE Plan
commence induction and site-specific training
hold mobilisation HSE audit.
During mobilisation the company and contractor assure that each sets up a method of operation that is in
accordance with the agreed HSE Plan. It is at this stage that implementation of the HSE Plan by the
contractor formally begins. For contracts under "Mode 1" strategy, the contractor's operations should be
fully compatible with the company's HSE-MS. For contracts under a "Mode 2" strategy, any HSE Plan
requirements should be integrated into the contractor's HSE-MS.
The company and contractor should confirm that each has deployed his supervisory staff and is
implementing the agreed-upon briefing and training for his supervisors and employees.
Depending on the circumstances, additional supervisory staff from the contractor may be required to
allow rapid set-up and implementation of the HSE Plan. The company and contractor may want to have
additional staff available to verify that the HSE Plans are fully implemented. This can be accomplished by
a joint company/contractor HSE field review or audit.
During the initial part of the mobilisation phase all key personnel assigned to the project should attend an
HSE orientation program that should be used to communicate the HSE Plan and any other significant
HSE aspects of the contract.
Progress meetings should then be used as a formal method of reviewing HSE implementation, along with
frequent walk-throughs by company personnel.
Aligning the various interests and areas of responsibility requires good working relationships between the
company and contractors, among contractors and between contractors and sub-contractors. This is
particularly true if the subcontractor activities are difficult to monitor (e.g. distributed work groups,
transportation).
Once mobilisation activities have commenced, the company should begin monitoring of the contractor's
pre-execution activities to assure the HSE Plan is implemented.
7.3 Mobilisation audit

In the final stages of the mobilisation, an audit or review against the projects HSE Plan should be
completed to determine whether the contractor has achieved the necessary targets stated in the HSE Plan
17
and whether mobilisation can be considered complete. This can be accomplished by a joint
company/contractor HSE field review or audit.
Achievement of HSE Plan targets for this stage should represent the first milestone of the project.
Usually, the extent of the audit depends on the level of risk associated with the activity. For a relatively
low risk contract, an audit may be conducted by means of a simple checklist. For high-risk contracts, a
more analytical approach may be used.
If the audit proves to be unsatisfactory, then the status of the contractor's progress should be carefully
reviewed. The options available at this stage are:
Minor deficiencies: the contractor should be requested to implement corrective action and the audit
repeated. It may be possible to allow this to take place in parallel with initiating the execution phase.
Serious omissions: the option of withholding permission to proceed or even terminating the contract
may be necessary.
To minimise the possibility that the company could be perceived as assuming responsibility for HSE
supervision, the results of the mobilisation audit are documented and processed through the contractor's
HSE-MS.
The mobilisation audit usually is structured against the elements of the HSE-MS or, more specifically
against the HSE Plan elements (as outlined in Appendix V).
18
8.
Execution
8. Execution
8.1 Objectives
The objectives of this phase are to assure that the work to be performed is conducted according to the
agreed-upon HSE Plan, and that additional HSE needs, identified during the work, are properly
addressed.
8.2 Responsibilities
The nature of the work determines the level of supervision necessary. For example, within or in close
proximity to operating plant, hazardous area zones or acknowledged high risk operations, more direct
company supervision may be required than on a new construction site or the contractors own premises,
i.e. MODU, lay barge, etc. Only in particular circumstances should contractors be directly supervised
because too much instruction/direction from the client tends to relieve the contractor of the
responsibilities stipulated in the contract.
Where responsibility for supervision rests with the contractor, the companys role should be to monitor
compliance to contractual terms and systems defined within the contract. Unless the contract holder has a
permanent presence on site, it is usual to appoint representatives from line management to monitor and
verify that contract HSE obligations are being met. The contract holder and representative should have
access to specialist HSE advice where needed, but accountability for contract HSE lies with the contract
holder. Responsibility may be delegated to the representative, but accountability needs to remain with the
contract holder.
8.3 Contractor compliance

The roles and functions of the company contract holder includes assurance of:
the contractors line management commitment to HSE issues
compliance with all HSE related clauses in the contract and the HSE Plan
the existence of contractors internal HSE control system
the contractors monitoring of the quality, condition and integrity of his Plan equipment and tools
the contractors holding of toolbox and regular HSE meetings
contractors implementation and participation in emergency exercises and drills
proper management of HSE risks which arise from changes to the Plan
compliance with incident and near-miss reporting, investigation and follow-up.
the resolution of interface problems between contractors.
An HSE audit and review programme should be prepared, stating specifically what is expected of the
company contract holder in ensuring that the HSE Plan is finalised and adhered to, together with details
of how the performance of the contractor is to be measured.
8.4
Competence assurance
During execution of the work, the company contract holder must monitor the continued competence of
the contractor. This refers to any associated training commitment undertaken. Where necessary, the
company should also determine if any additional competence assurance is needed as a result of local
circumstances. Monitoring should include a verification that the contractor complies with his
management system that may include:
19
competence and close monitoring of the replacement of personnel

provision of the necessary induction courses
training of contractor personnel in job related activities and procedures
completion of all agreed-upon HSE training, including any specified statutory training requirements
availability of HSE documents, instruction and information leaflets with special attention to use of
local language reinforced with simple visual messages.
8.5 Inspection and HSE auditing/reviews

Inspections and audits provide the methods for monitoring contractor HSE activities. Regular inspections
by company representatives provide a means of checking compliance with contract requirements. The
frequency of such inspections/verifications depends on the size of the work and the risks involved.
Auditing provides the more formal and comprehensive assessments of adherence to the HSE Plan.
Inspections and audits should be performed by both contractor and company. Joint inspection/audit
programs may have the advantage of aligning sometimes divergent objectives, enhancing common
understanding and promoting constructive participation.
Findings of inspections and audits should be shared between client and contractor with positive
commitment from both parties to use the findings for improving performance.
20
9.
De-mobilisation
9. De-mobilisation
9.1 Objectives
The objectives of this phase are to identify the hazards associated with demobilisation and identify and
implement controls to minimise the risks. The HSE Plan should be modified, if need be, to address new
or unexpected hazards.
9.2 Responsibilities
The contractor's HSE Plan should continue to be the vehicle for managing the HSE activities in this
phase.
Demobilisation often is a phase of the project having an increased chance of incidents as the project
infrastructure and contractor HSE management structures are being dismantled with people moving off
the project to new assignments. Assurance should be sought that the appropriate organisational structures
remain intact until associated activities have been completed. These should include:
emergency response
site restoration
waste management and disposal.
Due consideration should be taken of any learning points from mobilisation, the problems encountered
and solutions found.
The company and contractor should continue to monitor performance against the Plan, including
attention to incident reporting. It is important to maintain vigilance on HSE matters to the very end of
the contract. The close out report should be made after all activities have been completed.
21
22
10.
10.
Final evaluation and close-out
Final evaluation and close-out
10.1 Objectives
The objectives of this phase are to conduct a joint evaluation of the contractors and companys HSE
performance and to provide feedback to the contractor(s) and company which can be a reference for
future work.
10.2
Final evaluation and report
Contracts should be closed out with a report of HSE performance, providing feedback for future
knowledge and learning.
Ideally, HSE performance should be tracked on a regular basis throughout the contract with the final
report being the distillation of the regular monitoring process and the end of contract review. This may
take the form of a close-out meeting where all parties are represented. Thus, throughout the contract,
contractor performance should be monitored against Plan and any deviations, positive or negative,
annotated for reference in the close-out report/summary.
The format of the close-out report should reflect the agreed Plan and contractual obligations between the
company and the contractor(s). However, there should be sufficient flexibility to take account of mutually
agreed changes to the contract.
The analysis and summary of conclusions should address:
quality of the original HSE Plan and its relevance to the overall contractor(s) performance, stipulating
what was learned and how future contracts should be structured.
highlighting positive aspects of learning and how they can be applied in the future. This learning
should be shared with the contractor.
incorporation of any new hazards identified into the hazard identification and evaluation process for
future contracts.
analysis of both the client and contractors HSE performance for mutual improvement.
information on the contractor to be added as a reference for the client bid list and which may provide
advice for improvements in assessing future tenders.
The HSE close-out data should be recorded and made accessible for future reference. A documented
record of HSE Performance should be kept on each contractor.
The contractor will again be advised that his overall performance and HSE record will be taken into
account when being considered for future work.
23
24
APPENDIX I: HSE responsibilities for company and contractor key personnel
APPENDIX I: HSE responsibilities for company

and contractor key personnel
Company
Contract Holder should:
conduct a structured HSE assessment of the anticipated contract
pre-qualify contractors for the bidders list using standard HSE criteria
prepare contract HSE specifications for inclusion in the tender documentation
prepare an HSE monitoring programme defining the role of company representative(s) in ensuring
that the contractor's HSE Plan is finalised and followed
prepare company audit and review programme and secure appropriate resources
evaluate contractor's HSE Plans
assure the adequacy of the contractor's HSE Plan
appoint competent company representative(s)
supervise company representative(s)
conduct a pre-execution HSE audit
authorise the contractor to commence work if the pre-execution HSE requirements are met
monitor performance of the contractor against his HSE Plan
authorise deviations from the contractor's HSE Plan
authorise additional HSE requirements as deemed necessary
apply sanctions in the event of unauthorised deviations from the contractor's HSE Plan
prepare HSE close-out report and distribute to appropriate company and contractor personnel for
feedback
Company Representative should:
perform assurance checks on contractor's review and inspections and follow up
verify hazards and effects management controls, as specified in the contractor's HSE Plan, are
implemented
identify deficiencies in contractor's HSE Plan and agree to remedial action with contractor or
instigating sanctions in consultation with Contract Holder.
Company Site Representative:
Where a contractor may be working in a number of areas it is common for a company to nominate
someone who is responsible for the supervision of the physical work being executed under the contract at
a specific appointed site. The Site Representative's HSE responsibilities follow those of the company
Representative, but are specific to the site.
25
Company HSE Adviser:

Where there is access to company HSE advisers or specialists, it is important that the role of the adviser is
understood to be indeed that of an adviser. Advice, support or services may be sought from an HSE
Adviser on a routine or periodic basis but the responsibility for HSE matters must remain unmistakably
with the Contract Holder and Representatives.
Normally, the HSE adviser provides:
advice and support in HSE issues as requested
review/audit services as requested
additional advisory support, where needed, to small contractors.
In the case of a small local contractor a decision may have been taken to provide additional supervisory
support and assistance in HSE matters. The company HSE Adviser and related specialists may be tasked
with providing support but must exercise care (unless otherwise provided for by the contract or agreed to
in the HSE Plan) that this is recognised as a temporary phase and that the contractor must be encouraged
to develop quickly to a point where such assistance is no longer required.
Contractor
Contractor Manager should:
prepare and assure quality of contractor's HSE Plan
define competencies required for HSE critical positions
assign appropriate personnel to HSE critical positions
assure adequate resources and time in the schedule to manage the contract in accordance with the
contractor's HSE Plan
notify the Contract Holder in writing of his nominated contractor representative(s) and contractor Site
Representative(s)
provide resources to implement remedial actions following audits in an expeditious manner.
Contractor Representative should:
fulfil the pre-execution HSE requirements
implement the contractor's HSE Plan
seek formal approval from the Contract Holder for any proposed deviations from or amendments to
the contractor's HSE Plan
implement additional requirements as agreed upon with the Contract Holder.
Contractor Site Representative:
Where a contractor may be working in a number of areas it is common for the contractor to appoint a
person or persons to assume responsibility on behalf of the contractor representative to supervise the work
being executed under the contract in the specific area. The HSE responsibilities are as for the contractor
representative but with responsibility for a specific site.
26
APPENDIX II: Definition of consequence - severity of risk
APPENDIX II: Definition of consequence severity of risk

People (Fatalities, Injuries and occupational health)
Potential
Definition
Impact
No
No injury or damage to health.
injury/illness
Assets*, Equipment
Potential
Definition
Impact
Zero
No damage to
equipment.
Slight
injury/illness
Not detrimental to individual employability

or to the performance of present work.
Agents which are not hazardous to health.
Slight
damage
Minor
injury/illness
Detrimental to the performance of present

work, such as curtailment of activities or
some days absence to recover fully,
maximum one week.
Agents which have limited health effects
which are reversible, e.g. irritants, many
food poisoning bacteria.
Minor
damage
Major
injury/illness
Leading to permanent partial disablement

or unfitness for work or detrimental to
performance of work over extended
period, such as long term absence.
Agents which are capable of irreversible
damage without serious disability, e.g.
noise, poorly designed manual handling
tasks.
Local
damage
Plant partly
down; process
can (possibly) be
restarted.
(estimated cost
of repair below
$1,000,000).
Single
fatality/
permanent
total
disability or
unfitness for
work (small
exposed
population)
Also includes the possibility of multiple

fatalities. (maximum 3) in close
succession due to the incident, e.g.
explosion.
Agents which are capable of irreversible
damage with serious disability or death
e.g. corrosives, known human
carcinogens.
Major
damage
Partial loss of
plant; plant shut
down (for at
most two weeks
and/or estimated
repair costs
below
$10,000,000)
Multiple
fatalities
May include four fatalities in close

succession due to the incident or multiple
fatalities (four or more) each at different
points and/or with different activities.
Agents with potential to cause multiple
fatalities, e.g. chemicals with acute toxic
effects (e.g. hydrogen sulphide, carbon
monoxide), known human carcinogens.
Extensive
damage
Total loss of the

plant; extensive
damage
(estimated cost
of repair exceeds
$10,000,000)
Severity
Rating
0
No disruption to
the process,
minimum cost of
repair (below
$10,000).
Possible brief
disruption of the
process; isolation
of equipment for
repair (estimated
cost below
$100,000)
*Assets are understood as referring to: the oil and gas reservoirs, production facilities, pipelines, money,
capital, and other company, contractor and third party property.
27
Severity
Environment
Potential
Definition
Impact
Contamination
(litres)
Sensitive
areas
Offshore
Several
Zero
effect
No financial
consequences; no
environmental risk
Slight
effect
Negligible financial
consequences; local
environmental risk;
within the fence and
within systems
<10
Minor
effect
Contamination;
damage sufficiently
large to attack the
environment; single
excedence of statutory
or prescribed criteria;
single complaint; no
permanent effect on
the environment
Local
effect
Reputation
Potential
Definition
Impact
Zero
impact
No public awareness
0-100
Slight
impact
Public awareness of
the incident may
exist; there is no
public concern
<100
100-1,000
Limited
impact
Some local public

concern; slight local
media and/or local
political attention
with potentially
negative aspects for
company operations
Limited loss of
discharges of known
toxicity; repeated
or prescribed limit and
beyond
fence/neighbourhood
1001,000
1,00010,000
Considerable
impact
Regional public
concern. Extensive
negative attention in
local media; slight
national media
and/or local/regional
political attention
with possibly
negative stance of
local government
and/or action groups
Major
effect
Severe environmental
damage; the company
is required to take
extensive measures to
restore the
contaminated
environment to its
original state. Extended
or prescribed limit
1,00010,000
10,000100,000
Major
national
impact
National public
concern. Extensive
national media
and/or regional
national policies
with potentially
restrictive measures
and/or impact on
grant of licences,
mobilisation of
action groups.
Massive
effect
Persistent severe
environmental damage
or severe nuisance
extending over a large
area. In terms of
commercial or
recreational use or
nature conservancy, a
major economic loss for
the company. Constant
high excedence of
statutory or prescribed
limit.
>10,000
>100,000
Major
international
impact
International public
attention. Extensive
international media
and
national/internation
al policies with
potentially severe
impact on access to
new areas, grants of
licences and/or tax
legislation
*Incidents relating to air, noise, smell, light and soil vibrations should be addressed on the
basis of expert judgement and, in the case of uncertainty, local expertise may be called in.
28
APPENDIX III: Contractor Hse pre-qualification.
APPENDIX III: Contractor HSE prequalification.

General guidelines for preparation of questionnaire
1. The questionnaire should cover the information required to assess the extent to which HSE and its
management are organised by the contractor.
2. The contractor should be advised to cover all (including support) relevant activities and not just those
conducted on company sites.
3. The questionnaire should be validated by a responsible contractor line manager prior to submission.
4. Emphasis should be placed on the need for complete answers substantiated by supporting
documentation as far as is practicable. Responses and any supporting documentation must relate
specifically to the policy and organisational arrangements of the company that would be the signatory
of any contract.
5. Submissions should be assessed by a scoring mechanism that can be used in the evaluation process.
6. If necessary, follow-up discussion with the contractor's management may be needed.
7. The contractor should be encouraged to identify where he exceeds company requirements and this
excellence should be recognised.
Table III
Questionnaire for contractor HSE pre-qualification
Questionnaire items
Section 1: Leadership and Commitment
(i) Commitment to
HSE through
leadership
Responses
a) How are senior managers personally involved in

HSE management?
b) Provide evidence of commitment at all levels of
the organisation?
c)
How do you promote a positive culture towards

HSE matters?
Section 2: Policy and Strategic Objectives

(i) HSE policy
documents
a) Does your company have an HSE policy

document?
If the answer is YES please attach a copy.

b) Who has overall and final responsibility for HSE
in your organisation?
c)
Who is the most senior person in the

organisation responsible for this policy being
carried out at the premises and on site where his
employees are working?
Provide name, title and experience.

(ii) Availability of
policy statements
to 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?
29
Table III
Questionnaire for contractor HSE pre-qualification (cont.)
Questionnaire items
Responses
Section 3: Organisation, Responsibilities, Resources, Standards and Documentation
(i) Organisation commitment and
communication
a) How is management involved in HSE activities,

objective-setting and monitoring?
b) How is your company structured to manage and
communicate HSE effectively?
c)
What provision does your company make for

HSE communication meetings?
(ii) Competence and

Training of
managers/
supervisors/senio
r 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?
(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?
If YES please give details. Where the training is

given in-house please describe the content and
duration of courses.
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.)
(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?
(v) HSE qualified

staff - additional
training
30
Does your company employ any staff who

possess HSE qualifications that aim to provide
training in more than the basic requirements?
Table III
Questionnaire items
Responses
Section 3: Organisation, Responsibilities, Resources, Standards and Documentation (cont.)
(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)
(vii) Standards
How do you ensure these standards are met and

verified?
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?
Section 4: Hazards and Effects Management
(i) Hazards and
What techniques are used within your company
effects
for the identification, assessment, control and
assessment
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 preemployment and random testing?
31
Table III
Questionnaire items
Section 5: Planning and Procedures
(i) HSE or
operations
manuals
a) Do you have a company HSE manual (or

Operations Manual with relevant sections on
HSE) which describes in detail your company
approved HSE working practices relating to your
work activities?
If the answer is YES please attach a copy of

supporting documentation.
b) How do you ensure that the working practices
and procedures used by your employees on-site
are consistently in accordance with your HSE
policy objectives and arrangements?
(ii) Equipment
control and
maintenance
How do you ensure that plant and equipment

used within your premises, on-site, or at other
locations by your employees are correctly
registered, controlled and maintained in a safe
working condition?
(iii) Road Safety

Management

combating road and vehicle incidents?
Section 6: Implementation and Performance Monitoring

(i) Management
a) What arrangements does your company have for
and performance
supervision and monitoring of performance?
monitoring of
b) What type of performance criteria are used in
work activities
your company; give examples
c)

passing on any results and findings of this
supervision and monitoring to your:
i) base management
ii) site employees?
(ii) HSE
performance
achievement
awards
Has your company received any award for HSE

performance achievement?
(iii) Statutory
notifiable
incidents
/dangerous
occurrences
Has your company suffered any statutory

notifiable incidents in the last five years (safety,
occupational health and environmental)?
(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?
(Answers with details including dates, country,

most frequent types, causes and follow-up
preventative measures taken.)
(If your answer is YES please give details.)
32
Responses
Table III
Questionnaire items
Section 6: Implementation and Performance Monitoring (cont.)
(v) HSE
a) Have you maintained records of your incidents
performance
and HSE performance for the last five years?
records
(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 for each year. (NOTE:
Please include your company definitions of a the
above mentioned terms - for clarification refer to
the E&P Forum Safety Performance Accident
Data Report.)
Responses
b) How is health performance recorded?

c)
How is environmental performance recorded?
d) How often is HSE performance reviewed? By

whom?
(vi) Incident
investigation and
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 learnings 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?
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
33
34
APPENDIX IV: HSE pre-qualification points system.
APPENDIX IV: HSE pre-qualification points

system.
Scoring
The contractor's tender should be evaluated by attaching a score to the selected response for each category
(see Appendix III).
A suggested scoring system would be as follows (see Table II.1):
HSE Plan documentation (Sections 1 to 5, 7 and 8):
A
10
Performance and experience factors (HSE incidents) (Section 6):

0
14
20
Elements scoring 0 should normally disqualify a contractor from being included in a pre-qualification list.
Any elements rated so must be highlighted as a qualification on the tender if it is still to be considered.
Table IV
Rating of contractors' pre-qualification by a point scoring system (headings and item

numbers refer to Appendix III)
A
B
Section 1: Leadership and Commitment
Commitment to HSE through leadership: Item 1(I)

No commitment from
senior management
HSE disciplines delegated

to line managers - no
direct involvement by
senior management
Section 2: Policy and Strategic Objectives
Evidence of active senior

management
involvement in HSE
aspects
Evidence of a positive
HSE culture in senior
management and at all
levels
HSE policy documents and availability: Items 2(I) and 2(ii)

No written HSE policy
A policy statement exists

but not in a widely
distributed document
HSE policy establishes

responsibility for HSE, but
not widely distributed
Policy with clearly

established responsibility
and accountability; is
distributed to all
employees; and is visible
on notice boards
35
Table IV
Rating of contractors' pre-qualification by a point scoring system (cont).
A
B
C
Section 3: Organisation, Responsibilities, Resources, Standards and Documentation
HSE communication and meeting programmes: Item 3(i)

None
Periodic HSE meetings

for special operations
only
HSE meetings performed

on a regular basis at
management and
supervisor level
In addition to C,
employees are assigned
topics to discuss on a
rotational basis
HSE training applied to

management but not
comprehensively covered
HSE training given

formally to all relevant
staff on their respective
responsibilities
Staff HSE training Item 3(ii)

No specialised staff
training
HSE training assigned to

a specific person on
location
Employee orientation and training programme: Item 3(iii)(a) - (d)

Verbal instructions on
company procedures only
Orientation booklet
provided for new
employees but no on-thejob orientation by
supervisor
Specialised training: Items 3(iv) (a) and (b) and 3(v)
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
No HSE training
established
HSE training is given for

specialised operations,
but no routine training
conducted
Formal HSE training

programmes have been
developed in all areas
and are conducted on a
regular basis. Retraining
periods are established
HSE arrangements
incorporated in HSE
manual but not in a
format which is
distributed to all
employees
HSE arrangements exist

in handbook form,
distributed to all
employees,
subcontractors, subcontractor employees
and are enforced. Followup audits held with
discussion/feedback to
management and
employees
Contractor has written

HSE standards to cover
all hazardous operations
Contractor has a system

of specifying, monitoring
compliance and updating
standards
No formal programme
On-site basic training

conducted occasionally
Subcontractors: Item 3(vi) (a) - (c)

No written arrangements
Written arrangements in
place for basic HSE
matters only
Standards : Items 3(vii) (a) - (c)

No HSE standards
available
36
Basic HSE standards exist
Table IV
A
B
Section 4: Hazards and Effects Management
Company's HSE system

includes methods for the
assessment of major
hazards and effects

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
Hazards and Effects Assessment : Item 4(i)

does not include hazards
and effects assessment

makes reference to the
need to assess hazards
and effects but has no
comprehensive structure
to carry this out
Exposure of the workforce: Item 4(ii)

Company has a set of
formal methods for
monitoring exposure to
all foreseeable hazards
(linked to its hazards and
effects assessment
method) and applies
them to all contracts
Potential Hazards (chemical, physical and biological hazards such as noise, radiation, vapours, fumes,
temperature extremes etc.): Item 4(iii)
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 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 individuals
in the workforce at start
of their involvement onsite
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.
PPE requirements
formally assessed with
spot checks on usage
Procedures in place to
assess all PPE
requirements, monitor
and enforce usage and
replacement needs. Stock
inventories monitored,
kept above demand
levels. Training in use
provided where needed
Company has procedures

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

system for waste
management (including
identification,
minimisation and
classification), which
actively seeks to minimise
environmental impact
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
Waste management: Item 4(v)

Company has no formal
methods for the control
of waste
Company has general

procedures for waste
disposal
37
Table IV
A
B
Section 5: Planning and Procedures
HSE or operations manuals : Item 5(I) (a) and (b)
No HSE procedures
available
Basic HSE procedures

exist
Contractor has written

HSE procedures to cover
all hazardous operations
Equipment control and maintenance : Item 5(ii)

A written programme
Plan relies on outside
No defined programme
outlining supervisory
sources, i.e. company
to identify or evaluate
guidelines,
inspections. Supervisory
hazardous practices and
responsibilities, frequency
inspection of equipment
equipment conditions
and follow-up is in effect
confined to worksite
personnel only
Road Safety Management : Item 5(iii)
No special attention paid Importance of road safety Company has a general
management strategy
to road safety as an area acknowledged but left to
with some procedures for
of hazardous activities
core business
its component issues
managers/supervisors to
enact individually
Section 6: Implementation and Performance Monitoring
Management and performance monitoring of work activities : Items 6(i) and 6(ii)
No system for formally
monitoring HSE
performance
Company has a system

for monitoring HSE
performance in key areas
Contractor has
procedures to cover all
HSE precautions, typical
contractor HSE Plan
requirements with a
system of updating and
dissemination to
employees
In addition to C, periodic
inspections conducted by
top management or by
teams of specialists
Company has a complete

strategy and set of plans
and procedures covering
vehicles, drivers and
operations management
Company has a
comprehensive system for
monitoring performance
in all areas with feedback
to employers for
improvement and has
received awards for
achievement
Statutory notifiable incidents, dangerous occurrences, improvement requirements and prohibition notices:
Items 6(iii) and 6(iv)
More than one
One occurrence of a
Occurrences relate to
No occurrences in the
occurrence of major
major incident in the last minor incident(s) only
last five years
incident in last five years
five years
HSE Performance records (Latest year injury rate comparison to contractors three preceding years
average) : Item 6(v) (a) - (d)
Rate is not improving
Shows only minor rate
Rate steadily improving
Contractor supplied
improvement
by more than 20 per cent
insufficient information to
per year
establish rate or rate
increases
Criteria for absolute performance
Rate over 200 per cent
Rate under 200 per cent
Rate under 120 per cent
Rate better than that of
that of company
that of company
that of company
company
Incident Investigation and reporting : Item 6(vi) (a) - (c)
Findings communicated
As in C but with the
Findings not generally
Findings communicated
to all employees via
addition of details of
communicated
to key personnel only via
specific company notice
implication for improving
limited company internal
HSE performance
memo or similar media
38
Performance monitoring
in a few areas carried out
Table IV
A
Section 7: Auditing and Review
Auditing: Item 7(i) (a) - (c)
Company HSE
documents include
reference to auditing but
there are no specific
details about scheduling
and coverage
Section 8: HSE Management - Additional Features
Audit process is cursory
only - HSE documents
are not explicit about
auditing
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 followup on action items
Company is a member of
at least one HSE
association
Company is an active
participant in at least one
HSE association
Membership of Associations : Items 8(i) and 8(ii)

No memberships
Company has
membership of at least
one association but with
no prominence given to
HSE
39
40
APPENDIX V: HSE Plan guideline for major contracts.
APPENDIX V: HSE Plan guideline for major

contracts.
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 V.1 to V.7 can be used 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 V.1 to V.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.
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)
41
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
42
Detailed checklists for HSE Plan

Table V.1 Checklist for HSE Plan: Section 1 Leadership and commitment
Checklist items
Leadership and commitment
Commitment to
Senior management should engender commitment to HSE issues
HSE aspects
at all levels through their personal style of leadership and
through leadership 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.
Checked
Table V.2 Checklist for HSE Plan: Section 2 Policy and Strategic Objectives
Checklist items
HSE policy statement
General
Written HSE policy
Dated and signed by Chief Executive
Policy statements:
specific to individual parts of the contract (e.g.
locations/sites/plants)
cover specialised aspects (e.g. alcohol and drugs)
consistent with company guidelines
clear, concise and motivating
Content
Importance of HSE as a contract objective
Checked
Incidents and injuries are unacceptable

HSE established as a line management responsibility
Everyone is responsible for their own and their colleagues' HSE at
work
Distribution/
availability
Discussion
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)
Policy and its implementation when issued discussed by line
managers with each employee
43
Table V.3 Checklist for HSE Plan: Section 3 Organisation, Responsibilities, Resources, Standards
and Documentation
Checklist items
HSE organisation
Key personnel
Personnel responsible for the implementation of HSE objectives

clearly identified in an organisation chart
Responsibility adequately covered during all phases of the
contract
Job descriptions in place showing each team member's HSE
competencies, responsibilities and function
Organisation clearly shows position of HSE professionals
Contract
objectives/
accountability
Defined to meet health, safety and environmental objectives as

well as those of time, cost and quality
Accountability for HSE success and equally of any failure clearly
stated
Focal point within the team structure ensuring that all HSE
matters have been identified
Designated team leader to produce HSE objectives, tasks and
targets for the contract
Targets, etc. to be realistic and consistent
Establish procedures for distribution, reporting and reviewing HSE
issues
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 contractor's corporate organisation, individuals charged
with responsibility for HSE at middle senior manager or board
member level
Access to specialist HSE advice for line management, e.g.
provision of HSE documentation for small contracts
employment of HSE specialist for large contracts
44
Checked
and Documentation (cont.)
Checklist items
HSE professionals
Job definition
Checked
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
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-aiders etc.
emergency drills and exercises
protective equipment and rescue
Contact and liaison with government departments maintained
Subcontractors
Management
To be well integrated and identified in contract HSE Plans

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
45
Checklist items
HSE communications
Coverage/
Set up appropriate lines of communication to handle HSE issues,
awareness
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

Strengthened, duplicated or backed up by other means
HSE meeting programme

Scheduling
Contractor to establish a regular schedule for HSE meetings
Define responsible management person for scheduling such
meetings
Procedure to maintain records of personnel attendance
Management
participation
Meeting structure
Managers seen to be involved by employees in:

HSE activities, objective setting and monitoring
taking action and providing resources to support their stated
policies and objectives
HSE meeting structure
Effective to manage and communicate on HSE
Allow employees full involvement and their own ideas to be heard
Typical agenda and meeting formats
46
Checked
Checklist items
HSE meeting programme (cont.)
Follow-up actions
Meeting actions
Checked
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
Performance
How this is to be implemented, e.g.

personal contact
interactive video
notice-boards
newsletters (suitable for large sites)
bulletins
posters
HSE performance boards (e.g. at worksite gates)
Promotional
methods
Possibilities include:
small 'give-aways' with the HSE message
competitions
suggestion schemes
Part of business
HSE activities seen as an intrinsic part of running an efficient
business rather than a costly and time-consuming 'extra'
HSE competence requirements
Fitness of
Confirmation of medical fitness from a recognised and approved
personnel
medical facility of all proposed employees for contract
Employee orientation programme
Approach
Provision of a comprehensive handbook for all new employees
On-the-job orientation for supervisory staff
Established procedure in relation to follow-up of all new
employees at the worksite
New employees
Adequately trained and confident of their own abilities

Coached to improve their work practices rather than blamed for
mistakes
Accountability
Employees know they are accountable for HSE performance

Aware that their HSE performance is part of the contractor's
appraisal and reward system
Know that flagrant or frequent breaks of published HSE rules will
result in disciplinary action
47
Checklist items
Employee orientation programme (cont.)
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
Supervisory
training
Including:
HSE management
job procedures
road safety
health (first-aid health hazards, medical services, alcohol and
drugs, health promotion, use of PPE)
auditing
incident investigation and reporting
HSE adviser skills
supervisory development
HSE meetings
environmental protection
Supervisory development training promotes man-management
skills and communication skills
Formalised
programme
Formal HSE orientation programme for employees working onsite

Records kept of employees who have been through the
programme
Employees trained before starting work
Training covers those joining as a contract is being implemented
Coverage
Supervisors'
participation
Course content
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
Supervisors required to brief and debrief staff before and after
training courses
Effective system for establishing the need for and the content of
training courses
Determining course effectiveness and relevance of training
assessed
48
Checked
Checklist items
HSE training (general) (cont.)
Specialised
Relevant training given to personnel prior to the execution of
training
hazardous operations
Checked
Training gained through course attendance supplemented by onthe-job training as necessary

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

employees' responsibilities in an emergency
HSE content in
other courses
HSE included in:

induction courses
craft training
supervisory training
line management training
auditing techniques
HSE training (Professionals)
Selection
Procedure in place for introducing competent HSE personnel on
to the contract
Criteria used by the contractor to select his HSE supervisory staff
(e.g. career development, professional status)
Training
Training is received by HSE professional

Required specialisation (e.g. drilling, radiation, chemicals..)
Qualifications
HSE legislation
Coverage
Appropriate levels of:

institute training
HSE management
Knowledge and experience of the contractor's HSE professional:
match for competence for the job being carried out
match for the advice required
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
Waivers
For contracts carried out in separate countries:

different legislation requirements
company assistance for foreign contractors
Procedure for seeking waivers indicated
49
Checklist items
HSE standards.
Availability
Control/
authorisation
Coverage
50
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
Controlled documents
Updated regularly
Approval level indicated
Procedure for obtaining deviations from standards
Responsibility for authorisation
Mechanism for recording approved deviations
Clear reference to national and international standards
Setting minimum requirements on health, safety and
environmental issues
Checked
Table V.4 Checklist for HSE Plan: Section 4 Evaluation and Risk Management
Checklist items
Methods and procedures for hazards and effects management
Coverage
Company assessment used as a starting point with additional
hazards identified by the contractor
Checked
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
All processes identified that require use of PPE..
assessment/
Statutory requirements similarly identified
PPE requirements
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
51
Table V.5 Checklist for HSE Plan: Section 5 Planning and procedures
Checklist items
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
Deviations
Written procedures:
familiar to all employees including subcontractors
available in their working language..
contents related to individual job descriptions..
Procedure for obtaining
Responsibility and level
Recording of authorised deviations
Omissions
Identify whether there are any areas where procedures for

hazardous operations are not drafted
Commitment to prepare
Permit to work
(PTW)..
System in place
Training/
qualification
Training standards and qualifications set for personnel allowed to

implement procedures
Basic HSE rules

Availability
Set of rules available and distributed to all employees
If the contractor's own system is utilised, is it consistent with

industry norms and in line with company guidelines?
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
Involvement of users
52
Checked
Table V.5 Checklist for HSE Plan: Section 5 Planning and procedures (cont.)
Checklist items
Emergency response procedures
Coverage
Identification of potential major emergency scenarios, and
procedures to use in such scenarios, e.g.
fire
abandon rig/location
storm
oil/chemical.. Spill
aircraft incident
emergency communications
Medevac
blow-out
diving emergency
search and rescue (SAR)
explosions
H2S
well control
man overboard
evacuation
terrorism
Potential use of 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
Checked
Recovery procedures in place to be activated in event of

emergency scenarios
Drills to be held to demonstrate preparedness for response
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
Critical items for

HSE inspection
Requirements identified for each item of HSE equipment,

including:
registry
classification
licensing
survey
test certification
List drawn up of critical items of equipment that must be the
subject of an HSE inspection
Procedure established for carrying out HSE inspection of
equipment (covering health, safety and environmental aspects to
be reviewed)
Procedure established for checking standards where tools have
been provided personally by tradesmen
53
Checklist items
HSE equipment and equipment HSE inspection (cont.)
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
Hygiene and
housekeeping
54
Promotional material available to assist in maintaining standards

Appropriate for the contractor's workforce in terms of:
language..
clarity, etc.
Procedure on on-site cleanliness and maintenance
Checked
Checklist items
Environmental
Awareness
Control
Checked
Workforce aware of requirement to protect the environment whilst

executing contract
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
Road Transport.
Drivers :
competence and
selection
Assess physical, mental and psychological capability

Character and background
Qualities and experience, medical examination, document
checks, driving tests
Special skills such as terrain and climatic experience and first-aid
knowledge
Driving Permits
Should record personal and employment details, types of vehicle

licensed to drive and types of cargo licensed to carry
Driver induction
Local area characteristics and regulations
Driver training
This should test vehicle operation and use, operating conditions

(terrain, climate), off-loading and positioning, emergency
situations, and vehicle inspection
Driver
improvement
Techniques should identify deficiencies, analyse causes and

select appropriate retraining
55
Checklist items
Road Transport (cont.)
Vehicle:
selection
Ensure correct type, capacity and size for facilities

Good manoeuvrability and serviceability
Vehicle
specification
The job description should be clearly defined before the vehicle is

chosen, to ensure work operations do not exceed the
manufacturer's specifications
Safety equipment and communications on board the vehicle
need to be checked
Passengers
Is the vehicle designed to carry passengers?
Freight
Design of vehicle and load limits

Segregation, positioning and securing of freight
Vehicle
maintenance
Ops management:
need and approval
Conducted on a regular basis
Define the journey and justify the need

Awareness of hazards involved
Allocation of vehicles, written authorisation, verification of
employees' driving standards
journey routing
and scheduling
Full awareness of route (hazards, conditions)
Journey
management
Roles and
responsibilities
Logging of actions
Contracting
Pre-qualification of contractors and contractor HSE management

treating road transport with equal importance to main activity
Realistic schedules
Roles and responsibilities defined for management, supervisors,

drivers, passengers
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
56
In place and tested
Checked
Table V.6 Checklist for HSE Plan: Section 6 Implementation and Performance Monitoring
Checklist items
HSE performance General
Measurement
Proposed plan to measure performance, i.e.
performance indicators
progress against targets..
HSE initiatives/incentive schemes..
achievement of milestones..
numbers and types of training courses
numbers and results of audits
clearance of action items
Use will be made of reactive statistical indicators, e.g.
Lost Time Injury Frequency/Total Recordable Incident Rate
numbers of first-aid and minor injuries..
material losses
vehicle incidents
spillages
occupational illnesses
sickness absenteeism
Feedback/analysis
Availability and use of performance records
Checked
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
Methods
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
Incident investigation method established to determine and
correct causes
Incidents first reported to the direct supervisor
Incident investigation teams led by the relevant managers
Differentiation made between numbers of first-aid treatments and
other minor injuries
Procedure in place on vehicle incidents
Methods to be used for collecting incident statistics
57
Table V.7 Checklist for HSE Plan: Section 7 Auditing and Review
Checklist items
HSE auditing
Availability
Scope
Coverage
Established HSE procedure outlining responsibilities, frequency,

methods and follow-up
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
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
58
Checked
APPENDIX VI: HSE Plan guideline for small contracts.
APPENDIX VI: HSE Plan guideline for small

contracts.
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
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 are:
organisation and personnel for the project
project specific procedures
project audit and review Plan
compliance with local rules and legislation
etc.
Table VI.1 Checklist for HSE Plan

Leadership and
commitment
Checklist items
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.
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.
Checked
A procedure for determining/enacting HSE training. Provision for

obtaining HSE advice should this be outside the capability of the
contractor's personnel.
Simple procedure for ensring any subcontractor adheres to same
HSE standards..
Simple advice on the importance of the links with client (or third
party) emergency services on contracts.
Typical agenda for any HSE items in meetings and how to ensure
they are covered effectively.
59
Table VI.1 Checklist for HSE Plan (cont.)

Organisation,
Responsibilities,
Resources,
Standards and
Documentation
(cont.)
Hazards and
Effects
Management
Planning and
Procedures
Checklist items
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
security
basic HSE rules
legislative requirements
occupational health
HSE targets set in clear quantifiable terms

a system in place to assess workplace hazards
Contractor has a document with simple procedures/rules covering

the HSE issues in his business activities with a method for review
and update. This should include the following:
HSE hazard awareness
Basic HSE precautions to be observed in the workplace
HSE hazards of tasks and operations encountered in his
business
HSE hazards of equipment used
Use of PTW system
Communications with supervisory personnel on site
Contractor has a document that:
outlines the activities of his business
identifies those areas that are HSE-critical
finds a method how individual contract scopes can be simply
appraised to determine where the attention to HSE issues
need to be focused
identifies how to determine PPE requirements
identifies a simple set of steps for road transport
management
Implementation
and Performance
Monitoring
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
60
Contractor has a method for the management to carry out simple

audits of his contract operations
Checked
APPENDIX VI: HSE Plan guideline for small contracts.
Small Contract Typical HSE Plan Proforma

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

Category
General
Item
Details
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.)
61
62
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Task Force Membership

Overview of process .....................................................................................................3

10. Final evaluation and close-out ...................................................................................23

APPENDIX I: HSE responsibilities for company and contractor key personnel............... 25

Historically the contractor

LTIF performance of E and P companies and contractors

HSE Management - Guidelines for working together in a contract environment

1.2 Interrelationship with other systems

Figure 3. Phases of the contracting process

Joint completion of HSE and execution plans

Review of de-mobilisation HSE plans

Final evaluation and report

HSE Management - Guidelines for working together in a contract environment

3.2 Description of work

3.3 Risk identification

HSE Management - Guidelines for working together in a contract environment

Exposure to negative publicity.

Figure 4. Risk assessment matrix

Slight health Slight

Slight effect Slight impact

Minor health Minor

Major health Localised Localised

Manage for continuous

On an offshore production platform, a modification requiring welding and grinding has to

3.5 Contract schedule

HSE Management - Guidelines for working together in a contract environment

Purpose and responsibilities

Standard pre-qualification documents

HSE Management - Guidelines for working together in a contract environment

From pre-qualification to selection

Bid documentation prepared by company

HSE Management - Guidelines for working together in a contract environment

Contractors should be allowed the freedom to use industry HSE guidelines/recommended

5.3 Bid preparation by contractor

5.4 Pre-award meetings

5.5 Incentive schemes for HSE

5.6 Contract award

HSE Management - Guidelines for working together in a contract environment

6.2 Kick-off meeting

HSE Management - Guidelines for working together in a contract environment

6.3 Pre-job audits

7.3 Mobilisation audit

HSE Management - Guidelines for working together in a contract environment

8.3 Contractor compliance

HSE Management - Guidelines for working together in a contract environment

competence and close monitoring of the replacement of personnel

8.5 Inspection and HSE auditing/reviews

HSE Management - Guidelines for working together in a contract environment

Final evaluation and close-out

Final evaluation and close-out

Final evaluation and report

HSE Management - Guidelines for working together in a contract environment

APPENDIX I: HSE responsibilities for company and contractor key personnel

APPENDIX I: HSE responsibilities for company

HSE Management - Guidelines for working together in a contract environment

Company HSE Adviser:

APPENDIX II: Definition of consequence - severity of risk