291

policy and
strategic
objectives
organisation,
resour
esources and
documentation
review
leadership
and
commitment
evaluation
and risk
management
HSE management
- guidelines for
working together
in a contract
environment
implementation
and monitoring
planning
Report No. 6.64/291

September 1999
IMCA
ublication s
Global
experience
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E&P Forum) has access to a wealth of technical knowledge and
experience with its members operating around the world in many
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for the industry to use as guidelines for good practice by individual
members.
Consistent high quality database and

guidelines
Our overall aim is to ensure a consistent approach to training,
management and best practice throughout the world.
The oil and gas exploration and production industry recognises the
need to develop consistent databases and records in certain
fields. The OGPs members are encouraged to use the guidelines
as a starting point for their operations or to supplement their own
policies and regulations which may apply locally.
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information
Many of our guidelines have been recognised and used by
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governments
and
non-government
organisations around the world as well as from non-member
companies.
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Whilst every effort has been made to ensure the accuracy of the
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HSE management - guidelines

for working together in a
contract environment
Report No:
6.64/291
September
1999
These guidelines have been prepared for OGP by the Safety, Health and Personnel
Competence Committee (SHAPCC), through its Contractor HSE Task Force, in consultation
with the International Association of Geophysical Contractors (IAGC), and the International
Marine Contractors Association (IMCA), who both endorse the use of these guidelines.
Task
Force
membership
R Kratsas
Arco
R Moschetta
Arco
C Preston
R Shields
Baker
Hughes
BG Plc
D Laing
BP Amoco
ER Moir
BP Amoco
L Simpson
BP Amoco
M Alexander
Chevron
TL Thoem
Conoco
Y Guenard
Elf E&P
JL Monopolis
Esso
D Krahn
IADC
M Covil
IAGC
JC Sanchez
PDVSA
B Stene
P Mann
Saga
Petroleum
Saga
Petroleum
Schlumberge
r
Shell
R Sykes
Shell
G Van der
Graaf
HJ Grundt
Shell
P Guyonnet
Total
LA Tranie
Total
DK Hide
OGP
A Kjelaas
G Kubala
Chairm
an
Chairm
an
Statoil
Secreta
ry
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.
International Association of Oil & Gas
Table of contents
Purpose/Intent...........................................................................................................................................
.......................... ii
Description .............................................................................................................................................
.......................... ii
1 Introduction
1.1 Background
...................................................................................................................................................................
1
1.2 Interrelationship with other systems
..............................................................................................................................2
2 Overview of process
3 Planning
3.1 Objectives
...................................................................................................................................................................
...4
3.2 Description of work
.......................................................................................................................................................4
3.3 Risk identifcation
.........................................................................................................................................................4
3.4 Contracting strategy
......................................................................................................................................................5
3.5 Contract schedule
..........................................................................................................................................................6
4 Pre-qualification
4.1 Objective
...................................................................................................................................................................
....7
4.2 Purpose and
responsibilities...........................................................................................................................................
7
4.3 Standard pre-qualifcation documents
...........................................................................................................................7
4.4 Screening
...................................................................................................................................................................
....8
4.5 From pre-qualifcation to selection
................................................................................................................................8
5 Selection
5.1 Objective
...................................................................................................................................................................
....9
5.2 Bid documentation prepared by company
.....................................................................................................................9
5.3 Bid preparation by contractor
......................................................................................................................................10
5.4 Pre-award meetings
.................................................................................................................................................... .10
5.5 Incentive schemes for HSE
.......................................................................................................................................... 11
5.6 Contract award
............................................................................................................................................................ 11
6 Pre-mobilisation activities
12
6.1 Objectives
...................................................................................................................................................................
.12
6.2 Kick-off
meeting.....................................................................................................................................................
.....12
6.3 Pre-job
audits.........................................................................................................................................................
......13
7 Mobilisation
14
7.1 Objectives
...................................................................................................................................................................
.14
7.2 General
...................................................................................................................................................................
...14
7.3 Mobilisation audit
....................................................................................................................................................... 15
8 Execution
16
8.1 Objectives
...................................................................................................................................................................
.16
8.2 Responsibilities
........................................................................................................................................................... .16
8.3 Contractor compliance
............................................................................................................................................... .16
8.4 Competence
assurance.................................................................................................................................................
17
8.5 Inspection and HSE auditing/reviews
.........................................................................................................................17
9 De-mobilisation
18
9.1 Objectives
...................................................................................................................................................................
.18
........................................................................................................................................................... .18
10 Final evaluation and close-out
19
10.1 Objectives
...................................................................................................................................................................
.19
10.2 Final evaluation and
report..........................................................................................................................................19
APPENDIX I: HSE responsibilities for company and contractor key
personnel................................................................ 20
APPENDIX II: Definition of consequence - severity of risk
.............................................................................................. 22
APPENDIX III: Contractor HSE prequalifcation............................................................................................................24
APPENDIX IV: HSE pre-qualifcation points system
........................................................................................................29
APPENDIX V: HSE Plan guideline for major
contracts.....................................................................................................33
APPENDIX VI: HSE Plan guideline for small
contracts....................................................................................................50
2000 OGP
Purpose/Int
ent
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
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 two
years. The Safety Health and Personnel
Compe- tency Committee will make
updates and modifications based upon
review.
assist contractors in administering

programs which are consistent with
the clients expectations;
Descripti
on
ii
The main section of the document covers

various phases of the contracting process
and the associated HSE tasks and
2000
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.
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
19851998.
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.
Figure 1
Company contractor
hours worked
1200
(millions of hours)
1000
800
Manhours Contractor
600
400
Manhours Company
200
1985
1987
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.
Historically the contractor Lost Time
Injury Frequency (LTIF) has not been as
good as that of companies, though the
gap
is
narrowing.
The
trend
is
encouraging, since contractor personnel
generally have a higher expo-
Figure 2
1989
1991
1993
1995
sure to risk, and it is important this trend

continues,
particularly
as
use
of
contractors in the E&P industry increases.
These guidelines have been produced to
assist management of the companycontractor interface in this changing
environment
and
to
help
in
the
achievement
of
further
joint
improvements in safety performance.
LTIF performance of E and P companies and contractors
(number of lost workday cases, including fatalities, per million hours worked)
10
8
6
8.1
4
3.4
6.6
2.5
6.1
2.8
1997
3.3
5.2
4.1
3.0
.
6
3.9
3.1
4.7
1989
1990
1991
1992
1993
1994
Com
er
pany
al
Contr 3.0
actor
2.0
2.0
1995
1996
1997
2.7
1.9
1998
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 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.
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 contractorclient 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.
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.
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 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.
2000
2 Overview of process
Management of HSE in a business
environment
where
two
or
more
companies work together requires cooper- ation between them and a clear
definition of the tasks and responsibilities
of each of the parties.
Figure 3
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.
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-mobilisation
Pre-mob audits
Mobilisation
Kick-off meeting
Mobilisation
Pre-execution audit
Execution, supervision
and reporting
Monitoring, audits
and inspection
Review of de-mobilisation HSE plans

De-mobilisation
Execution
De-mobilisation
Acceptance of work
and restored site
Review
Close-out
Report
Final evaluation and report
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
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.
Timing of the activities

Location of the work
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
Assets
No health
effect/injury
No
damage
2
3
Reputation
People
Increasing probability
Environment
Severity
Consequence
No effect
No
impact
Slight health
Slight
effect/injury damage
Slight
effect
Slight
impact
Minor health Minor

effect/injury damage
Minor
effect
Limited
impact
Major health
A
Never heard
of in E&P
industry
damage
effect
impact
Single
fatality
Major
damage
Major
effect
National
impact
Incident has
Happens
Happens
in E&P
industry
occurred in several times several times

our company per year in per year in a
our company location
Manage for continuous improvement
Localised Localised Considerable
effect/injury
B
Heard of
Incorporate risk
reduction measures
Intolerable
5
Multiple
fatalities
Extensive
damage
Massive
effect
International
impact
3.4 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 mix- ture of the two modes.
This
can
be
accomplished
by
following Section 3.5 of the E&P
Forum Guideline for the development
and application of health, safety and
environmental
management
systems, report number
6.36/210. This section outlines the
interfacing of 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
dif- ferences may be resolved and

procedures
agreed
before
work
commences. Examples of such situations
are given below.
Operations in an area where there is a
limited 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
companys
management system under Mode 1.
The contractor executes most aspects
of the job under its own HSE
Management System; however, certain
support
activities
such
as
transportation
and
emergency
response
are
provided
by
the
company.
A Drilling Contractor is responsible

for
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 pre- spud meeting.
Also, when working with an alliance of

contractor(s) or a consortium, it should be
made clear in advance whether the
alliance or the lead contractor is fully
responsible for all instructions and
supervision or whether that is the
responsibility of the company. If the
alliance or 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 break- ing down the
work into smaller identifiable activities,
each with a party assigned to it with

responsibility for the HSE aspects.
Usually Mode 2 is preferred except in High

Risk 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
3.5
schedule
Contract
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.
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 con- ventions.
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 pre-qualification process.
The pre-qualification process is a crucial

step in which assurance is sought that the
risks of the work will be managed. The
purpose of the pre-qualification stage is
for the company to agree on a list of
contractors that will be invited to bid, and
a list of HSE bid 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 prequalification 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 sup- plementing 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 contractors
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 appro-
priate. In such a case, the focus should be

on the divi- sion bidding for the work.
For those contractors not qualifying, a
feedback mechanism should be in place
to inform them why they did not qualify
and that by correcting the identified defciencies; 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 prequalified contractors and the ration- ale
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.
5
Selection
Pre-qualification is the most important
screening tool for the selection of
contractors. All contractors that are prequalified 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. Docu- mentation in the
tender package may include:
company HSE goals and objectives.
company HSE-MS.
definition of the scope of the HSE

Plan and the known hazards to be
addressed.
list of HSE controls procedures and

compliance issues for the contract.
definition of the company/contractor
anticipated interfaces, the company
supervision strategy and interaction
with company operations, interaction
with specific company plans such as
emergency response.
type and schedule of company and

contractor training requirements and
competencies.
specification of the
execution requirements.
minimum
pre-
The HSE tender documentation

should be compiled, with due
attention to the following:
It is the companys responsibility
to
assure
that
the
tender
documents
address
the
HSE
requirements for the contract and
that knowledge about hazards
already identifed 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 nonconformances.
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 OGPs Guide- lines for
the development & application of health,
safety
and
management
systems.
Contractors should be allowed the
freedom
to
use
industry
HSE
guidelines/recommended
practices/standards, e.g., those of the
International
Association
of
Drilling
contractors
(IADC)
or
International
Association of Geophysical contractors
(IAGC), or the International Marine Contractors Association (IMCA), or of OGP, API
and IMO, if they are equivalent to or
exceed the companys
requirements. The company should have

the expertise and resources to evaluate
the alternatives proposed. The tender
documents should allow flexibility for the
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 contractors 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 pre- sented in
Appendices V and VI.
Examples of typical HSE Plans and
Programs used in similar contracts in
which the contractor has been involved
may be submitted.
The contractors HSE Plan should clearly
identify where he believes his HSE-MS
interacts with the HSE-MS of the company
and other contractors. A proposal should
be made by the contractor on the

approach to 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 Instruc- tions, Contingency
Plans) and controls in place to achieve the
work program without compromising HSE
performance. These systems should be
harmonised where possible to minimise
the potential for misunder- standing.
If there is a considerable amount of time
between pre- qualification and the bid
submission, contractors should be asked
to provide evidence of documenting their
current HSE systems and performance.
5.4 Pre-award meetings

The
companys
internal
pre-award
meetings should con- centrate 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 preaward 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
long-term
relationship between company and the
contractor
based
on
good
HSE
performance.
ensure that incentives are valued by

the personnel who are in a position to
influence
the
performance
and
maintain the systems.
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, eg,

audits and follow-up rather than
after the event statistics.
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
contractors capability to manage HSE
should be available from previous
phases. This appraisal provides a go- no
go cri-
terion, i.e., if a contractor does not meet

the minimum criteria, he should not be
awarded a contract.
Once the award has been made, joint
meetings should be held as soon as
possible to agree on the final HSE Plan
and detailed programmes.
6 Pre-mobilisation activities
6.1 Objective
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 companys and contractors
local management.
If the contractor mobilises locally at the
work site, the kick-off meeting may be
held locally. If not, it may be necessary
to hold the initial kick-off meeting at the
contractors base office. This should be
followed by a subsequent mobilisation of
key contractor and 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 companys 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 work- shop, 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 contractors own HSE
Management System, work culture and
working practices.
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.
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 companys and
contractors 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 contractors HSE Plan
commence induction and site-specific
training
hold mobilisation HSE audit.
During mobilisation the company and
contractor assure that each sets up a
method of operation that is in 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
contractors operations should be fully
compatible with the companys HSE-MS.
For contracts under a Mode 2 strategy,
any HSE Plan requirements should be
integrated into the contractors HSE-MS.
The company and contractor should
confirm that each has deployed his
supervisory staff and is implementing the
agreed-upon briefing and training for his
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 walkthroughs 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 contractors preexecution 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
and
whether
mobilisation
can
be
considered complete. This can be
accomplished
by
a
joint
company/contractor HSE field review or
audit.
Achievement of HSE Plan targets for this
stage should represent the first milestone
of the project.
Usually, the extent of the audit depends
on the level of risk associated with the
activity. For a relatively low risk contract,
an audit may be conducted by means of
a simple checklist. For high-risk contracts,
a more ana- lytical approach may be
used.
If the audit proves to be unsatisfactory,
then the status of the contractors
progress should be carefully reviewed.
The options available at this

stage are:
Minor defciencies: 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
contractors HSE-MS.
The
mobilisation
audit
usually
is
structured against the elements of the
HSE-MS or, more specifically against the
HSE Plan elements (as outlined in
Appendix V).
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.
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. Responsibil- ity 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:
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
mes- sages.
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.
9 De-mobilisation
9.1 Objectives
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 unex- pected hazards.
The contractors HSE Plan should continue
to be the vehicle for managing the HSE
activities in this phase.
Demobilisation often is a phase of the
project having an increased chance of
incidents as the project infrastruc- ture
and
contractor
HSE
management
structures are being dismantled with
people moving off the project to new
assignments. Assurance should be sought
that
the
appropriate
organisational
structures remain intact until associated
activities have been completed. These
should include:
emergency response
site restoration
waste management and disposal.
Due consideration should be taken of any
learning points from mobilisation, the
problems encountered and solutions
found.
The company and contractor should
continue to monitor performance
against the Plan, including attention to
incident reporting. It is important to
maintain vigi- lance on HSE matters to the
very end of the contract. The close out
report should be made after all activities
have been completed.
10 Final evaluation and close-out

10.1 Objectives
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.
Appendix I: HSE responsibilities for

company and contractor key
personnel
Company
Contract
should:
Holder
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 contractors HSE Plan is
finalised and followed
prepare company audit and review

programme and secure appropriate
resources
evaluate contractors HSE Plans

assure the adequacy of the
contractors HSE Plan
appoint competent company
representative(s)
supervise company representative(s)
conduct a pre-execution HSE audit
authorise
the
contractor
to
commence work if the pre-execution
HSE requirements are met
monitor performance of the

contractor against his
HSE Plan
authorise
deviations
from
the
authorise
additional
HSE
requirements as deemed necessary
apply sanctions in the event of

unauthorised deviations from the
prepare HSE close-out report and

distribute to appropriate company and
contractor personnel for feedback
Company
Representative should:
perform assurance checks on

contractors review and inspections
and follow up
verify
hazards
and
effects
management controls, as specified in
the contractors HSE Plan, are implemented
identify deficiencies in contractors
HSE Plan and agree to remedial
action with contractor or instigating
sanctions
in
consultation
with
Contract Holder.
Company
Representative:
Site
Where a contractor may be working in a

number of areas it is common for a company
to nominate some- one who is responsible for
the supervision of the physical work being
executed under the contract at a specific
appointed site. The Site Representatives HSE
responsibilities follow those of the company
Representative, but are specific to the site.
Company
Adviser:
HSE
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 Con- tract Holder and
Representatives.
Normally, the HSE adviser

provides:
advice and support in HSE issues as
requested
review/audit services as requested
additional advisory support, where
needed, to small contractors.
In the case of a small local contractor a
decision may have been taken to provide
additional supervisory support and
assistance in HSE matters. The company
HSE Adviser and related specialists may
be tasked with providing support but
must exercise care (unless other- wise
provided for by the contract or agreed to
in the HSE Plan) that this is recognised as
a temporary phase and that the
contractor must be encouraged to
develop quickly to a point where such
assistance is no longer required.
Contractor
Contractor Manager should:
prepare and assure

quality
of
define competencies required for HSE

critical posi- tions
assign appropriate personnel to HSE
critical posi- tions
assure adequate resources and time
in the schedule to manage the
contract in accordance with the contractors 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 contractors HSE Plan
seek formal approval from the

Contract Holder for any proposed
deviations from or amendments to the
implement additional requirements as

agreed upon with the Contract Holder.
Contractor
Representative:
Site
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.
22
Definition of consequence
severity of risk
People (fatal, inj, occptnl health)

Severity Potential
Definition
rating impact
Assets*, equipment
Potential
Definition
impact
Environment
Potential
Definition
impact
No injury/
illness
Zero
Zero effect
Slight injury/ Not detrimental to individual

Slight
illness
employability or to the
damage
performance of present work.
Agents which are not hazardous
to health
No disruption to the
Slight effect
process, minimum cost
of repair (<$10,000)
Negligible financial <10

consequences; local
environmental risk;
within the fence
and within systems
Minor injury/ Detrimental to the performance Minor

illness
of present work, such as
damage
curtailment of activities or some
days abscence to recover fully,
maximum one week.
Agents which have limited health
effects which are reversible, e.g.
irritants, many food poisoning
bacteria.
Possible brief disruption Minor effect

of the process; isolation
of equipment for repair
(estimated cost
below $100,000)
Contamination;
<100 100-1,000 Limited
damage sufficiently
impact
large to attack the
environment; single
excedence of statutory
or prescribed criteria;
single complaint; no
permenant effect on
the environment
Some local public

concern; slight local
media and/or local
political attention with
potentially negative
aspects for company
operations
Major injury/ Leading to permanent partial

illness
disablement or unfitness for
work or detrimental to
performance of work over
extended period, such as long
term absence. Agents which are
capable of irreversable damage
without serious disability, e.g.
noise, poorly designed manual
handling tasks.
Local
damage
Plant partly down;

Local effect
process can (possibly)
be restarted (estimated
cost of repair below
$1,000,000)
Limited loss of
100 discharges of
1,000
known toxicity;
repeated excedence
of statutory or
prescribed limit and
beyond fence/
neighbourhood
1,000 - Consider10,000 able

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
Single fatality/ Also includes the possibility of

permanent
multiple fatalities (maximum 3)
total disability in close succession dur to the
or unfitness incident, e.g. explosion.
for work
Agents which are capable of
(small
irreversible damage with
exposed
serious disability or death, e.g.
population)
corrosives, known carcinogens
Major
damage
Partial loss of plant;

plant shut down (for
at most two weeks
and/or estimated
repair costs below
$10,000,000)
Severe env. dmg; 1,000 the company is

10,000
required to take
extensive measures
to restore the
contaminated area
to its original state.
Extended excedence
of statutory or
prescribed limit
10,000 - Major
100,000 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
20
00
O
G
No injury or damage to health
No damage to
equipment
Major effect
No financial
consequences;
no environmental
risk
Int
er
na
tio
na
l
As
so
ci
ati
on
of
Oil
&
G
as
Pr
Reputation
Contamination Potential Definition
(litres)
impact
sensitive
areas
offshore
Several
Zero
No public awareness
impact
0-100 Slight
impact
Public awareness of the

incident may exist;
there is no public
concern
A
p
p
e
II
People (fatal, inj, occptnl health)

Severity Potential
Definition
rating impact
Assets*, equipment
Potential
Definition
impact
Environment
Potential
Definition
impact
Contamination
(litres)
sensitive
areas
Multiple
fatalities
May include four fatalities in close Extensive

succession due to the incident or damage
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. H2S, CO)
known human carcinogens
Total loss of the plant;

extensive damage
(estimated cost of
repair exceeds
$10,000,000)
*Assets are understood as referring to: the oil and gas reservoirs, production facilities,
pipelines, money, capital, and other company, contractor and third party property.
20
00
O
G
23
Massive
effect
Reputation
Potential Definition
impact
offshore
Persistent severe
>10,000 >100,000 Major
environmental
interdamage or severe
national
nuisance extending
impact
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
International public
attention. Extensive
international media
and national/international 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.
H
SE
m
an
ag
e
m
en
tgu
id
eli
ne
s
fo
r
w
or
ki
ng
to
ge
th
er
in
a
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 contractors 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
Section 1: Leadership and

Commitment
(i) Commitment to HSE through leadership
a) How are senior managers personally involved in HSE management?
b) Provide evidence of commitment at all levels of the organisation?
c) How do you promote a positive culture towards HSE matters?
Section 2: Policy and Strategic

Objectives
(i) HSE policy documents
a) Does your company have an HSE policy document? If the answer is YES please attach a copy.
b) Who has overall and final responsibility for HSE in your organisation?
c) Who is the most senior person in the organisation responsible for this policy being carried out at the premises and on site where
his employees are working? Provide name, title and experience.
(ii) Availability of policy statements to 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?
2000
Section 3: Organisation, Responsibilities, Resources, Standards and

Documentation
(i) Organisation - commitment and communication
a) How is management involved in HSE activities, objective-setting and monitoring?
b) How is your company structured to manage and communicate HSE effectively?
c) What provision does your company make for HSE communication meetings?
(ii) Competence and Training of managers/ supervisors/senior site staff/ HSE advisers
Have the managers and supervisors at all levels who will plan, monitor, oversee and carry out the work received formal HSE
training in their responsibilities with respect to conducting work to HSE requirements? If YES please give details. Where the training is given in-house, please describe the content and duration of courses.
(iii) Competence and General HSE training

a) What arrangements does your company have to ensure new employees have knowledge of basic industrial HSE, and to keep
this knowledge up to date?
b) What arrangements does your company have to ensure new employees also have knowledge of your HSE policies and practices?
c) What arrangements does your company have to ensure new employees have been instructed and have received information
on any specific hazards arising out of the nature of the activities? What training do you provide to ensure that all employees are
aware of company requirements?
d) What arrangements does your company have to ensure existing staff HSE knowledge is up to date? (If training is provided inhouse please give details of content.)
(iv) Specialised training

a) How have you identified areas of your companys 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

Does your company employ any staff who possess HSE qualifications that aim to provide training in more than the basic requirements?
(vi) Assessment of suitability of subcontractors/ other companies

a) How do you assess:
i) HSE competence
ii) HSE record of the subcontractors and companies with whom you place contracts?
b) Where do you spell out the standards you require your contractors to meet?
c) How do you ensure these standards are met and verified?
(vii) Standards
a) Where do you spell out the HSE performance standards you require to be met?
b) How do you ensure these are met and verified?
c) How do you identify new industry or regulatory standards that may be applicable to your activities?
d) Is there an overall structure for producing, updating and disseminating standards?
Section 4: Hazards and Effects Management

(i) Hazards and effects assessment
What techniques are used within your company for the identification, assessment, control and mitigation of hazards and
effects?
(ii) Exposure of the workforce

What systems are in place to monitor the exposure of your workforce to chemical or physical agents?
(iii) Handling of chemicals

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

What arrangements does your company have for provision and upkeep of protective equipment and clothing, both standard
issue, and that required for specialised activities?
(v) Waste management

What systems are in place for identification, classification, minimisation and management of waste?
(vi) Drugs and alcohol

Do you have a drugs and alcohol policy in your organisation? If so, does it include pre-employment and random testing?
Section 5: Planning and

Procedures
(i) HSE or operations manuals
a) Do you have a company HSE manual (or Operations Manual with relevant sections on HSE) which describes in detail
your company approved HSE working practices relating to your work activities? If the answer is YES please attach a copy of
supporting documentation.
b) How do you ensure that the working practices and procedures used by your employees on-site are consistently in accordance
with your HSE policy objectives and arrangements?
(ii) Equipment control and maintenance

How do you ensure that plant and equipment used within your premises, on-site, or at other locations by your employees are
correctly registered, controlled and maintained in a safe working condition?
(iii) Road Safety Management

What arrangements does your company have for combating road and vehicle incidents?
Section 6: Implementation and

Performance Monitoring
(i) Management and performance monitoring of work activities
a) What arrangements does your company have for supervision and monitoring of performance?
b) What type of performance criteria are used in your company; give examples
c) What arrangements does your company have for passing on any results and findings of this supervision and monitoring to
your:
i) base management
ii) site employees?
(ii) HSE performance achievement awards

Has your company received any award for HSE performance achievement?
(iii) Statutory notifiable incidents /dangerous occurrences

Has your company suffered any statutory notifiable incidents in the last five years (safety, occupational health and environmental)? (Answers with details including dates, country, most frequent types, causes and follow-up preventative measures taken.)
(iv) Improvement requirement and prohibition notices

Has your company suffered any improvement requirement or prohibition notices by the relevant national body, regulatory body
for HSE or other enforcing authority or been prosecuted under any HSE legislation in the last five years? (If your answer is YES
please give details.)
(v) HSE performance records

a) Have you maintained records of your incidents and HSE performance for the last five years? (If YES, please provide the following: Number of Fatalities, Lost Time Injuries, Lost Workday Cases, Medical Treatment Cases and Restricted Work Day Cases. Also
include the Fatal Accident Rate, Lost Time Injury Frequency and Total Recordable Incident Rate for each year. (NOTE: Please
include your company definitions of a the above mentioned terms - for clarification refer to the OGP Safety Performance Accident
Data Report.)
b) How is health performance recorded?
c) How is environmental performance recorded?
d) How often is HSE performance reviewed? By whom?
(vi) Incident investigation and 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 companys participation in relevant industry, trade, and governmental organisations?
(ii) Additional features of your HSE management

Does your company have any other HSE features or arrangements not described elsewhere in your response to the questionnaire?
Section 9: Company Specific Information
Appendix IV: HSE pre-qualification points

system
Scoring
The contractors tender should be evaluated by attaching a score to the
selected response for each category (see Appendix III).
A suggested scoring system would be as follows (see Table II.1):
HSE Plan documentation [sections 1-5, 7, 8]
10
14
20
Performance and experience factors (HSE incidents) [section 6]
Elements scoring 0 should normally disqualify a contractor from being

included in a pre-qualifcation 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
Evidence of active senior management involvement in HSE

aspects
Evidence of a positive HSE culture in senior management and

at all levels
Commitment to HSE through leadership: item 1 (i)

No commitment from senior
management
HSE disciplines delegated to line

managers - no direct involvement by senior management
Section 2: Policy and strategic objectives

HSE policy documents and availabilityL 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
Section 3: Organisation, responsabilities, 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)

Employee handbook provided
No formal programme
Verbal instructions on company and
supervisor
outlines,
procedures only
explains and demonstrates new
employees job
All under C together with:

follow-up observation of the
new employees work is also
included.
Employee
has
explained to him safe practices
and emergency duties
A
B
C
D
Section 3 (continued): Organisation, responsabilities, resources, standards
and documentation
Specialised training: items 3(iv) (a)&(b), 3(v)
No HSE training established
On-site basic training

ducted occasionally
con-
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,
sub-contractor employees and
are enforced. Follow-up audits
held with discussion/feedback
to management and employees
Subcontractors: items 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
Basic HSE standards exist
Contractor has written HSE

standards to cover all hazardous operations
Contractor has a system of specifying, monitoring compliance

and updating standards
Section 4: Hazards and effects management

Hazards and effects assessment: item 4(i)
Companys HSE system does
not include hazards and effects
management
Companys HSE system makes

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

Company advises the workforce
Company does not actively of the major hazards that they
advise the workforce nor moni- are likely to be exposed to but
tor exposure
only monitors exposure randomly
Companys HSE system includes

methods for the assessment of
major hazards and effects
Companys HSE system has a

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

for monitoring exposure to the
major hazards
Company has a set of formal

methods for monitoring exposure to all foreseeable hazards
(linked to its hazards and effects
assessment
method)
and
applies them to all contracts
Potential hazards (chemical, physical and biological hazards such as noise, radiation, vapours, fumes, temperature
extremes, etc.): item 4(iii)
Company provides information Company distributes informa- Company maintains a database
Company makes no special
to workforce in the workplace tion to individuals in the of the properties of all potenprovision for advising the
on properties of potential haz- workforce at start of their tial hazards encountered in its
workforce about properties of
ards but has no active fol- involvement on-site
contracts and has formal methpotential hazards
low-up
ods of information distribution
to all personnel and trains its
workforce in handling, etc.
Personal protective equipment: item 4(iv)

PPE
requirements
formally
Basic PPE provided to person- assessed but little effort made
nel but no corporate procedure to ensure correct usage
for assessing individual needs
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
A
B
C
Section 4 (continued): Hazards and effects management
Waste management: item 4(v)

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

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

for waste management (including identification, minimisation
and
classification),
which
actively seeks to minimise environmental impact
Section 5: Planning and procedures

HSE or operations manuals: item 5(i) (a)&(b)
No HSE procedures available
Basic HSE procedures exist
Contractor has written HSE procedures to cover all hazardous

operations
Contractor has procedures to

cover all HSE precautions,
typical contractor HSE Plan
requirements with a system of
updating and dissemination to
employees
Equipment control and maintenance: item 5(ii)

No defined programme to
identify or evaluate hazardous
practices and equipment conditions
Plan relies on outside sources,

i.e.
company
inspections.
Supervisory inspection of equipment confined to worksite personnel only
Road safety management: item 5(iii)

Importance of road safety
No special attention paid to acknowledged but left to core
road safety as an area of haz- business managers/supervisors
ardous activities
to enact individually
A written programme outlining

supervisory guidelines, responsibilities, frequency and follow-up is in effect
In addition to C, periodic
inspections conducted by top
management or by teams of
specialists
Company has a general management strategy with some

procedures for its component
issues
Company has a complete strategy and set of plans and procedures covering vehicles, drivers
and operations management
Section 6: Implementation and performance monitoring

Management and performance monitoring of work activities: items 6(i) & 6(ii)
No system for formally monitoring HSE performance
Performance monitoring in a
few areas carried out
Company has a system for

monitoring HSE performance
in key areas
Company has a comprehensive

system for monitoring performance in all areas with feedback
to 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)
One occurrence of a major inci- Occurrences relate to minor No occurrences in the last five
More than one occurrence of dent in the last five years
incident(s) only
years
major incident in last five years
HSE performance records (latest year injury rate comparison to contractors three preceding years average):
items 6(v) (a) -(d)
Rate is not improving
Shows only minor rate improve- Rate steadily improving by more
Contractor supplied insuffiment
than 20 per cent per year
cient
Criteria for absolute performance
Rate under 200 per cent that of
Rate over 200 per cent that of company
company
Incident investigation and reporting: item 6(vi) (a) -(c)

Findings communicated to key
Findings not generally commu- personnel only via limited comnicated
pany internal memo or similar
media
Rate under 120 per cent that of

company
Rate better than that of company
Findings
communicated
to
all
employees via specific company notice
As in C but with the

addition of details of
implication for improving HSE performance
A
B
Section 7: Auditing and review
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 managements role in audit

and follow-up on action items
Company is a member of at
least one HSE association
Company is an active participant in at least one HSE association
Auditing: item 7(i) (a) -(c)

Audit process is cursory only HSE documents are not explicit
about auditing
Company
HSE
documents
include reference to auditing
but there are no specific details
about scheduling and coverage
Section 8: HSE management additional features

Membership of associations: items 8(i) and (ii)
No memberships
Company has membership of at

least one association but with
no prominence given to HSE
Appendix V: HSE plan guidelines

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 Manage- ment 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
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
Subcontractors
HSE performance - general
HSE Communications
Incident investigation
HSE meeting programme

HSE promotion and awareness
HSE competence requirements
Employee orientation programme
HSE training (general)
HSE training (professionals)
HSE legislation
HSE standards
Section 4 Evaluation and risk

management
Methods and procedures for hazards
and effects management
Assessment of exposure of the
workforce to hazards and effects
Material data sheets for safe handling
of chemicals
Hazards and effects management
and the assessment of PPE
requirements
Methods and procedures for waste
management
Section 7 Auditing and review

HSE auditing
Detailed checklists for HSE plan

Table V.1
Checklist for HSE plan: section 1 leadership and commitment
Leadership and commitment

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

HSE matters should be placed high on personal and collective agenda
All senior managers should set a personal example to others. They should be, and seen to be actively
involved in HSE matters, e.g. attendance at HSE meetings, personal instigation of HSE audits and reviews,
etc.
A feedback system should be established to encourage and facilitate employee feedback on HSE matters
A positive culture should be promoted at all levels
Policies and standards should be endorsed and implemented at the local level
Table V.2
Checklist for HSE plan: section 2 policy and strategic objectives
HSE policy statement

General
Writ ten HSE polic y
Dated and signed by Chief Executive
Policy statements:
specific to individual par ts of the contract ( e.g. locations/sites/plants)

cover specialised aspec ts ( e.g. alcohol and drugs)
consistent with company guidelines
clear, concise and motivating
Content
Impor t ance
of
Incident s
HSE
HSE
as
and
est ablished
injuries
as
line
contract
objec tive
are
unaccept able
management
responsibilit y
Everyone is responsible for their own and their colleagues HSE at work
Distribution/availability
HSE policy distributed to all concerned, i.e.
handed to each employee by their line manager when issued

all new employees handed a copy by their line manager
displayed on notice boards at each work location ( work sites and of fices)
copies provided for each company on the contrac t ( including subcontrac tors, suppliers and agents)
available to company and contractor employees in their working languages)
Discussion
Polic y and it s implement ation when issued discussed by line managers with each employee
Table V.3
Checklist for HSE plan: section 3 organisation, responsibilities, resources, standards

and documentation
HSE organisation
Key personnel
Personnel responsible for the implement ation of HSE objec tives clearly identified in an organisation chart
Responsibility adequately covered during all phases of the contract
Job descriptions in place showing each team members HSE competencies, responsibilities and function
Organisation clearly shows position of HSE professionals
Contract objectives/accountability
Defined to meet health, safet y and environment al objectives as well as those of time, cost and qualit y
Account abilit y
Focal
point
for
within
HSE
the
success
team
s t r uc t ure
and
equally
ensuring
that
of
all
a ny
HSE
failure
ma t te r s
have
clearly
been
s t a te d
identified
Designated team leader to produce HSE objectives, tasks and targets for the contract
Targets, etc. to be realistic and consistent
Esta blish procedures for distribution, repor ting and reviewing HSE issues
Manning/communications
Manpower philosophy
Manpower level to be defined correctly so as not to compromise HSE
Effec tive means to communicate HSE issues to the company, contractor and subcontrac tors
Organisation staffed by competent personnel with sufficient appreciation of HSE where necessary with specific training
in the issues involved
Corporate structure/responsibility
Companys expectations on HSE management to be communicated in depth
Access of contractors line management to their corporate management struc ture on HSE issues to be defined
Level of handling project HSE issues by the contractor corporate structure (middle or senior management or board
level )
In the contractors corporate organisation, individuals charged with responsibility for HSE at middle senior manager or
board member level
Access to specialist HSE advice for line management, e.g.
provision of HSE documentation for small contrac ts

employment of HSE specialist for large contracts
HSE professionals
Job definition
Role of the contractors HSE advisers well defined
Job definition draf ted
Reporting/follow-up
Reporting
Dire
relationship
ct
access
w it h
to
line
t he
Doe s line management follow- up on advice of fered

HSE department
Contractors HSE department involved in:
preparing and monitoring depar tmental ac tion plans

formulation and suit abilit y of HSE rules
planned inspec tions and audits together with line management
promotional material
management
Ch ie f
E xecutive
HSE training
subcontractor assessment
training and auditing
health risk assessment, health per formance monitoring and health sur veillance
environment al monitoring
suppor ting incident investigation by line management
Guidance given by the contractors HSE management in preparing and implementing:
operating and emergenc y manuals

emergenc y plans
training for fire fighting teams, first- aiders etc.
emergenc y drills and exercises
protec tive 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 carr ying out a large por tion of the work
HSE
Plans to be vet ted for suit abilit y by main contrac tor

Main contractor to communicate that subcontractor subject to the same rigorous HSE st andards as main contractor
Identification/vetting
Subcontrac tors
to
Method
of
be
vet ting
Vetting
identified
th ose
of
at
still
pa s t
to
this
s t a ge
be
identified
of
t he
to
subcontractor
be
p r oj e c t
st ated
records
Maintenance of approved subcontractor list s where HSE has been considered
HSE communications
Coverage/ awareness
Set up appropriate lines of communication to handle HSE issues, e.g. such items as:
direc t access to emergenc y ser vices

nearest hospit al
helicopter availabilit y
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
Line s est ablished to communicate ex ternally incident s 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 work force in an emergenc y
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 incident s envisaged
Strengthened, duplicated or backed up by other means
HSE meeting programme

Scheduling
Contractor
Define
to
est ablish
responsible
regular
management
p e r so n
schedule
for
for
scheduling
HSE
meetings
such
meetings
Procedure to maintain records of personnel attendance

Management participation
Managers seen to be involved by employees in:
HSE ac tivities, objective set ting and monitoring

taking ac tion and providing resources to suppor t their stated policies and objectives
Meeting structure
HSE
Effective
Allow
meeting
to
employees
manage
full
involvement
struc ture
and
and
communicate
t he i r
own
ideas
on
to
H SE
be
heard
Typical agenda and meeting format s

Follow-up actions
Meeting actions
Where action is agreed, is it seen to be carr ied out?
Where ac tion is not agreed, is it explained why?
Communication
Result s of HSE ac tivities, both successf ul 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, safet y and environment al items
HSE promotion and awareness

Techniques
Appropriate communications techniques used to make the personnel aware of HSE issues
How this is to be implemented, e.g.
personal contac t
interactive video
notice - boards
newsletters (suitable for large sites)
bulletins
p os te r s
Performance
HSE per formance boards ( e.g. at work site 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 ef ficient business rather than a costly and time - consuming extra
HSE competence requirements

Fitness of personnel
Confirmation of me dical fitness from a recognised and approved medical facilit y of all proposed employees for contract
Employee orientation programme

Approach
Provision of a comprehensive handbook for all new employees
On-the -job orient ation for super visor y st af f
Esta blished procedure in relation to follow- up of all new employees at the work site
New employees
Adequately trained and confident of their own abilities
Coached to improve their work prac tices rather than blamed for mist akes
Accountability
Employees know they are accountable for HSE performance
Aware that their HSE performance is part of the contractors appraisal and reward system
Know that flagrant or frequent break s of published HSE rules will result in disciplinar y action
Procedures
Required for new employee orient ation consistent with existing company guidelines
Reappraisal
Programme subject to appraisal and review
HSE training (general)

Contract standards
Statement on the current st andard of workforce and training requirement s to meet contrac t st andard
Established training programme
Including:
HSE management
job procedures
road safet y
health (first-aid health hazards, medical services, alcohol and drugs, health promotion, use
of PPE)
auditing
incident investigation and repor ting
HSE adviser skills
super visor y development
HSE meetings
environmental protec tion
Supervisory training
Super visor y development training promotes man -management skills and communication skills
Formalised programme
Formal HSE orientation programme for employees working on-site
Records kept of employees who have been through the programme
Employees trained before starting work
Training covers those joining as a contract is being implemented
Coverage
HSE training of employees coverage (including):
s a f et y
fire and explosion
road transpor t /driving
first- aid
wo r k p r o c e d u r e s / P T W
hazard awareness and repor ting
occupational health
securit y
basic HSE rules
legislative requirements
environment al protection
Supervisors participation
Super visors required to brief and debrief st af f before and af ter training courses
Course content
Effec tive system for est ablishing the need for and the content of training courses
Determining course ef fec tiveness and relevance of training assessed
Specialised training
Rele vant training
Training
gained
given
t h ro u g h
to
course
personnel
at tendance
prior
to
the
supplemented
e xecution
by
of
on - t h e - jo b
hazardous
training
as
Records kept of at tendees of the training courses and qualifications gained by employees
Emergency training
Training covers the actions to be implemented and the employees responsibilities in an emergenc y
HSE content in other courses
HSE included in:
induction courses
cr a f t t r a i n i n g
super visor y training
line management training
auditing techniques
o p er at io n s
necessar y
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 super visor y st af f ( e.g. career development, professional st atus)
Training
Training is received by HSE professional
Required specialisation ( e.g. drilling, radiation, chemicals.)
Appropriate levels of:
institute training
HSE management
Qualifications
Knowledge and experience of the contractors HSE professional:
match for competence for the job being carried out

match for the advice required
HSE legislation
Coverage
HSE Plan to include:
a comprehensive list of applicable legislation

government, national and international codes
company regulations., codes and standards
contractor s
identification
of
Hierarchical
regulations,
codes
and
precedence
Definition of the legislation, codes, st andards, etc. reflec ting the company s previous e xper ience
For contracts carried out in separate countries:
dif ferent legislation requirements

company assistance for foreign contractors
Waivers
Procedure for seeking waivers indicated
HSE standards
Availability
Contractor in possession of HSE manual /set of st andards
Identifying minimum criteria for achievement during contract implementation
Available in writing to all users in consistent, concise and clear form
Users involved in the development
Standards in line with company requirements
Control/authorisation
Controlled document s
Updated regularly
Approval level indicated
Procedure for obtaining deviations from standards
Responsibilit y for authorisation
Mechanism for recording approved deviations
Coverage
Clear reference to national and international standards
Setting minimum requirements on health, safety and environmental issues
standards
s t a te d
Table V.4 Checklist for HSE plan: section 4 Evaluation and risk management
Methods and procedures for hazards and effects management

Coverage
Company assessment used as a starting point with additional hazards identified by the contractor
Contractors
Analysis
assessment
techniques
carried
o ut
used
in
accordance
in
wit h
preliminar y
h is
formal
m e t h o ds
form
w h e re
and
procedures
appropriate
Contractor covers all par t s of the contract with assessment s for the specific scope and locations of the contract
Experience and awareness
Contractor able to use material from previous similar projec t s and demonstrate awareness f rom past e xperience
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
effect s 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 contrac t, and proposals for confirming adherence to guidance during contrac t
Hazards and effects management and the assessment of PPE

requirements
Hazard assessment /PPE requirements
All processes identified that require use of PPE.
Statutor y requirement s similarly identified
Procedure in place for recording issue to personnel together with follow-up inspection and replacement/re-certification
Storage of PPE adequate and secure with procedure for ensuring adequac y of stock
PPE instruction/training
Requirement s identified for all personnel
Instruction and training in its use provided where needed
Procedure for checking its use specified
Renewal/replacement
Schedule
and
Schedule
Responsibilit y for payment
criteria
for
for
renewing
PPE
re - cer tification
Table V.5
Checklist for HSE plan: section 5 Planning and procedures
HSE procedures
Availability/control
Writ
te n
procedures
Include
available
HSE
to
cover
p re c a ut i o n s
Consistent
hazardous
o p e r at io n s
to
with
be
on
H SE
t aken
company
guidelines
Controlled
document s
Appropriate
level
Coverage: include health and environment

Written procedures:
familiar to all employees including subcontractors

available in their working language
contents related to individual job descriptions
Deviations
Procedure for obtaining
Responsibilit y and level
Recording of authorised deviations
Omissions
Identify whether there are any areas where procedures for hazardous operations are not drafted
Commitment to prepare
Permit to work (PTW).
System in place
If the contractors own s ystem is utilised, is it consistent with industr y norms and in line with company guidelines?
Training/qualification
Training st andards and qualifications set for personnel allowed to implement procedures
Basic HSE rules

Availability
Set
of
r ul e s
available
and
Users
di s t r i b u t e d
to
all
employees
acknowledge
receipt
New employees given a copy before starting work

Method of discussion and verif ying underst anding
Coverage
Covers
Set
health
of
and
r ul e s
environment
provided
t ailored
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
as
we l l
to
as
specific
s af e t y
contract s
Emergency response procedures

Coverage
Identification of potential major emergency scenarios, and procedures to use in such scenarios, e.g.
fire
abandon rig / location
s to r m
oil /chemical spill
aircraf t incident
emergenc y communications
Medevac
blow- out
diving emergenc y
search and rescue ( S A R )
explosions
H2 S
well control
man overboard
evacuation
terrorism
Potential use of company guidelines
Awareness
By employees of procedures
Orientation
Schedule of drills and testing
Medical contingenc y plan included
R e v i e w f r e qu e n c y
Responsibilit y of employees for own and colleagues HSE
Monitoring mechanism
Drills to be carried out without warning
Plans
Contingenc y
Recover y
p lan s
procedures
in
allowed
place
to
for
be
activated
in
in
emergenc y
event
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
Requirements identified for each item of HSE equipment, including:
registr y
classification
licensing
s u r ve y
test cer tification
of
emergenc y
situations
scenarios
Critical items for HSE inspection

List drawn up of critical items of equipment that must be the subject of an HSE inspection
Procedure established for carrying out HSE inspection of equipment (covering health, safety and environmental aspects
to be reviewed )
Procedure established for checking standards where tools have been provided personally by tradesmen
Schedule
HSE equipment inspection schedule est ablished for the duration of the projec t
Inspec tion frequenc y clearly identified for critical items of plant
Occupational Health
Facilities available
Facilities defined as part of contract
Occupational health programme established to:
identif y 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 st andards
administration procedures and st andards
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 e xternal )
Contingency plans
Defined for possible incident s beyond capabilit y of site facilities
Accommodation and catering facilities
Where provided, facilities to meet normally accepted st andards of hygiene at site location
Facilities to be operated in line with government hygiene regulations and to meet company guidelines
Rules in force to maintain cleanliness of site and other facilities
Promotion
Promotional material available to assist in maint aining st andards
Appropriate for the contractors workforce in terms of:
language.
clarit y, etc.
Hygiene and housekeeping
Procedure on on-site cleanliness and maintenance
Environmental
Awareness
Work force aware of requirement to protec t the environment whilst e xecuting contract
Control
Identify potential environmental hazards
Develop procedures for handling materials and performing operations that may damage the environment
Contingenc y plans
Aims
Focus for the environment al protection team
At what level
Line management responsibilit y for environment al protection defined as well as other job objec tives.
Development and enhancement of environment al impact st atement s for the contract
Monitoring/restoration
Environmental monitoring to gauge the impact of operations
Plans appropriate and suf ficiently det ailed
Recover y and restoration of site af ter 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
Drivers: driving permits
Should record personal and employment det ails, t ypes of vehicle licensed to drive and t ypes of cargo licensed to carry
Drivers: driver induc tion
Local area characteristics and regulations
Drivers: driver training
This should test vehicle operation and use, operating conditions (terrain, climate), off-loading and positioning, emergenc y situations, and vehicle inspection
Drivers: driver improvement
Techniques should identify deficiencies, analyse causes and select appropriate retraining
Vehicle: selection
Ensure correct t yp e, capacit y 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
manufacturers specifications
Safe t y equipment and communications on board the vehicle need to be checked
Vehicle: passengers
Is th e vehicle designed to carr y passengers?
Vehicle: freight
Design of vehicle and load limits
Segregation, positioning and securing of f reight
Vehicle: maintenance
Conducted on a regular basis
Ops management: need and approval
Define the journey and justif y the need
Awareness of hazards involved
Allocation of vehicles, writ ten authorisation, verification of employees driving st andards
Ops management: journey routing and scheduling
Full awareness of route ( hazards, conditions )
Realistic schedules
Ops management: journey management
Logging of actions
Ops management: roles and responsibilities
Roles and responsibilities defined for management, supervisors, drivers, passengers
Contracting
Pre-qualification of contractors and contractor HSE management treating road transport with equal importance to main
activit y
Standards for scope of operations included in tender operation
Control and review mechanisms included in contrac t s
Polic y of no subcontrac ting without writ ten authorit y
Procedures
Ensure procedures are in place for all transpor t operations
Monitor and review mechanisms in place
Emergency services
In place and tested
Table V.6 Checklist for HSE plan: section 6 Implementation and performance monitoring
HSE performance - General

Measurement
Proposed plan to measure performance, i.e.
per formance indicators

progress against targets
HSE initiatives/ incentive schemes
achievement of milestones
numbers and t ypes of training courses
numbers and results of audits
clearance of ac tion items
Use will be made of reactive statistical indicators, e.g.
Lost T ime Injur y Frequenc y/ 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
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 contrac t
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 safet y incidents (safet y equipment failures, loss of capital equipment)
material loss
Methods
Incident
i n v es t i g a t i o n
method
Incident s
fi r s t
re p o r t e d
Incident
investigation
teams
Differentiat ion
made
bet ween
est ablished
numbe r s
to
determine
to
led
of
Procedure in place on vehicle incidents

Methods to be used for collecting incident st at istics
the
by
first- aid
and
correct
direct
the
treatment s
super visor
relevant
and
o t he r
c a use s
m an a ge r s
minor
i nj u r i e s
Table V.7 Checklist for HSE plan: section 7 Auditing and review
HSE
auditing
Availability
Esta blished HSE procedure outlining responsibilities, frequenc y, methods and follow- up
Scope
Compliance with the HSE Plan including:
HSE management
depar tmental personnel HSE
technical personnel HSE
s ub c o n t r a c t o r
occupational health
unsafe acts
audit training
environmental
own activities and those of his subcontractors
Coverage
Consistent
with
Schedule
company
for
full
guidelines
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 contractors corporate management in review of findings
Intention
Discussion
to
wit h
personnel
publish
on
contract
Lessons used to improve operations across the contract

Follow-up
Any numerical treatment made of findings
Frequency of review of implementation progress
Reje c tions of audit findings properly authorised and documented
and
findings
at
HSE
me e t i n gs
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
Senior management should reinforce the importance of HSE at all levels in the organisation and should be
seen to be set ting 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
Executives or the Managers signature
Organisation, Responsibilities, Resources, Standards and Documentation
A focal point in the organisation for HSE. Simple procedure for distributing information on HSE issues to the
workforce
A procedure for determining/enacting HSE training. Provision for obtaining HSE advice should this be outside the capability of the contractors 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
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 contractors 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 transpor t /driving
first- aid
wo r k p r o c e d u r e s / P T W
hazard awareness and repor ting
securit y
basic HSE rules
legislative requirements
occupational health
environmental protec tion
Hazards and Effects Management
HSE targets set in clear quantifiable terms

a system in place to assess workplace hazards
Planning and Procedures
Contractor has a document with simple procedures/rules covering the HSE issues in his business activities
with a method for review and update. This should include the following:
HSE hazard awareness
B asic HSE precautions to be obser ved in the workplace
HSE hazards of task s and operations encountered in his business
HSE hazards of equipment used
Use of P T W system
Communications with super visor y personnel on site
Contractor has a document that:
outlines the ac tivities 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 at tention to HSE issues need to be focused
identifies how to determine PPE requirements
identifies a simple set of steps for road transpor t 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
Contractor has a method for the management to carr y out simple audit s of his contract operations
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

Details
General
Company
Projec t
Contrac t
title /number
Contractor
de t a i l s
Site
location
Company contract holder/representative(s)

Company representative(s)
Contract manager/contractor represent ative ( 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 contractors personnel
Standards for contractors equipment
Training requirements (including site HSE induction )
Job/services description
Contractors personnel assigned
Contractors equipment / consumable s/ser vices assigned
Companys personnel assigned
Companys equipment/consumables/services assigned
Subcontrac tor det ails
Responsibilities / inter faces
PPE
and any special
Working
defined
HSE equipment to be used
h o u r s / jo b
Site
duration
description /limit s
PTW provisions applicable

Conditions for suspending work (e.g. weather, adjacent site operations, etc.)
What
OGP?
is
e International Association of Oil & Gas Producers encompasses the

worlds leading private and state-owned oil & gas companies, their
national and regional associations, and major upstream contractors
and suppliers.
Visio
n
To work on behalf of all the worlds upstream companies to
promote responsible and profitable operations.
Missio
n
To represent the interests of the upstream industry to
international regulatory and legislative bodies.
To achieve continuous improvement in safety, health and
environmental performance and in the engineering and
operation of upstream ventures.
To promote awareness of Corporate Social Responsibility issues
within the industry and among stakeholders.
Objectiv
es
To improve understanding of the upstream oil and gas industry,
its achievements and challenges and its views on pertinent
issues.
To encourage international regulators and other parties to
take account of the industrys views in developing proposals
that are effective and workable.
To become a more visible, accessible and effective source of
information about the global industry, both externally and within
member organisations.
To develop and disseminate best practices in safety,
health and environmental performance and the engineering
and operation of upstream ventures.
To improve the collection, analysis and dissemination of
safety, health and environmental performance data.
To provide a forum for sharing experience and debating emerging
issues.
To enhance the industrys ability to influence by increasing the

size and diversity of the membership.
To liaise with other industry associations to ensure consistent
and effective approaches to common issues.
209-215 Blackfriars Road

London SE1 8NL
United Kingdom
Telephone: +44 (0)20 7633 0272
Fax: +44 (0)20 7633 2350
165 Bd du Souverain
4th Floor
B-1160 Brussels, Belgium
Telephone: +32 (0)2 566 9150
Fax: +32 (0)2 566 9159
Internet site:
ww w.ogp.org.uk e-mail:
reception @ ogp.org.uk

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HSE management - guidelines

International Association of Oil & Gas

10 Final evaluation and close-out

3 facilitate the interface of contractors

assist contractors in administering

The main section of the document covers

responsibilities of the company and

and ends in final evaluation and close

A key part of the planning phase is risk

It can be seen from

sure to risk, and it is important this trend

LTIF performance of E and P companies and contractors

1.2 Interrelationship with other systems

This guideline follows the wording and

This effort has utilised and built upon the

These guidelines were developed for the

All of these documents/programs utilise

This guidance is primarily developed for

The typical phases of a contracting

Phases of the contracting process

Joint completion of HSE and execution plans

Review of de-mobilisation HSE plans

Final evaluation and report

3.2 Description of work

Requirements for site restoration

Timing of the activities

3.3 Risk identification

factor in selecting a contracting

As a minimum, a risk assessment should

Potential consequences of incidents

Risk assessment matrix

Minor health Minor

occurred in several times several times

Manage for continuous improvement

Localised Localised Considerable

3.4 Contracting strategy

2 The contractor executes all

and supervi- sion and verifies the

Selection of one of these modes is

dif- ferences may be resolved and

Operations too large or diverse for a

A Drilling Contractor is responsible

Also, when working with an alliance of

each with a party assigned to it with

Usually Mode 2 is preferred except in High

A contract schedule should be developed

accountable for managing all aspects of

4.2 Purpose and responsibilities

The pre-qualification process is a crucial

4.3 Standard pre-qualification documents

and contractors can devote their resources to

HSE management of the assigned HSE

priate. In such a case, the focus should be

4.5 From pre-qualification to selection

5.2 Bid documentation prepared by company

definition of the scope of the HSE

list of HSE controls procedures and

type and schedule of company and

The HSE tender documentation

The contractor has independent