Chevron CHESM Guidance

Chevron

Contractor Health, Environmental & Safety Management

Guidance Document
One Team, One Challenge . . . Zero Incidents

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Chevron CHESM Guidance

CHEVRON CHESM GUIDANCE DOCUMENT

Prepared by the CHESM Process Advisor

Owned by the CHESM Team

Updated 2008
Posted 2012

Chevron
2012 Chevron U.S.A. Inc.

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Chevron CHESM Guidance
ABOUT THIS GUIDE
This guidance is designed to help Chevron Operating Companies and Business Units develop a comprehensive
contractor safety management program. Worldwide, contractors comprise approximately 70% of Chevrons total
workforce. In many operations, contractors fulfill key leadership roles and provide work supervision at Chevron job sites.
Safety is a core value for Chevron, as described in The Chevron Way.
Operational Excellence, Chevrons approach to managing employee health, environmental impact, safety, and reliability,
has as a key objective the achievement of world-class safety performance. An effective contractor safety management
program is critical to realizing this objective.
Contractors and company employees, working together, can achieve the cultural necessary to reach world-class
Operational Excellence.

Purpose and Objectives

The purpose of the Contractor Health, Environment and Safety Management (CHESM) process is to establish clear
accountabilities, ensure active engagement of contractors, and provide a consistent CHESM program to eliminate health,
environment and safety (HES) incidents and injuries among contractors.

In Scope
This process defines a framework for Contractor Health, Environment and Safety Management and applies to all
contractors working within the operational control of Chevron Global Upstream organizations. A contractor is defined as
any company or individual that is under contract or sub-contract that performs work or provides services to or for Chevron.

Operational Control
Contractor employees working on Chevron premises are within Chevron operational control. Chevron premises are
locations, equipment, activities, or projects that are owned, operated, leased, or controlled through rights secured
by Chevron or its joint ventures or consolidated subsidiaries.
Operational control definitions can be found in OE 2007 Data Requirements and Definitions. Many OpCos provides
further description of the interpretation of operational control within the context of their OE processes

Sub-Contractors
For the purpose of this CHESM process, sub-contractors are considered part of the contractor workforce; therefore,
this process does apply to sub-contractors. However, it is the responsibility of the main contractors to ensure that
their sub-contractors meet the Chevron process requirements.
Supplemental Staff/Directly Supervised
language to add

Out of Scope
Outside Operational Control
language to add
Personal Service Contracts
This process is not intended to be applied for personal service contractors (one-person contractor firms or
individuals directly contracted by Chevron).
Others
Other contractors are not covered by the CHESM process if, following an evaluation conducted by the SBU HES
Representative and SBU Contract/Supply Chain Manager and based upon their contract approved services, they
meet all of the following criteria:
Do not perform physical or safety sensitive work
and
Are in Chevron operational control less than seven days per year

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and
Are accompanied by Chevron employees when under operational control.
This coverage will be re-evaluated if there are any changes in the contract approved services.
SBUs shall determine the HES process and procedures applied to personal service and other contractors not
covered by the CHESM process.
Influence Model
language to add

Risk-Based Approach
This process applies to all contractors within Chevron operational control; however, resource allocation for process
implementation and management should be prioritized to those contractors performing high- and medium-risk work for the
SBU/organization.
Some procedures within this process are designed for contractors performing high- or medium-risk work and are not
required for contractors performing low-risk work. Details about the applicability of each procedure are provided in the
procedure documents.
The risk classification of work associated with the individual contract shall be determined by the SBU using the CHESM
Risk Classification of Work Associated with Contracts matrix. The following should be considered when classifying the
risk associated with a contract or similar contracts:
Potential consequence or impact
Type/Nature of the work to be performed
Location of the work to be performed
Type/Nature of workplace hazards or impact
Likelihood
Duration of the work to be performed
Frequency/quantity of use of contractor
Contractors experience and expertise in performing similar type work
Potential for exposure to worksite hazards
Potential for the contractor performing the work to expose themselves, other contractors, or Company employees to
hazards
Prior experience
LEVELS OF DETAIL
Expectations - Operational Excellence Expectations are Chevrons Corporate-level requirements that organizations
are expected to include in their contractor safety management programs.
Requirements -
CHESM Guidance - Guidance is offered to clarify what was intended by the Expectations and the Suggested
Practices. It is not mandated by the Corporation. As organizations build their programs, they can adopt the guidance
as is; they can modify it to suit their needs; or they can disregard what is not applicable to their particular
circumstances.
Suggested practices - Suggested Practices are offered to organizations as possible ways to improve their contractor
safety management programs.
Tools/Resources - Most of the tools included within the Guidance section of this document are for illustrative
purposes. Some come from various Chevron organizations that have used them successfully, while others come
from outside organizations. It is suggested that they be modified to fit your organizations needs. Numerous
resources are identified where you can obtain additional information and assistance. Many of these can be accessed
through the Web links provided. One major resource will be the Chevron Contractor Safety Management Team and
Community of Practice networks

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M AJOR TOPICS
Leadership and Accountability - Leadership and accountability are critical success factors for achieving and
sustaining world-class contractor safety performance. Clearly identifying the roles and responsibilities for both
employees and contractors and holding them accountable for desired behaviors and performance is the first major
step in improving contractor safety.
Contractor Engagement - A second critical success factor for achieving world-class results is contractor engagement.
In the broadest sense, this means valuing contractors with the same commitment and dedication that we value as
Chevron employees. It also means that contractors should be aware of the Chevron Way and the Tenets of Safe
Operation.
Contractor Safety Procedures - A third critical success factor for achieving world-class results is establishing a
contractor safety management procedure. A contractor safety management procedure should address the full cycle
relationship of Chevron and the contractorfrom the initial planning stage through evaluation. There are many
models currently available. The Chevron CHESM program includes five key procedures involving planning,
qualification and selection, pre-job activities, works-in-progress, and evaluation.

CORPORATE OPERATIONAL EXCELLENCE EXPECTATIONS

Corporate HES and the Operational Excellence Management System Framework set forth certain enterprise-wide
requirements. For contractor safety management, these expectations are shown on this page and the nextthese are
the requirements within contractor safety management.

CHEVRON OE EXPECTATIONS - ELEMENT 6: THIRD-PARTY SERVICES

Systematically improve Third-Party Service performance through conformance to Operational Excellence.
6.1 A process is in place to ensure that third-party service suppliers perform to safety, health, environment and reliability
requirements consistent with those required of company employees when working on company property and when
providing services for the company off company property in operational control.
6.2 A Contractor Safety Management (CHESM) process is in place that clearly establishes accountabilities to include:
Identification of company contract owners (or management sponsors) accountable for each contract
Active engagement of contractors in implementing and improving the CHESM program
A contractor qualification and selection process which addresses safety performance
Pre-job work reviews and actions during work to verify scope of work, reinforce expectations and monitor compliance
to requirements
Periodic evaluation of contractor safety performance and assessment of the CHESM program

Suggested OpCo Requirements to meet Chevron CHESM Expectations

To comply with the Chevron Expectations, OpCos/SBUs should consider the following requirements:
Each SBU shall maintain a CHESM Leadership Team (CHESM-LT) designed to ensure effective operation of the
CHESM process.
HES performance and risk shall be considered in contracting strategy. Each contractor considered for selection
shall be assigned HES rating based on the scope of services as specified in the contract(s) according to the
qualification procedure. Selection of contractor shall include consideration of the contractor's current HES rating
and capability.
An SBU standard HES exhibit outlining HES expectations shall be included in each contract. This SBU HES
exhibit shall be aligned with the Global Upstream standard HES Exhibit.
Contracts shall be assigned a Contract Owner who is accountable for HES performance of the contract. Similarly,
SBUs shall identify a management representative of each contractor firm (Contractor Management
Representative) who has authority for the contractor firm represented.

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A set of key performance indicator targets shall be established and monitored for each high- and medium-risk
contract and agreed to by the Contract Owner and the Contractor Management Representative.
Contractor engagement activities designed to build HES culture for all levels of contractor personnel shall be
established, conducted, and monitored.
Pre-job activities shall be held before the start of work to ensure that contractors have the appropriate procedures,
risk identification, and mitigation plans in place.
Interim contractor performance review shall be conducted, at a minimum, annually for high- and medium-risk
contractors or more frequent if significant events warrant review.
End-of-contract HES performance evaluation shall be completed for every contract within one month of the end of
the contract period.

Linkages to Other OE Processes

Incident Investigation and Reporting
Emergency Management
Behavior-Based Safety
Risk Management
Motor Vehicle Safety
Leadership Accountability
Contracting & Procurement Plan
Contract Review Committee
Category Management
.
PROCEDURES
Leadership and Accountability
Expectations
Operating Companies must clearly establish accountability for employees and contractors and demonstrate visible
contractor safety management leadership.
o Company contract owners (or management sponsors) must be identified for each contract.
Assign a Chevron contract "owner" to each (core) contractor. The contract owner will:
Participate in the full lifecycle of the contracting process, from planning to evaluation
Lead periodic reviews of contractor performance, identifying opportunities for improvement

o Accountability with consequences must be clearly established for both contractor and Company employees for
contractor safety management.
Establish a contractor safety scorecard for each Chevron contract owner manager/supervisor.
Include contractor accountability as a Performance Agreement on Chevron PMPs, as contractor safety
performance is one consideration for determining annual salary action and pay determination.
Ensure contract language promotes safe behaviors and reinforces the Guiding Principles of the CHESM
program.
Work closely with contractor management to ensure that they meet the terms and conditions of the contract.
Ensure the contract defines the consequences for safety performance.
Work closely with contractor management to ensure that they meet the terms and conditions of the contract.
Ensure the contract defines the consequences for safety performance.
o Targets must be established for both leading and lagging indicators.
Ensure that required targets and indicators for Corporate report:

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Workforce TRIR (employee and contractor)
Workforce DAFWR (employee and contractor)
Workforce MVA (employee and contractor)
% of organizations with a contractor safety management program
% of organizations with contractor safety management improvement plan
Utilize the following recommended targets and indicators:
% of contractors with Chevron "owners" or management sponsors
Number of joint Chevron and contractor safety meetings or forums
Number and results of contractor auditsnumber of open and closed items
% of contractors with visible behavioral safety programs
% completion of open incident investigation findings
% Chevron employees with contractor safety metrics on PMPs
Number of "field" visits by line management

Suggested practices
Establish and communicate CHESM roles and responsibilities for contractors and Company employees.
Document and share a set of consistent, clear contractor HES expectations with employees and contractors.
Make the expectations available to employees and contractors for easy reference.
Document and share employee and contractor accountabilities. Consider developing a detailed roles and
responsibilities matrix for Chevron employees.
Ensure that accountabilities are tracked and enforced.
Outline accountability and ownership to ensure that everyone has the right to stop work if deemed unsafe.
Also:
Include in PMPs
Tie into pay and performance, including incentives
Hold pre-job meetings, when appropriate, to discuss expectations and accountability.
After selection for work, communicate the corporate expectations and accountabilities again.
Review roles and expectations with all individuals involved prior to start of work.
Establish and document roles and responsibilities in the written contractor safety program.
Include the roles and responsibilities in the job description.
Tie the roles and responsibilities into business plans and (scorecard) metrics.
Conduct training of personnel in the CHESM process.
o Chevron and contractor leadership/management should periodically review CHESM performance and implement
improvement plans.
Establish audit frequency and scope for CHESM program.
Conduct audit.
Analyze results against plan.
Incorporate lessons learned into performance improvements.

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o Chevron leaders and managers should establish, provide resources for, and participate in contractor safety
forums.
Incorporate contractor safety forums into business planning process, operating expenditure budget, and
contracts.
Include responsibility for operation of the contractor safety forums in the PMPs of appropriate individuals.
Schedule contractor safety forums up to a year in advance and build into leaders and managers calendars.
Communicate commitment to contractor safety to employees during forums.
o Identify, shape, and track desired leadership behaviors at all levels to drive safety improvement.
Use a process, such as RBL, to pinpoint, shape, and track desired behaviors. Utilize:
ABC Analysis
Pinpointing behaviors
Measurement systems
Feedback and consequence systems
Track progress through use of a leader scorecard.
Use 360 feedback processes to reinforce positive changes that have been made and to identify
opportunities for change.

Contractor Engagement
Expectations
Operating Companies must actively engage contractors in the CHESM process.
o Communicate Chevron Values as embodied in the Chevron Way to contractors.
Implement a contractor orientation program for all contractors or contract employees new to Chevron.
Ensure the orientation program is one in which:
Chevron personalizes to the contractor what the Chevron Way means to the Company
Chevron contract "owners" communicate the Chevron Way and Tenets of Safe Operation
Chevron establishes expectation that contractor actions shall be consistent with the Chevron Way
Contractor is advised of local procedures and processes, such as work permits, emergency response
plans, incident reporting, any potential job hazards
Roles and responsibilities for both the contractor and the Chevron employees are clearly defined
Ensure periodic dialogue on the Chevron Way. Utilize the following dialogue prompts:
Share what the Chevron Way means on a personal level and the impact that it can have on the
organization
Consider the compelling business case for incident-free operations
Discuss how leaders can make it real to his or her organization through leadership behaviors
Discuss possible barriers and how they can be addressed
Discuss first steps or actions that leaders can take to begin deployment
Create personal action plans for deployment that emphasize leadership behaviors
Utilize the following questions to engage managers and supervisors in dialogue about the Chevron Way:
What does the Chevron Way mean to you on a personal level? What impact will/can it have on your
business?

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How will you make it real to your organization through your behaviors? How will you translate and
explain it so that people can understand it (e.g., what does global mean)?
As a leader, what are some potential first steps that you can take in order to initiate a powerful
deployment of The Chevron Way?
What barriers do you anticipate in deploying The Chevron Way?
How can the barriers be addressed?
o Ensure that the line supervisors are familiar with their OE responsibilities for contractor safety and how it relates
to the OE Management System.
Ensure that line supervisors, both Company and contractor, are familiar with their roles and responsibilities for
contractor safety and how contractor safety relates to the OEMS.
Offer OE Leadership Seminars or training for both Chevron and contractor leaders/supervisors.
Communicate the local Tenets of Safe Operation to contractors and incorporate into contractor work
processes.
Reinforce that contractors have the authority to stop or correct any unsafe activity. All employees, both
Chevron and contractor, have stop work responsibility within their authority.
Discuss local Tenets of Safe Operation at safety meetings.
Include Tenets of Safe Operation in the Permit to Work process.
Identify tenets that are violated when preparing incident or near miss reports.
o Involve contractors in implementing and improving the CHESM process.
Create a forum for communication between all service contractors and Chevron that will maintain an ongoing
dialogue to discuss concerns, improvement opportunities, etc.
Assign a contract owner to each contractor. The owner will:
Meet (at least) semi-annually with contractor management to:
o Mutually discuss HES results and activities, including RCA and audit findings/closeouts, progress
towards IFO culture, etc.
o Mutually set HES improvement targets
Participate in periodic HES assessment process and sponsor mitigation plans as needed
Hold the management sponsor accountable performance of contractor
Hold periodic sessions for recognition and sharing best practices.
Provide a mechanism for anonymous feedback regarding incidents and/or near misses.
Hold joint review of lessons learned and analyze for potential modifications to the CHESM program.
Make changes to the CHESM process when appropriate.
Make changes to the CHESM process when appropriate.
Suggested Practices
o Conduct periodic forums with management and supervision of Chevron and all contractors.
Maintain an ongoing forum between Chevron and all appropriate contractors to discuss pertinent safety
information, policy changes, safety concerns, lessons learned, etc.
Streamline working relationships between and among contractors and Chevron.
Capture minutes of forums and distribute to Chevron and facility contractors.
Communicate and discuss:

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Safety statistics
Incidents and near misses
Recognition and awards celebration
Policy/program changes
Contractor safety process improvements
Findings from field safety audits
Business plan objectives relating to safety
Ensure that all information is communicated to contractor field employees and Chevron contractor
representatives.

o Conduct periodic meetings between local Chevron management and individual contractor management.
Hold proactive meetings between Chevron and contractor management to discuss zero incidents safety
plans and performance (i.e., leading and lagging indicators). Be sure to include:
Scheduled discussion with contractor
Recognition to the contractor as appropriate
Contractors zero incident plan
Assurance to Chevron management that the contractor management gets it and are committed to
becoming injury-free
Ensure all incidents are reviewed and discussed with local management to share lessons learned and
determine corrective actions.
o Hold joint Chevron employee-contractor safety meetings.
Improve communication between Chevron and contract employees and further the One Team, One
Challenge philosophy of CHESM by:
Ensuring that contractor and Company employees hear the same message about safety
Conduct safety meetings with field-level employees from Chevron and contractors.
Encourage Chevron employees to attend contractor meetings and vice versa.
Ensure that each party shares pertinent safety information.
o Chevron managers and supervisors conduct regular field visits for the purpose of discussing safety with
contractors.
Demonstrate Chevrons commitment to safety and to assess level of safety awareness at the field level (e.g.,
walks the talk).
Conduct impromptu or scheduled visits.
Plan some visits to include contractor management.
Ensure that management and supervision are prepared with a safety message that emphasizes Chevrons
commitment to zero incidents.
Evaluate work practices and discuss these with field employees.
Solicit employee comments and concerns.
o Share local business plan objectives with contractors.
Share relevant information regarding business plan.

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Ensure that contract management shares information with field employees.
Hold information-sharing sessions/meetings that are independent of Chevron employee meetings.
Align with contractor safety forums/meetings.

Planning
Expectations
Operating Companies must establish and maintain a written and visible contractor safety process that includes, at a
minimum, the following:
o Safety considerations must be incorporated in the development of the contracting plan (such as identification of
hazards, processes, and local procedures).
Include multidisciplinary representatives in the contracting plan process.
Identify specific training, qualification, and equipment requirements.
Establish safety and performance expectations, including fitness for duty.
o Specific local strategies and plans must be developed and implemented to improve local contractor safety
performance.
Establish and track contractor safety performance targets.
Conduct Quick Assessment to identify gaps and prioritize opportunities for improvement.
Solicit and document input/feedback from contractors.
Seek opportunities to minimize the number of contract companies.
Coordinate with Global Procurement and determine if there are any global agreements in place to perform the
work.
Suggested Practices
o Identify the scope and nature of work to be performed.
Fully define the nature and scope of the work to be completed, including the identification of:
Potential generation of emissions and wastes
All potential hazards or risks (including HAZOP studies)
Regulatory reporting requirements
Required PPE and other safety equipment
Work schedules
As necessary, update required engineering/process flow diagrams.
Determine any special requirements or qualifications.
o Conduct risk assessment of work to be performed.
Conduct risk assessment to identify the likelihood of an event occurring and the potential impact. Consider
using a risk matrix to quantify risk.
Incorporate results into pre-qualification criteria including:
Nature of the work materials to be used
Location of the work
Potential exposure to worksite hazards
Potential exposure to hazards for all personnel involved in the activities
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Potential consequences of incidents (e.g., environmental damage, delays of project development, delay
in production operations, legal claims)
Exposure to negative publicity
o Establish strategy for contractor management based on risk.
Based on the nature of work and risk assessments, determine if the contractor will be fully responsible for all
instructions and supervision or whether it is the responsibility of Chevron. Also:
Specify in the contract the reporting relationships between Chevron and contractors
Avoid joint Chevron/contractor responsibilities
Identify key individuals responsible for critical activities
o Develop a contractor incentive program.
Reward continuous safety improvement of the contract company and recognize contract employees safety
behaviors and performance.
If used, incentive programs should:
Not discourage or suppress the reporting of incidents
Be proactive and reward effort (e.g., perform audits and follow-ups rather than using after-the-event
statistics)
Ensure that incentives are valued by personnel who are in a position to influence the performance and
maintain the systems
Be culturally sensitive to local environment
Motivate personnel to change those behaviors that detract from safety performance
Appreciate the safety culture of the contractor
o Integrate lessons learned into the planning cycle.
Include previous post-job evaluation information (from Chevron and contractor).
Utilize CHESM Network to document lessons learned and identify opportunities for improvement.
Conduct Safety VIP Workshop in Phase 2 of capital projects.
Conduct Safety VIP Workshop in Phase 2 of capital projects.
Qualification & Selection
Expectations
Operating Companies must establish and maintain a written and visible contractor safety process that includes, at a
minimum, the following:
o Safety expectations and requirements must be clearly communicated to the contractor prior to the contract
execution.
Determine contractor HES performance criteria as a function of risk of the particular work to be performed
(e.g., the higher the risk associated with performing the work, the more criteria should be applied).
Minimum required criteria for review:
o Incident rate performance (e.g., DAFW, TRIR)
o Incident investigation program, including root cause analysis program
o Drug and alcohol program
o Management commitment

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Recommended criteria for review (but not limited to):
o Job safety analysis program
o Subcontractor management plan
o Training and certification programs
o Behavioral based safety program
o Short Service Employee Program
o Contractor-owned equipment integrity program
o Self-auditing process and field reviews
o Fit for duty
o Industrial hygiene
Communicate to the contractor the acceptable level of safety performance.
o The contractor qualification and selection process must address safety performance considerations.
Develop and utilize an OPCO- and/or BU-consistent process to gather safety information and evaluate
contractors prior to work commencing.
Develop and use a questionnaire to gather HES pre-qualification/re-qualification data on each contractor.
Validate qualification information received from contractor via audits, interviews, etc. If misleading information
is intentionally submitted (as discovered through audit), action will be taken up to and including cancellation of
the contract.
Conduct a safety assessment and rating to determine if contractors safety programs and performance are
acceptable for the type of work to be performed. The safety rating should consider the following:
Analysis of contractor pre-qualification data submitted
TRIR, DAFW, etc.
Results of validation
o Field feedback
o Safety considerations must be incorporated in the development of the contracting plan and final contract (such as
identification of hazards, processes, and local procedures).
Include safety expectations (e.g., HES contract addendum) as part of all contract language for service
contractors.
Ensure that the expectations are clearly communicated by contractor management to the employees that
perform work on Chevron locations.
Suggested Practices
o Use a Request for Information process for early screening of potential contactors.
Conduct an initial screening by providing potential contractors the scope of work to be performed and
Chevrons safety expectations. Contractors submit safety program and performance data, as well as
confirming their capabilities to perform the work consistent with the safety expectations.
Use an assessment process to decide which contractors qualify for the bidders list. Maintain
o Maintain an approved contractor list.
Approved contractor list must be maintained with current safety and performance data.
A time frame should be established to review and renew the safety data (e.g., every 1 to 3 years)
As part of the safety performance review, consider adding guidance for when it is appropriate to remove a
contractor from the approved list.

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Provide expectations for when and how a contractor can be added back to the list.
o Ensure contractors apply HES requirements to subcontractors.
HES contract language should require the subcontractor to comply with all the same requirements as the
main contractor.
OPCO and BUs shall develop and communicate subcontracting expectations, which will hold primary
contractors accountable for their subcontractors and ensure coordinated safety processes are used on
location. Also:
For ongoing work, require the contractor to notify Chevron work owner when contractor will be utilizing
subcontractors
For project proposals, require contractors to submit subcontracting plan, including:
o Products and services that will be subcontracted
o Selection criteria to be used to select subcontractors
o Plans to ensure HES performance from subcontractors

Pre-Job Activity
Expectations
Operating Companies must establish and maintain a written and visible contractor safety process that includes, at a
minimum, the following:
o Assign Company and contractor representatives as key management sponsors to ensure a communication forum
exists for resolving safety issues as necessary to meet performance expectations.
Assign Company and contractor representative for each contract to plan and manage the day-to-day work.
Conduct regular meetings between the Company and contractor representatives during the pre-job, works-in-
progress, and evaluation phases of contractor work.
Topics for meeting discussion should include:
Safety plans
Work plans
Resources
Schedules
Qualifications and training of personnel
Equipment calibration and condition (fitness for use)
Work and personnel monitoring
Safety tailgates/meetings with workforce (e.g., Tenets of Safe Operation, lessons learned, and IF reports)
Feedback to workforce from incident or near miss investigations
Discussion around project changes or issues affecting the work
Emergency drills
o Have a process to report, investigate, follow-up on, and share lessons learned on serious incidents including near
misses.
o Periodically conduct CHESM audits and performance evaluations of contractors.
Suggested Practices
o Conduct pre-job meetings with contractors prior to start of work.
Conduct a pre-job meeting whenever jobs are:

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Significant in nature (e.g., large construction projects, painting and blasting projects, projects involving
explosives, confined-space entry work, rig mobilizations, coil tubing, radiation-related work)
Or
High-risk work that poses special hazards (e.g., hydrogen sulfide gas; working from heights; Lock Out,
Tag Out; electrical in classified areas; involvement of multiple contractors or hazardous materials)
Note: these lists are not all-inclusive, and other projects not listed may need a pre-job meeting as determined By
Company and contractor representatives.
Address the following (at minimum):
IFO Commitment and HES Requirements (The Chevron Way and Tenets of Safe Operation)
Scope of work
Safety and detailed work plan
PPE
Worker qualification and training
Work permit and safety procedures
Equipment calibration and condition
Logistics
Communications between parties and emergency contacts
Review of known hazards
Emergency response plan
Emergency drills
Incident reporting and investigation
Contractor performance evaluation

Cover the following topics, if applicable:

IFO Commitment and Stop Work Authority/Responsibility
Operational Excellence Tenets
Management/work owner personal commitment
Incident and near miss reporting requirements
Root cause analysis
Post-job evaluations
Work-in-progress field reviews
Job Safety Analysis
Behavioral based safety observations
Emergency response
Hazard Communication Program
Training documentation on all employees
SSE Policy2-4 person crews can not have more than one SSE and 5-or-more person crews, no more
than 20 percent. Identifier and mentor required
Personal protective equipment:
o Eye and face protection

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o Hardhats and hard-toe footwear
o Hearing protection
o Specialty items (e.g., gloves, respirators, goggles)
Work permit requirements
Lock Out, Tag Out
Hot Work
Work at height (over 2 meters)
Electrical work in classified areas
Confined-space entry
Drug and alcohol policy
Management support and commitment
Smoking policy
Fall protection requirements/rescue capabilities
Crane/heavy lifting operation requirements
Back safety/lifting policy
Waste handling plan
Housekeeping
Equipment inspections
Subcontractors
Safety meeting requirements
Trenching/excavation
o Develop a safety plan for all work/projects that involve contractors.

Include the following in the safety plan:

Overall commitment, expectations, and goals
Orientation to:
o OE Tenets of Safe Operation, including Stop Work Authority/Responsibility
o Behavioral based safety process
o Harassment policies
o General and site-specific hazards
o Emergency equipment
o Emergency response
o Business Unit Contractor Safety Plan
o Incident/illness reporting
o Personal protective equipment
o Key safety processes
o Hazard Identification
Identifying hazards
Assigning risk/impact rating

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Developing elimination/mitigation plans

Validate training for all contractors prior to performing work. Work agreements, contracts, and Contractor
Safety Evaluation Questionnaires shall include prescriptive minimum training requirements, including:
Expectations for all contractors
o Prescriptive minimums
o Job specific
o Fit for duty process
Specific Chevron and contract supervisor training
o Tracking mechanism

Require contractors to have documentation, such as:

Passport
Smart card (encoded chip)
Other
o Must show validation on site
Be sure to cover:
Drug and alcohol policy
Short Service Employee process
Behavioral based safety process
Permit to Work process
Hot Work process
Work at heights (over 2 meters)
Electrical work in classified areas
Heavy lifting
Emergency plans
Lock Out, Tag Out
Confined-space entry process
Material handling plan that describes the project objective and the manpower and resources required to
complete the project, including any HES requirements for safe operation related to material handling
Waste handling plan that describes the safe handling and disposal of all generated waste and the
resources required to complete the project. The specifics of this plan are recommended to be developed
at the BU level and should be consistent with the Business Unit Waste Management Plan.
Near miss and incident reporting
Contingency plans
Audit process
Management visitsCompany and contractor
Trenching/excavation
Note: The key practices may change and additional practices may be added depending on job type and associated
risks. A description of the elements follows in the plan.

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o Develop detailed work plans for all work to identify required manpower and resources to complete identified
work.
Include the following in the detailed work plan:
Job scope
o Project objective(s)
o Manpower planning, persons on board, duration
Reference documents
o Project execution table and sign-off sheet
o Project team contact list
o Material order list
o Drawings and other reference documents
Project coordination
o Defines roles and responsibilities of personnel involved in the project, such as Operations, Chevron
on-site representative, key contractors, and engineers
Project procedures
o HES expectation of Company and contractors. This may include Hot Work procedures, SIMOPs,
NORM, Heavy Lift practices, etc.
o Contractors safety responsibilities
Work task
o Project execution procedure at the macro scalenot intended to substitute for detail execution and
SIMOP Plans
o JSA elements and perceived hazards for each step along with mitigations for those hazards. The
appropriate personnel should initial each task after completion
o Ensure that a contractor short service employees (SSE) process is in place.
Establish a process to ensure contractor personnel with less than 6 months experience in the same job type
or with their present employer (i.e., short service employees) are identified and appropriately supervised,
trained, and managed to prevent accidents, such as personal injury, injury to others, environmental damage,
or property damage. SSE process should include the following:
SSE personnel should be visibly identified
Contractors should monitor SSEs for HES awareness
Crews of more than 5 should not have more than 20 percent SSE personnel. Crew sizes of less than 5
should have no more than one SSE
The proposed crew make-up should be outlined in the Contractor Short Service Employee Form
Contractors should have in place some form of mentoring process, acceptable to Chevron, designed to
provide guidance and development for SSE personnel
Contractors should manage their subcontractors in alignment with this process

Work in Progress
Expectations
Operating Companies must establish and maintain a written and visible contractor safety process that includes, at a
minimum, the following:

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o Have a process to report, investigate, follow-up on, and share lessons learned on serious incidents including near
misses.
Include local management reporting for Chevron and all contractors. Also refer to the local OPCO and BU
and Chevron Corporate reporting policies. Each Business Unit will also require contractor owners/senior
management to communicate with the OPCO and BU VPs within 24 hours of a LWD incident or a significant
environmental incident. A meeting will be set up as soon as reasonably possible to address the following
issues:
Incident overview
Restart criteria
Immediate corrective action taken
Formation of a team and use RCA to investigate
Follow-up plans and audits and close corrective actions
o Periodically conduct CHESM audits and performance evaluations of contractors.
Conduct a system review of the CHESM program:
Leadership and Accountability
Contractor Engagement
Contractor Safety Processes
Conduct a system review of documentation and procedures used by contractors:
Training records and description
Safety meeting minutes
Safety plans
Work permits
Drug and alcohol screening results and follow-up
Certifications (e.g., certified welding, radiography)
Contractor internal audit results
Incident rates
Incident investigations
Conduct audits on a per-project basis and/or annually for force contractors.
Use audit results in performance evaluations.
Evaluate contractor performance against stated objectives and expectations. Also:
Develop improvement plans as appropriate
Communicate the results of evaluation to both Chevron employees and contractors
Suggested Practices
o Conduct daily tailgate and regular safety meetings.
Have foreman gather crew at beginning of shift to:
Distribute sign-in sheet
Discuss daily work schedule
Discuss hazards of work to be performed
Discuss actions to eliminate or minimize risks
o Actively participate in a behavioral based safety program.
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Determine, at the OPCO and BU level, which contract companies are required to have their own behavioral
based safety program.
Set expectations on activity and participation level.
Include in expectations that the observation program is for everyone. It is critical to promote an environment
that encourages Chevron employees to be observed by contractor employees.
Ensure crew actively participates in observations and shares observations at daily safety meetings.
Establish a process to track contractor behavioral based safety activity level.
Analyze observation data, identify at-risk trends, and build action plans.
Publish behavioral based safety data.
Identify best practices from OPCOs, BUs, and contractors.
Ensure accountability. Evaluation of an effective behavioral based safety program should impact
contractor rating.
o Conduct Job Safety Analysis.
Systematically review:
High-risk work
Infrequently performed jobs
Periodically review frequently performed tasks.
Identify and mitigate safety hazards before the tasks commence.
Ensure that JSAs involve five phases: (1) selecting the job; (2) forming the JSA team; (3) breaking down the
job into steps; (4) identifying potential hazards; and (5) developing solutions. These phases:
Give a common understanding to everyone about what it takes to do the job safely
Are an effective training tool for new employees
Provide key elements to be included in safety checklists, pre-job briefings, safety observations, and as
safety meeting topics
Assist in writing safety procedures for new or modified jobs
o Provide on-site safety monitoring for large jobs.
Dedicated monitors provide additional focus and can monitor the implementation of the HES processes for
the project.
Observers can also provide on-site training on the various processes.
Roles and responsibilities of the observers should be clearly described and widely shared. Some example
roles and responsibilities include:
Provide behavioral based safety observations
Coordinate tracking and sharing of observations
Mentor others in making observations
Audit HES processes
Provide training on various HES processes
Assist in tailgate and safety meetings
Assist in JSA development
Participate in RCAs
Assist in on-site orientations

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Chevron CHESM Guidance
Verify that SSEs are receiving mentoring
For large capital project, a full-time HES manager should be considered.
o Conduct field reviews.
Perform daily field reviews on all contractors to:
Focus on work permits, PPE, special procedures (e.g., hot tapping, confined-space entry)
Report on findings to Chevron responsible parties, work owner, or management sponsor
Ensure contractor has internal process, such as checklists for field reviews (form).
Develop a process to tie results of field reviews into contractor evaluations.
Develop a tracking mechanism.
Provide feedback to contractor in the field.
o Conduct management field reviews.
Management should:
Routinely visit job sites to assess for safety compliance. This should occur in both large and small jobs
Come with a safety message that is unscheduled/impromptu
Plan some visits to include contractor management
Participate in routine safety audits
o Establish a drug and alcohol monitoring program.
Ensure the program involves the following elements:
Pre-employment screening
Random testing
Probable-cause testing
Post-accident testing
Awareness training for contractor supervisors/employees
Compliance with local legal requirements
o Include contractor activities within the facility Management of Change (MOC) procedure.
Use the facility or BU MOC procedure to evaluate hazards associated with changes involving contractor work,
for example:
Changes by Chevron to scope of work involving contractors after work has begun (e.g., change orders
executed by contractors)
Changes by contractors to process equipment or scope of work
Substitution of subcontractors
Changes in contractor-supplied equipment

Evaluation
Expectations
Operating Companies must establish and maintain a written and visible contractor safety process that includes, at a
minimum, the following:

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o Have a process to report, investigate, follow-up on, and share lessons learned on serious incidents including near
misses.
Utilize CHESM Network to communicate lessons learned and research opportunities for improvement.
Integrate learnings from RCAs and IF Reports into CHESM plans.
Conduct a joint Chevron/contractor review session to share and document lessons learned.
Use the CPDEP Lessons Learned Documentation Matrix.
Incorporate lessons learned into qualification and selection phase.
Share lessons learned at periodic safety forums.
Suggested Practices
o Conduct joint postjob evaluations.
Summarize contractor CHESM audits, performance evaluations, and RCA findings from works-in-progress
phase.
Provide mutual feedback in a final, joint meeting on:
General tenor of relationship
Lessons learned and how they can be applied in future contracts
How future contracts should be structured
Project Safety Plan Lookback
Incorporate evaluation information on the contractor to be added as a reference for Chevron bid list.
Incorporate any new hazards identified in the hazard identification and evaluation process for future contracts.
o Evaluate lessons learned and incorporate into future qualification and selection.
Recommend utilizing PRC electronic form, including:
Title
Lesson learned
What happened
What should have happened
What was the business impact
Recommendations
Contacts
Project information
Share information with groups (Chevron employees and contractors).
Ensure process complements OE best practices and lessons learned processes.

Roles and Responsibilities

The following table outlines the roles and responsibilities associated with this process

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Measurement and Verification

Measurement
The following metrics shall be tracked to determine that the CHESM process is effective in meeting its stated
purpose. Measures shall include the following:

Leading Measures
Percentage of contracts using higher rated contractors:
The purpose of this metric is to measure the use of highly qualified contractors compared to the overall number of
contractors used within the SBU/organization. The ultimate objective is for 100 percent of the contractors used by
GU organizations to be either A- or B- rated contractors. The HES rating of contractors is defined in detail in the
qualification procedure.

The percentage value is calculated from:

Active Contracts Having High Rated Contractors

Total Number of Active Contracts Requiring an HES

Rating

Percent compliance with Interim Review requirements:

The purpose of this metric is to ensure that interim reviews are conducted. This measure will also support and
verify contractor engagement and work-in-progress activities.

The percentage is calculated from:

Total Number of Interim Reviews Conducted

Total Number of Reviews Required

Lagging Measures
Lagging measures include:

Contractor Total Recordable Incident Rate (TRIR)

Contractor Days Away From Work Rate (DAFWR)

Verification
The following steps shall be conducted to verify process performance.

Review of Process Effectiveness

The SBU CHESM process sponsor and process advisor shall review and verify that all parts of the CHESM process
are effective in fulfilling relevant OE expectations and the CHESM process purpose. The internal review shall be
performed at least annually. The review should cover the subjects listed in the CHESM Quality Fitness Review
(QFR).

Audit of Process Effectiveness

The SBU CHESM process sponsor and SBU CHESM process advisor shall verify adherence and identify
nonconformance to the CHESM process as designed and documented. A documented audit of the CHESM

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Chevron CHESM Guidance
process shall occur at least once every two years and shall be based upon documents and records. A CHESM
Quality Fitness Review (QFR) is provided to assist with these audits.

Continual Improvement Plans

Process gaps, nonconformance, and improvement opportunities identified from Review of Process Effectiveness
and Audit of Process Effectiveness shall be summarized and used to assist in building continual improvement
plans.

Continual Improvement
The following shall occur to improve the OE process.

Gap Analysis
The SBU process sponsor and process advisor shall prioritize CHESM process performance gaps, nonconformities
and unfulfilled OE expectations which are identified as part of the OE process measurement and verification step.
Consider GU or operating company, directives, risk, resources, and other SBU factors. Combine and prioritize
improvement opportunities for all OE processes.

Linkage to Annual Business Plan

Each SBU shall have an annual continual improvement plan that is based upon gaps identified during the
measurement and verification of the process.

Contents
The Continual Improvement Plan for OE processes shall identify the following:
Improvement opportunities and gaps to be closed
Resources required
Responsible person(s)
Timing and milestones for improvements

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Chevron CHESM Guidance
Attachment #1

BUILDING ORGANIZATIONAL CAPABILITY TO

IMPROVE CONTRACTOR SAFETY

The CHESM Guidance Document addresses all six areas of Chevrons

Organizational Capability, either through defining required elements or
through the implementation process. The consistent implementation of a
common approach across Chevron is critical to developing the
Organizational Capability to deliver the bottom-line results we seek. What
will it take to get us there?
DYNAMIC LEADERS
Executive leaders will sponsor implementation in a manner that
aligns people, inspires innovation, and shapes top performance.
Supervisors and managers will lead the changes:
Model the desired behaviors
Establish expectations, performance metrics, and goals
Define roles and responsibilities
Participate in periodic contractor safety forums
Provide reinforcement to employees and create the environment that fosters early reporting
Safety and Reliability Leadership Sessions will be offered.
Performance-Based Leadership (PBL) training is available.
SKILLED EMPLOYEES
Contract owners, contractor representatives, and supervisors will gain additional skills.
They will:
Recognize the importance of contractor safety and their role and responsibility in managing performance
Understand the full lifecycle of contractor management from the initial planning phase through evaluation
Establish performance metrics, targets, and expectations fro contractor safety
Conduct periodic reviews of contractor safety performance
Be able to model, recognize, and reward desired behaviors
Contractors will also add to their skills set. They will:
Understand The Chevron Way and Tenets of Safe Operation
Align their safety programs with those of Chevron to improve overall site safety
LEARNING AND INNOVATION
The CHESM Network will enhance learning and innovation by:
Facilitating the sharing of ideas among various Chevron organizations
Including contractor representative in the CHESM Network
Using a website to allow online discussions and for maintaining the Networks institutional memory
Owning and updating Corporate guidance as new tools and approaches are developed
The CHESM forums will proactively engage both Chevron employees and contractors.

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Chevron CHESM Guidance

RECOGNITION AND ACCOUNTABILITY

Business plans, organizational metrics, and individual PMPs will support the key factors for CHESM performance
improvement and provide opportunities to celebrate success.
The CHESM Sponsor Committee (a subset of the HES Steering Council) is responsible and accountable for oversight
of the Network and for raising any significant issues to corporate management.
Metrics will be periodically reported to the Corporation.
The Accountability Tool provides information on creating opportunities for learning about performancea critical input
to holding people accountableand tips on following up on key actions and how you can demonstrate personal
accountability for Safety and Reliability. The tool also provides concrete ways to ensure that employees at all levels
receive the right guidance and are held accountable for meeting targets and questioning tips to use at each OEMS
step.
WORLD-CLASS PROCESSES AND ORGANIZATION
The CHESM Guidance Document provides the guidance along with tools and other resources to help OPCOs and
BUs to develop world-class programs for their organizations.
Organizations will use processes, such as CPDEP for Change, to perform an implementation gap analysis and
develop action plans.
TECHNOLOGY AND PARTNERSHIPS
Use of knowledge management tools and NetMeeting will allow collaboration of contractor safety specialists around
the globe.
Alignment of Chevron safety programs and contractor safety programs will result in closer working relationships and a
common understanding of what it takes to be safe.
Organizations will partner with Global Procurement to leverage contractor relationships across Business Units and
Operating Companies.

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Chevron CHESM Guidance
Attachment #2

CHESM GUIDING PRINCIPLES

Achieving world-class contractor safety performance means a cultural shift for both Chevron employees and contractors.
The success of that shift depends on the strength of our combined leadership and accountability, and the speed of the
shift is enhanced by following these CHESM Guiding Principles:
SAFETY IS VALUE-BASED, NOT JUST PRIORITY-BASED
Safety is not in competition with organizational priorities of cost or schedule. Safety is never compromised for any
circumstance or in any situation. If it can not be done safely, then it will not be done.
ALLIANCE (OR JOINT IMPERATIVE)
Effective safety implementation and improved safety performance is an imperative shared by Chevron and the contractor.
Both teams must visibly demonstrate their commitment through leadership behaviors.
INCIDENT- AND INJURY-FREE CULTURE
Chevron, contractor management, and the employees of both are committed to promoting an incident- and injury-free
culture. We work together to eliminate barriers and obstacles.
VALUE OF PEOPLE AND COMMUNITIES
Each task is performed with respect for the inherent value of our fellow employees, contractors, visitors, vendors,
customers, and communities in which we work. Both Company and contractor management demonstrate this respect by
focusing on continuous improvement of safety behaviors involving the entire workforce, from craft workers and operators
to management. The focus is on people and not numbers or statistics.
With every person, employee, and contractor alike, committing to and implementing these principles in a proactive
manner, Chevron can prevent injuries and incidents.

Achieving world-class contractor safety

performance means a cultural shift for
both Chevron employees and contractors
. . . Success depends on the strength of
our combined leadership and
accountability.

2012 Chevron U.S.A. Inc.

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