900-RFP-104, Revision 1: Contractor Safety, Health and Environmental Program Management System

Contractor
Safety, Health and Environmental

Program Management System
New Projects
Administration Phase: Select A Qualified Contractor
Risk Assessment
Pre-Qualification
Selection CSMS
Contract Award
Data Bank
Field Implementation Phase: Ensure Field Safe Work
Pre Job Activity Work In Progress Final Evaluation
900-RFP-104, Revision 1
BP Indonesia
Contractor Safety, Health and Environment Program Management
System (CSMS) Guidelines
Management Endorsement
Contractor Safety, Health and Environmental Program Management System
(CSMS) Guidelines Revision 1.0 / December 2000
Authorized By
Waluyo M. Hakim Nasution

Senior Manager of HSE VP of Supply Chain
Management
Endorsed By
Bill Schrader
President & Resident Manager of BP Indonesia
Revision 1.0 / December 2000

CUSTODIAN: SATRIO PRATOMO
PAPER COPIES ARE UNCONTROLLED.
THE CONTROLLED VERSION OF THIS DOCUMENT IS ON THE ELECTRONIC FILE AT HSE OFFICE
Contractor Safety, Health and Environment Program Management
System (CSMS) Guidelines
Table of Contents
I. POLICY AND SCOPE OF THE GUIDELINES....................................................... 4

II. INTRODUCTION .................................................................................................... 5
III. PURPOSE AND INTENT ....................................................................................... 6
IV. STRUCTURE AND PROCEDURE......................................................................... 7
A. QUALIFICATION PHASE ......................................................................................7
B. FIELD IMPLEMENTATION PHASE ..........................................................................7
V. QUALIFICATION PHASE .................................................................................... 10
A. RISK ASSESSMENT ..........................................................................................10
1. Objectives ............................................................................................................................. 10
2. Risk Assessment Process .................................................................................................... 10
B. PRE-QUALIFICATION .......................................................................................13
1. Objectives ............................................................................................................................. 13
2. Pre-qualification Process ...................................................................................................... 13
C. SELECTION .....................................................................................................16
1. Objectives ............................................................................................................................. 16
2. Bid Documentation Prepared by BPI .................................................................................... 16
3. Evaluating Bids, Site Inspections and Audit ......................................................................... 18
4. Award .................................................................................................................................... 18
VI. FIELD IMPLEMENTATION PHASE..................................................................... 19
A. PRE-JOB ACTIVITIES .......................................................................................19
1. Objectives ............................................................................................................................. 19
2. Pre-job Activities Steps ......................................................................................................... 19
B. WORK IN PROGRESS .......................................................................................23
1. Objectives ............................................................................................................................. 23
2. Delivery Unit Manager/Team Leader Safety Visits............................................................... 23
3. Competence Assurance........................................................................................................ 23
4. Inspection, HSE Auditing and Interim Evaluations ............................................................... 23
5. HSE Plan .............................................................................................................................. 26
6. HSE Meetings ....................................................................................................................... 26
7. HSE Promotion ..................................................................................................................... 26
8. Supervisory and Employee HSE Communication ................................................................ 26
9. Emergency Drills and Exercises ........................................................................................... 27
10. Accident, Incident Investigation/Reporting............................................................................ 27
C. FINAL EVALUATION AND CLOSE OUT ..................................................................28
1. Objectives ............................................................................................................................. 28
2. Final Evaluation and Report ................................................................................................. 28
VII. GLOSSARY AND ABBREVIATIONS................................................................ 30
VIII. ROLES AND RESPONSIBILITIESエラー! ブックマークが定義されていません。
Revision 1.0 / December 2000

PAPER COPIES ARE UNCONTROLLED.
POLICY AND SCOPE OF THE GUIDELINES
These guidelines have been developed as part of the BP Indonesia Getting HSE
Right (GHSER) framework for managing HSE (Health, Safety and
Environmental) of Third Party Services.
The guidelines have been developed for Contract Administration, Tender
Committee, BP Indonesia Representatives, Section Managers, Chiefs,
Superintendents, Supervisors, and other related front lines functions that have
direct or indirect relations with Contractors. This is to ensure similar perception
and implementation among all BP Indonesia Operating units on how to handle
Contractor Safety.
The scope of the guidelines is mainly for all BP Indonesia Operating Units,
Facilities, Premises or any other designated areas under the responsibility of BP
Indonesia. The guidelines are not obligatory for Contractor premises or any
other Non BP Premises. However, BP Indonesia will encourage the contractor to
voluntarily follow and implement the procedures on their own premises if they
do not have such procedures.
Forms and Checklists of the guidelines are grouped separately under the
heading of CSMS Forms and Checklists. Some items in the checklist may not
be applicable. If that is the case, put N/A (not applicable). You are not
recommended to reduce the contents of the checklists because those are
minimum requirements.
However, the checklists may not adequately cover HSE aspects of your specific
jobs. If that is so, you are encouraged to develop additional checklists to fit
your specific jobs.
These guidelines contain processes and procedures of Contractor Pre
Qualification and Selection. This part shall be used in parallel with BP
Indonesia General Contracting Process. In addition, these guidelines shall be
used in conjunction with other BP Indonesia policies, such as Safety Handbook,
Operations Manual, and HSE Guidelines etc.
Revision 1.0 / December 2000 900-RFP-104, Revision 1

INTRODUCTION
Contractor Safety, Health and Management System (CSMS) is designed to

improve the BP Indonesia (BPI) and contractor health, safety and environment
(HSE) performance. Active and ongoing participation of both the BPI 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 BPI and contractor relationship by clearly defining roles and
responsibilities, establishing expectations and maintaining communication
throughout the relationship.

PURPOSE AND INTENT
This guideline is designed to:

• Improve workplace HSE performance by assisting BPI and
contractors in administering an effective HSE program for a contract;
• Assist contractors in administering programs which are consistent
with BPI expectations;
• Facilitate the interface of contractor’s activities with those of BPI,
other contractors and subcontractors.
This guideline should protect both BPI and contractor personnel from workplace
injuries and illnesses as well as from losses associated with the incidents, while
preserving the independent contractor relationship.

STRUCTURE AND PROCEDURE
The key activities in this CSMS are recorded in a web based database system
that is accessible to all relevant personnel, including the management team
consisting of Asset and Line Managers, Delivery Unit Managers and Team
Leaders, as well as the President and Resident Manager. This system will
enable the management to monitor the CSMS activities conducted by his/her
employees. A CSMS System Guideline that provides a step-by-step process on
using this system is available separately.
There are six steps in the CSMS structured into two groups, in which each
consists of three steps:
Qualification Phase
1. The objectives of this phase are to mine the necessity of the subsequent
CSMS steps. Jobs, which risks are classified as High must go through a
mandatory pre-qualification process.
2. Pre-qualification is a step to screen potential suppliers to establish that
they have the experience and capability to undertake the activities in
question safely and in an environmentally sound manner. This may
include HSE inspection and audit.
3. Selection is a step to assess whether the HSE program specific to the
level of risk involved in the work and the bid evaluation criteria have been
met and to select, where necessary on the basis of clarification meetings
and inspections, the successful bidder.
Field Implementation Phase
The field implementation phase is aimed at ensuring compliance to company
HSE standards prior to, during and after the performance of a work. This
phase constitutes the following steps:
1. Pre-job activities, where all 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.
2. Work In Progress, where the actual job implementation is inspected
and evaluated. Included in this stage is the mandatory requirement
for the Team Leaders accountable for the work to carry out visits at all
contractor-managed sites within seven days of start-up.
3. Final Evaluation is a step to conclude a contractor’s HSE performance
during the entire field implementation phase. The results will be used
as considerations to employ the contractor for future projects.
The following table provides a matrix of CSMS requirements for jobs
classified as low, medium and high risks.

Table 1: CSMS Process Requirement
CSMS STEPS CSMS PROCESS REQUIREMENT
LOW MEDIUM HIGH
Risk Assessment Required Required Required
Pre-qualification Discretionary Discretionary Required
Selection Discretionary Discretionary Required
Pre-job Activities Discretionary Required Required
Work In Progress Discretionary Required Required
Final Evaluation Required Required Required
All of these steps will be recorded in a database that will be used for future
analyses of contractor’s HSE performance. Table 2 in the following page is
provided to give assessors an idea of several types of works and the levels of
risks associated with the works. This table shall not be used to determine
the risk associated with certain jobs. Jobs illustrated as Low or Medium in the
Table may be classified as High when accidents frequently happen during the
performance of the jobs. Assessors should, however, verify the risk analysis
for the specific job based on the factors described in Section 4.1. “Risk
Assessment”.

Table 2: Examples of Contract Types and Associated Risks
Overall
No. Work Type Relative
Risk
Level
1 Drilling and associated work: cementing mud services, logging, H
well velocity survey.
2 Hot work activities: welding, hot tapping, cutting, sandblasting
in well sites and process unit areas H
3 Well services and work-over activities H
4 Sea and air transportation services H
5 Fabrication and construction jobs H
6 Mechanical, electrical and instrumentation repairs H

7 Vessel and separator cleaning H
8 Marine diving services, water blasting H
9 Testing, inspection and recertification H
10 EPC contracts H
11 Technical, administration support: engineering, environmental

studies, technical consultancy, training (unless located at well L
sites and process units), labor supply.
12 Catering services M
13 Pipeline maintenance, leak repairs H
14 General services work not in well sites or in the process units:

housing maintenance, photocopy services, office and equipment L
repairs, etc.
15 Seismic surveys H
16 Warehouse rental or services H
17 Land transportation H

QUALIFICATION PHASE
Risk Assessment
Objectives
The objectives of this step are to describe the work and to assess the
HSE risks associated with the work.
Risk Assessment Process
BPI is responsible for making an initial assessment of the HSE risks

involved in execution of the work. This will aid the contractor and BPI in
developing programs and safe work practices to protect all workers. The
focus of the assessment should be to evaluate the inherent hazards in
conducting the work. The contract holder conducts risk assessment.
A risk assessment should include considerations of the following:
• Nature of the work • Simultaneous work by different
contractors
• Work location • Work duration
• Materials/equipment used • Potential incident consequences
• Potential for exposure to work • Contractor experience
site hazards
• Potential exposure to hazards • Exposure to negative publicity
for all personnel
The risks assessed can be characterized as low, medium or high in

accordance with the Risk Assessment Matrix approach shown in Table 3.
Definitions for the ratings and sample of the Risk Assessment Checklist
form (Form CSMS/RA/01) are provided in Appendix I. Figure 1 illustrates
the risk assessment flow. Risk assessment is conducted electronically in
the CSMS database.

Table 3: Risk Assessment Matrix
S CONSEQUENCE INCREASING PROBABILITY
E A B C D E
V Never Heard Incident Happens Happens
E heard of in has several several
R People Assets Environment Reputation of in E&P occurred times in times
I E&P industry in BP BP per year
in a
T
location
Y
No health No
0 No effect No impact
effect/injury damage
Slight
health Slight Slight Manage for continuous
1 Slight effect
effect/ damage impact improvement
injury
Minor
health Minor Limited
2 Minor effect
effect/ damage impact
injury
Major
Incorporate risk
health Localized Localized Considerable
3 reduction
effect/ damage effect impact
measures
injury
Single Major National
4 Major effect Intolerable
fatality damage impact
Multiple Extensive Massive International
5
fatalities damage effect impact

Figure 1: Risk Assessment Process
Define
requirements
Identify risks &

complete form
electronically
Electronic
endorsement by
Asset/Line
Manager
HSE
Verify risk
verification Yes No
assessment
required?
No
DUM/TL approval
Yes Agreed?
(electronic)
Approved?
Yes
Prepare Contract
Requisition

Pre-Qualification
Objectives
Pre-qualification is the most important step in the CSMS to screen

potential suppliers to establish that they have the necessary experience
and capability to undertake the activities in question safely and in an
environmentally sound manner. All suppliers that are pre-qualified should
be fully capable of managing all HSE aspects of the jobs.
Pre-qualification Process
Not all jobs require pre-qualification. There are four conditions that do
not necessitate suppliers to be pre-qualified:
• Services classified as Low Risk and Medium Risk.
• Waived by the respective Delivery Unit Manager or Team
Leader for contractors that have passed previous pre-
qualifications for the same work or for those who received a
high pre-qualification score, or for contractors who received
satisfactory final evaluation.
• Contractors listed in the BPI Preferred Suppliers.
However, low risk jobs that in the past experienced frequent minor
accidents or incidents will require the work risk to be classified as high
(refer to Table 2: Risk Assessment Matrix), therefore, suppliers rendering
such services must be pre-qualified. Figure 2 illustrates the pre-
qualification process. For high-risk jobs, CSMS pre-qualification must
precede any bidding activities. Only suppliers that pass the CSMS pre-
qualification will be included into the bidder list for further bidding process.
In general, the pre-qualification process is to provide basic information
about the suppliers, such as:
• Contractors commitment and leadership regarding HSE;
• Policy and strategic objectives;
• HSE communication, training, management of subcontractors,
performance standards;
• Hazards and effects management;
• Planning and procedures;
• Implementation and performance monitoring;
• Audit and review procedures;
• Other additional features
A sample of the pre-qualification form to be completed by suppliers (Form

CSMS/PQ/02) is provided in Appendix II. During pre-qualification of large
suppliers, especially those with divisions in numerous countries, the use
of the record of the Corporation may not be appropriate. In such case,
the focus should be on the division bidding for the work. The form can be
distributed to suppliers in a hard copy or electronic format. Supplier
responses over the CSMS pre-qualification document will be evaluated

against BP Indonesia Pre-qualification Evaluation Criteria (Form
CSMS/PQ/03).
The minimum acceptable score for a contractor to pass a CSMS pre-
qualification is 64.0. In case none of the bidders meet the minimum
acceptable score, the respective Delivery Unit Manager or Team Leader
will decide whether or not to continue with the pre-qualification process.
Should the pre-qualification process is continued such as Conditional
Acceptance is rendered, strict requirements, time period and control
measures necessary for the relative risk must be applied to the suppliers.
Once suppliers pass the initial evaluation, inspection of supplier facilities

and audit of supplier conformance to the pre-qualification documents may
follow. The policy on HSE audit is available separately from the HSE
Department.
Suppliers that do not pass the pre-qualification process will be given

feedback informing them the reasons why they did not qualify and advise
them of corrective actions against the identified deficiencies. Feedback
to suppliers will be supplied by the evaluation team. Only until they have
proven improvements in their HSE management can they qualify for
future works.
While the procurement agents prepare bid packages, the Originators

must develop HSE specifications specific to the job being bid. These
HSE specifications will be included into the bid package for the suppliers
to prepare, which in turn they will prepare their HSE Plans and programs
specific to the jobs. These documents will be evaluated during the bid
evaluation process. Refer to the SELECTION phase for further
guidelines on preparing bid document and evaluating suppliers.
Figure 2 in the following page illustrates the pre-qualification process.

Figure 2: Pre-qualification Process
Risk
Assesment
Yes
High?
Prequalification
No Yes
required
Candidates complete
HSE pre-qualification
questionnaire
Review &
clarification by BP
Indonesia
Disqualify
Required HSE Mgmt
No
Pass? No No & provide
standard (all bidders approval
feedback
<64)
Yes
Inspection and
audit Inspection and
processes audit
processes
Meet BPI Could BPI help

No Mgmt approval No Disqualify
criteria? fill the gaps?
Yes
Conditional
acceptance
Put candidates into bidder list

Selection
Objectives
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.
This CSMS Selection step is parallel with the bid evaluation process
within the procurement process framework and is considered part of the
technical evaluation.
Bid Documentation Prepared by BPI
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. Originators shall prepare HSE Plans specific to
each work type. In addition, when developing weighting factors,
Originators may consult with the HSE Project Officer to obtain the most
appropriate weight for the work to be contracted, usually around 20% -
30%, depending on the complexity of the job.
Documents that are to be included in bid packages are:

• BPI HSE goals and objectives.
• Definitions of the HSE Plan scope and the known hazards to
be addressed.
• List of HSE controls procedures and compliance issues for the
contract.
• Definitions of BPI and contractor anticipated interfaces, BPI
supervision strategy and interaction with BPI operations.
• Minimum specification requirements.
When preparing bid documents, there are several considerations that

need to be taken:
• Delivery Unit Managers/Team Leaders is responsible in
assuring that the bid documents address the HSE
requirements for the contract and that knowledge about
hazards already identified are passed on to the suppliers. BPI
shall never assume that the suppliers know of the hazards in
the workplace.
• The supplier has independent responsibility for his own HSE
Plan, but documents should make clear provision for BPI to
perform HSE audits on the supplier in order to assess
compliance.
• The documents should include provision for BPI to suspend
work if the contractor does not observe the HSE criteria
spelled out in the contract HSE Plan and, in particular at
mobilization, to withhold permission to start execution and hold

payments until a satisfactory pre-job audit has been achieved.
However, before any work is suspended, BPI should liaise with
the supplier to allow them the opportunity to rectify any non-
conformances.
BPI should assure that the mobilization and demobilization phases are
adequately covered in the HSE Plan. The importance of the CSMS
requirements must be communicated to all suppliers during pre-bid
clarification meetings.
Figure 3: Selection Process
Originating Department Contract Services Other Key Stakeholders
Finalize bidder list Prepare
SELECTION
bid
document
Conduct public
announcement (if
necessary)
Prequalify new bidders Conduct bidder
All HSE requirements and (if necessary) prequalification activities
risk associated with the work shall be

included in Bid Document Prepare technical
extracts of the bid
Coordinate, prepare and
Legal Department
prepares the Articles of
compile bid document
document Agreement
Bid document quality

review
Pre-Bid Meeting Coordinate Procurement

Committee review and
approval
Evaluation of Bidder’s proposals

Review current capabilities and past Originating Department Contract Services Other Key Stakeholders
HSE performance `
Distribute invitation to bid

letters
Award Contract Prepare technical bid

clarifications and reply to Coordinate bid Bidders prepare bids
bidders inquiries as clarification meetings (proposals/quotes)
required
Conduct bid opening
meeting
Conduct technical and Conduct non-technical

safety evaluation (commercial) evaluation
Negotiate technical and Coordinate contract

cost aspects negotiation meetings
CSMS Review evaluation &

award recommendation
Compile and finalize the
evaluation & award
recommendation
package
package
Evaluation & award

recommendation
package quality review
Coordinate Procurement
Committee review and
approval
Participate in expediting
Coordinate BPPKA/
BPPKA/BAPPENAS
BAPPENAS approval
approval
General Contracting Process

Evaluating Bids, Site Inspections and Audit
During bid evaluation, the User, HSE and Procurement Services

departments should convene meetings to concentrate on reviewing the
HSE program prepared by the contractors and assessing how effective
the contractors have been in providing assurance that all hazards have
been identified. What have been evaluated during the pre-qualification
process may be re-evaluated and compared among all bidders.
Clarification meetings between BPI and contractors should also be

conducted to clarify and further assess the suitability of contractor’s HSE
Plans and how that plan interacts with BPI HSE program and of other
contractors. Once the HSE issues have been evaluated and weighted
against the established weighting factor, it will be incorporated into the
overall technical evaluation. This appraisal must be documented, as it is
one of the crucial conditions for awarding a contract.
Site inspections may be conducted to ensure conformance of what the

bidders proposed. The HSE Project Officer will assist by providing HSE
assurance and producing the necessary recommendations. The process
for HSE assurance is available separately from the HSE Department.
Results of the selection process are electronically recorded using the

Selection Result Form (Form CSMS/SL/04), a sample of which is
available in Appendix III.
Award
As soon as the selection process is completed, the result will be

incorporated into the overall bid evaluation and award recommendation
package. The Delivery Unit Manager or Team Leader will approve the
award recommendation.

FIELD IMPLEMENTATION PHASE
Pre-Job Activities
Objectives
The objectives here are to ensure that the relevant aspects of the
contract risk assessment and any other HSE aspects of the contract are
communicated and understood by all parties prior to implementation of
the contract.
Pre-job Activities Steps
Pre-job activities constitute two steps: Pre-mobilization and Mobilization

Activities. Assets or Line Managers lead the conduct of these pre-job
activities. A Pre-Job Activity Checklist form (Form CSMS/PJA/05) shall
be used to check contractor’s readiness to perform the work in terms of
HSE. Results of these activities will be input into the database system by
the end user or to avoid duplication of work, the checklist is downloaded
into a palm top and synchronized into the database when completed.
2.1. Pre-mobilization
During the pre-mobilization, all 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. Involved in these activities are kick-off meetings,
inspection, audit, site orientation and HSE briefings. Topics
discussed during these activities are: work plan discussions, review
all potential hazards and HSE issues, check readiness of all
required equipment, tools and PPE, develop emergency procedures.
Representatives from the Originator department conduct inspection
and if required, with assistance by the appointed HSE Project Officer.
The procedure on HSE audit is available separately from the HSE
Department.
2.1.1. Kick-off Meeting
Kick-off meetings are led by the respective immediately after

contract award and before the execution of any work. A kick-
off meeting is conducted to provide the opportunity for
contractors to become familiar with BPI work location, facility,
personnel, and other work information. Kick-off meetings are
lead by the respective Asset or Line Manager and his or her
subordinates who will be responsible for the work. From the
contractor’s side, the key contractor and subcontractor
personnel must attend these kick-off meetings.
If the contractor mobilizes locally at the work site, the kick-of

meeting may be held locally, either at BPI offices or at the
contractor’s local office. Otherwise, it may be necessary to
hold the initial kick-off meeting at the contractor’s base office.
The Delivery Unit Manager or Team Leader will determine the
location for these kick-off meetings.
The topics covered by the kick-off meeting may 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,
• Confirmation of any HSE performance objectives and
targets,
• Distribution and explanation of BPI HSE policy statement,
basic HSE rules and work procedures,
• Confirmation of the scope and schedule of HSE activities,
e.g. HSE meetings, audits, inspections and reviews. The
number of HSE inspections will be pre-agreed and
recorded into the database system.
• Confirmation of the availability of contractor’s emergency
procedures.
• Interaction of BPI and contractor’s contingency plans.
• Briefing on subcontractors on HSE requirements.
• Accident/Incident reporting and investigation procedures.
The meetings should also be used as an opportunity to

clarify or raise new HSE issues that may not have been
covered in the contract document.
2.1.2. HSE Site Orientation
Site orientation is conducted to familiarize the contractor of the

work environment, job site, facilities, and fire, safety and
emergency evacuation areas. All potential hazards and other
HSE issues identified during the kick-off meetings must be well
communicated during this orientation.
2.1.3. HSE Training
The contractor is responsible for training and briefing of its own

employees on all potential hazards and HSE work related
issues. BPI is to verify that training is well conducted and well
documented. A method to determine the understanding of the
training materials, e.g. written or verbal examination, walk-
through demonstrations, on-the-job-evaluations, may be
employed by BPI. Further training and briefings may be
required when demonstrated knowledge is below expectation.
2.2. Mobilization
During mobilization, the HSE Plan must be communicated to all BPI

and contractor relevant personnel. In the mobilization phase, some
of the principle activities are:
• Local kick-off meeting(s),
• Mobilization of contractor staff and equipment,

• Finalization of contractor’s HSE Plan,
• Hold mobilization audit.
During mobilization, BPI 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. Depending on the circumstances,
additional supervisory staff from the contractor may be required to
allow rapid set-up and implementation of the HSE Plan.
During the initial part of the mobilization phase, all key personnel
assigned to the work must attend an HSE orientation program that
should be used to communicate the HSE Plan and any other
significant HSE aspects of the contract. Progress meetings should
then be used as a formal method of reviewing HSE implementation,
along with frequent walk-through by BPI personnel, in this case the
Asset Managers, Delivery Unit Manager, Team Leaders and/or the
HSE Project Officer.

Figure 4: Pre-Job Activities Process
VISIO CORPORATION
Contract Award
Premob activities (office):

(kick-off meetings,
work plan,
review potential hazards
site inspection & audit,
HSE briefing,
check equipment & PPE,
etc)
No
Complete?
Yes
Mobilize
Communicate HSE
Plans, audit,
Finalize HSE issues,
HSE briefings
Contract execution

Work In Progress
Objectives
The objectives of this phase are to assure that the work performed is
conducted according to the agreed upon HSE Plan, and that additional
HSE needs, identified during the work, are properly addressed.
Delivery Unit Manager/Team Leader Safety Visits
Within seven days following mobilization or start-up, the accountable

Delivery Unit Manager or Team Leader will carry out safety visits at all
contractor managed sites. The visit will include:
• Meeting with site management and BPI representatives,
• Meeting to communicate management expectations to all site
staff,
• Audit activities.
Apart from the safety visits previously mentioned, the respective Delivery
Unit Manager or Team Leader shall also conduct periodic or spot
inspections to ensure that all HSE obligations are met.
Where responsibility for supervision rests with the contractor, BPI’s 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 a Man In Charge (MIC), the respective Asset or Line
Manager must monitor and verify that all HSE obligations are being met.
Advice from HSE Project Officers can be sought where needed, however,
accountability for contract HSE lies with the contract holder.
Competence Assurance
During execution the contract holder must monitor the continued

competence of the contractor, i.e. any associated training commitment
undertaken. 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, instructions and information
leaflets reinforced with simple visual messages.
Inspection, HSE Auditing and Interim Evaluations
Inspections and audits provide the methods for monitoring contractor

HSE activities. The performance of a contractor that have satisfactorily

passed the Qualification Phase and very well prepared during the Pre-
Job Activities cannot be guaranteed if not closely monitored and
evaluated. Therefore, it is mandatory that periodic evaluations and
inspections be conducted. The frequency of such evaluations depends
on the nature of the work, size of the work, the risks involved and/or
length of the contract period (refer to the paragraph regarding Kick-off
Meeting in the Pre-Job Activities section) and recorded into the database
system. When due, a warning system will be automatically switched to
remind the evaluator or Asset/Line Manager to conduct the inspection.

Figure 5: Work-in-Progress Activities
Start up
DUM/TL HSE
visits
HSE Scope & Standards:

Constructual Obligations,
Conditional Acceptance
List
Yes
Work scope
changes, additional
hazards
No
Interim Evaluations:
Inspection Checklist,
Audit, HSE Program
Checklist
Contractor HSE
Interim Evaluation Accident/Incident
Performance
Reports Reports
Report
No
Corective Action
Taken?
Yes No
Job
Completed?
Yes
Final Evaluation
Diciplinary Action

Both BPI and contractor shall perform inspections and audit. Any
findings of inspections and audits must be shared between BPI and
contractor with positive commitment from both parties to use the findings
for improving performance. The contractor shall follow up with corrective
actions of any deficiencies found. Negligence in doing so or insufficient
corrective actions may result in a negative record in the final evaluation.
This will affect contractor’s opportunity to participate in any future works,
the issuance of verbal or written warnings, personnel termination,
contract suspension, or even contract termination.
The forms used to conduct inspections and reviews remain unchanged

from the previous CSMS. In addition to this form, the inspectors shall
also use the contractor’s HSE Plan as a tool to conduct such reviews.
The preceding questionnaires in the checklist should be considered as
the criteria for the rating. The performance rating of each category shall
be summarized in the Interim Evaluation Form, which remains the same
as in the previous CSMS. The interim evaluation result shall be input into
the database system by the evaluator. Again, to avoid duplication of work,
the checklists can be downloaded into a palm top and synchronized into
the database when completed.
HSE Plan
The contract holder and the contractor are jointly responsible for the
implementation and improvement of the HSE Plan. Successful
implementation of the HSE Plan will be determined by the achievement of
monitoring, evaluating, and conducting corrective actions, for example:
HSE Meetings
BPI and the contractor shall jointly conduct HSE meetings on a regular
basis, attended by all contractor’s and BPI representatives. This meeting
is intended to provide ongoing training and communication of HSE issues
and shall be recorded and documented.
HSE Promotion
HSE promotion is necessary even if the workplace is designed for safety,

job procedures have been made as safe as possible, employees are
thoroughly trained, and safe work procedures are consistently reinforced.
This is because the prevention of accidents also depends upon people’s
desire to work safely. Not all potentially hazardous conditions and unsafe
acts can be anticipated or controlled by others. All concerned must also
use their own initiative, common sense and self-discipline to protect
themselves.
Supervisory and Employee HSE Communication
Contractor’s supervisors or employees ensure that the jobs they are

performing are not hazardous either to themselves, others, other
contractors or to BPI. The contractor should ensure that the contractor’s
employees are able to communicate any related HSE issues to their
management.

Emergency Drills and Exercises
Contractor is required to conduct or participate in any emergency drills

while working on or visiting BPI facilities. Contractor’s emergency
procedure may be reviewed and improved whenever necessary. The
contractor shall also be familiar with all BPI alarm systems.
Accident, Incident Investigation/Reporting
All occupational injuries, accidents or incidents and near misses

associated with contractor’s on-site work shall be reported to BPI
immediately and will be recorded. Following the accident or incident
report, BPI and the contractor may conduct a joint investigation. Any
accident and incidents, be it the smallest accident/incident such as first
aid cases, must be recorded into the CSMS databank, or if it is not
possible, the CSMS databank provides a linkage to a separate
accident/incident reporting database, enabling all of its users to view
them. Further procedure on accident, incident investigation and reporting
is available separately from the HSE Department.

Final Evaluation And Close Out
Objectives
The objectives of this phase are to conduct a joint evaluation of the

contractor’s and BPI’s HSE performance and to provide feedback to the
contractor and BPI which can be a reference for future work.
Final Evaluation and Report
All contracts must be closed out with a report on HSE performance,

providing feedback for future knowledge and learning. The final
evaluation shall be based on HSE contractual obligations, Pre-Job
Activities Reports, Interim Evaluation Reports, corrective actions during
interim evaluations. The final evaluation form remains the same as in the
previous CSMS. All data completed shall be input into the database and
approved by the respective Asset or Line Manager and Delivery Unit
Manager or Team Leader.
The checklist shall be completed at the end of a job or at the expiration of

a contract. The analysis and summary of conclusions should address:
• Quality of the original HSE Plan and its relevance to the overall
contractor performance, stipulating what was learned and how
future contracts should be constructed.
• 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 user and contractor’s HSE performance
for mutual improvement.
• Information on the contractor to be added as a reference for
future bid list and which may provide advice for improvements
in assessing future bids.
• Record any personnel that are blacklisted due to disciplinary
action or those who performed satisfactorily and may be
recommended for future jobs.
Results from the summary mentioned above shall be communicated and

agreed upon. There should be no major difficulties if communication has
been established from the beginning. Rewards or punishments may be
applied to contractors who performed exceeds or below the expectations
by issuing letters of recognition or reprimand. The letter may be used for
BPI internal purposes or shared with other PSCs.

Figure 6: Final Evaluation and Close Out
Summarize Final
Evaluation Report
Discuss final result

with contractor and
input into the
database
Obtain electronic
approvals from Asset/
Line Manager and
DUM/TL
Issue reprimand or
appreciation letters for
work below or over
expectations
Input into CSMS

databank

GLOSSARY AND ABBREVIATIONS
BPI
BP Indonesia.
Contract
A formal business agreement detailing the terms and conditions for the supply of
goods or the provisions of services.
Contract Holder
The person in a management level who owns the work, project or contract performed
by a contractor.
Contractor
A firm that has entered into a legal contract to supply the goods or services to BPI.
Contractor’s HSE Plan

A contractor’s proposal as to how he intends to implement the HSE requirements as
outlined initially by BPI. For selected contractors, this becomes the plan on which the
HSE terms in the contract are based.
Documentation
Observations that are recorded in writing.
HSE
Health, Safety and Environment
Hazard
A potential source of serious harm to people, property, or the environment.
Incident
A specific event or sequence of events that resulted in or could have resulted
significant unwanted and unintended impact on health or safety of people, on
property, or on the environment.
Industrial Hygiene
Practices conducive to maintaining health, i.e. proper handling of chemicals, and
equipment that may have negative impact on health.
Interim Evaluation
Evaluation on contractor’s HSE performance during contract period.
Near Misses
Serious incidents that does not result in any injuries or damages, but potentially
become if not corrected.
Originator
The authorized personnel who originated the request to contract a certain work and
to conduct a CSMS process. See also User.
Subcontractor
A contractor employed by another contractor, usually the main or prime contractor,
who works for BPI. For the purpose of this document, the term contractor and
subcontractor are synonymous.

User
A department that owns the work to be contracted.


900-RFP-104, Revision 1: Contractor Safety, Health and Environmental Program Management System

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900-RFP-104, Revision 1: Contractor Safety, Health and Environmental Program Management System

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Contractor

Safety, Health and Environmental

Pre Job Activity Work In Progress Final Evaluation

Waluyo M. Hakim Nasution

President & Resident Manager of BP Indonesia

Revision 1.0 / December 2000

I. POLICY AND SCOPE OF THE GUIDELINES....................................................... 4

Revision 1.0 / December 2000

Revision 1.0 / December 2000 900-RFP-104, Revision 1

Contractor Safety, Health and Management System (CSMS) is designed to

Revision 1.0 / December 2000 900-RFP-104, Revision 1

This guideline is designed to:

Revision 1.0 / December 2000 900-RFP-104, Revision 1

Revision 1.0 / December 2000 900-RFP-104, Revision 1

Revision 1.0 / December 2000 900-RFP-104, Revision 1

4 Sea and air transportation services H

5 Fabrication and construction jobs H

6 Mechanical, electrical and instrumentation repairs H

8 Marine diving services, water blasting H

9 Testing, inspection and recertification H

11 Technical, administration support: engineering, environmental

13 Pipeline maintenance, leak repairs H

14 General services work not in well sites or in the process units:

16 Warehouse rental or services H

Revision 1.0 / December 2000 900-RFP-104, Revision 1

Risk Assessment Process

BPI is responsible for making an initial assessment of the HSE risks

The risks assessed can be characterized as low, medium or high in

Revision 1.0 / December 2000 900-RFP-104, Revision 1

Revision 1.0 / December 2000 900-RFP-104, Revision 1

Identify risks &

Revision 1.0 / December 2000 900-RFP-104, Revision 1

Pre-qualification is the most important step in the CSMS to screen

A sample of the pre-qualification form to be completed by suppliers (Form

Revision 1.0 / December 2000 900-RFP-104, Revision 1

Once suppliers pass the initial evaluation, inspection of supplier facilities

Suppliers that do not pass the pre-qualification process will be given

While the procurement agents prepare bid packages, the Originators

Figure 2 in the following page illustrates the pre-qualification process.

Revision 1.0 / December 2000 900-RFP-104, Revision 1

Meet BPI Could BPI help

Put candidates into bidder list

Revision 1.0 / December 2000 900-RFP-104, Revision 1

Bid Documentation Prepared by BPI

The selection criteria used should consider significant aspects such as

Documents that are to be included in bid packages are:

When preparing bid documents, there are several considerations that

Revision 1.0 / December 2000 900-RFP-104, Revision 1

Originating Department Contract Services Other Key Stakeholders

Finalize bidder list Prepare

Prequalify new bidders Conduct bidder

All HSE requirements and (if necessary) prequalification activities

risk associated with the work shall be

Bid document quality

Pre-Bid Meeting Coordinate Procurement

Evaluation of Bidder’s proposals

Distribute invitation to bid

Award Contract Prepare technical bid

Conduct technical and Conduct non-technical

Negotiate technical and Coordinate contract

CSMS Review evaluation &

Evaluation & award

General Contracting Process