HSE Management - Guidelines For Working PDF

HSE management -
guidelines for working

together in a contract
policy and
strategic
objectives
environment
organisation,
review resources and
documentation
leadership
and
commitment
evaluation
and risk
implementation management
and monitoring
planning
a u d i t Report No. 6.64/291

September 1999
IMCA
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The International Association of Oil & Gas Producers (formerly the E&P Forum) has
access to a wealth of technical knowledge and experience with its members operating
around the world in many different terrains. We collate and distil this valuable knowl-
edge for the industry to use as guidelines for good practice by individual members.
Consistent high quality database and guidelines
Our overall aim is to ensure a consistent approach to training, management and best
practice throughout the world.
The oil and gas exploration and production industry recognises the need to develop con-
sistent databases and records in certain fields. The OGP’s members are encouraged to
use the guidelines as a starting point for their operations or to supplement their own
policies and regulations which may apply locally.
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Many of our guidelines have been recognised and used by international authorities and
safety and environmental bodies. Requests come from governments and non-government
organisations around the world as well as from non-member companies.
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HSE management - guidelines for working
together in a contract environment
Report No: 6.64/291

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

R Kratsas Arco Chairman
R Moschetta Arco
C Preston Baker Hughes
R Shields BG Plc
D Laing BP Amoco
ER Moir BP Amoco
L Simpson BP Amoco
M Alexander Chevron
TL Thoem Conoco
Y Guenard Elf E&P
JL Monopolis Esso
D Krahn IADC
M Covil IAGC
JC Sanchez PDVSA
B Stene Saga Petroleum
A Kjelaas Saga Petroleum
G Kubala Schlumberger
P Mann Shell
R Sykes Shell Chairman
G Van der Graaf Shell
HJ Grundt Statoil
P Guyonnet Total
LA Tranie Total
DK Hide OGP Secretary
Following the Task Force work on developing the guidelines, Bob Moschetta undertook the role of Technical Editor to
review and address comments and suggested amendments.
HSE management - guidelines for working together in a contract environment
Table of contents
Purpose/Intent..................................................................................................................................................................... ii
Description ....................................................................................................................................................................... ii
1 Introduction 1
1.1 Background ...................................................................................................................................................................1
1.2 Interrelationship with other systems ..............................................................................................................................2
2 Overview of process 3
3 Planning 4
3.1 Objectives......................................................................................................................................................................4
3.2 Description of work .......................................................................................................................................................4
3.3 Risk identification .........................................................................................................................................................4
3.4 Contracting strategy ......................................................................................................................................................5
3.5 Contract schedule ..........................................................................................................................................................6
4 Pre-qualification 7
4.1 Objective .......................................................................................................................................................................7
4.2 Purpose and responsibilities...........................................................................................................................................7
4.3 Standard pre-qualification documents ...........................................................................................................................7
4.4 Screening .......................................................................................................................................................................8
4.5 From pre-qualification to selection ................................................................................................................................8
5 Selection 9
5.1 Objective .......................................................................................................................................................................9
5.2 Bid documentation prepared by company .....................................................................................................................9
5.3 Bid preparation by contractor ......................................................................................................................................10
5.4 Pre-award meetings .....................................................................................................................................................10
5.5 Incentive schemes for HSE ..........................................................................................................................................11
5.6 Contract award ............................................................................................................................................................11
6 Pre-mobilisation activities 12
6.1 Objectives....................................................................................................................................................................12
6.2 Kick-off meeting..........................................................................................................................................................12
6.3 Pre-job audits...............................................................................................................................................................13
7 Mobilisation 14
7.1 Objectives....................................................................................................................................................................14
7.2 General ......................................................................................................................................................................14
7.3 Mobilisation audit .......................................................................................................................................................15
8 Execution 16
8.1 Objectives....................................................................................................................................................................16
8.2 Responsibilities ............................................................................................................................................................16
8.3 Contractor compliance ................................................................................................................................................16
8.4 Competence assurance.................................................................................................................................................17
8.5 Inspection and HSE auditing/reviews .........................................................................................................................17
9 De-mobilisation 18
9.1 Objectives....................................................................................................................................................................18
9.2 Responsibilities ............................................................................................................................................................18
10 Final evaluation and close-out 19
10.1 Objectives....................................................................................................................................................................19
10.2 Final evaluation and report..........................................................................................................................................19
APPENDIX I: HSE responsibilities for company and contractor key personnel................................................................ 20
APPENDIX II: Definition of consequence - severity of risk .............................................................................................. 22
APPENDIX III: Contractor HSE pre-qualification............................................................................................................24
APPENDIX IV: HSE pre-qualification points system ........................................................................................................29
APPENDIX V: HSE Plan guideline for major contracts.....................................................................................................33
APPENDIX VI: HSE Plan guideline for small contracts....................................................................................................50
© 2000 OGP i
International Association of Oil & Gas Producers
Purpose/Intent
The overall objective of this guideline is to improve 3 facilitate the interface of contractor’s activities with
the company and contractor health, safety and environ- those of the company, other contractors and sub-
mental (HSE) performance regarding exploration and contractors.
production activities. Active and ongoing participation
by both the company and contractors are essential to These programs should be designed to protect both
achieve this goal. While each has a distinct role to play company and contractor personnel from workplace inju-
in ensuring the ongoing safety of all involved, there is an ries and illness as well as from losses associated with the
opportunity to further enhance the company/contractor incidents, while preserving the independent contractor
relationship by clearly defining roles and responsibili- relationship.
ties, establishing expectations and maintaining com- This information is provided to assist company and
munication throughout the relationship. For example, contractor management to visualise the process of man-
one role of the company is to review and assess the con- aging contractor HSE programs. This document is not
tractor’s HSE Management System and Programmes, intended to replace the necessary professional judge-
while one role of the contractor is to provide HSE infor- ment needed to recommend the specific strategy to
mation as requested by the company. Often the infor- follow. Each reader must analyse their particular situa-
mation requests vary from company to company. By tion, tailor the information in this document and obtain
establishing a standard format, which streamlines the the appropriate technical support.
bidding process, company and contractor resources can
be devoted to improving specific HSE issues. Due to the rapid change that is occurring in the oil
and gas industry, together with the various company-
This guideline is designed to: contractor interface systems and management practices
1 improve workplace safety, health and environmen- that are evolving, this guideline will be reviewed every
tal performance by assisting the company and con- two years. The Safety Health and Personnel Compe-
tractors in administering an effective HSE program tency Committee will make updates and modifications
for the contract; based upon review.
2 assist contractors in administering programs which
are consistent with the clients expectations;
Description
The main section of the document covers various phases A key part of the planning phase is risk identification.
of the contracting process and the associated HSE tasks It is also the prime factor in determining contracting
and responsibilities of the company and contractors. strategy. During this step the level of risk is assessed
This is an eight-phase process, which begins with plan- and the most appropriate measures are identified to pre-
ning, and ends in final evaluation and close out. The vent incidents from occurring. Included in the appendi-
objectives, roles and responsibilities are defined for each ces are additional tools such as checklists for HSE Plan
phase. development, severity of risk definitions, and guidelines
for small and large contracts.
ii © 2000 OGP
1 Introduction
1.1 Background
Within the oil and gas explo- Figure 1 Company contractor hours worked
ration and production industry, (millions of hours)
1200
the pattern of use of contractors
has changed significantly over
the last ten years. Figure 1 shows 1000
the pattern of company and
contractor hours reported to
800
E&P Forum for the period
1985-1998. Manhours Contractor
600
Prior to 1985 the work force was
predominately company employ-
ees. Since 1990 there has been a 400
significant increase in the use of
contractor staff, with a resulting
200 Manhours Company
shift in responsibility and risk
from the company to the con-
tractor population. 0
1985 1987 1989 1991 1993 1995 1997
It can be seen from figure 2 that
there have been significant improvements in the safety sure to risk, and it is important this trend continues,
performance of both the Companies and their contrac- particularly as use of contractors in the E&P industry
tors during this period. increases.
Historically the contractor Lost Time Injury Frequency These guidelines have been produced to assist man-
(LTIF) has not been as good as that of companies, agement of the company-contractor interface in this
though the gap is narrowing. The trend is encouraging, changing environment and to help in the achievement
since contractor personnel generally have a higher expo- of further joint improvements in safety performance.
Figure 2 LTIF performance of E and P companies and contractors

(number of lost workday cases, including fatalities, per million hours worked)
10
Overall
8.1
8 Company
6.6 Contractor
6.1
6
5.2
4.7
4.1 3.9
4
3.1 3.0
3.4 3.3 2.7
2.8 3.0
2.5 2.5 2.6
2 2.0 2.0 1.9
0
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
© 2000 OGP 1
1.2 Interrelationship with other systems

While this document is designed to focus on improv- This guideline follows the wording and structure used
ing contractor health, safety and environmental (HSE) in the Forum’s “Guidelines for the Development and
performance, it is an extension of the previous efforts Application of HSE-MS.” However, by following the
within the E&P Industry and various governmental guidelines in this document, a user should meet the
efforts around the globe to improve overall industrial basic requirements of various industry associations, gov-
HSE performance. ernmental entities and the user’s own requirements.
This effort has utilised and built upon the E&P Forum’s These guidelines were developed for the “normal activi-
“Guidelines for the Development and Application of ties” expected in E&P operations. Each operation is,
Health, Safety and Environmental management sys- however, unique. Therefore, the user should critically
tems”; and the API recommended practices documents evaluate these guidelines for his activities and their asso-
2220 and 2221, which address contractor-client inter- ciated risks, and may need to adapt them for the par-
actions and how to build an effective contractor HSE ticular circumstances of the work.
program. Additional influences are the UK Health and
This guidance is primarily developed for those responsi-
Safety Executive publication, “Successful Health and
ble for contracting out activities, and personnel responsi-
Safety Management”; the U.S. Occupational Safety and
ble for interface and operational oversight of contractors,
Health Administration’s Process Safety Management
their employees and subcontractors.
Guidelines; the ISO 9000 and 14000 systems; and
numerous E&P Forum Member programs. This guidance document is mainly for activities with a
medium to high risk although similar principles may be
All of these documents/programs utilise the same basic
applicable to all contracted activities.
model for a system starting with leadership and com-
mitment and flowing to testing and evaluation in a con- These guidelines in no way supplant a host country’s
tinuous cycle. Loss of any portion results in a system requirements.
failure.
2 © 2000 OGP
2 Overview of process
Management of HSE in a business environment where The typical phases of a contracting process are shown in
two or more companies work together requires co-oper- Figure 3. The sectional headings addressing the phases
ation between them and a clear definition of the tasks are shown on the right. Each section describes the tasks
and responsibilities of each of the parties. and responsibilities showing a clear distinction between
the company and contractor(s). An overview of respon-
sibilities is given in Appendix I.
Figure 3 Phases of the contracting process
Joint company / contractor activities
Contractor Company
Description of work & Planning

risk identification
Contracting strategy
Contractor responds to Shortlist and Pre-qualification

questionnaire and screen contractors Contractor
provides HSE information Establish bid database
evaluation criteria
Contractor prepares Bid evaluation Selection

bid and HSE plan and clarification
Contract award
Joint completion of HSE and execution plans Pre-mobilisation
Preparations Pre-mob audits
Kick-off meeting Mobilisation
Mobilisation Pre-execution audit
Execution, supervision Monitoring, audits Execution

and reporting and inspection
Review of de-mobilisation HSE plans De-mobilisation
De-mobilisation Acceptance of work

and restored site
Review Close-out
Report Final evaluation and report
© 2000 OGP 3
3 Planning
3.1 Objectives
The objectives of this phase are to describe the work
and to assess the HSE risks associated with the work.
The contracting strategy is to be selected on the nature
and size of the work, and the risk involved.
3.2 Description of work

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

The company is responsible for making an initial assess- As a minimum, a risk assessment should include con-
ment of the HSE risks involved in execution of the sideration of the following:
work. This will aid the contractor and company in • Nature of the work - materials to be utilised
developing programs and safe work practices to protect
all workers. The focus of the assessment during this • Location of the work
phase should be to evaluate the inherent hazards in con- • Potential for exposure to worksite hazards (H2S,
ducting the work. In addition, the assessment addresses Asbestos, etc.)
the potential adverse consequences of an accident and
the potential adverse consequences of an incident to • Potential exposure to hazards for all personnel
the workforce, the public, the environment, company involved in the activities
and contractor assets and reputations. The level of risk • Potential consequences of incidents (environmen-
assessed for the proposed work should be the prime tal damage, delays of project development, delay in
factor in selecting a contracting strategy (as outlined production operations, legal claims)
in Section 3.4) and in determining which measures are
• Exposure to negative publicity.
most appropriate for consideration by the contractor to
prevent incidents from occurring and to minimise the The risks assessed can be characterised as low, medium
consequences of an event should it occur. The level of or high in accordance with the Risk Assessment Matrix
risk is also indicative of the amount of time and effort approach shown in Figure 4. Definitions for the ratings
to be spent at later phases to provide assurance that con- are provided in Appendix II.
trols are in place to reduce the risks to as low as reason-
ably practicable.
4 © 2000 OGP
Figure 4 Risk assessment matrix
Consequence Increasing probability
A B C D E
Environment
Reputation
Never heard Heard of Incident has Happens Happens
of in E&P in E&P occurred in several times several times
Severity
People
industry industry our company per year in per year in a

Assets
our company location
No health No No
0 effect/injury damage
No effect
impact
Slight health Slight Slight Slight Manage for continuous improvement

1 effect/injury damage effect impact
Minor health Minor Minor Limited

2 effect/injury damage effect impact
Major health Localised Localised Considerable Incorporate risk

3 effect/injury damage effect impact reduction measures
Single Major Major National

4 fatality damage effect impact
Intolerable
Multiple Extensive Massive International
5 fatalities damage effect impact
3.4 Contracting strategy

One of the most important strategic contract manage- Selection of one of these modes is preferred. However,
ment decisions to be made by the company is on the in certain situations it may be necessary to adopt a mix-
way in which the contractor, or alliance of contractors, ture of the two modes. This can be accomplished by
is held responsible for the management of HSE. Two following Section 3.5 of the E&P Forum “Guideline for
distinctly different modes are described below. the development and application of health, safety and
environmental management systems”, report number
Mode 1 The contractor provides people and tools for
6.36/210. This section outlines the interfacing of con-
the execution of work under the supervision,
tractors’ activities with those of the company and with
instructions and HSE-MS of the company. The
those of other contractors as appropriate. This may be
contractor has a management system to pro-
accomplished by means of a specific interface document
vide assurance that the personnel for whom he
between the company and the contractor so that dif-
is responsible are qualified and healthy for the
ferences may be resolved and procedures agreed before
job and that the tools and machinery he is pro-
work commences. Examples of such situations are given
viding are properly maintained and suitable for
below.
the job.
• Operations in an area where there is a limited selec-
Mode 2 The contractor executes all aspects of the job tion of contractors able to meet the evaluation crite-
under its own HSE Management System, pro- ria. For example an alliance may have to be formed
vides the necessary instructions and supervi- between the company and available contractors
sion and verifies the proper functioning of its with the objective to develop, improve and imple-
HSE Management System. The company is ment an HSE Management System for the contrac-
responsible for verifying the overall effective- tor while executing work under the management
ness of the HSE management controls put in system of the company. The management system
place by the contractor, and assuring that both will initially aim at working under Mode 1.
the company’s and the contractor’s HSE-MS
are appropriately compatible.
© 2000 OGP 5
• Operations too large or diverse for a single contrac- Usually Mode 2 is preferred except in “High Risk” situ-
tor may require a number of contractors and sub- ations where the work is highly interactive with compa-
contractors (a consortium) to work together under ny’s activities.
the supervision of one main contractor working for
Example:
the company under Mode 2.
On an offshore production platform, a modification
• The work is intimately associated with the activities requiring welding and grinding has to be made in a
of the company, or presents such a high risk to the hazardous area. This is considered a “High Risk” oper-
company that the work is to be executed using the ation. Moreover, the essential controls and emergency
company’s management system under Mode 1. response are arranged by the company. Typically Mode
1 would be used.
• The contractor executes most aspects of the job
under its own HSE Management System; however, Example:
certain support activities such as transportation and A consortium of contractors with one lead contractor
emergency response are provided by the company. is responsible for the construction of a new onshore
production facility. Construction activities are always
• A Drilling Contractor is responsible for identify-
“High Risk”. However, until the moment that hydro-
ing and supplying personal protective equipment
carbons are introduced, the lead contractor can be held
to its personnel. A Fluids Contractor designs the
accountable for managing all aspects of the job pro-
mud program for the Operator, with new additives
vided the construction contractor can demonstrate its
included in the well plan. In this case the company
capability to manage all HSE aspects. Typically Mode
has an interface procedure that details the respon-
2 would be used.
sibilities of the drilling contractor and requires the
fluid contractor to provide chemical hazard infor- “Low Risk” contracted operations, e.g., deliveries of
mation to the Operator and drilling contractor non-critical materials, food, stationery, etc., are usually
before shipping the materials. The interface pro- covered by Mode 2 whereby the contractor provides the
cedure further requires the on-site fluids engineer HSE controls. Usually the company controls on such
to communicate chemical hazards during the pre- low risk activities are minimal and Mode 2 is typical.
spud meeting. However, contractors working on company premises are
normally under the control of company personnel and
Also, when working with an alliance of contractor(s) or a should follow company instructions.
consortium, it should be made clear in advance whether
the alliance or the lead contractor is fully responsible Issues in setting a contract strategy might include:
for all instructions and supervision or whether that is number of contracts, contract schedule, rules and regu-
the responsibility of the company. If the alliance or con- lations, and the use of company HSE standards and/or
sortium is responsible, it should be made clear in the relevant national HSE legislation and international con-
contract how this is organised. In addition, the person ventions.
responsible for critical activities has to be clearly identi-
fied. Joint responsibilities should be avoided by break-
ing down the work into smaller identifiable activities,
each with a party assigned to it with responsibility for
the HSE aspects.
3.5 Contract schedule

A contract schedule should be developed with due con-
sideration of the HSE issues and deliverables involved,
paying particular attention to allow adequate time for
mobilisation/demobilisation. This evaluation may well
highlight HSE issues that require special emphasis in
later contract phases.
6 © 2000 OGP
4 Pre-qualification
4.1 Objective
The objective of the Pre-qualification phase is to screen
potential contractors to establish that they have the nec-
essary experience, capability and financial viability to
undertake the activities in question safely and in an
environmentally sound manner.
4.2 Purpose and responsibilities

The general practice in Companies for selecting con- The pre-qualification process is a crucial step in which
tractors is through competitive tendering. In the pre- assurance is sought that the risks of the work will be
qualification stage, potential contractors are screened to managed. The purpose of the pre-qualification stage
establish that they have the necessary experience and is for the company to agree on a list of contractors
capability to undertake the activities in question. Only that will be invited to bid, and a list of HSE bid evalu-
those being able to demonstrate that they can manage ation criteria to be met. Pre-qualification is one of the
in a fully satisfactory manner the HSE risks of the work, last safeguards in identifying suitable contractors. Once
should be included on the pre-qualified list. A formal contractors are qualified to bid, they are eligible for
historical record of the HSE performance, including award of a contract.
findings of audits and inspections, of all contractors
The company contract manager is responsible for pre-
previously employed, should be maintained by the com-
qualification and providing assurance that the contrac-
pany for use during the pre-qualification process.
tors invited to bid can manage the HSE risks associated
with the work.
4.3 Standard pre-qualification documents

Pre-qualification is usually achieved by issuing a stand- Of special importance is the management by contrac-
ard format document for the contractor to complete, tors of their subcontractors and the need for the main
supported where necessary by historical performance contractor to demonstrate understanding and commit-
records. It may be necessary to review the content before ment to having full responsibility in this area. Similarly,
issue and to add, remove or emphasise requirements when contractors are working in an alliance or consor-
specific to the activity. tium, it is of special importance to demonstrate that
each entity fully understands, and is committed to, the
As a means to streamline the pre-qualification process,
HSE management of the assigned HSE critical activi-
the E&P Forum recommends that companies adopt
ties.
the pre-qualification questionnaire, located in Appendix
III. Requests for additional or company specific infor- A points system method, which minimises subjective
mation that is not included in the questionnaire can be judgement, may be used to evaluate contractors’ submis-
inserted into Section 9. By implementing this standard sions. Contractors who achieve a pre-defined acceptable
format, both the company and contractors can devote score will then be judged to have met the HSE pre-con-
their resources to improving HSE performance rather tract requirements. Appendix IV provides guidelines for
than reformatting existing information into a variety of such a rating system.
formats.
© 2000 OGP 7
4.4 Screening
The screening process should be designed to assure that priate. In such a case, the focus should be on the divi-
the contractors invited to bid can perform the work to sion bidding for the work.
the required HSE criteria.
For those contractors not qualifying, a feedback mecha-
The general approach is to send a uniform question- nism should be in place to inform them why they did
naire to all potential contractors, initially assess their not qualify and that by correcting the identified defi-
HSE capabilities based on the questionnaire using an ciencies; they may qualify for future work.
equitable measuring system (see Appendix III) and sup-
Where there is a policy to encourage selected contrac-
plementing this with site inspections of current contrac-
tors to develop an HSE management Plan, and these
tor work sites.
contractors have little or no background in HSE man-
Contractors which have been used by the company pre- agement, then a plan to overcome the shortcomings
viously can be assessed through the use of close out should be developed. Such a plan may require addi-
reports and other historical records. A review of any tional company supervision, more explicit procedures
potential changes to the contractor’s organisation, pro- or additional training. The HSE requirements should
grammes and systems should also be conducted. be met before work commences. The scale of the con-
tract and the exposure must be matched accordingly.
During pre-qualification of large contractors, especially
Again, the details of the program and performance of
those with many divisions in numerous countries, the
such contractors should be recorded and retained for
use of the record of the Corporation may not be appro-
future reference.
4.5 From pre-qualification to selection

Before entering the selection phase the company should Appendices V and VI provide requirements for an HSE
document the pre-qualified contractors and the ration- Plan for major and small contracts, respectively.
ale for the selection. At this time, the company specifies
Dependent on the level of risk involved in the con-
the minimum evidence to be produced during the selec-
tracted work, the company should establish yardsticks
tion phase by the potential contractors demonstrating
to measure the quality of the contractor’s HSE Plan and
that a sound Plan exists for implementing HSE man-
criteria to be met. These measuring methods and crite-
agement during the potential contract work to control
ria should be documented prior to the selection process
risks to as low as reasonably practicable. This informa-
in the form of “Bid Evaluation Criteria”.
tion should be prepared by the contractor as part of the
HSE Plan.
8 © 2000 OGP
5 Selection
Pre-qualification is the most important screening tool

for the selection of contractors. All contractors that are
pre-qualified should be fully capable of managing all
HSE aspects of the job.
5.1 Objective
The objective of the selection phase is to assess whether
the HSE Plan and the Bid Evaluation Criteria have been
met and to select, where necessary on the basis of clari-
fication meetings, the successful bidder.
5.2 Bid documentation prepared by company

The selection criteria used should consider significant The HSE tender documentation should be compiled,
aspects such as costs, technical ability, reputation, and with due attention to the following:
the ability to meet schedules. The overall risk of con- • It is the company’s responsibility to assure that the
tract and HSE management should be given appropriate tender documents address the HSE requirements
weighting along with other considerations when selec- for the contract and that knowledge about hazards
tion criteria are evaluated. This section outlines some already identified by the company are passed on to
key considerations specific to the HSE portion of the the contractor. The company should not assume
selection process. that the contractor knows of the hazards in the
Contractors should be given copies of the company’s workplace, which are associated with the execution
HSE documentation relevant to the contract. Docu- of contracted activities.
mentation in the tender package may include: • The contractor has independent responsibility for
• company HSE goals and objectives. his own HSE Plan, but documents should make
clear provision for the company to perform HSE
• company HSE-MS.
audits on the contractor in order to assess compli-
• definition of the scope of the HSE Plan and the ance.
known hazards to be addressed.
• The documents should include provision for the
• list of HSE controls procedures and compliance company to suspend work if the contractor does
issues for the contract. not observe the HSE criteria spelled out in the con-
• definition of the company/contractor anticipated tract HSE Plan or HSE Case and, in particular at
interfaces, the company supervision strategy and mobilisation, to withhold permission to start exe-
interaction with company operations, interaction cution and hold payments until a satisfactory pre-
with specific company plans such as emergency execution audit has been achieved. Before any work
response. is suspended, the company should liaise with the
contractor to allow them the opportunity to rectify
• type and schedule of company and contractor train- any non-conformances.
ing requirements and competencies.
• Where special HSE provisions are to be provided,
• specification of the minimum pre-execution require- the documents should specify these clearly and
ments. identify who is to pay for them. Any constraints on
the methods of working should also be specified.
© 2000 OGP 9
In preparing their bid, the contractor should demon- requirements. The company should have the expertise
strate compliance with such requirements and illustrate and resources to evaluate the alternatives proposed. The
their process for preparing their own HSE Plan within tender documents should allow flexibility for the con-
the required framework. The actual plan will be devel- tractor to take ownership of HSE responsibilities under
oped after the contract is awarded. This may be accom- the contract but allow for the company to effectively
plished by developing a system which facilitates the manage the contract. Adequate lead times for tender
interfacing of company, contractor and sub-contractor preparation should be allowed to avoid compromising
activities, as described in section 3.5 of OGP’s “Guide- the establishment of a sound basis for HSE manage-
lines for the development & application of health, ment.
safety and management systems”. Contractors should
The company should assure that the mobilisation and
be allowed the freedom to use industry HSE
demobilisation phases are adequately covered in the
guidelines/recommended practices/standards, e.g., those
HSE Plan. In some instances the ability to exercise
of the International Association of Drilling contractors
influence may be limited (for example when work is
(IADC) or International Association of Geophysical
being carried out in a yard or factory where only a small
contractors (IAGC), or the International Marine Con-
percentage of the contractor’s workload is for the com-
tractors Association (IMCA), or of OGP, API and
pany).
IMO, if they are equivalent to or exceed the company’s
5.3 Bid preparation by contractor

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

The company’s internal pre-award meetings should con- assess the suitability of contractors’ HSE Plans and how
centrate on reviewing the HSE program prepared by that plan interacts with the HSE MS of the company
the contractor, and on assessing how effective the con- and of other contractors.
tractor has been in providing assurance that all haz-
Following these “pre-award” meetings the company
ards have been identified & that suitable controls are
should assess whether the HSE Plan and acceptance cri-
planned to reduce the risk to a level as low as reasonably
teria, as defined in Section 4.5 (Bid Evaluation Criteria),
practicable.
have been met. This appraisal should be documented
A joint company and contractor “pre-award” meeting as it is one of the crucial conditions for awarding the
with contractors should be used to clarify and further contract.
10 © 2000 OGP
5.5 Incentive schemes for HSE

The best incentive scheme is one which values HSE per- • ensure that incentives are valued by the personnel
formance and which results in a continuing long-term who are in a position to influence the performance
relationship between company and the contractor based and maintain the systems.
on good HSE performance.
• be culturally sensitive to the local environment.
The need for additional incentives should be carefully
• motivate personnel to change those behaviours that
considered. To be effective a scheme should:
detract from HSE performance.
• not discourage or suppress the reporting of inci-
dents. • appreciate the HSE culture of the contractor
• be proactive and reward effort, eg, audits and fol-

low-up rather than ‘after the event’ statistics.
5.6 Contract award

Award of the contract should consider a number of areas terion, i.e., if a contractor does not meet the minimum
such as technical competence, ability to meet schedule, criteria, he should not be awarded a contract.
and cost. The documented appraisal of the contractor’s
Once the award has been made, joint meetings should
capability to manage HSE should be available from pre-
be held as soon as possible to agree on the final HSE
vious phases. This appraisal provides a “go- no go” cri-
Plan and detailed programmes.
© 2000 OGP 11
6 Pre-mobilisation activities
6.1 Objective
The objectives here are to ensure that the relevant
aspects of the contract risk assessment and any other
HSE aspects of the contract are communicated and
understood by all parties prior to implementation of
the contract. Several activities such as reviews, meetings
and audits can be used. The amount of detail and effort
for pre-job activities should be commensurate with the
level of risk.
6.2 Kick-off meeting

A kick-off meeting should be used as an opportunity for • confirmation of any HSE performance objectives
the contractor(s) to become familiar with the location, and targets
facility, personnel, and other work information. The
• distribution and explanation of the company’s HSE
kick-off meeting is generally recognised as an impor-
policy statement, basic HSE rules and work proce-
tant bridging step in working together to prevent inci-
dures in as far as the contractor works under the
dents and resolve any health, safety and environmental
company HSE-MS
issues.
• confirmation of the scope and schedule of HSE
The kick-off meeting should be held immediately after
activities for example; HSE meetings, audits and
contract award and before the execution of any work.
reviews
For a new contractor, the kick-off meeting may include
the company’s and contractor’s local management. • interaction of company’s and contractor’s contin-
gency plans
If the contractor mobilises locally at the work site, the
kick-off meeting may be held locally. If not, it may • contact with third parties to assure their role in
be necessary to hold the initial kick-off meeting at the emergency response plans is known
contractor’s base office. This should be followed by a • confirmation that HSE induction and training
subsequent mobilisation of key contractor and subcon- plans are in place and ready for start up
tractor personnel to the work site and possibly addi-
tional local kick-off meeting(s). The local meeting(s) • briefing of subcontractors on HSE requirements
should be held immediately prior to the start of any • incident reporting and investigation procedures
work as part of the mobilisation process.
The meeting(s) may be structured as an HSE work-
The topics covered by the kick-off meetings might
shop, with participation by both company and contrac-
include:
tor management.
• review of associated major hazards
The kick-off meeting(s) should be used as an opportu-
• confirmation of HSE Plan to be implemented nity to clarify or raise new HSE issues that may not have
including confirmation that roles and responsibili- been covered in the contract documentation. Account
ties have been clearly defined and understood should be taken in the meeting discussions of the con-
• confirmation of worker competence; this includes tractor’s own HSE Management System, work culture
both company and contract workers who are and working practices.
exposed to workplace hazards as defined in the
description of work and risk assessment phases.
12 © 2000 OGP
6.3 Pre-job audits

The kick-off meeting may provide an opportunity to • communication systems and procedures
discuss the mechanisms that will be involved to certify
• environmental protection systems
that HSE systems are in place. It may also provide an
opportunity to check the condition of the equipment • health hazard identification and assessment, medi-
and worksite in as far as is possible. It is important to cal facilities, Medivac procedures.
keep in mind that equipment and site may still be in use
for other jobs. The items listed under Section 6.2 can The audit should provide recommendations to be imple-
be parts of the pre-job audit. Supplemental audit areas mented prior to commencing the work. The scope and
might include the provision and maintenance of: duration of the pre job audit can be determined by the
company and contractor, this determination is based
• equipment and site to be used for the work upon the job description and associated hazards.
• HSE equipment
© 2000 OGP 13
7 Mobilisation
7.1 Objectives
The objectives of this phase are to assure that the HSE
Plan is modified, if warranted, and communicated to
all relevant personnel, both company and contractor.
7.2 General
Prior to mobilisation, it is likely that the full HSE Depending on the circumstances, additional supervi-
Plan is known only to the principal members of the sory staff from the contractor may be required to allow
company’s and contractor’s project management teams. rapid set-up and implementation of the HSE Plan.
During mobilisation, the HSE Plan should be commu- The company and contractor may want to have addi-
nicated by the management of both the company and tional staff available to verify that the HSE Plans are
the contractor to all relevant personnel. fully implemented. This can be accomplished by a joint
company/contractor HSE field review or audit.
In the mobilisation phase some of the principal activi-
ties are: During the initial part of the mobilisation phase all
• local kick-off meeting(s) key personnel assigned to the project should attend an
HSE orientation program that should be used to com-
• mobilisation of contract staff and equipment municate the HSE Plan and any other significant HSE
• finalise the contractor’s HSE Plan aspects of the contract.
• commence induction and site-specific training Progress meetings should then be used as a formal
method of reviewing HSE implementation, along with
• hold mobilisation HSE audit. frequent walk-throughs by company personnel.
During mobilisation the company and contractor assure Aligning the various interests and areas of responsibility
that each sets up a method of operation that is in accord- requires good working relationships between the com-
ance with the agreed HSE Plan. It is at this stage that pany and contractors, among contractors and between
implementation of the HSE Plan by the contractor for- contractors and sub-contractors. This is particularly
mally begins. For contracts under “Mode 1” strategy, true if the subcontractor activities are difficult to moni-
the contractor’s operations should be fully compatible tor (e.g. distributed work groups, transportation).
with the company’s HSE-MS. For contracts under a
“Mode 2” strategy, any HSE Plan requirements should Once mobilisation activities have commenced, the
be integrated into the contractor’s HSE-MS. company should begin monitoring of the contractor’s
pre-execution activities to assure the HSE Plan is imple-
The company and contractor should confirm that each mented.
has deployed his supervisory staff and is implementing
the agreed-upon briefing and training for his supervi-
sors and employees.
14 © 2000 OGP
7.3 Mobilisation audit

In the final stages of the mobilisation, an audit or review The options available at this stage are:
against the project’s HSE Plan should be completed • Minor deficiencies: the contractor should be
to determine whether the contractor has achieved the requested to implement corrective action and the
necessary targets stated in the HSE Plan and whether audit repeated. It may be possible to allow this to
mobilisation can be considered complete. This can be take place in parallel with initiating the execution
accomplished by a joint company/contractor HSE field phase.
review or audit.
• Serious omissions: the option of withholding per-
Achievement of HSE Plan targets for this stage should mission to proceed or even terminating the contract
represent the first milestone of the project. may be necessary.
Usually, the extent of the audit depends on the level
To minimise the possibility that the company could be
of risk associated with the activity. For a relatively low
perceived as assuming responsibility for HSE supervi-
risk contract, an audit may be conducted by means of
sion, the results of the mobilisation audit are documented
a simple checklist. For high-risk contracts, a more ana-
and processed through the contractor’s HSE-MS.
lytical approach may be used.
The mobilisation audit usually is structured against the
If the audit proves to be unsatisfactory, then the status of
elements of the HSE-MS or, more specifically against
the contractor’s progress should be carefully reviewed.
the HSE Plan elements (as outlined in Appendix V).
© 2000 OGP 15
8 Execution
8.1 Objectives
The objectives of this phase are to assure that the work
to be performed is conducted according to the agreed-
upon HSE Plan, and that additional HSE needs, identi-
fied during the work, are properly addressed.
8.2 Responsibilities
The nature of the work determines the level of supervi- Where responsibility for supervision rests with the con-
sion necessary. For example, within or in close proximity tractor, the company’s role should be to monitor com-
to operating plant, hazardous area zones or acknowl- pliance to contractual terms and systems defined within
edged high risk operations, more direct company super- the contract. Unless the contract holder has a perma-
vision may be required than on a new construction site nent presence on site, it is usual to appoint representa-
or the contractors own premises, i.e. MODU, lay barge, tives from line management to monitor and verify that
etc. Only in particular circumstances should contractors contract HSE obligations are being met. The contract
be directly supervised because too much instruction/ holder and representative should have access to special-
direction from the client tends to relieve the contractor ist HSE advice where needed, but accountability for
of the responsibilities stipulated in the contract. contract HSE lies with the contract holder. Responsibil-
ity may be delegated to the representative, but account-
ability needs to remain with the contract holder.
8.3 Contractor compliance

The roles and functions of the company contract holder • contractor’s implementation and participation in
includes assurance of: emergency exercises and drills
• the contractor’s line management commitment to • proper management of HSE risks which arise from
HSE issues changes to the Plan
• compliance with all HSE related clauses in the con- • compliance with incident and near-miss reporting,
tract and the HSE Plan investigation and follow-up.
• the existence of contractor’s internal HSE control • the resolution of interface problems between con-
system tractors.
• the contractor’s monitoring of the quality, condi-
An HSE audit and review programme should be pre-
tion and integrity of his Plan equipment and tools
pared, stating specifically what is expected of the com-
• the contractor’s holding of toolbox and regular HSE pany contract holder in ensuring that the HSE Plan is
meetings finalised and adhered to, together with details of how
the performance of the contractor is to be measured.
16 © 2000 OGP
8.4 Competence assurance

During execution of the work, the company contract • provision of the necessary induction courses
holder must monitor the continued competence of the
• training of contractor personnel in job related activ-
contractor. This refers to any associated training com-
ities and procedures
mitment undertaken. Where necessary, the company
should also determine if any additional competence • completion of all agreed-upon HSE training, includ-
assurance is needed as a result of local circumstances. ing any specified statutory training requirements
Monitoring should include a verification that the con- • availability of HSE documents, instruction and
tractor complies with his management system that may information leaflets with special attention to use of
include: local language reinforced with simple visual mes-
• competence and close monitoring of the replace- sages.
ment of personnel
8.5 Inspection and HSE auditing/reviews

Inspections and audits provide the methods for moni- Inspections and audits should be performed by both
toring contractor HSE activities. Regular inspections by contractor and company. Joint inspection/audit pro-
company representatives provide a means of checking grams may have the advantage of aligning sometimes
compliance with contract requirements. The frequency divergent objectives, enhancing common understand-
of such inspections/verifications depends on the size of ing and promoting constructive participation.
the work and the risks involved. Auditing provides the
Findings of inspections and audits should be shared
more formal and comprehensive assessments of adher-
between client and contractor with positive commit-
ence to the HSE Plan.
ment from both parties to use the findings for improv-
ing performance.
© 2000 OGP 17
9 De-mobilisation
9.1 Objectives
The objectives of this phase are to identify the hazards
associated with demobilisation and identify and imple-
ment controls to minimise the risks. The HSE Plan
should be modified, if need be, to address new or unex-
pected hazards.
9.2 Responsibilities
The contractor’s HSE Plan should continue to be the
vehicle for managing the HSE activities in this phase.
Demobilisation often is a phase of the project having an
increased chance of incidents as the project infrastruc-
ture and contractor HSE management structures are
being dismantled with people moving off the project
to new assignments. Assurance should be sought that
the appropriate organisational structures remain intact
until associated activities have been completed. These
should include:
• emergency response
• site restoration
• waste management and disposal.
Due consideration should be taken of any learning

points from mobilisation, the problems encountered
and solutions found.
The company and contractor should continue to moni-
tor performance against the Plan, including attention
to incident reporting. It is important to maintain vigi-
lance on HSE matters to the very end of the contract.
The close out report should be made after all activities
have been completed.
18 © 2000 OGP
10 Final evaluation and close-out
10.1 Objectives
The objectives of this phase are to conduct a joint evalu-
ation of the contractor’s and company’s HSE perform-
ance and to provide feedback to the contractor(s) and
company which can be a reference for future work.
10.2 Final evaluation and report

Contracts should be closed out with a report of HSE The analysis and summary of conclusions should
performance, providing feedback for future knowledge address:
and learning. • quality of the original HSE Plan and its relevance to
Ideally, HSE performance should be tracked on a regu- the overall contractor(s) performance, stipulating
lar basis throughout the contract with the final report what was learned and how future contracts should
being the distillation of the regular monitoring process be structured.
and the end of contract review. This may take the form • highlighting positive aspects of learning and how
of a close-out meeting where all parties are represented. they can be applied in the future. This learning
Thus, throughout the contract, contractor performance should be shared with the contractor.
should be monitored against Plan and any deviations,
positive or negative, annotated for reference in the close- • incorporation of any new hazards identified into
out report/summary. the hazard identification and evaluation process for
future contracts.
The format of the close-out report should reflect the
agreed Plan and contractual obligations between the • analysis of both the client and contractor’s HSE
company and the contractor(s). However, there should performance for mutual improvement.
be sufficient flexibility to take account of mutually • information on the contractor to be added as a ref-
agreed changes to the contract. erence for the client bid list and which may pro-
vide advice for improvements in assessing future
tenders.
The HSE close-out data should be recorded and made

accessible for future reference. A documented record of
HSE Performance should be kept on each contractor.
The contractor will again be advised that his overall
performance and HSE record will be taken into account
when being considered for future work.
© 2000 OGP 19
Appendix I: HSE responsibilities for company and

contractor key personnel
Company
Contract Holder should: Company Site Representative:
• conduct a structured HSE assessment of the antici- Where a contractor may be working in a number of
pated contract areas it is common for a company to nominate some-
• pre-qualify contractors for the bidders list using one who is responsible for the supervision of the physi-
standard HSE criteria cal work being executed under the contract at a specific
appointed site. The Site Representative’s HSE responsi-
• prepare contract HSE specifications for inclusion in bilities follow those of the company Representative, but
the tender documentation are specific to the site.
• prepare an HSE monitoring programme defining
the role of company representative(s) in ensuring Company HSE Adviser:
that the contractor’s HSE Plan is finalised and fol- Where there is access to company HSE advisers or spe-
lowed cialists, it is important that the role of the adviser is
• prepare company audit and review programme and understood to be indeed that of an adviser. Advice, sup-
secure appropriate resources port or services may be sought from an HSE Adviser
on a routine or periodic basis but the responsibility for
• evaluate contractor’s HSE Plans HSE matters must remain unmistakably with the Con-
• assure the adequacy of the contractor’s HSE Plan tract Holder and Representatives.
• appoint competent company representative(s) Normally, the HSE adviser provides:
• supervise company representative(s) • advice and support in HSE issues as requested
• conduct a pre-execution HSE audit • review/audit services as requested
• authorise the contractor to commence work if the • additional advisory support, where needed, to small
pre-execution HSE requirements are met contractors.
• monitor performance of the contractor against his In the case of a small local contractor a decision may
HSE Plan have been taken to provide additional supervisory sup-
port and assistance in HSE matters. The company HSE
• authorise deviations from the contractor’s HSE
Adviser and related specialists may be tasked with pro-
Plan
viding support but must exercise care (unless other-
• authorise additional HSE requirements as deemed wise provided for by the contract or agreed to in the
necessary HSE Plan) that this is recognised as a temporary phase
• apply sanctions in the event of unauthorised devia- and that the contractor must be encouraged to develop
tions from the contractor’s HSE Plan quickly to a point where such assistance is no longer
required.
• prepare HSE close-out report and distribute to
appropriate company and contractor personnel for
feedback
Company Representative should:

• perform assurance checks on contractor’s review and
inspections and follow up
• verify hazards and effects management controls, as
specified in the contractor’s HSE Plan, are imple-
mented
• identify deficiencies in contractor’s HSE Plan and
agree to remedial action with contractor or instigating
sanctions in consultation with Contract Holder.
20 © 2000 OGP
Contractor
Contractor Manager should: Contractor Site Representative:
• prepare and assure quality of contractor’s HSE Where a contractor may be working in a number of
Plan areas it is common for the contractor to appoint a person
• define competencies required for HSE critical posi- or persons to assume responsibility on behalf of the
tions contractor representative to supervise the work being
executed under the contract in the specific area. The
• assign appropriate personnel to HSE critical posi- HSE responsibilities are as for the contractor represent-
tions ative but with responsibility for a specific site.
• assure adequate resources and time in the schedule
to manage the contract in accordance with the con-
tractor’s HSE Plan
• notify the Contract Holder in writing of his nom-
inated contractor representative(s) and contractor
Site Representative(s)
• provide resources to implement remedial actions
following audits in an expeditious manner.
Contractor Representative should:

• fulfil the pre-execution HSE requirements
• implement the contractor’s HSE Plan
• seek formal approval from the Contract Holder for
any proposed deviations from or amendments to
the contractor’s HSE Plan
• implement additional requirements as agreed upon
with the Contract Holder.
© 2000 OGP 21
22

Definition of consequence – severity of risk
People (fatal, inj, occptnl health) Assets*, equipment Environment Reputation

Severity Potential Definition Potential Definition Potential Definition Contamination Potential Definition
rating impact impact impact (litres) impact
sensitive
areas offshore
0 No injury/ No injury or damage to health Zero No damage to Zero effect No financial Several Zero No public awareness
illness equipment consequences; impact
no environmental
risk
1 Slight injury/ Not detrimental to individual Slight No disruption to the Slight effect Negligible financial <10 0-100 Slight Public awareness of the
illness employability or to the damage process, minimum cost consequences; local impact incident may exist;
performance of present work. of repair (<$10,000) environmental risk; there is no public
Agents which are not hazardous within the fence concern
Appendix II
to health and within systems
2 Minor injury/ Detrimental to the performance Minor Possible brief disruption Minor effect Contamination; <100 100-1,000 Limited Some local public
illness of present work, such as damage of the process; isolation damage sufficiently impact concern; slight local
© 2000 OGP
curtailment of activities or some of equipment for repair large to attack the media and/or local
days abscence to recover fully, (estimated cost environment; single political attention with
maximum one week. below $100,000) excedence of statutory potentially negative
Agents which have limited health or prescribed criteria; aspects for company
effects which are reversible, e.g. single complaint; no operations
irritants, many food poisoning permenant effect on
bacteria. the environment
3 Major injury/ Leading to permanent partial Local Plant partly down; Local effect Limited loss of 100 - 1,000 - Consider- Regional public
illness disablement or unfitness for damage process can (possibly) discharges of 1,000 10,000 able concern. Extensive
work or detrimental to be restarted (estimated known toxicity; impact negative attention in
performance of work over cost of repair below repeated excedence local media; slight
extended period, such as long $1,000,000) of statutory or national media and/or
term absence. Agents which are prescribed limit and local/regional political
capable of irreversable damage beyond fence/ attention with possibly
without serious disability, e.g. neighbourhood negative stance of
noise, poorly designed manual local government
handling tasks. and/or action groups
4 Single fatality/ Also includes the possibility of Major Partial loss of plant; Major effect Severe env. dmg; 1,000 - 10,000 - Major National public
permanent multiple fatalities (maximum 3) damage plant shut down (for the company is 10,000 100,000 national concern. Extensive
total disability in close succession dur to the at most two weeks required to take impact negative attention in
or unfitness incident, e.g. explosion. and/or estimated extensive measures national media and/or
for work Agents which are capable of repair costs below to restore the regional national
(small irreversible damage with $10,000,000) contaminated area policies with potentially
exposed serious disability or death, e.g. to its original state. restrictive measures
population) corrosives, known carcinogens Extended excedence and/or impact on grant
of statutory or of licences,mobilisation
prescribed limit of action groups
People (fatal, inj, occptnl health) Assets*, equipment Environment Reputation
Severity Potential Definition Potential Definition Potential Definition Contamination Potential Definition
rating impact impact impact (litres) impact
sensitive
areas offshore
5 Multiple May include four fatalities in close Extensive Total loss of the plant; Massive Persistent severe >10,000 >100,000 Major International public
fatalities succession due to the incident or damage extensive damage effect environmental inter- attention. Extensive
multiple fatalities (four or more) (estimated cost of damage or severe national negative attention in
each at different points and/or repair exceeds nuisance extending impact international media
with different activities. Agents $10,000,000) over a large area. In and national/internat-
with potential to cause multiple terms of commercial ional policies with pot-
fatalities, e.g. chemicals with or recreational use or entially severe impact
acute toxic effects (e.g. H2S, CO) nature conservancy, on access to new areas,
known human carcinogens a major economic loss grants of licences and/
for the company. Constant or tax legislation
high excedence of statutory
or prescribed limit
*Assets are understood as referring to: the oil and gas reservoirs, production facilities, *Incidents relating to air, noise, smell, light and soil vibrations should be addressed on the
pipelines, money, capital, and other company, contractor and third party property. basis of expert judgement and, in the case of uncertainty, local expertise may be called in.
© 2000 OGP

23
Appendix III: Contractor HSE pre-qualification
General guidelines for preparation of questionnaire

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

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

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

a) Itemise the methods by which you have drawn your policy statement to the attention of all your employees?
b) What are your arrangements for advising employees of changes in the policy?
24 © 2000 OGP
Section 3: Organisation, Responsibilities, Resources, Standards and Documentation

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

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

a) How have you identified areas of your company’s operations where specialised training is required to deal with potential haz-
ards? (Please itemise and provide details of training given.)
b) If the specialised work involves radioactive, asbestos removal, chemical or other occupational health hazards, how are the haz-
ards identified, assessed and controlled?
(v) HSE qualified staff - additional training

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

a) How do you assess:
i) HSE competence
ii) HSE record of the subcontractors and companies with whom you place contracts?
b) Where do you spell out the standards you require your contractors to meet?
c) How do you ensure these standards are met and verified?
© 2000 OGP 25
(vii) Standards
a) Where do you spell out the HSE performance standards you require to be met?
b) How do you ensure these are met and verified?
c) How do you identify new industry or regulatory standards that may be applicable to your activities?
d) Is there an overall structure for producing, updating and disseminating standards?
Section 4: Hazards and Effects Management

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

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

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

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

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

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

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

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

What arrangements does your company have for combating road and vehicle incidents?
26 © 2000 OGP
Section 6: Implementation and Performance Monitoring

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

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

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

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

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

a) Who conducts incident investigations?
b) How are the findings following an investigation, or a relevant incident occurring elsewhere, communicated to your employees?
c) Are near miss safety learnings reported?
© 2000 OGP 27
Section 7: Auditing and Review

(i) Auditing
a) Do you have a written policy on HSE auditing?
b) How does this policy specify the standards for auditing (including unsafe act auditing) and the qualifications for auditors?
c) Do your company HSE Plans include schedules for auditing and what range of auditing is covered?
d) How is the effectiveness of auditing verified and how does management report and follow up audits?
Section 8: HSE Management - Additional Features

(i) Memberships of Associations
Describe the nature and extent of your company’s participation in relevant industry, trade, and governmental organisations?
(ii) Additional features of your HSE management

Does your company have any other HSE features or arrangements not described elsewhere in your response to the question-
naire?
Section 9: Company Specific Information
28 © 2000 OGP
Appendix IV: HSE pre-qualification points system
Scoring
The contractor’s tender should be evaluated by attaching a score to the selected response for each
category (see Appendix III).
A suggested scoring system would be as follows (see Table II.1):
A B C D
HSE Plan documentation [sections 1-5, 7, 8]
0 3 6 10
Performance and experience factors (HSE incidents) [section 6]
0 7 14 20
Elements scoring 0 should normally disqualify a contractor from being included in a pre-qualifi-
cation list. Any elements rated so must be highlighted as a qualification on the tender if it is still
to be considered.
Table IV: Rating of contractors’ pre-qualification by a point scoring system

(headings and item numbers refer to Appendix III)
A B C D
Section 1: Leadership and Commitment
Commitment to HSE through leadership: item 1 (i)
No commitment from senior HSE disciplines delegated to line Evidence of active senior man- Evidence of a positive HSE cul-
management managers - no direct involve- agement involvement in HSE ture in senior management and
ment by senior management aspects at all levels
Section 2: Policy and strategic objectives

HSE policy documents and availabilityL items 2(i) and 2(ii)
No written HSE policy A policy statement exists but HSE policy establishes respon- Policy with clearly established
not in a widely distributed doc- sibility for HSE, but not widely responsibility and accountabil-
ument distributed ity; is distributed to all employ-
ees; and is visible on notice
boards
Section 3: Organisation, responsabilities, resources, standards and documentation

HSE communication and meeting programmes: item 3(i)
None Periodic HSE meetings for spe- HSE meetings performed on a In addition to C, employees are
cial operations only regular basis at management assigned topics to discuss on a
and supervisor level rotational basis
Staff HSE training item 3(ii)
No specialised staff training HSE training assigned to a spe- HSE training applied to man- HSE training given formally to
cific person on location agement but not comprehen- all relevant staff on their respec-
sively covered tive responsibilities
Employee orientation and training programme: item 3(iii) (a)-(d)
No formal programme Verbal instructions on company Employee handbook provided All under ‘C’ together with:
procedures only and supervisor outlines, follow-up observation of the
explains and demonstrates new new employee’s work is also
employee’s job included. Employee has
explained to him safe practices
and emergency duties
© 2000 OGP 29
A B C D
Section 3 (continued): Organisation, responsabilities, resources, standards and documentation
Specialised training: items 3(iv) (a)&(b), 3(v)
No HSE training established On-site basic training con- HSE training is given for spe- Formal HSE training pro-
ducted occasionally cialised operations, but no rou- grammes have been developed
tine training conducted in all areas and are conducted
on a regular basis. Retraining
periods are established
Subcontractors: items 3(vi) (a)-(c)
No written arrangements Written arrangements in place HSE arrangements incorpo- HSE arrangements exist in
for basic HSE matters only rated in HSE manual but not in handbook form, distributed to
a format which is distributed to all employees, subcontractors,
all employees sub-contractor employees and
are enforced. Follow-up audits
held with discussion/feedback
to management and employ-
ees
Standards: items 3(vii)(a)-(c)
No HSE standards available Basic HSE standards exist Contractor has written HSE Contractor has a system of spec-
standards to cover all hazard- ifying, monitoring compliance
ous operations and updating standards
Section 4: Hazards and effects management

Hazards and effects assessment: item 4(i)
Company’s HSE system does Company’s HSE system makes Company’s HSE system includes Company’s HSE system has a
not include hazards and effects reference to the need to assess methods for the assessment of comprehensive set of methods
management hazards and effects but has major hazards and effects for the assessment of all HSE
no comprehensive structure to hazards and effects and applies
carry this out them to all of its contracts with
documentation
Exposure of the workforce: item 4(ii)
Company does not actively Company advises the workforce Company has formal methods Company has a set of formal
advise the workforce nor moni- of the major hazards that they for monitoring exposure to the methods for monitoring expo-
tor exposure are likely to be exposed to but major hazards sure to all foreseeable hazards
only monitors exposure ran- (linked to its hazards and effects
domly assessment method) and
applies them to all contracts
Potential hazards (chemical, physical and biological hazards such as noise, radiation, vapours, fumes, temperature
extremes, etc.): item 4(iii)
Company makes no special Company provides information Company distributes informa- Company maintains a database
provision for advising the to workforce in the workplace tion to individuals in the of the properties of all poten-
workforce about properties of on properties of potential haz- workforce at start of their tial hazards encountered in its
potential hazards ards but has no active fol- involvement on-site contracts and has formal meth-
low-up ods of information distribution
to all personnel and trains its
workforce in handling, etc.
Personal protective equipment: item 4(iv)
Basic PPE provided to person- PPE requirements formally PPE requirements formally Procedures in place to assess
nel but no corporate procedure assessed but little effort made assessed with spot checks on all PPE requirements, monitor
for assessing individual needs to ensure correct usage usage and enforce usage and replace-
ment needs. Stock inventories
monitored, kept above demand
levels. Training in use provided
where needed
30 © 2000 OGP
A B C D
Section 4 (continued): Hazards and effects management
Waste management: item 4(v)
Company has no formal meth- Company has general proce- Company has procedures for Company has a formal system
ods for the control of waste dures for waste disposal the disposal of each of the main for waste management (includ-
categories of site wastes but ing identification, minimisation
makes no provision for minimis- and classification), which
ing environmental impact actively seeks to minimise envi-
ronmental impact
Section 5: Planning and procedures

HSE or operations manuals: item 5(i) (a)&(b)
No HSE procedures available Basic HSE procedures exist Contractor has written HSE pro- Contractor has procedures to
cedures to cover all hazardous cover all HSE precautions,
operations typical contractor HSE Plan
requirements with a system of
updating and dissemination to
employees
Equipment control and maintenance: item 5(ii)
No defined programme to Plan relies on outside sources, A written programme outlining In addition to C, periodic
identify or evaluate hazardous i.e. company inspections. supervisory guidelines, respon- inspections conducted by top
practices and equipment con- Supervisory inspection of equip- sibilities, frequency and fol- management or by teams of
ditions ment confined to worksite per- low-up is in effect specialists
sonnel only
Road safety management: item 5(iii)
No special attention paid to Importance of road safety Company has a general man- Company has a complete strat-
road safety as an area of haz- acknowledged but left to core agement strategy with some egy and set of plans and proce-
ardous activities business managers/supervisors procedures for its component dures covering vehicles, drivers
to enact individually issues and operations management
Section 6: Implementation and performance monitoring

Management and performance monitoring of work activities: items 6(i) & 6(ii)
No system for formally monitor- Performance monitoring in a Company has a system for mon- Company has a comprehensive
ing HSE performance few areas carried out itoring HSE performance in key system for monitoring perform-
areas ance in all areas with feedback
to employers for improvement
and has received awards for
achievement
Statutory notifiable incidents, dangerous occurrences, improvement requirements and prohibition notices:
items 6(iii) and 6(iv)
More than one occurrence of One occurrence of a major inci- Occurrences relate to minor No occurrences in the last five
major incident in last five years dent in the last five years incident(s) only years
HSE performance records (latest year injury rate comparison to contractor’s three preceding years average):
items 6(v) (a)-(d)
Contractor supplied insuffi - Rate is not improving Shows only minor rate improve- Rate steadily improving by more
cient ment than 20 per cent per year
Criteria for absolute performance
Rate over 200 per cent that of Rate under 200 per cent that of Rate under 120 per cent that of Rate better than that of com-
company company company pany
Incident investigation and reporting: item 6(vi) (a)-(c)
Findings not generally commu- Findings communicated to key Findings communicated to all As in C but with the addition of
nicated personnel only via limited com- employees via specific company details of implication for improv-
pany internal memo or similar notice ing HSE performance
media
© 2000 OGP 31
A B C D
Section 7: Auditing and review
Auditing: item 7(i) (a)-(c)
Audit process is cursory only - Company HSE documents Company HSE documents As in C but additionally speci-
HSE documents are not explicit include reference to auditing include details of how audit- fies management’s role in audit
about auditing but there are no specific details ing is to be implemented with and follow-up on action items
about scheduling and cover- schedules/coverage for the key
age areas
Section 8: HSE management - additional features

Membership of associations: items 8(i) and (ii)
No memberships Company has membership of at Company is a member of at Company is an active partici-
least one association but with least one HSE association pant in at least one HSE asso-
no prominence given to HSE ciation
32 © 2000 OGP
Appendix V: HSE plan guidelines for major

contracts
HSE plan definition guideline
When the contracted activities are covered by a con- The checklist in Tables V.1 to V.7 can be used to check
tractor HSE Management System (e.g. in line with the the HSE plans for the project specific issues, but can
E&P Forum guidelines on HSE Management Systems), also be used to assess the HSE Management System
including HSE Cases for contracted installations, the if this has not been certified or assessed in any other
HSE Plan should only address those issues that are manner.
unique for the contract under consideration. It should
When the contractor does not have an HSE Manage-
focus on contract specific risks and the management
ment System, the HSE Plan should be developed in line
of controls to eliminate, reduce or mitigate these risks.
with the principles of the E&P Forum guidelines for
Other contract specific issues that may be addressed in
HSE Management Systems or other comparable guide-
the Plan are:
lines. The HSE Plan should follow principal headings
• organisation and personnel for the project with an expansion into key checklist items (Tables V.1
• project specific procedures to V.7) given on the following pages under the respec-
tive headings. The detail included in the tender should
• project audit and review Plan be in keeping with the complexity of the contract and
• compliance with local rules and legislation should additionally include prompts for specific action
plans, target dates and action parties.
© 2000 OGP 33
HSE Management system

Section 1 Leadership and commitment Section 5 Planning and procedures
• Leadership and Commitment • HSE procedures
• Basic HSE rules
Section 2 Policy and strategic objectives
• Emergency response procedures
• HSE Policy Statement
• HSE equipment and equipment HSE inspection
Section 3 Organisation, responsibilities, resources, • Occupational health
standards and documentation
• Environmental
• HSE Organisation
• Road transport
• HSE Professionals
• Subcontractors Section 6 Implementation and performance
• HSE Communications monitoring
• HSE performance - general
• HSE meeting programme
• Incident investigation
• HSE promotion and awareness
• HSE competence requirements Section 7 Auditing and review
• Employee orientation programme • HSE auditing
• HSE training (general)
• HSE training (professionals)
• HSE legislation
• HSE standards
Section 4 Evaluation and risk management

• Methods and procedures for hazards and effects
management
• Assessment of exposure of the workforce to hazards
and effects
• Material data sheets for safe handling of chemicals
• Hazards and effects management and the assess-
ment of PPE requirements
• Methods and procedures for waste management
34 © 2000 OGP
Detailed checklists for HSE plan

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

Commitment to HSE aspects through leadership
Senior management should engender commitment to HSE issues at all levels through their personal style of leadership and manage-
ment. Key elements include:
• Visible expressions of commitment by senior people
• HSE matters should be placed high on personal and collective agenda
• All senior managers should set a personal example to others. They should be, and seen to be actively
involved in HSE matters, e.g. attendance at HSE meetings, personal instigation of HSE audits and reviews,
etc.
• A feedback system should be established to encourage and facilitate employee feedback on HSE mat-
ters
• A positive culture should be promoted at all levels
• Policies and standards should be endorsed and implemented at the local level
Table V.2 Checklist for HSE plan: section 2 policy and strategic objectives
HSE policy statement
General
Written HSE policy
Dated and signed by Chief Executive
Policy statements:
• specific to individual parts of the contract (e.g. locations/sites/plants)
• cover specialised aspects (e.g. alcohol and drugs)
• consistent with company guidelines
• clear, concise and motivating
Content
Importance of HSE as a contract objective
Incidents and injuries are unacceptable
HSE established as a line management responsibility
Everyone is responsible for their own and their colleagues’ HSE at work
Distribution/availability
HSE policy distributed to all concerned, i.e.
• handed to each employee by their line manager when issued
• all new employees handed a copy by their line manager
• displayed on notice boards at each work location (worksites and offices)
• copies provided for each company on the contract (including subcontractors, suppliers and agents)
• available to company and contractor employees in their working languages)
Discussion
Policy and its implementation when issued discussed by line managers with each employee
© 2000 OGP 35
Table V.3 Checklist for HSE plan: section 3 organisation, responsibilities, resources, standards
and documentation
HSE organisation
Key personnel
Personnel responsible for the implementation of HSE objectives clearly identified in an organisation chart
Responsibility adequately covered during all phases of the contract
Job descriptions in place showing each team member’s HSE competencies, responsibilities and function
Organisation clearly shows position of HSE professionals
Contract objectives/accountability
Defined to meet health, safety and environmental objectives as well as those of time, cost and quality
Accountability for HSE success and equally of any failure clearly stated
Focal point within the team structure ensuring that all HSE matters have been identified
Designated team leader to produce HSE objectives, tasks and targets for the contract
Targets, etc. to be realistic and consistent
Establish procedures for distribution, reporting and reviewing HSE issues
Manning/communications
Manpower philosophy
Manpower level to be defined correctly so as not to compromise HSE
Effective means to communicate HSE issues to the company, contractor and subcontractors
Organisation staffed by competent personnel with sufficient appreciation of HSE where necessary with specific training
in the issues involved
Corporate structure/responsibility
Company’s expectations on HSE management to be communicated in depth
Access of contractor’s line management to their corporate management structure on HSE issues to be defined
Level of handling project HSE issues by the contractor corporate structure (middle or senior management or board
level)
In the contractor’s corporate organisation, individuals charged with responsibility for HSE at middle senior manager or
board member level
Access to specialist HSE advice for line management, e.g.
• provision of HSE documentation for small contracts
• employment of HSE specialist for large contracts
HSE professionals
Job definition
Role of the contractor’s HSE advisers well defined
Job definition drafted
Reporting/follow-up
Reporting relationship with line management
Direct access to the Chief Executive
Does line management follow-up on advice offered
HSE department
Contractor’s HSE department involved in:
• preparing and monitoring departmental action plans
• formulation and suitability of HSE rules
• planned inspections and audits together with line management
• promotional material
36 © 2000 OGP
• HSE training
• subcontractor assessment
• training and auditing
• health risk assessment, health performance monitoring and health surveillance
• environmental monitoring
• supporting incident investigation by line management
Guidance given by the contractor’s HSE management in preparing and implementing:
• operating and emergency manuals
• emergency plans
• training for fire fighting teams, first-aiders etc.
• emergency drills and exercises
• protective equipment and rescue
Contact and liaison with government departments maintained
Subcontractors
Management
To be well integrated and identified in contract HSE Plans
Have own plans if carrying out a large portion of the work
HSE Plans to be vetted for suitability by main contractor
Main contractor to communicate that subcontractor subject to the same rigorous HSE standards as main contractor
Identification/vetting
Subcontractors to be identified at this stage of the project
Method of vetting those still to be identified to be stated
Vetting of past subcontractor records
Maintenance of approved subcontractor lists where HSE has been considered
HSE communications
Coverage/ awareness
Set up appropriate lines of communication to handle HSE issues, e.g. such items as:
• direct access to emergency services
• nearest hospital
• helicopter availability
• air ambulance, etc.
• authorisation and implementation procedures fully understood
Emergency services: those organisations that would be expected to provide support in a major incident aware of require-
ments - briefed as to their likely role
External links
Lines established to communicate externally incidents that may endanger those on a site
Individual responsibilities and procedures for the company and contractor(s) to make government agency reports have
been agreed upon and clearly defined
Contractor able to communicate with all his workforce in an emergency
Communications take into account the diversity of languages amongst the workforce
Ability of base to mobilise in an emergency, e.g. doctors, hospital facilities
Emergency communications
Appropriate for incidents envisaged
Strengthened, duplicated or backed up by other means
© 2000 OGP 37
HSE meeting programme

Scheduling
Contractor to establish a regular schedule for HSE meetings
Define responsible management person for scheduling such meetings
Procedure to maintain records of personnel attendance
Management participation
Managers seen to be involved by employees in:
• HSE activities, objective setting and monitoring
• taking action and providing resources to support their stated policies and objectives
Meeting structure
HSE meeting structure
Effective to manage and communicate on HSE
Allow employees full involvement and their own ideas to be heard
Typical agenda and meeting formats
Follow-up actions
Meeting actions
Where action is agreed, is it seen to be carried out?
Where action is not agreed, is it explained why?
Communication
Results of HSE activities, both successful and less successful, openly communicated to all employees
Meeting programme consistent with the rest of the management structure to communicate effectively HSE issues
Meetings recorded clearly and consistently
Structured to include health, safety and environmental items
HSE promotion and awareness

Techniques
Appropriate communications techniques used to make the personnel aware of HSE issues
How this is to be implemented, e.g.
• personal contact
• interactive video
• notice-boards
• newsletters (suitable for large sites)
• bulletins
• posters
Performance
HSE performance boards (e.g. at worksite gates)
Promotional methods
Possibilities include:
• small ‘give-aways’ with the HSE message
• competitions
• suggestion schemes
Part of business
HSE activities seen as an intrinsic part of running an efficient business rather than a costly and time-consuming ‘extra’
38 © 2000 OGP
HSE competence requirements

Fitness of personnel
Confirmation of medical fitness from a recognised and approved medical facility of all proposed employees for contract
Employee orientation programme

Approach
Provision of a comprehensive handbook for all new employees
On-the-job orientation for supervisory staff
Established procedure in relation to follow-up of all new employees at the worksite
New employees
Adequately trained and confident of their own abilities
Coached to improve their work practices rather than blamed for mistakes
Accountability
Employees know they are accountable for HSE performance
Aware that their HSE performance is part of the contractor’s appraisal and reward system
Know that flagrant or frequent breaks of published HSE rules will result in disciplinary action
Procedures
Required for new employee orientation consistent with existing company guidelines
Reappraisal
Programme subject to appraisal and review
HSE training (general)

Contract standards
Statement on the current standard of workforce and training requirements to meet contract standard
Established training programme

Including:
• HSE management
• job procedures
• road safety
• health (first-aid health hazards, medical services, alcohol and drugs, health promotion, use
of PPE)
• auditing
• incident investigation and reporting
• HSE adviser skills
• supervisory development
• HSE meetings
• environmental protection
Supervisory training
Supervisory development training promotes man-management skills and communication skills
Formalised programme
Formal HSE orientation programme for employees working on-site
Records kept of employees who have been through the programme
Employees trained before starting work
Training covers those joining as a contract is being implemented
© 2000 OGP 39
Coverage
HSE training of employees coverage (including):
• safety
• fire and explosion
• road transport/driving
• first-aid
• work procedures/PTW
• hazard awareness and reporting
• occupational health
• security
• basic HSE rules
• legislative requirements
Supervisors’ participation
Supervisors required to brief and debrief staff before and after training courses
Course content
Effective system for establishing the need for and the content of training courses
Determining course effectiveness and relevance of training assessed
Specialised training
Relevant training given to personnel prior to the execution of hazardous operations
Training gained through course attendance supplemented by on-the-job training as necessary
Records kept of attendees of the training courses and qualifications gained by employees
Emergency training
Training covers the actions to be implemented and the employees’ responsibilities in an emergency
HSE content in other courses

HSE included in:
• induction courses
• craft training
• supervisory training
• line management training
• auditing techniques
40 © 2000 OGP
HSE training (Professionals)

Selection
Procedure in place for introducing competent HSE personnel on to the contract
Criteria used by the contractor to select his HSE supervisory staff (e.g. career development, professional status)
Training
Training is received by HSE professional
Required specialisation (e.g. drilling, radiation, chemicals.)
Appropriate levels of:
• institute training
• HSE management
Qualifications
Knowledge and experience of the contractor’s HSE professional:
• match for competence for the job being carried out
• match for the advice required
HSE legislation
Coverage
HSE Plan to include:
• a comprehensive list of applicable legislation
• government, national and international codes
• company regulations., codes and standards
• contractor’s identification of regulations, codes and standards
Hierarchical precedence stated
Definition of the legislation, codes, standards, etc. reflecting the company’s previous experience
For contracts carried out in separate countries:
• different legislation requirements
• company assistance for foreign contractors
Waivers
Procedure for seeking waivers indicated
HSE standards
Availability
Contractor in possession of HSE manual/set of standards
Identifying minimum criteria for achievement during contract implementation
Available in writing to all users in consistent, concise and clear form
Users involved in the development
Standards in line with company requirements
Control/authorisation
Controlled documents
Updated regularly
Approval level indicated
Procedure for obtaining deviations from standards
Responsibility for authorisation
Mechanism for recording approved deviations
Coverage
Clear reference to national and international standards
Setting minimum requirements on health, safety and environmental issues
© 2000 OGP 41
Table V.4 Checklist for HSE plan: section 4 Evaluation and risk management
Methods and procedures for hazards and effects management
Coverage
Company assessment used as a starting point with additional hazards identified by the contractor
Contractor’s assessment carried out in accordance with his formal methods and procedures
Analysis techniques used in preliminary form where appropriate
Contractor covers all parts of the contract with assessments for the specific scope and locations of the contract
Experience and awareness

Contractor able to use material from previous similar projects and demonstrate awareness from past experience
Assessment of exposure of workforce to hazards and effects

Coverage
Contractor develops assessment of the scope and degree of exposure of workforce to hazards from the hazards and
effects management process
Handling of chemicals
Coverage
Contractor demonstrates availability and distribution of guidance/information on the safe handling of chemicals., likely
to be encountered in the contract, and proposals for confirming adherence to guidance during contract
Hazards and effects management and the assessment of PPE requirements

Hazard assessment/PPE requirements
All processes identified that require use of PPE.
Statutory requirements similarly identified
Procedure in place for recording issue to personnel together with follow-up inspection and replacement/re-certifica-
tion
Storage of PPE adequate and secure with procedure for ensuring adequacy of stock
PPE instruction/training
Requirements identified for all personnel
Instruction and training in its use provided where needed
Procedure for checking its use specified
Renewal/replacement
Schedule and criteria for renewing PPE
Schedule for re-certification
Responsibility for payment
42 © 2000 OGP
Table V.5 Checklist for HSE plan: section 5 Planning and procedures
HSE procedures
Availability/control
Written procedures available to cover hazardous operations on HSE
Include HSE precautions to be taken
Consistent with company guidelines
Controlled documents
Appropriate level
Coverage: include health and environment
Written procedures:
• familiar to all employees including subcontractors
• available in their working language
• contents related to individual job descriptions
Deviations
Procedure for obtaining
Responsibility and level
Recording of authorised deviations
Omissions
Identify whether there are any areas where procedures for hazardous operations are not drafted
Commitment to prepare
Permit to work (PTW).

System in place
If the contractor’s own system is utilised, is it consistent with industry norms and in line with company guidelines?
Training/qualification
Training standards and qualifications set for personnel allowed to implement procedures
Basic HSE rules

Availability
Set of rules available and distributed to all employees
Users acknowledge receipt
New employees given a copy before starting work
Method of discussion and verifying understanding
Coverage
Covers health and environment as well as safety
Set of rules provided tailored to specific contracts
Identify hazards likely to be encountered
Address basic housekeeping and hygiene
Cover signals that will be encountered on site
Production/updating
Structure for producing updating and disseminating rules
Frequency
Personnel participation
Involvement of users
© 2000 OGP 43
Emergency response procedures

Coverage
Identification of potential major emergency scenarios, and procedures to use in such scenarios, e.g.
• fire
• abandon rig/location
• storm
• oil/chemical spill
• aircraft incident
• emergency communications
• Medevac
• blow-out
• diving emergency
• search and rescue (SAR)
• explosions
• H2S
• well control
• man overboard
• evacuation
• terrorism
Potential use of company guidelines
Awareness
By employees of procedures
• Orientation
• Schedule of drills and testing
• Medical contingency plan included
• Review frequency
• Responsibility of employees for own and colleagues’ HSE
• Monitoring mechanism
• Drills to be carried out without warning
Plans
Contingency plans allowed for in emergency situations
Recovery procedures in place to be activated in event of emergency scenarios
Drills to be held to demonstrate preparedness for response
HSE equipment and equipment HSE inspection

HSE equipment
List drawn up of all HSE equipment to be used on the project
Identified by type, capacity and reference to standards
Requirements identified for each item of HSE equipment, including:
• registry
• classification
• licensing
• survey
• test certification
44 © 2000 OGP
Critical items for HSE inspection

List drawn up of critical items of equipment that must be the subject of an HSE inspection
Procedure established for carrying out HSE inspection of equipment (covering health, safety and environmental aspects
to be reviewed)
Procedure established for checking standards where tools have been provided personally by tradesmen
Schedule
HSE equipment inspection schedule established for the duration of the project
Inspection frequency clearly identified for critical items of plant
Occupational Health
Facilities available
Facilities defined as part of contract
Occupational health programme established to:
• identify hazards
• assess hazards
• control hazards, e.g. engineering controls, procedural controls, PPE, vaccinations, etc.
• maintain emergency procedures
appropriate for the site conditions
Welfare programme meets the needs of isolated sites

Local medical facilities evaluated in detail to assess:
• range and quality of equipment and supplies
• hygiene standards
• administration procedures and standards
• transportation and communication
sufficient for day-to-day needs and consistent with relevant health programmes
Adequate provision for supply of drugs, antidotes, etc.
Staffing
Availability of adequately trained, experienced staff
Access to medical treatment facilities (if external)
Contingency plans
Defined for possible incidents beyond capability of site facilities
Accommodation and catering facilities

Where provided, facilities to meet normally accepted standards of hygiene at site location
Facilities to be operated in line with government hygiene regulations and to meet company guidelines
Rules in force to maintain cleanliness of site and other facilities
Promotion
Promotional material available to assist in maintaining standards
Appropriate for the contractor’s workforce in terms of:
• language.
• clarity, etc.
Hygiene and housekeeping

Procedure on on-site cleanliness and maintenance
© 2000 OGP 45
Environmental
Awareness
Workforce aware of requirement to protect the environment whilst executing contract
Control
Identify potential environmental hazards
Develop procedures for handling materials and performing operations that may damage the environment
Contingency plans
Aims
Focus for the environmental protection team
At what level
Line management responsibility for environmental protection defined as well as other job objectives.
Development and enhancement of environmental impact statements for the contract
Monitoring/restoration
Environmental monitoring to gauge the impact of operations
Plans appropriate and sufficiently detailed
Recovery and restoration of site after contract completion
Audits
Environmental audits of operations during the contract
Carried out by experienced individuals or companies
Road Transport.
Drivers: competence and selection
Assess physical, mental and psychological capability
Character and background
Qualities and experience, medical examination, document checks, driving tests
Special skills such as terrain and climatic experience and first-aid knowledge
Drivers: driving permits

Should record personal and employment details, types of vehicle licensed to drive and types of cargo licensed to carry
Drivers: driver induction
Local area characteristics and regulations
Drivers: driver training

This should test vehicle operation and use, operating conditions (terrain, climate), off-loading and positioning, emer-
gency situations, and vehicle inspection
Drivers: driver improvement

Techniques should identify deficiencies, analyse causes and select appropriate retraining
Vehicle: selection
Ensure correct type, capacity and size for facilities
Good manoeuvrability and serviceability
Vehicle: specification
The job description should be clearly defined before the vehicle is chosen, to ensure work operations do not exceed the
manufacturer’s specifications
Safety equipment and communications on board the vehicle need to be checked
Vehicle: passengers
Is the vehicle designed to carry passengers?
46 © 2000 OGP
Vehicle: freight
Design of vehicle and load limits
Segregation, positioning and securing of freight
Vehicle: maintenance
Conducted on a regular basis
Ops management: need and approval

Define the journey and justify the need
Awareness of hazards involved
Allocation of vehicles, written authorisation, verification of employees’ driving standards
Ops management: journey routing and scheduling

Full awareness of route (hazards, conditions)
Realistic schedules
Ops management: journey management

Logging of actions
Ops management: roles and responsibilities

Roles and responsibilities defined for management, supervisors, drivers, passengers
Contracting
Pre-qualification of contractors and contractor HSE management treating road transport with equal importance to main
activity
Standards for scope of operations included in tender operation
Control and review mechanisms included in contracts
Policy of no subcontracting without written authority
Procedures
Ensure procedures are in place for all transport operations
Monitor and review mechanisms in place
Emergency services
In place and tested
© 2000 OGP 47
Table V.6 Checklist for HSE plan: section 6 Implementation and performance monitoring
HSE performance - General

Measurement
Proposed plan to measure performance, i.e.
• performance indicators
• progress against targets
• HSE initiatives/incentive schemes
• achievement of milestones
• numbers and types of training courses
• numbers and results of audits
• clearance of action items
Use will be made of reactive statistical indicators, e.g.
• Lost Time Injury Frequency/Total Recordable Incident Rate
• numbers of first-aid and minor injuries.
• material losses
• vehicle incidents
• spillages
• occupational illnesses
• sickness absenteeism
Feedback/analysis
Availability and use of performance records
Feedback/review/discussion at HSE meetings
Presentation and distribution to employees
Comparison of performance
Comparison of performance:
With other similar contract work
Frequency specified
Involvement of company personnel
Incident Investigation
Coverage
Reporting procedure for the contract
Covering not only injuries to and time lost by personnel but also:
• health incidents (diseases, exposures to hazardous substances, near misses, etc.)
• environmental incidents (spillages, releases, contamination, etc.)
• other safety incidents (safety equipment failures, loss of capital equipment)
• material loss
Methods
Incident investigation method established to determine and correct causes
Incidents first reported to the direct supervisor
Incident investigation teams led by the relevant managers
Differentiation made between numbers of first-aid treatments and other minor injuries
Procedure in place on vehicle incidents
Methods to be used for collecting incident statistics
48 © 2000 OGP
Table V.7 Checklist for HSE plan: section 7 Auditing and review
HSE auditing
Availability
Established HSE procedure outlining responsibilities, frequency, methods and follow-up
Scope
Compliance with the HSE Plan including:
• HSE management
• departmental personnel HSE
• technical personnel HSE
• subcontractor
• unsafe acts
• audit training
• environmental
• own activities and those of his subcontractors
Coverage
Consistent with company guidelines
Schedule for full contract duration
Involvement of personnel in audit teams from outside the location
Carried out by a wide cross-section of the workforce including company and subcontractor personnel
Effectiveness
How verified
Involvement of the contractor’s corporate management in review of findings
Intention to publish findings
Discussion with personnel on contract and at HSE meetings
Lessons used to improve operations across the contract
Follow-up
Any numerical treatment made of findings
Frequency of review of implementation progress
Rejections of audit findings properly authorised and documented
© 2000 OGP 49
Appendix VI: HSE plan guideline for small

contracts
HSE plan definition guideline
When the contracted activities are covered by a contractor HSE Management System (e.g. in line
with the E&P Forum guidelines on HSE Management Systems), including HSE Cases for con-
tracted installations, the HSE Plan should only address those issues that are unique for the contract
under consideration. It shall focus on contract specific risks and the management of controls to
eliminate, reduce or mitigate these risks. Other contract-specific issues that may be addressed in
the Plan are:
• organisation and personnel for the project
• project specific procedures
• project audit and review Plan
• compliance with local rules and legislation
• etc.
Table VI.1 Checklist for HSE plan

Leadership and commitment
Senior management should reinforce the importance of HSE at all levels in the organisation and should be
seen to be setting a personal example
Policy and Strategic Objectives

Contractor has a policy that makes reference to the importance of HSE. It is formalised by the Chief
Executive’s or the Manager’s signature
Organisation, Responsibilities, Resources, Standards and Documentation

A focal point in the organisation for HSE. Simple procedure for distributing information on HSE issues to the
workforce
A procedure for determining/enacting HSE training. Provision for obtaining HSE advice should this be out-
side the capability of the contractor’s personnel
Simple procedure for ensring any subcontractor adheres to same HSE standards
Simple advice on the importance of the links with client (or third party) emergency services on contracts
Typical agenda for any HSE items in meetings and how to ensure they are covered effectively
A statement of how HSE competence is assessed for personnel with HSE-critical activities to perform
Statement of requirements for employees to indicate that they have the necessary appreciation of the HSE
issues in the contractor’s business activities. This should include reference to potential client HSE induction
sessions and HSE training. Such training could include items from the following list (as relevant to the con-
tract):
• fire and explosion hazards
• road transport/driving
• first-aid
• work procedures/PTW
• hazard awareness and reporting
• security
• basic HSE rules
• legislative requirements
50 © 2000 OGP
Hazards and Effects Management

• HSE targets set in clear quantifiable terms
• a system in place to assess workplace hazards
Planning and Procedures

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

Contractor has a procedure for recording incidents, for advising legislative bodies where necessary and for
making annual reviews of performance
Contractor has a procedure for investigating incidents
Auditing and Review

Contractor has a method for the management to carry out simple audits of his contract operations
© 2000 OGP 51
Small Contract Typical HSE Plan Proforma

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

General Details
Company
Project
Contract title/number
Contractor details
Site location
Company contract holder/representative(s)
Company representative(s)
Contract manager/contractor representative(s)
Hazard assessment
Contract scope description
Expected hazards identified (including adjacent operations, etc.)
Alternatives considered
Procedures to be followed for hazard control (list documents or
describe details here)
Access/escape provisions (alarms, muster stations, etc.)
Emergency service provisions (including first-aid, nearest medical
treatment, emergency phone numbers, etc.)
Competence standards for contractor’s personnel
Standards for contractor’s equipment
Training requirements (including site HSE induction )
Job/services description
Contractor’s personnel assigned
Contractor’s equipment/ consumables/services assigned
Company’s personnel assigned
Company’s equipment/consumables/services assigned
Subcontractor details
Responsibilities/interfaces defined
PPE and any special HSE equipment to be used
Working hours/job duration
Site description/limits
PTW provisions applicable
Conditions for suspending work (e.g. weather, adjacent site oper-
ations, etc.)
52 © 2000 OGP
What is OGP?
The International Association of Oil & Gas Producers represents the world’s oil and gas
industry. Our members include private and state-owned oil and gas companies, national
associations and petroleum institutes.
What do we do?
Our purpose is to:

• provide information about the oil and gas exploration and production industry;
• represent our members’ interests at global and regional regulatory bodies; and
• develop operating guidelines.
What are our aims?
We aim to:
• increase understanding of the industry;
• work with international regulators to develop workable proposals which take full
account of industry views;
• contribute to continuous improvements in industry operating standards;
• be a visible and approachable organisation to which governments and others refer on
matters relating to the industry;
• maintain a large, diverse and active membership; and
• communicate issues affecting members to international bodies and the public.
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United Kingdom
Telephone: +44 (0)20 7292 0600
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guidelines for working

a u d i t Report No. 6.64/291

Consistent high quality database and guidelines

Internationally recognised source of industry information

Material may not be copied, reproduced, republished, downloaded, posted, broadcast or

Report No: 6.64/291

Task Force membership

Figure 2 LTIF performance of E and P companies and contractors

1.2 Interrelationship with other systems

Figure 3 Phases of the contracting process

Joint company / contractor activities

Description of work & Planning

Contractor responds to Shortlist and Pre-qualification

Contractor prepares Bid evaluation Selection

Joint completion of HSE and execution plans Pre-mobilisation

Preparations Pre-mob audits

Kick-off meeting Mobilisation

Mobilisation Pre-execution audit

Execution, supervision Monitoring, audits Execution

Review of de-mobilisation HSE plans De-mobilisation

De-mobilisation Acceptance of work

Report Final evaluation and report

3.2 Description of work

3.3 Risk identification

Figure 4 Risk assessment matrix

Consequence Increasing probability

industry industry our company per year in per year in a

our company location

Slight health Slight Slight Slight Manage for continuous improvement

Minor health Minor Minor Limited

Major health Localised Localised Considerable Incorporate risk

Single Major Major National

3.4 Contracting strategy

3.5 Contract schedule

4.2 Purpose and responsibilities

4.3 Standard pre-qualification documents

4.5 From pre-qualification to selection

Pre-qualification is the most important screening tool

5.2 Bid documentation prepared by company

5.3 Bid preparation by contractor

5.4 Pre-award meetings

5.5 Incentive schemes for HSE

• be proactive and reward effort, eg, audits and fol-

5.6 Contract award

6.2 Kick-off meeting

6.3 Pre-job audits

7.3 Mobilisation audit

8.3 Contractor compliance

8.4 Competence assurance

8.5 Inspection and HSE auditing/reviews

Due consideration should be taken of any learning

10 Final evaluation and close-out

10.2 Final evaluation and report

The HSE close-out data should be recorded and made

Appendix I: HSE responsibilities for company and

• conduct a pre-execution HSE audit • review/audit services as requested

Company Representative should:

Contractor Representative should:

International Association of Oil & Gas Producers

People (fatal, inj, occptnl health) Assets*, equipment Environment Reputation

HSE management - guidelines for working together in a contract environment

Appendix III: Contractor HSE pre-qualification