Document Number PEC-HS-PRO-X-13858

Revision 1

Applicability All

Document Type Procedure

Subcontractors’ HSSE Prequalification and Management

REVISION/APPROVAL HISTORY

Revised to ensure
1 16/05/2018 conformance with the Ajeeb Backer Lynn Hobballah Nedzad Mujkic
Group Standard
Issued for Internal
0 27/03/2014 Lynn Hobballah Srinivas Mandava Andy Nickerson
Review

Rev Date Description of Change Developer Reviewer Approver

Documented information of approvals are retained in the QMS.

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CONTENTS

1.0 PURPOSE .............................................................................. 4

2.0 SCOPE .................................................................................. 4

3.0 DEFINITIONS AND ABBREVIATIONS ............................................ 4

3.1 Definitions ...................................................................................... 4
3.2 Abbreviations ................................................................................... 5

4.0 REFERENCES ......................................................................... 5

5.0 RESPONSIBILITY & AUTHORITY ................................................. 6

5.1 Petrofac ......................................................................................... 6
5.1.1 Project Director/Manager ..................................................................... 6
5.1.2 Construction/ Commissioning Director/Manager .......................................... 6
5.1.3 Corporate Office HSSE Manager/Advisor .................................................. 7
5.1.4 Subcontracts Manager ........................................................................ 7
5.1.5 Project HSSE Manager ....................................................................... 8
5.1.6 Site HSSE Advisor............................................................................. 9
5.2 Subcontractor .................................................................................. 9
5.2.1 Subcontractor Management .................................................................. 9
5.2.2 Subcontractor Project/Site HSSE Manager ................................................ 9
5.2.3 Subcontractor Site HSSE Supervisor/Advisor ............................................ 10

6.0 DESCRIPTION OF ACTIVITIES................................................... 11

6.1 Planning Phase ............................................................................... 12
6.2 HSSE Pre-qualification stage ............................................................... 13
6.2.1 HSSE Pre-qualification assessment process ............................................. 13
6.2.2 Items and criteria ............................................................................. 14

6.3 Tender Stage – Preparation of ITT HSSE Requirements ............................... 15

6.4 Subcontract Award ........................................................................... 16
6.5 Pre-mobilisation Stage ....................................................................... 17
6.6 Mobilisation Stage and Start-up ............................................................ 18
6.7 Subcontract Scope Execution ............................................................... 18
6.7.1 HSSE Monitoring ............................................................................. 19
6.7.2 Incentive Scheme and Code of Conduct .................................................. 19
6.7.3 HSSE Support ................................................................................ 19

6.8 Demobilisation Phase ........................................................................ 19

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6.9 Subcontractor Close-out Assessment...................................................... 19

6.10 Vendors, suppliers and logistics service providers ....................................... 20
6.11 Tier 2 Subcontractors ........................................................................ 20

7.0 RECORDS ............................................................................ 20

8.0 FLOWCHART ........................................................................ 20

9.0 APPENDIX I – SPHERE OF CONTROL TEST FOR HSSEIA MANAGEMENT

......................................................................................... 21

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1.0 PURPOSE
The purpose of this Subcontractors’ HSSE Prequalification and Management Procedure
is to establish a process by which Petrofac can select suitable Subcontractors and
manage contracts with a view to improving Petrofac and Subcontractor HSSE
Performance. This procedure provides appropriate directives to HSSE Department and
Project Management Team for an effective Subcontractors’ management in the various
stages of the subcontracting process. In this document the sequence of events are
described in eight Phases:

Figure 1

2.0 SCOPE
This procedure is applicable to all Petrofac projects and work locations from the Project
inception, throughout the Project execution also during the pre-commissioning and
commissioning phases.
If any process described in this document conflicts with any part of the local legislation,
this document shall be superseded by the local legislation.

3.0 DEFINITIONS AND ABBREVIATIONS

3.1 Definitions
: Petrofac - Engineering & Construction
Petrofac
: shall mean the party that may appoint or that has appointed Petrofac
COMPANY
to perform the Main Contract works
: Any non–Petrofac person who is on “Petrofac Premises” who is under
Subcontractor
contract for business purposes or anyone providing materials,
personnel or services that directly benefit Petrofac and relate to a
contract or subcontract. The contract may be with Petrofac or another
company working with/on the behalf of Petrofac.
: Petrofac direct subcontractor with a contract value above 75M US$
Subcontractor
for civil, Mech/Strucual Marine; >25M US$ for E&I, Telecom,
Tier 1- Major Prefabrication and >5M US$ for other principal business activities
Scope
: Petrofac direct subcontractor with a contract value < 75M US$ for
Subcontractor
civil, Mech/Strucual Marine; <25M US$ for E&I, Telecom,
Tier 1- Minor Prefabrication and <5M US$ for other principal business activities
Scope
shall mean the party assigned by Petrofac direct Subcontractor to
Subcontractors
perform a Subcontract works
Tier 2

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3.2 Abbreviations

Abbreviation Description
HSSE Health, Safety, Security and Environment
HSSEMS Health Safety Security and Environmental Management System
ITB Invitation To Bid
ITT Invitation To Tender
JSA Job Safety Analysis
OGP International Association of Oil & Gas Producers
PAI Petrofac Assurance Index
PQ Prequalification

4.0 REFERENCES
Control of Suppliers, Contractors and Partners Standard PL-STAN-HSSE-007
HSSE Management System Manual PEC-HS-PLM-X-4369
Management of HSSE Records PEC-HS-PRO-X-2413
Subcontractor HSSE PQ Questionnaire-Major Scope PEC-HS-FRM-X-13807
Subcontractor HSSE PQ Questionnaire-Minor Scope PEC-HS-FRM-X-16150
Subcontractor HSSE Prequalification Assessment PEC-HS-FRM-X-13808
Subcontractor HSSE Site Due Diligence Checklist PEC-HS-FRM-X-13809
Major Scope Subcontractor HSSE PQ Grading form PEC-HS-FRM-X-13810
Minor scope Subcontractor HSSE PQ Grading Form PEC-HS-FRM-X-16226
Subcontractor HSSE Performance Evaluation Form PEC-HS-FRM-X-13812
Pre mobilisation checklist PEC-HS-FRM-X-15762
Subcontractor HSSE Close-out Report Template PEC-HS-FRM-X-13860
Prequalification Questionnaire for logistics service providers PEC-PR-FRM-X-6665
Vendors HSSE Prequalification questionnaire PEC-HS-FRM-X-16151
Subcontracting Strategy and Plan SHJ-CC-PLM-H-09075
Subcontracts Procedure SHJ-CC-PRO-H-3600
Petrofac’s HSSE Subcontract requirements – Section 9
OGP HSE Management – Guidelines for Working Together in a Contract Environment -
Report No. 423 - June 2010

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5.0 RESPONSIBILITY & AUTHORITY

5.1 Petrofac
5.1.1 Project Director/Manager
The Project Director/Manager is accountable for the full implementation of this procedure on
the Project. The Project Director/Manager shall ensure all requirements of this procedure are
met through:
 ensuring that all HSSE risks to Petrofac associated with Subcontractor activities are:
o identified, assessed systematically and eliminated where possible
o managed through formal plans, standards and procedures
o covered by emergency response and contingency plans
 approving the mode of subcontracting for the various packages of the Projects
 ensuring the HSSE prequalification assessment is completed and a site due diligence is
carried out as required
 approving subcontracts taking in consideration the HSSE prequalification scoring; ensure
an HSSE improvement plan is implemented for selected subcontractors whose
prequalification scoring falls below acceptable range
 ensuring the Subcontractor HSSE pre-mobilisation meetings are conducted
 Promoting mutual HSSE awareness by the enforcement of proper communication on
Information, Instructions and Training
 Ensuring that the Subcontractor and Petrofac are mutually aware of both parties'
minimum obligations to manage HSSE and that these obligations should be within
mutually agreed contractual terms
 Providing the means to monitor Subcontractor HSSE management performance
 Ensuring that the measures necessary for the management of HSSE risks shall be
established and implemented from early Subcontracting stage to project mobilisation and
in line with the principle of continual HSSE improvement throughout the Subcontract
execution stage till close-out
 Ensuring clarity between Petrofac and Subcontractor regarding HSSE roles and
responsibilities
Note: Some of the above responsibilities may be required to be completed at the Proposal
stage such as Subcontractor HSSE prequalification in coordination with Subcontracts
and Construction Support

5.1.2 Construction/ Commissioning Director/Manager

The Construction/Commissioning Director/Manager will:
 provide support to the Project Director to ensure implementation of this procedure
 be consulted throughout the subcontracting process regarding the potential list of pre-
qualified subcontractors, HSSE requirements under the subcontract, subcontractors
HSSE pre-mobilisation and HSSE performance, etc. when required
 Provide the required support and resources to ensure adequate interface with the
subcontractor; this will ensure proper communication and transparency between various
parties
 Raise HSSE concerns to Subcontractor’s Management for rectification and improvement

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5.1.3 Corporate Office HSSE Manager/Advisor

The Corporate office HSSE Manager/Advisor will:
 complete the ‘Subcontractor HSSE Prequalification assessment based on the HSSE
Prequalification questionnaire submittals from Subcontractors and carry out an HSSE
site due diligence as required. The grade and comments will be provided to the
Subcontracts Department

 maintain a register for Petrofac Approved List of Subcontractors

 prepare subcontract HSSE requirements for inclusion in the tender documentation for
the scope of work

 in absence of the Project HSSE Manager, participate in the Subcontractors technical

bid clarification meetings which are organized by the Subcontract department and
provide HSSE input in the technical bid evaluation

 provide support as required to the Project HSSE Manager to ensure adequate

implementation of the pre-mobilisation meetings and completion of the
‘Subcontractor HSSE Pre-mobilisation Checklist PEC-HS-FRM-X-15762

 audit the Project HSSE Team to ensure effective implementation of the

Subcontractor Management Process throughout the Project execution
5.1.4 Subcontracts Manager
The Subcontracts Manager is responsible to ensure that:
 Project HSSE Manager is informed of new potential subcontractors at the early
stages of the Main contract award and engaged in the prequalification process,
tendering stage, pre-mobilization reviews, etc. In the absence of HSSE Manager,
Sharjah HSSE Department shall be contacted

 an HSSE Prequalification Assessment is carried out for all potential Subcontractors,

which is from early site preparation works till the commissioning works

 the HSSE questionnaire is duly completed by Subcontractors and communicate all

Subcontractors inputs to HSSE Department

 subcontractors HSSE site due diligence visits are conducted as required

 latest Petrofac HSSE requirements and HSSE contract requirements are

communicated to Subcontractors in the ITB

 HSSE Department is engaged in the Subcontractor technical bid evaluations and

clarification meetings

 required support to Project HSSE Manager is provided to identify mode of

subcontracting for all packages

 monthly HSSE milestone payments in line with section 5 of the subcontract are only
settled after the Project HSSE Manager’s approval

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5.1.5 Project HSSE Manager

The Project HSSE Manager is responsible to:
 identify the mode of subcontracting for all the Project packages in consultation with
the Project Director and Subcontract department After the Project award; a
comprehensive list of all Project locations and subcontracting categories shall be
included in the HSSE Plan

 conduct prequalification assessment on new potential subcontractors and highlight

gaps; request Subcontractors to submit HSSE Improvement Plans as required

 review and update as required Petrofac and HSSE requirements under the
subcontract and provide relevant support to Subcontract Team

 conduct a pre-mobilisation review meeting and complete the ‘Subcontractor HSSE

Pre-mobilisation Checklist PEC-HS-FRM-X-15762’ after the subcontract award,

 conduct a Pre-mobilisation action completion meeting to track the submission of

HSSE deliverables and site requirements as per the agreed dates on the initial
meeting; also at this stage any deficiencies in the HSSE plans shall be discussed
and when required an HSSE Improvement Plan will be agreed with the Subcontractor

 HSSE Manager to review and approve the Subcontractor HSSE improvement plans
as required

 conduct a scope specific HAZCON workshop to identify major risk controls within
three months of mobilisation

 conduct a site start up HSSE audit/performance evaluation on Subcontractors within

following the HAZCON workshop but no later than 3 months of mobilisation

 review HSSE progress on monthly basis and approve HSSE milestone payments as
set in Section 5 of the Subcontract accordingly.

 authorise the Subcontractor to commence work if the pre-execution HSSE

requirements are met

 work closely with the Subcontractor’s Project HSSE Team to ensure effective
implementation of this process throughout all the Project phases

 conduct regular HSSE monitoring on Subcontractors during contract execution

 authorise deviations from the Subcontractor’s HSSE plan after consultation and
approval of Corporate HSSE

 apply sanctions in the event of unauthorised deviations from the HSSE Plan

 conduct a final HSSE evaluation and distribute the HSSE close out report to Petrofac
HSSE Corporate office
Note: At early stages of subcontracting process, Corporate HSSE Department will
provide the required support till assignment of a Project HSSE Manager (refer to section
5.1.2). Once assigned, the HSSE Manager shall take over the responsibility and on-
going support will be provided by the Corporate HSSE Department

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5.1.6 Site HSSE Advisor

The Site HSSE Advisor is required to provide:
 support to the Project/Site HSSE manager for the implementation of this
Subcontractors’ HSSE Prequalification and Management Procedure

 additional advisory support, where needed, to small Subcontractor

In the case of a small local Subcontractor, a decision may have been taken to provide
additional supervisory support and assistance in HSSE matters. The Site HSSE Advisor
and related specialists may be tasked with providing support but must exercise care
(unless otherwise provided for the contract or agreed to in the HSSE Plan) that this is
recognized as a temporary phase and that the Subcontractor must be encouraged to
develop quickly to a point where such assistance is no longer needed.
5.2 Subcontractor
5.2.1 Subcontractor Management
Subcontractor Management shall ensure that:
 HSSE Commitment and Leadership visibility from the Project inception till the
commissioning phase as applicable

 all activities carrying out during the sub-contractual scope execution are managed in
accordance with the Petrofac, COMPANY and contract HSSE requirements.

 HSSE Prequalification Questionnaire is duly completed and submitted to Petrofac

 relevant information are provided to Petrofac during the HSSE site due diligence and
facilitate the audit process

 Project HSSE Plan or similar HSSE Plan is provided to Petrofac during tender stage

 an HSSE Improvement Plan is developed and completed as required

5.2.2 Subcontractor Project/Site HSSE Manager
The designated Subcontractor Project/Site Manager shall be responsible for maintaining
an HSSEMS compatible with Petrofac and Project HSSEMS; as well as shall:
 ensure activities are executed in accordance with the approved Project HSSE Plan

 agree and acknowledge on the date of HSSE deliverables submission and site
requirements application as agreed during the initial pre-mobilisation meeting and
captured in the ‘Subcontractor HSSE Pre-mobilisation Checklist PEC-HS-FRM-X-
15762’

 ensure the submission of HSSE deliverables and site requirements implementation

as agreed on the initial pre-mobilisation meeting

 ensure all remedial actions identified in the HSSE Improvement Plan are closed out
prior to site mobilisation and provide evidence of action completion. Assign training
and competent personnel to HSSE critical positions

 ensure that adequate resources are mobilised to site as agreed in the Approved
HSSE Plan

 provide resources to implement remedial actions identified in the improvement plans

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 conduct regular site walkabouts, audits, and compliance checks during contract
execution

 Ensure the HSSE Plan is updated throughout the subcontract execution covering
hazards associated with the demobilisation phase of the Subcontract Work and
implement controls to minimise the risks

 cascade and implement the requirements of this procedure to Tier 2 subcontractors

including prequalification, pre-mobilisation review, HSSE Performance evaluations
during execution, demobilisation and close out evaluation on completion
5.2.3 Subcontractor Site HSSE Supervisor/Advisor
The Subcontractor Site HSSE Supervisor/Advisor (s) shall:
 support the Project/Site Subcontractor HSSE manager for the implementation of this
procedure

 provide relevant information to Petrofac HSSE personnel during the Subcontractor

HSSE Performance Evaluation audits and provide evidence of HSSE actions
completion

 conduct HSSE audits on their lower tier subcontractors

 implement the Approved HSSE Plan and ensure activities are conducted in
compliance with Contract, legal and other requirement
Note: The qualification of the Subcontractor HSSE personnel on Petrofac Projects shall
be as a minimum in compliance with Petrofac HSSE Job Descriptions as provided under
section 9, HSSE requirements under the subcontract. More stringent requirements may
be required in line with Project risks and Contract requirements

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6.0 DESCRIPTION OF ACTIVITIES

Subcontractors’ HSSE PREQUALIFICATION and management process
The flowchart below describes Petrofac Subcontractors’ HSSE Prequalification Management Process also Responsibility Matrix
Legend

Project Director/Manager

Related documents (Title

Subcontracts Manager (
Corporate Office HSSE

Project HSSE Manager

R Responsible

Site Representative

Director/Manager)

Supporting Notes
Manager/Advisor
A Accountable /Approve

Commissioning
(Construction/

Tender Board)

& Number)
Consult/ Contribute

(Remarks)
C

I Receiving Information
Sl.No Activity Steps
1.0 Planning
1.1 Identify mode of subcontracting Appendix I of this document After the Project award, the Project HSSE Manager shall identify the
C R C C mode of subcontracting (Category 1 or Category 2 site) for all the Project
packages in consultation with the Project Director and Subcontract
department; a comprehensive list of all Project Packages/locations and
subcontracting categories shall be included in the HSSE Plan

1.2 Identify Petrofac Sphere of Control Table 1 of this document Identify the applicable HSSEMS and Petrofac’ s and Subcontractor’s
C R C I authorities and responsibilities

2.0 HSSE Prequalification (capability assessment)

2.1 Identify suitable potential Identify suitable potential Subcontractors considering Location of the
I I C R project, Previous experience in the region and similar SOW etc.
Subcontractors

2.2 Conduct HSSE Capability HSSE Pre-qualification HSSE prequalification questionnaire shall be issued to the potential
Assessment of the potential Questionnaire- PEC-HS-FRM-X- Subcontractors and submittals will be evaluated using Evaluation criteria
Subcontractors to establish that 13807 Form for Major Scope and for HSSE Capability Assessment protocol. If required, Formal Audits /
R I C I PEC-HS-FRM-X-16150 Form for Due diligence Visits to Potential Subcontractors office, sites will be
they have the necessary experience
Minor Scope; Subcontractor carried out
and capability to execute the SOW HSSE Prequalification
safely. ( Contractor HSSEMS, Assessment Guidance PEC-HS-
Previous HSSE Performance etc.) FRM-X-13808; Subcontractor
HSSE Site Due Diligence
Checklist PEC-HS-FRM-X-13809;
Subcontractor HSSE
Prequalification Grading form
PEC-HS-FRM-X-13810

2.3 Establish list of pre-qualified

Subcontractors that will be invited to C C A C R
bid for the contract
3.0 Tender Period and Award
3.1 Compile Contract HSSE Petrofac’ s HSSE Subcontract Standard HSSE Requirements document to be reviewed and any
Requirements, Petrofac HSSE requirements – Section 9 of the additional requirements for the SOW to be included
Documentation relevant to the ITT
R C A C C Main Contract HSSE
subcontract which shall be included
requirements- Section 3 of the ITT
in ITT Documentation HSSE Milestone Payments-
Section 5 of the ITT
HSSE requirements under the
Service agreement ( for minor
scopes)

3.2 Attend Technical bid clarification All bidders technical submissions will be evaluated based on below
meetings as required and provide criteria:
HSSE input in the technical bid - HSSE prequalification scoring; Typical HSSE Plan (for a similar scope
R C A C I of work/similar project); CVs of proposed HSSE Personnel and HSSE
evaluations
Statistics for the past 5 years
Additional HSSE deliverables may be requested from the Subcontractors
at this stage

3.3 Select Subcontractor for award. HSSE qualified potential Subcontractors should only be considered for
I C R C C further commercial assessment

3.4 Subcontract award-Kick off meeting Discuss key HSSE requirements and reconfirm Subcontractors'
I R A C I understanding of Section 9 and contractual requirement.
Re-confirmation of mode of Subcontracting (Category 1 or Category 2)
4.0 Pre- Mobilisation
4.1 Ensure Subcontractor (s) submit Subcontractor HSSE Pre- Key areas of Section 9 deliverables and application requirements should
the Project specific HSSE Plan and Mobilization Checklist be verified through 'Subcontractor HSSE Pre-Mobilization Checklist' (PEC-
all HSSE deliverables as per ITT PEC-HS-FRM-X-15762 HS-FRM-X-15762) to ensure the conformance with agreed submissions
I C I R
and timeframe captured
requirements
4.2 Post award pre-mobilisation Subcontractor HSSE Pre- Stand alone HSSE pre-mobilisation meeting agenda shall include:
meeting with the Subcontractor(s) Mobilization Checklist Familiarization of the teams ; Training and competence; Major Hazards
PEC-HS-FRM-X-15762 and Risk Controls; Requirement of HSSE Deliverables (Plans and
procedures) for the SOW and schedule for the delivery; K.P.I's etc.
I C R C C

4.3 Review and Approve Subcontractor HSSE Pre- Approval of Subcontractor (s) HSSE Plan to be conducted at this stage.
Subcontractor(s)HSSE Deliverables Mobilization Checklist An action completion pre-mobilisation meeting shall be conducted to
( E:g Contract HSSE Plan, ERP, R A C PEC-HS-FRM-X-15762 review deliverables status as agreed on the initial meeting
Risk Register etc.)

4.4 Approve Subcontractor Key HSSE Approve HSSE Personnel CV's and conduct interviews
R A C
Personnel
5.0 Mobilisation and Start up
5.1 Conduct a HAZCON Workshop the workshop shall be conducted within three months of mobilisation to
R C C address scope specific major risk controls
Specific to the scope of work (
major scope)
5.2 Conduct post mobilisation audit Subcontractor HSSE A Start-up HSSE Audit shall be conducted against the subcontract
against the subcontract HSSE Plan Performance Evaluation Form HSSE Plan after 3 months of the Subcontractor(s) mobilisation
R C C
for effective implementation. PEC-HS-FRM-X-13812

6.0 Execution
6.1 Periodic Evaluation of Subcontractor HSSE Periodic Audits and Onsite HSSE Performance Evaluation shall be carried
Subcontractor(s) HSSE Performance Evaluation Form out to check implementation of Key HSSE Requirements as per the
Performance PEC-HS-FRM-X-13812 ( major HSSE Plan. This will be conducted by Corporate HSSE Advisor, Site
R R R I scopes) HSSE Manager, Project Top Management and Senior management
Petrofac Assurance Index PAI
Audits and other Site
audit/inspection tools ( major and
minor scope)

6.2 HSSE Performance Improvements Based on the Audit reports and Performance evaluation etc., HSSE
I R Improvement plans shall be developed periodically with the Subcontractors
A C
to achieve Continual improvement

7.0 Demobilisation Stage

7.1 Modify the HSSE Plan to address Implement controls to minimise the risks related to hazards associated
hazards associated with the with demobilisation phase
I R A C
demobilisation phase of the Project HSSE Plan
Subcontract Work

8.0 Close Out

Evaluate and Prepare a Subcontractor HSSE close out report to record

I R I C I Subcontractor HSSE Close-out overall performance during the subcontract execution as well lessons
Evaluate and prepare the Final
8.1 Evaluation Report PEC-HS-FRM- learned and areas of improvement. The report shall be made accessible
Subcontract HSSE Close out report. X-13860 for future reference and shall be taken into account when a Subcontractor
is being considered for a future work

* Based on OGP Guidelines

Figure 2

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6.1 Planning Phase

Projects shall define the scope of work to be executed and define the mode of
subcontracting using the Sphere of Control test provided under Appendix I of this document
as bases for defining the strategy and category of the subcontract to be awarded (Category
1 or Category 2 site). When the mode of subcontracting is uncertain at this stage, the
package will be treated as Category 1 which may be revised prior to Subcontract award.

The Subcontract category, the complexity of the scope of work and its associated risks
determine the necessary level of supervision and Petrofac Management Sphere of Control.
The Subcontract category shall be clearly defined in the Subcontractor’s HSSE Plan and the
Project HSSE Plan.

The table below will be used as a basis to identify the applicable HSSEMS and Petrofac’s
and Subcontractor’s authorities and responsibilities at the site:

HSSEIA Conditions Category 1 Site (Control) Category 2 Site (Monitor)

HSSEIA Management Petrofac’s HSSEIA
System Management System shall
be implemented or an
agreed bridging document
is developed and
implemented
Management Approach* Direct
Petrofac HSSEIA Constantly required
Resources
HSSE & IA Plan HSSE & IA Plan or bridging
document shall be
developed and
implemented by Petrofac or
Subcontractor
HSSEIA Performance Exposure hours and
Statistics incidents shall be included
in Petrofac corporate
statistics
Petrofac Corporate Shall be conducted
(Group) Assurance
Table 1- Sphere of Control
Subcontractor’s/vendor’s
HSSEIA Management
System shall be
implemented
Monitor
Available as required
HSSE & IA Plan or bridging
document may or may not
be developed/implemented
by Subcontractor/vendor
Exposure hours and
incidents are not included in
Petrofac corporate
statistics; but could be
recorded at Project/Asset
level (as applicable)
Shall not be conducted

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6.2 HSSE Pre-qualification stage

The purpose of the HSSE Prequalification Assessment phase is to screen potential
Subcontractors to establish that they have the necessary experience and capability to
undertake the scope of work in an HSSE responsible manner, and to effectively deal with
the associated risks. This assessment process will assist Petrofac to check the following,
but not limited to:
 Subcontractor HSSE Management System

 Subcontractor hazard and risk management process

 Subcontractor personnel HSSE competencies and training programmes

 Subcontractor operational control procedures

 Subcontractor HSSE records for the past five years

The selection criteria considers significant aspects such as costs, technical ability,
reputation, the ability to meet schedules, and the demonstrated ability of the
Subcontractors to work safely and in an environmentally acceptable manner. HSSE
Management should be given appropriate weighting along with other considerations
when selection is applied.
6.2.1 HSSE Pre-qualification assessment process
The HSSE prequalification assessment will be required for all new subcontractors and
subcontractors that did not work on Petrofac Projects for the past five (5) years to ensure
they have the minimum HSSE requirements to execute the job; Subcontractors HSSE
records shall be updated every 5 years by requesting the subcontractor to resubmit the
HSSE documentation. Petrofac shall communicate the HSSE prequalification
questionnaire to the Subcontractor, using PEC-HS-FRM-X-13087 form for the major
scope and PEC-HS-FRM-X-16150 form for the minor scope
Subcontractor shall duly complete the relevant Subcontractor HSSE Prequalification
Questionnaire and submit all supportive documents. After submitting the completed
questionnaire to Petrofac, Subcontractors will get ready for the site due diligence when
required.
Subcontractors’ HSSEMS will be assessed using the prequalification assessment form
PEC-HS-FRM-X-13808 as guidance and accordingly, Petrofac HSSE Team shall
complete the Subcontractor prequalification grading form PEC-HS-FRM-X-13810 for the
major scope and PEC-HS-FRM-X-16226 for the minor scope. When required, a site due
diligence using PEC-HS-FRM-X-13809 checklist shall be conducted as well as review of
prior audits, inspections, feedback and close out reports from previous subcontracts will
be arranged to verify the degree of implementation of the Subcontractors’ HSSEMS and
a scoring will be generated. The scores will be communicated to Petrofac Subcontracts
department.
For a bidder to qualify as acceptable the total grading must be equal or more than 67 on
the Subcontractor prequalification grading form PEC-HS-FRM-X-13810 , scored 2 and
above for the minor scope and assessed to be Adequate or above based on the Site
Due Diligence assessment when conducted. Also, review of evaluations, feedback and
close out reports received from previous Petrofac Projects will be required prior to any
decision. To qualify bidders that scored below the passing grade an approval by Area
Director will be required as well remedial actions – including resources necessary to
overcome the shortcomings – shall be identified in the HSSE Improvement Plan. The
Subcontractor HSSE improvement Plan shall be submitted to Petrofac HSSE
Department for approval.

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Petrofac shall document the Subcontractor Assessment process and the rationale for
accepting or rejecting of Subcontractors to participate in the bidding stage.
Subcontractors that have achieved the required HSSE criteria will be added to the
Petrofac Approved List of Subcontractors and will be invited to bid for future projects
through a competitive tendering process. For those Subcontractors that did not
demonstrate sufficient HSSE capability, identified gaps will be communicated to them
when possible to address these issues in order to be considered for future work.
Reference Documents

1 Subcontractor HSSE Prequalification PEC-HS-FRM-X- 13807

Questionnaire- Major Scope Rev 2
2 Subcontractor HSSE Prequalification PEC-HS-FRM-X-16150
Questionnaire- Minor Scope Rev 0
3 Subcontractor HSSE Prequalification PEC-HS-FRM-X-13808
Assessment Guidance Form Rev 1
4 Subcontractor HSSE Prequalification Grading PEC-HS-FRM-X-13810
Form Rev 1
5 Minor scope Subcontractor HSSE PQ Grading PEC-HS-FRM-X-16226
Form Rev 0
6 Site Due Diligence -Rev 1 PEC-HS-FRM-X-13809

6.2.2 Items and criteria

For Subcontractors with major scope, the Subcontractor Prequalification Assessment
Form PEC-HS-FRM-X-13808 shall be used; this form shows which HSSE items relating
to management and reporting shall be taken into account for Subcontractor HSSEMS
evaluation. Items are grouped under the Petrofac HSSE Management System Principal
Elements.
This assessment form provides a description of the requirements which shall be satisfied
by the Subcontractor under each question or category of the Subcontractor HSSE
Prequalification Questionnaire PEC-HS-FRM-X-13807. The following terms are used to
describe the actual level:
: Good
A
: Acceptable
B
: Poor
C
: Unacceptable
D
Associated level descriptions are shown in columns under each item. Descriptions are
cumulative when relevant. Petrofac can decide how the specified expectations shall be
used to qualify and evaluate the Subcontractor.
Guideline for Subcontractor HSSE Assessment is provided in PEC-HS-FRM-X-13808
Subcontractor HSSE Assessment Guidance Form.
For the site due diligence, a separate scoring will be generated reflecting the degree of
implementation of the Subcontractor’s HSSEMS. The questionnaire consists of serious

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of questions and evaluated on a scale of 1 to 5. The following terms are used to describe
the actual level:
5: Outstanding
4: Good
3: Adequate
2: Poor
1: Unacceptable
As for the minor scope, the questionnaire consists of serious of questions and evaluated
on a scale of 1 to 3; assessors may refer to PEC-HS-FRM-X-13808 Subcontractor HSSE
Assessment Guidance Form to set the assessment criteria. The following terms are used
to describe the actual level:
3: Good
2: Acceptable
1: Poor

6.3 Tender Stage – Preparation of ITT HSSE Requirements

To allow the Subcontractor to satisfy tender requirements and provide the information
necessary for Petrofac to adequately assess the HSSE aspects of the tenders,
Subcontractors shall be provided with Petrofac’s and Contract’s HSSE documentation.
At this stage, the HSSE manager in consultation with the Project director and
Subcontract department shall define Petrofac sphere of control for all Project packages
and categorize the subcontracts under category 1 or category 2 (refer to section 5.2.4 of
this document); also for category 1, subcontracts will be classified under minor scope or
major scope based on which the level of HSSE requirements and documentations to be
shared with the subcontractors will be defined.
Documentation in the Invitation to Tender (ITT) package shall be strictly complied by the
Subcontractor and all their subcontractors throughout the Project execution.
For the Category 1, Tier 1 Subcontractors with major scope of work, the followings shall
be included in the ITT:
 Petrofac’s HSSE requirements - Section 9
This section mainly provides expectations and reference to Petrofac HSSE
requirements, work rules, safety seven initiatives and Petrofac HSSEMS.
Subcontractors shall adhere to the same HSSE requirements as Petrofac
employees. Section 9 provides a clear provision for Petrofac to perform HSSE audits
on the Subcontractor in order to assess and monitor the compliance, also to suspend
any work in case if the Subcontractor does not comply with the HSSE Requirements,
include Petrofac HSSSE Policies and framework, Petrofac goal and objective

 COMPANY and Contract/Project Specific HSSE Requirements– Section 3

 HSSE Milestone Payments – Section 5

This section provides clear provision to our Subcontractors on HSSE millstones and
related payments

 The scope of work, work context and the associated known hazards to be addressed
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 Petrofac and contract’s pre-mobilisation and mobilisation requirements

The Subcontractor would be held responsible for the management of HSSE and the
definition of:
o Petrofac/Subcontractor anticipated interfaces
o Petrofac supervision strategy and interaction of Subcontractor work with Petrofac
operations
o the interactions with existing Petrofac plans such as emergency response,
o and key competence requirements (for safety critical positions)
For Category 1, Tier 1 subcontractors with minor scope, in general a service agreement
will be in place including reference to Petrofac HSSE Policies, Golden Rules of Safety
(GRoS) and general HSSE site rules, requirements and expectations to be strictly
followed when working on a Petrofac Project location; in some cases HSSE
requirements covered for major scope as per the above section will be communicated as
decided by HSSE and Subcontract team.
As for Category 2 subcontractors, Petrofac can only influence the activities; an HSSE&IA
or bridging document may or may not be developed/ implemented by
subcontractor/vendor. For this category, the subcontract or service agreement will
include Petrofac expectations also requirements to conduct the activities in conformance
with Petrofac GRoS; other requirements may be stipulated in the bridging document if
any.
Subcontractor shall be requested to comply with the HSSE tender documentation
requirements.
When required, a joint Petrofac and Subcontractor “technical clarification” meeting will be
used to clarify subcontract HSSE requirement and further assess the suitability of the
Subcontractor’s HSSE processes.
In addition to the HSSE documentation provided at the prequalification stage, the bidders
may be requested to submit additional HSSE information to complement their
submissions at the HSSE prequalification phase. All bidders technical submissions will
be evaluated based on below criteria:
- HSSE prequalification scoring
- Typical HSSE Plan (for a similar scope of work/similar project)
- CVs of proposed HSSE Personnel/Focal point
- HSSE Statistics for the past 5 years

6.4 Subcontract Award

Once the award has been made, a kick off meeting should be held as soon as possible
to discuss key HSSE requirements and reconfirm Subcontractors’ understanding of
contractual HSSE requirement; also during this meeting details of the HSSE Plans and
their implementation shall be agreed or a pre-mobilisation initial meeting shall be
planned as soon as possible following the kick off meeting to address this matter. The
agreed documentation on the HSSE Plans together with the identified interface
requirements should be part of the contractual agreement.
In addition, unsuccessful tenders should be given feedback where appropriate.

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6.5 Pre-mobilisation Stage

At this stage, Subcontractors shall submit a Project specific HSSE Plan and all HSSE
deliverables as stipulated in the ITT and as agreed with the Project HSSE Manager
following the Project award. During this phase, the relevant aspects of the subcontract
risk assessment and the requirements of the Project HSSE Plan and other associated
HSSE Plan(s), such as the Environmental Management Plan and Emergency Response
Plan, are communicated and understood by all parties prior to implementation of the
subcontract and any remedial actions required to be completed before mobilisation are
identified and agreed. Re-confirmation of Subcontractor understanding and compliance
with Key areas of Section 9 and Contract Requirements shall be carried out at the initial
pre-mobilisation meeting; this meeting should be held immediately after the subcontract
award between Petrofac HSSE Manager and the Subcontractor HSSE Manager and/or
representative to agree on the date of submissions and/or implementation of HSSE
deliverables and key site requirements by completing the ‘Subcontractor HSSE Pre-
Mobilization Checklist’ (PEC-HS-FRM-X-15762). This meeting shall be used as an
opportunity for the Subcontractor(s) to become familiar with the location, facility,
personnel, and other relevant information. The meeting is generally recognised as an
important interfacing step in working together to prevent incidents. The topics covered
by the meetings shall include, but not limited to:
 submission of Scope specific HSSE Plan including a hazard register covering all
risks and associated controls based on subcontractors’ experience; also the HSSE
Plan shall clearly specify the mode of subcontracting (refer to section 5.2.4 Sphere of
Control). For tier 1- minor scope subcontractors, a written confirmation of having
taken note and compliance with the Project HSSE Plan when agreed with the Project
HSSE Manager may be satisfactory

 confirmation on the proper understanding of Section 9, agree the dates of

documental submissions and key site requirements; this shall be captured using the
‘Subcontractor HSSE Pre-Mobilization Checklist’ PEC-HS-FRM-X-15762

 confirmation that roles and responsibilities have been clearly defined and understood

 confirmation of personnel competence. This includes both Petrofac and subcontract

personnel who are exposed to workplace hazards as defined in the scope of work
and risk assessment

 confirmation of benchmarking and any HSSE Key Performance Indicators (KPIs)

 interaction / interface of Petrofac and Subcontractor’s emergency plans (security,

medical, evacuation etc.)

 confirmation that HSSE induction and training plans are in place and ready for start
up

 agreement on the Pre-mobilisation action completion meeting date and

acknowledgement of the completed ‘Subcontractor HSSE Pre-Mobilization Checklist’
PEC-HS-FRM-X-15762 by the Subcontractor Project Manager by signing the specific
column for ‘Initial meeting’ and ‘action completion meeting’ in the checklist
As agreed on the initial meeting, a pre-mobilisation action completion meeting should be
conducted to verify that the subcontractor has met the agreed deliverables on document
submissions and site requirements application prior to mobilsiation. During this stage
Petrofac shall approve the Subcontractor Project HSSE Plans(s) and key HSSE personnel.
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6.6 Mobilisation Stage and Start-up

The objectives of this phase are to ensure that the Project HSSE Plan(s) are
implemented and communicated to all relevant parties (Petrofac, Subcontractor
personnel and third parties as required). In the mobilisation and start-up phase some of
the principal activities are:
 mobilisation of personnel and equipment

 communication of the roles and responsibilities to COMPANY, Petrofac and

Subcontractor personnel

 commencement of induction, orientation and site specific training which includes

communication of the HSSE plan

 for Tier 1 Subcontractors with a major scope, review of scope specific major risk
controls through a HAZCON workshop within three months (3) of mobilisation shall
be conducted

 undertaking of a Start-up HSSE Performance Evaluation following the HAZCON

workshop and no later than three (3) months of the mobilisation. This audit check
compliance against the Project HSSE Plan, HAZCON identified controls, HSSE
requirements and the close out of findings identified during the Pre-mobilisation
review. The audit may provide recommendations to capture in an update to the
Project HSSE Plan(s). If the Start-up HSSE Performance Evaluation (see
Subcontractor HSSE Performance Evaluation Form PEC-HS-FRM-X-13812)
identifies matters of significant concern, these should be reviewed against the
contractual terms and conditions including the Project HSSE Plan(s) and appropriate
actions shall be taken which may include rectification, withholding permission to
proceed or ultimately terminating the subcontract.

6.7 Subcontract Scope Execution

The objectives of this phase is to ensure that the Project HSSE Plan(s) and Project
contract requirements are implemented, and that roles and responsibilities are clearly
defined, understood and complied with throughout the execution of the contract.
Additional HSSE requirements, identified during implementation of the contract, shall be
properly addressed, and the Project HSSE Plan(s) updated accordingly.
A Site HSSE Kick-Off Meeting is conducted to communicate the HSSE objectives and
requirements to all parties.
A Subcontractor HSSE audit and inspection programme shall be incorporated into the
Petrofac Project Compliance Assurance Schedule. This programme monitors and
checks Subcontractor compliance and performance against contract requirements and
the Project HSSE plan. Findings from inspections and audits shall be shared with the
Subcontractor to use the findings for improving performance.
The following will be monitored by Petrofac and reported monthly at the HSSE Meetings
 Project KPIs (lagging and leading indicators)

 Action tracking register close-out (%)

 Monitoring audits
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6.7.1 HSSE Monitoring

During project execution Petrofac will conduct period HSSE monitoring audits including
but not limited to:
 Quarterly Monitoring conducted by Petrofac Site HSSE Team

 PAI audits conducted monthly by the Project Management and by Senior

Management during their site visits
Refer to Subcontractor HSSE Performance Evaluation checklist (Doc No: PEC-HS-FRM-
X-13812)
Actions shall be logged on the site action tracking register and/or Synergi
6.7.2 Incentive Scheme and Code of Conduct
A Site Incentive Scheme and Code of conduct shall be discussed and agreed with the
Subcontractor at the Project level. The purpose is to reward safe practices and
implement consequence management for unsafe practices, with the goal of promoting a
safe work culture and thereby reducing HSSE incidents and violations by personnel at
the Project.
The Incentive Scheme and Code of Conduct should be Project specific and in line with
COMPANY requirements.
6.7.3 HSSE Support
Petrofac will provide support to Subcontractors to ensure they meet Petrofac
expectations and contract requirements. Based on a management decision, small local
Subcontractors that did not meet the prequalification passing grade, will be supported
financially by Petrofac and will fall under Petrofac HSSEMS.
Thus, Petrofac will provide assistance to these small local Subcontractors and sponsor
the safety equipment and systems identified in the HSSE improvement plan (i.e. PPE,
IVMS, noise monitors, etc.).
6.8 Demobilisation Phase
At this stage, Subcontractor personnel start to demobilise so less HSSE presence and
supervision will be observed at the Project site which will increase the likelihood of
incidents. Therefore, suitable controls shall be implemented to ensure that changes are
adequately managed and risks reduced.
Petrofac and Subcontractor shall ensure that hazards associated with the demobilisation
phase of the Subcontract Work are re-assessed, any new hazards identified and controls
implemented to minimise the risks. The HSSE plan shall be modified accordingly and the
demobilisation works completed as indicated in the HSSE plan.
Appropriate organisational structures including emergency response, site restoration and
re-instatement, waste management and disposal shall be maintained until associated
activities have been completed. The HSSE plan shall continue to be used as the
reference for managing activities during this phase and HSSE performance indicators
shall be continuously monitored and measured.
6.9 Subcontractor Close-out Assessment
The purpose of this phase is to evaluate the HSSE performance and to provide feedback
and lessons learned that can be a reference for future work.
Subcontracts shall be closed-out with an HSSE report providing performance feedback
for future reference and improvements. As discussed under section 6.6.1, Subcontractor
HSSE performance will be tracked on a regular basis throughout the Subcontract, thus
the final report will be the distillation of the regular monitoring process and the end of
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Subcontract review. The report will also include a cumulative grading of the
Subcontractor performance throughout the project execution to ensure consistency in
assessing Subcontractors at the end of the contract. The report shall be made
accessible for future reference and shall be taken into account when a Subcontractor is
being considered for a future work. Please refer to Subcontractor Close-out Report
Template PEC-HS-FRM-X-13860
6.10 Vendors, suppliers and logistics service providers
All vendors, suppliers and Logistics Service Providers (LSP) shall go through the HSSE
prequalification process by registering in ZYCUS, Petrofac Online Supplier Portal. The
HSSE capabilities for prospective vendors, suppliers and LSP will be evaluated based on
their HSSE documentation and HSSE records provided through the ZYCUS system.
Grading Forms and Assessment Criteria for HSSE evaluations of each category are
developed for guidance and maintained at the HSSE Corporate office. Also at locations
were ZYCUS system cannot be accessed, the following QMS documents can be used
for vendors’ evaluation PEC-HS-FRM-X-16151 and LSP HSSE prequalification
checklist provided under appendix A of PEC-PR-FRM-X-6665 Prequalification
Questionnaire for logistics service providers. Petrofac HSSE policies, Golden Rules of
Safety (GRoS) and any other relevant operational control procedures shall be
communicated as part of the ITB or service agreement.
1 Vendors HSSE Prequalification questionnaire PEC-HS-FRM-X-16151
2 Prequalification Questionnaire for logistics PEC-PR-FRM-X-6665
service providers

6.11 Tier 2 Subcontractors

All Subcontractors, whether Tier 1 or Tier 2 shall abide by the performance requirements
listed in this procedure. Following the subcontract award, Tier 1 subcontractors shall
inform Petrofac regarding their subcontracting strategy if they intend to assign Tier 2
subcontractors on the Project. Tier 1 Subcontractors shall carry out prequalification
assessment on shortlisted Tier 2 subcontractors and generated reports shall be shared
with Petrofac. If any of the Tier 2 Subcontractors found to be unsatisfactory, Petrofac will
call for a clarification meeting to discuss an alternative or an improvement plan. Petrofac
HSSE prequalification tools for the major and minor scopes may be used for this purpose
(refer to section 6.2).
In addition, HSSEIA obligations as indicated in the Petrofac HSSEIA Management
System or an agreed bridging document shall not be diluted when cascaded to Tier 2
Subcontractors also vendors, suppliers and logistics service providers.

7.0 RECORDS
Records mentioned in this document shall be kept by relevant departments in
accordance with Management of HSSE Records PEC-HS-PRO-X-2413 procedure.

8.0 FLOWCHART
N/A

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9.0 APPENDIX I – SPHERE OF CONTROL TEST FOR HSSEIA MANAGEMENT

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