June 23, 2015

HSE Risk Assessment and Site & Task Specific Method Statement

POLICY AND GOALS

All Subcontractors shall adopt ABB’s commitment to the goal of zero accidents philosophy. Every ABB
Subcontractor (whether considered a “Prime” contractor or otherwise) must carry out the responsibility
for ensuring compliance with the requirements set forth in the contract documents.

The zero accident philosophy includes the following criteria:

• Health, Safety and Environment (HSE) is a value for every employee, visitor, and the public.
• All accidents are preventable.
• Unsafe acts shall not be tolerated or accepted.
• Compliance with HSE regulations and standards is a condition of employment.
• Senior Management is accountable for HSE performance.
• Operations Managers and supervisors are accountable for implementing and monitoring safe
work procedure and practices.
• HSE shall be planned into all activities prior to execution.
• Employees shall be trained and qualified commensurate with their responsibilities.
• All levels of management must ensure adequate resources are allocated to protect employees
and the public from known hazards.
• Accidents shall be immediately reported, investigated, and followed by timely corrective actions.

HEALTH, SAFETY AND ENVIRONMENT (HSE)

Subcontractor shall comply and ensure compliance by any of its employees and subcontractors with
all applicable laws relating to HSE throughout the performance of their work.

Subcontractor shall comply with (i) ABB’s HSE instructions for the Site and ABB’s Code of Practice for
Safe Working, (ii) End user’s instructions concerning HSE at Site and (iii) applicable industry
standards and good engineering practice.

Code of Practice for

Safe Working
Subcontractor shall allocate sufficient and qualified HSE resources to satisfy its obligations with regard
to HSE. Resources allocation shall be reviewed periodically by Subcontractor and shared with ABB to
ensure HSE requirements can be met. Subcontractor shall ensure that all its personnel, and its
subcontractors’ personnel, working on Site shall have received relevant training and induction before
being allowed to work on Site.

Subcontractor shall be solely responsible for the health and safety of all its employees and
subcontractors at Site and shall immediately advise ABB and the relevant authority, if so required, of
the occurrence of any accident, incident or near-miss on or about the Site or otherwise in connection
with the provision of the Works.

RISK ASSESSMENT

Risk assessment is the process of identifying hazards, assessing the level of risk posed by these
hazards, implementing controls to eliminate or minimize these risks and defining the arrangements for
the monitoring of the effectiveness of these controls.

An appropriate and thorough risk assessment shall be developed to suit the Site and shall include
effective control measures as an integral part of successful health and safety management.

Subcontractor may use its own methods of risk assessment for its job once reviewed and approved by
ABB. When using own methods of risk assessment, Subcontractor shall include additional guidance
provided under ABB’s Code of Practice for Safe Working, hazard and control sheet RM/01.
Risk assessments shall have been prepared prior to site mobilisation in respect of each of the work
packages being executed on Site. These should be identified in the pre-tender HSE plan issued to sub-

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contractors who will be undertaking the work. They in turn will need to amplify these and incorporate the
control measures or precautions into the method statements. Risk assessments shall be reviewed as
the project progresses.

Factors for Consideration in a Risk Assessment

• details of the activity or task who might be at risk, employees, contractors or the public. Enhanced
controls may well be required where the public is at risk.
• establish the hazards associated with each activity and score them according to the likely
consequences assuming no controls in place then consider how probable or how likely is it that some
harm or injury may arise based on no controls.
• the resultant risk factor will determine if it is high medium or low.
• define the control measures that are proposed (physical, system or human).
• if the application of the control measures reduces the consequences then revise the hazard rating.
• likewise revise the likelihood and then determine the new risk rating with the controls in place.
• if effective it should demonstrate that with the controls in place and applied the risk is now as low as
is reasonably practicable.

METHOD STATEMENT - SAFE WORK PROCEDURES

A site and task specific method statement shall be prepared by all Subcontractors undertaking their
work. The method statement shall be submitted to ABB Site Manager for review at least 5 days prior to
Subcontractor commencing the work. Subcontractor shall ensure that competent and trained workers
are employed for the task. Training records shall be readily available for inspection.

The site and task specific Method Statement shall include as a minimum the following:

• A description of the activity or task to be undertaken.

• The anticipated hazards and a plan to address the hazards.
• Details of location.
• Resources to be used.
• A description of the method of working to be employed including the sequence of activities.
• Safety precautions to be applied.
• Any relevant emergency or contingency requirements.

The method statement shall be available for inspection at the Site and contents thereof communicated
to everyone prior being involved in the task.

MONITORING

Daily monitoring of site activities by site supervisory personnel is an integral part of Subcontactor duties.
Informal daily site tours shall be conducted regularly during each shift to ensure all activities comply with
the agreed method statement.

PROJECT SUSPENSION

ABB shall suspend the performance of the Subcontract or any part thereof, including postponing the
provision of Subcontractor’s work, for such times and in such manner as ABB considers necessary (i)
for proper HSE in the execution of Subcontractor’s work, or (ii) due to any default by Subcontractor, in
which case Subcontractor shall bear all costs and be liable for the delay arising from such suspension.

TERMINATION

Without prejudice to any other rights or remedies to which ABB may be entitled, should Subcontractor
breach this policy, ABB may terminate the Subcontractor.