ASPEC Engineering HSE Management System Work Instruction
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1 1 Objective This work instruction outlines ASPEC s sub-contractor management process. The purpose of the process is to ensure that sub-contractors align with ASPEC/Clients Health, Safety and Environment (HSE) and quality standards. This work instruction applies to sub-contractors engaged for office or site based work involving one-off work, small crews and/or one person only. These contractors on-site must agree to abide by the Clients systems. For larger jobs, refer to AE-PMS-MA-0001 EPCM Project Manual for a more detailed contractor management procedure. This work instruction provides people with a guide to their responsibilities, in terms of managing contractors. It is recognised that contracted work varies in the size of the contract, the period/continuity of the presence on-site, and whether ASPEC employees or client representatives manage sub-contractor work on-site. 2 Accountabilities Role Project Leaders Project Controller Directors Employees/s Sub-contractors Accountability To engage sub-contractors To evaluate sub-contractors To supervise/ arrange client supervision of contractors on site To ensure that sub-contractors complete the ASPEC HSE induction To issue a purchase order to sub-contractors To issue invoices to sub-contractors To approve authority to commit funds when sub-contractor work exceeds 30K To abide by ASPEC/ the client s HSE and quality management systems To meet the project timeline and budget as specified in the proposal/ project plan Complete the ASPEC HSE induction Follow ASPEC and client procedures at all times Take the ASPEC site safety plans to site 1
2 3 ASPEC Sub-contractor Workflow Outlined below is the workflow of sub-contractor engagement for ASPEC project-based work. Identify subcontractor Requirements Potential subcontractors evaluated Write and submit proposal to client incorporating sub-contractor details ASPEC Pre- Qualificat ion of Supplier Kick-off meeting - Project plan, revise schedule Project work Evaluate performance Project improvements Sub-contractor engaged and write proposal Certificates of Currency, Signed Terms of Business received Contractors issue progress reports/ meetings Safety plans Issue purchase order Site work supervised by ASPEC Issue deliverables Subcontractor completes ASPEC induction 4 Sub-contractor Selection When ASPEC identifies an opportunity to submit a tender or proposal to a client, whereby the scope of work requires additional resources or skills to complete a job, ASPEC will identify the need to engage a sub-contractor for the duration of a project. 4.1 Sub-Contractor Evaluation Criteria The ASPEC Directors have established a list of pre-approved subcontractors with whom ASPEC has previously worked with and have 2
3 already agreed upon ASPEC s commercial conditions. The benefits of using these contractors are that: They present a lower risk of product non-conformance as their performance has been previously evaluated on past projects They are familiar with ASPEC/ the clients quality and HSE standards They have already accepted the commercial conditions therefore there is minimal chance of a change in this respect They have already been accepted by the client ASPEC Project Leaders, in consultation with ASPEC Principals/Group Leaders may identify that there is a strategic advantage of using a particular contractor due to the expertise/ reputation/ relationship with the client they possess 4.2 Contractor engagement After a contractor has been identified for use for a project, the ASPEC Project Leader will make telephone contact with the contactor to see their availability to perform the work The Project Leader will then provide ASPEC s commercial conditions, the Client s commercial conditions and a scope of work and ask the contractor to submit a proposal The Project Leader will evaluate the proposal using the criteria outlined below. Any comments amendments will then be negotiated with the contractor (cost, scope, methodology). Is the methodology appropriate for the project? Is the scope appropriate for the project? Do the proposed employees contain the necessary knowledge, skills and expertise to perform the project to meet ASPEC/ the clients standards? Does the proposed timeline meet the time requirements for the project? 3
4 4.2.4 The Project Leader will then incorporate the contractor scope of work, resources and cost into the ASPEC proposal submitted to the client If the ASPEC proposal is successful the contractor will be contacted and awarded the job. If the project is unsuccessful the contractor is contacted by telephone/ and informed of the result ASPEC s Project Controller will invite the Sub-contractor to complete an online pre-qualification check. Following receipt of this, which includes a signed ASPEC Terms of Business, a purchase order is issued to the subcontractor detailing the scope of work and budget allocation The Project Leader will then arrange to issue the contractor with the link to the ASPEC Health, Safety and Environment (HSE) induction. This is used as a safeguard to ensure that sub-contractors abide by ASPEC protocols If there is a tight deadline for the project, or the Project Leader identifies that it is necessary that the sub-contractors/ ASPEC personnel commence work before the purchase order is received from the client, then an approval to commit funds must be sought. The Project Leader can approve funds for projects under 30K The Directors must approve funds for projects over 30K 4.3 Post award of contract At the beginning of the project, the Project Leader will schedule a kick-off meeting with the relevant contractor representatives preferably using a face-to-face medium. The Project Leader will then assign responsibilities to the project team members The Project Leader will then facilitate project planning: revision of the timeline, assigning tasks, scheduling meetings, scheduling milestones The minutes of the meeting will be issued to the project team 4
5 4.3.2 The sub-contractor will produce interim progress reports and meetings as detailed in the contractor scope/proposal. 4.4 Site-based contractor work The project team will complete a Site Safety Plan comprising a comprehensive risk assessment and site project plan for the project (refer to : Site Safety Plan). It is ensured that all ASPEC and contractor work, procedures, equipment, qualifications meet ASPEC and the client s safety requirements. The ASPEC supervisor will ensure that the contractor completes the JSA/ JHA as required using the ASPEC/ client form meeting the ASPEC HSE criteria (Refer to AE-HSE-PR-0003 Hazard Identification and Risk Management Procedure) Whilst on site, the contractors must agree to conform to the clients site procedures. Any non-conformances/ incidents which occur however must be additionally reported in the ASPEC incident/ non-conformance systems The ASPEC Project Leader will then supervise the sub-contractor on site. However, if a long site visit is required, the project leader may arrange an appropriate client representative to supervise the contractor on site. It is essential that responsibility is clearly specified. Sub-contractors are required to take the completed and signed Site Safety Plan to site. Sub-contractors are required to inform both ASPEC and client representatives what dates/times they will be going on site and the specific activities they will be undertaking under supervision. 4.5 Sub-contractor evaluation The Project Leader will evaluate the performance of the sub-contractor (the report and site work undertaken) against the following criteria: Meeting deadlines The quality of the work The cost-effectiveness Client satisfaction 5
6 4.5.2 If the Project Leader deems the sub-contractor as not conforming to ASPEC s Quality Management System, then a non-conformance will be lodged and an investigation will be undertaken (Refer to AE-QMS-WI- 0004). 5 Document Control Revision Completed on Author S Cardow Comments Conversion to new internal document numbering system for HSE. Update to be compliant with AS4801 and ISO Modification to workflow referencing ASPEC Terms of Business be signed by sub-contractor and received by finance department prior to ASPEC purchase order is issued and payment of invoices. 6
ASPEC Engineering HSE Management System Work Instruction
1 Objective This work instruction outlines ASPEC s sub-contractor management process and works in conjunction with ASPEC Quality Management System - Purchasing Process Work Instruction, AE-QMS-WI-0004.
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