Contract HSE Management/Part I

Transcription

1 Contract HSE Management/Part I HEALTH, SAFETY AND ENVIRONMENT PROCEDURE Contract HSE Management/Part I DOCUMENT ID - PR-10-POGC-001 REVISION - 1.0

2 Pages 9 Revision 1.0 Contract HSE Management/Part II Document ID. PR-10-POGC-001 HSE Department Contract HSE Management/Part I Document Authorization Document Type Security Classification Document Authority/Owner Document Custodian HSE Procedure Unrestricted P.O.G.C HSE Document Author HSE Approved By Ansari.Mazaher

3 Contents 1 Introduction Background Purpose Distribution/Target Audience 2 2 Contract HSE Management Procedure Scope Description Contract Owner s Responsibilities Contract Holder s Responsibilities Minor Contract 4 3 Contract Phase: Planning and Invitation to Tender 6 Task 1 Appoint Contract Holder 6 Task 2 Prepare Contract Scope of Work 6 Task 3 Preparation of the Contract Schedule 7 Task 4 Develop Contract Strategy 8 Task 5 Approval of the Contract Strategy 8 Task 6 Conduct HSE Assessment 9 Task 7 Prepare Exhibit L of Contract, (HSE Requirements) 10 Task 8 Prepare POGC Contract HSE Management Schedule 11 Task 9 Approve POGC Contract HSE Management Schedule 11 Task 10 Development of HSE Prequalification Criteria 12 Task 11 Tender Board Endorse HSE Prequalification Criteria 13 Task 12 Prequalify Contractors 14 Task 13 Tender Board Approve Contractor Bid List 14 4 Contract Phase: The Tender Period 15 Task 14 Contractor Submission: Document HSE Requirements 15 Task 15 Site Visit 15 Task 16 Clarification Meeting 16 DOCUMENT TITLE: Contract HSE Management Part I REVISION 1.0 Page a

4 5 Contract Phase: Evaluation and Contract Award 17 Task 17 Review Contractor Submission Document HSE Requirements 17 Task 18 Evaluate Contractor Submission Document HSE Requirements 17 Task 19 Review Contractor Ability to Manage HSE Risk 17 Task 20 Contractor HSE Assessment 18 Task 21 Contract Award Recommendation to Tender Board 18 Task 22 Advise Contractor of Company (POGC) Representative 19 Task 23 Advise Contractor of Company (POGC) Site Representative 19 Task 24 Contractor Appoints Key HSE Personnel 20 Task 25 Approve Contractor Key HSE Personnel 20 6 Contract Phase: Mobilization 21 Task 26 On Site HSE Workshop 21 Task 27 Contractor to Prepare HSE Management Plan 22 Task 28 Review Contractor s HSE Management Plan 24 Task 29 Approve Contractor s HSE Management Plan 24 Task 30 Contract Holder Develops POGC HSE Monitoring Program 24 Task 31 Contract Owner Review HSE Monitoring Program 29 Task 32 Contract Owner Approve HSE Monitoring Program 29 Task 33 POGC and Contractor Training 29 Task 34 Contractor Mobilization 29 Task 35 Pre-execution HSE Audit of Contractor 30 Task 36 Contractor Completes Pre-execution HSE audit Items 32 Task 37 Contractor Readiness to Commence 32 Task 38 Issue HSE Certificate 32 7 Contract Phase: Execution 33 Task 39 Supervision 33 Task 40 Monitor Contractor s implementation of HSE Management Plan 34 Task 41 Additional HSE Requirements 35 Task 42 Contractor - Revise HSE Management Plan 35 Task 43 Review Revised Contractor s HSE Management Plan 36 Task 44 Approve Revised Contractor s HSE Management Plan 36 DOCUMENT TITLE: Contract HSE Management Part I REVISION 1.0 Page b

5 Task 45 Implement POGC HSE Deviations and Amendments 36 Task 46 Contractor Revise HSE Management Plan 37 Task 47 Review Contractor revised HSE Management Plan 37 Task 48 Approve Contractor revised HSE Management Plan 38 Task 49 HSE Penalties and Defaults 38 Task 50 Contract HSE Performance Reports 39 8 Contract Phase: Demobilization 40 Task 51 Site Restoration Compliance 40 Task 52 Site Restoration Certificate Approval 40 9 Contract Phase: Close Out 41 Task 53 Final Contract HSE Performance Report 41 Appendix MC HSE Checklist for Minor Contracts 42 Appendix A Summary - Contract HSE Management Procedure 44 Appendix A1 Contract HSE Management Schedule 54 Appendix B HSE Prequalification Questionnaire 65 Appendix C HSE Monitoring Program 79 Appendix D Template, Contract HSE Performance Report 80 Appendix E HSE Certificate 84 Appendix F Site Restoration Certificate 85 Appendix G Variation to Contract Tenders Law 88 Appendix H Accessing POGC and Shell Web Documents 91 DOCUMENT TITLE: Contract HSE Management Part I REVISION 1.0 Page c

6 PART I: Mandatory for POGC personnel involved in Contract Management 1. Introduction 1.1 Background POGC s Policy Document, HSE Policy requires that a systematic approach to HSE management be applied which shall require Contractors to manage HSE in line with POGC s HSE Policy. POGC s Code of Practice Document, MA-12-POGC-001 (HSE Management System Manual), requires that POGC Asset Managers shall ensure Contractors are made aware of POGC s HSE management requirements and have adequate business controls in place to meet them. The International Organization for Standardization (ISO 14001) requires that procedures be established and maintained to ensure that relevant environmental requirements are communicated to Contractors. With the development of the Contract Holder ship Certification Scheme (CHCS) it became apparent that a complete review and re-write of the suite of HSE Management of Contracts documents was desirable. 1.2 Purpose Document PR-10-POGC-001 (Contract HSE Management) has two parts: Part I: Mandatory for POGC Personnel involved in Contract Management Part II: Mandatory for Contract Holders and Contractors Part I follows the material delivered to Contract Holders during the Contract Holder ship Certification Scheme. Each of the 53 activities related to Contract HSE management issues are described, together with any Deliverable(s) and relevant Reference Document (s) that are obtainable on the POGC intranet system ( Refer to Appendix H for assistance in accessing POGC Web Documents. Part I describes the flow of activities to be executed by Contract Holders, from strategy definition to close-out of a contract, to ensure that Contractors achieve the same (or higher) HSE standards as those required by POGC for its own operations. The Procedure is based on a planned approach with attention being paid to HSE issues in the early Contract Phases in order to properly address HSE through the entire contract process. Page 1

7 Part II is referenced, in document Exhibit L of Contract, to enable Contractors, together with Contract Holders, to carry out POGC prescribed HSE activities in the manner and at the level required by POGC. Of particular importance in this section is the detail given for the preparation of the Contractor s HSE Management Plan. This information is to be used by both Contract Holders and Contractors, and is also referenced throughout Part I where appropriate. The input to each Contract Phase and the depth of analysis (the Tasks ) primarily depends on the level of HSE risk presented by the contract activities, which consequently determines the actions and input required for the contract execution. Whether a contract is large or small in scope and value the Tasks are all the same. Preparations for all contracts shall utilize the same systematic process of hazard identification, assessment, control, mitigation and recovery (Hazards and Effects Management Process - HEMP), together with the demonstration that a system is in place to manage these hazards. 1.3 Distribution/Target Audience This Procedure is a mandatory requirement for Contract Owners and Contract Holders. Part I of this Procedure is targeted at Contract Owners, Contract Holders, Company Representatives, Company Site Representatives and other POGC personnel tasked with the HSE aspects of contract planning, tender preparation, evaluation and subsequent contract management. Part II of this Procedure contains HSE instructions for Contractors. It is the obligation of Contract Holders to ensure that Part II is supplied to Contractors and that the instructions in it are followed. Distribution of this document is controlled by the Document Custodian. Page 2

8 2. Contract HSE Management Procedure 2.1 Scope This Procedure applies to all contracts tendered by POGC regardless of size and value. 2.2 Description This Procedure follows the HSE sequence of Tasks in contract management as detailed in the Contract Holder ship Certification Scheme. These activities, specific to HSE in the preparation, evaluation and execution of a contract, are summarized in Appendix A, Summary - Contract HSE Management Procedure. The sequence of events in any contract can be described in seven Contract Phases: 1. Planning and Invitation to Tender 2. The Tender Period 3. Evaluation of the Tenders and Contract Award 4. Mobilization 5. Execution 6. De-mobilization 7. Close Out The succeeding sections of Part I of Contract HSE Management (PR-10-POGC-001) detail the Tasks contained in these seven Contract Phases, finalizing with the summary in Appendix A. In some of the Tasks, form(s) must be completed for the Contract to proceed. These are detailed in each Task where required, including any reference documents that relate to the forms. All forms necessary for the HSE Management of a Contract are given in the various Appendixes in this document. Each Task paragraph also contains instructions for any relevant Deliverable(s), as well as the document number and title for any reference material pertinent to that Task. Appendix H provides guidance for retrieving documents from the POGC electronic system. Page 3

9 2.3 Contract Owner s Responsibilities Contract Owner shall be an individual with the right level of authority to direct the contracting process to protect overall POGC and Asset objectives. Where relevant, Contract Owners should attend Tender board presentations to support Contract Holders. Contract Owner should at all times be cognizant of HSE issues in each Contract. 2.4 Contract Holder s Responsibilities Contract Holder shall have single point responsibility for the activity management of the Contract and verification that the control mechanisms are in place. Contract Holder shall have single point responsibility for advising Contractor and/or Contractor Personnel of activities, stated in each relevant Task, requiring their action(s). These activities are not necessarily repeated in Part II of Contract HSE Management (PR-10-POGC-001), as they generally arise from the responsibilities and activities of the Contract Holder as stated in each Task. It is not expected that Contract Holders can carry out all the activities listed in the following sections. Rather, Contract Holders shall call upon professional personnel from relevant POGC departments when assistance with HSE issues is required. This does not in any way remove from Contract Holders the absolute responsibility for ensuring that advice received and ensuing actions taken are the best possible solutions to any point in the execution of a Contract. 2.5 Minor Contract Contract Holder shall: Contract Holder shall complete the necessary sections of the table in Appendix MC. Contract Holder shall ensure that the Contractor is fully aware of and understands the requirements of this table. Contract Holder shall ensure that the Contractor is fully aware of and understands the following statement: Contractor shall operate, and shall cause all sub-contractors and Contractor Personnel to operate, with the utmost care for the health and safety of Contractor Personnel, Company Page 4

10 personnel and third parties, and for the environment, and in accordance with the Company's health, safety and environmental regulations (the HSE Specification) in force at the Effective Date, or as subsequently amended by the Company, and the Contractor shall exercise the strongest discipline in this regard." Page 5

11 3. Contract Phase: Planning and Invitation to Tender Task 1 Appoint Contract Holder Contract Owner shall initiate the development and implementation of the Contract Management Plan, covering all aspects of the integrity management of the Contract. Contract Owner shall provide the necessary resources for the implementation of, and compliance with, Contract HSE Management (PR-10-POGC-001), Contract HSE Management Procedure. Contract Owner shall appoint the Contract Holder, who shall have single point responsibility for the activity management of the Contract and verification that the control mechanisms are in place. In a technically complex or very large contract, the appointment of the Company (POGC) Representative, by the Contract Owner, may also be required. Contract Holder shall initiate the implementation and monitoring of the Contract Management Plan. This shall include all aspects of the HSE Management Schedule in relation to the activity management of the Contract. It is not to be expected that the Contract Holder shall personally execute all the HSE activities detailed below; but it is mandatory that sufficient, suitable professional assistance shall be called in by the Contract Holder when such assistance is required. The Contract Holder (CH) may delegate the execution of an activity to a Company (POGC) Representative and/or Company (POGC) Site Representative (CR/CSR); however the Contract Holder shall remain responsible for the execution of that activity. The outcomes of this responsibility are subject to inspection and audit. Deliverable(s): Memo to Contract File, recording appointment(s) Reference Document(s): Transactions Regulation (of POGC) Task 2 Prepare Contract Scope of Work Contract Holder shall define the HSE aspects of the Contract Scope of Work and/or Services in sufficient detail to identify the major hazards and provide a basis for executing the Hazard and Effects Management Process (HEMP) for the contract (refer Task 6). This shall be determined Page 6

12 from a separate appraisal of the business area and activities themselves and shall include aspects such as: type of work activities; location of site(s) and the workplace; location of Contractor s base; mobilization/ demobilization point; personnel; plant and equipment used; materials and consumables. Experience gained from previous projects should be utilized by reference to: Environmental Impact Assessments (EIAs) and close-out reports from similar projects Formal records of previous HSE performance by Contractors on similar projects Quantitative Risk Assessments (QRAs) and HSE audits carried out in recent years on similar activities General background information on planned areas of operations Deliverable(s): Reference Document(s): Memo to file detailing HSE major hazards -Exhibit A of Contract, (Scope of Works, part I,II,III) -Exhibit L of Contract, (HSE Requirements) -Transactions Regulation (of POGC) Task 3 Preparation of the Contract Schedule Contract Holder shall prepare the Contract Schedule by inserting planned dates to coordinate with the execution of the Scope of Works Deliverable(s): Memo to Contract file detailing Contract Schedule Reference Document(s): Transactions Regulation (of POGC) Page 7

13 Task 4 Develop Contract Strategy Contract Holder shall determine the work and/or services required from mobilization to demobilization (including site restoration). Using the Scope of Works and Schedule developed above, the Contract Strategy can be developed; HSE exposure to risk shall be minimized during execution of the Contract. The strategy document shall detail both POGC and Contractor HSE obligations. It is recommended that suitable project management software be used to determine the critical path for a Contract to assist in Contract Strategy development. The factors to be considered in formulating the Contract Strategy shall include: Availability of suitable existing contracts (for example, service, call-off, etc.) Contractor resources and skills POGC supervision resources and skills POGC/Contractor responsibilities local environment project schedule competitive situation Iranian law, local rules and regulations influence of POGC to control the Contractor define boundaries of the contract (mobilization, demobilization) define limits of transport control provisions for delay or forfeit of contract payments extent to which project management control is relinquished to or shared with the Contractor Results of HSE audit findings, unsatisfactory completion of action items. non-submission or late submission of key HSE Plans and documents shall be linked to contract payments and penalties Deliverable(s): Memo to Contract files detailing Contract Strategy Reference Document(s): Transactions Regulation (of POGC) Task 5 Approval of the Contract Strategy Contract Owner shall approve the Contract Strategy document(s). Page 8

14 Deliverable(s): Memo to Contract File approving Contract Strategy Reference Document(s): Transactions Regulation (of POGC) Task 6 Conduct HSE Assessment Contract Holder shall conduct a structured, formal HSE Assessment of the Contract, using the Scope, Schedule and Strategy documents (as well as any existing HSE information from prior documents related to the same package of work) with a view to minimizing the HSE exposure and level of risk for the Contract. Contract Holder shall use suitably qualified POGC personnel in developing the HSE Assessment. These personnel shall include Professional HSE Advisors, personnel who will participate in the work to be carried out under the contract, or those who have prior experience in the execution of contracts. The primary objectives of the HSE Assessment are: Identify and assess the major hazards and risks associated with the contract Determine methods for control, mitigation and recovery from risk the Hazards and Effects Management Process (HEMP) Provide the necessary input to prepare document HSE Requirements. Provide the necessary input to prepare the POGC Contract HSE Management Schedule (refer Task 8) The HSE Assessment shall include or enable: Hazard and Effects Management Process (HEMP), in accordance with instructions in document MA-12-POGC-001 (HSE Management System Manual), Define the level of HSE risk presented by the contract Determine the levels of controls necessary to manage the risk Identify the applicable HSE legislation Identify the POGC standards to be applied Page 9

15 Identify the HSE project organization/interfaces Evaluate critical time schedules with respect to HSE impact Evaluate resource limitations with respect to HSE impact Determine communication needs including scope and schedules for meetings Identify minimum competency for both POGC and Contractor personnel Identify the training requirements for both POGC and Contractor personnel Prepare a training schedule for both POGC and Contractor personnel, paying particular attention to training needs for exceptional activities Details shall be formally recorded with future actions identified and, wherever possible, action parties nominated. Contract Holder shall confirm the suitability of the HSE Assessment against contract scope, schedule and strategy with the view to minimizing the HSE exposure and level of risk for the contract. Deliverable(s): Note to Contract file, HSE Assessment Reference Document(s): -Exhibit L of Contract, (HSE Requirements) -MA-12-POGC-001 (HSE Management System Manual), Task 7 Prepare Exhibit L of Contract (HSE Requirements) The purpose of Section Exhibit L of Contract of the standard contract documentation is to: - Highlight the hazards and consequences related to the Works or Services being provided under a contract. Act as the enforceable contractual link to the applicable POGC HSE Management System documentation. Detail the requirements for Contractors to examine the proposed Scope of Works (Exhibit A of Contract, (Scope of Works, part I,II,III)),determine the hazards and consequences and define how those hazards will be managed so that risk is minimized. Document Exhibit L of Contract, (HSE Requirements) defines what the Contractor is required to do to minimize the HSE risk to POGC and it provides the framework for the successful Contractor s HSE Management Plan. Page 10

16 Contract Holder shall use the results of the HSE Assessment to develop Document Exhibit L of Contract, (HSE Requirements) for inclusion in Tender Documents. Exhibit L of Contract, (HSE Requirements) shall be used by the Contract Holder and the successful Contractor for the duration of the Contract. Incorporating an incentive scheme for HSE management, involving additional payment in a contract, requires very careful consideration. It can absorb a significant degree of effort to administer and the longer-term effectiveness is questionable. Incentive schemes for HSE management are STRONGLY discouraged and are not covered in the scope of this document. Deliverable(s): Contract HSE requirements Reference Document(s): Exhibit L of Contract, (HSE Requirements) Task 8 Prepare POGC Contract HSE Management Schedule Contract Holder shall use the results developed in the Contract Scope, Schedule and Strategy documents, Exhibit L of Contract,(HSE Requirements) and the HSE Assessment, to complete the column titled Date (Planned/Actual) in Appendix A1, thus preparing the POGC Contract HSE Management Schedule for approval by the Contract Owner. This schedule may be tracked by the Contract Holder by completing the actual dates in the relevant columns in Appendix A1. Deliverable(s): POGC Contract HSE Management Schedule for approval Reference Document(s): -MA-12-POGC-001 (HSE Management System Manual), -Exhibit L of Contract, (HSE Requirements) Task 9 Approve POGC Contract HSE Management Schedule Contract Owner shall review and approve Contract HSE Management Schedule Deliverable(s): -Approved Contract HSE Management Schedule -Memo to Contract File Page 11

17 Reference Document: MA-12-POGC-001 (HSE Management System Manual), Task 10 Development of HSE Prequalification Criteria POGC has a policy of encouraging Local Contractors, suppliers and manufacturers. These Contractors often have little or no background in HSE Management, and a plan to overcome these shortcomings shall be developed. Such a plan may require additional supervision, more explicit procedures or additional training before Local Contractors, suppliers and manufacturers can be deemed qualified to tender. Contract Holders should supervise this activity, but not necessarily take an active part in it. However, Contract Holders shall remain responsible for determining when to prequalify Local Community Contractors. Contract Holders shall be responsible for the decision to pre-qualify Contractor(s). In any contract of technical complexity and/or high value, or where a Contractor wishes to be placed on POGC s bid list, prequalification of Contractors may be carried out. This enables POGC to ensure that the contract requirements are met for all technical and financial issues, as well as meeting document Exhibit L of Contract, (HSE Requirements). To ensure that HSE prequalification data obtained on each Contractor are standardized and thus fully comparable, the use of common criteria is essential. Appendix B gives the base case questionnaire and subsequent scoring system to be used for HSE prequalification. Only the questionnaire shall be given to each Contractor for completion and return to the Contract Holder. Contractor submissions can then be assessed by a scoring mechanism which is consistent, transparent and can be presented to the Tender Board for endorsement. Document HSW0800 (HSE Contractor Management system evaluation) shall also be used in conjunction with the HSE prequalification document where Contract Holders deem prequalification is necessary. The HSE prequalification questionnaire as provided is a base case only and should be expanded (or reduced) to meet any specific HSE management skills defined in the Exhibit L of Contract, (HSE Requirements) for each contract. The questionnaire aims to discover the information required to assess the extent to which the management of HSE is systematically organized by the Contractor. Page 12

18 Contractor line management shall complete the questionnaire. The Contractor should be advised by the Contract Holder to cover all activities relating to a contract (including off-site support) and not just those conducted on POGC sites. Contract Holders should emphasize the need for complete answers substantiated by supporting documentation as far as is practicable. It should be remembered that increasing amounts of detail (and therefore information required to support it) will need to be requested as risk increases. If extreme HSE risks are expected then the detail should extend to an HSE Case. An HSE Case is typically described in a seven-part document. Full details can be obtained from document MA-12-POGC-001 (HSE Management System Manual). HSE Cases shall be developed by suitably qualified HSE Professionals, and it is not expected that the Contract Holder will be personally required to develop any HSE Case necessary for a Contract. All HSE requirements must be met before any Contractor is allowed to commence work (refer also Tasks 37 and 38). Contractors should be encouraged to identify where they exceed POGC requirements and this excellence should be recognized. For additional information to assist understanding of the questionnaire, refer to MA-13-POGC- 001(Management of Contractor HSE). In all cases where it is deemed necessary that a Contractor shall be pre-qualified, the document references given below must be used in addition to the HSE prequalification questionnaire in Appendix B. Deliverable(s): Contractor prequalification assessment for Tender Board endorsement Reference Documents: -MA-12-POGC-001(HSE Manual Management) -MA-13-POGC-001(Management of Contractor HSE) -Transactions Regulation (of POGC) -HSW0800 (HSE Contractor Management system evaluation) Task 11 Tender Board Endorse HSE Prequalification Criteria Tender Board shall review and endorse as appropriate the HSE prequalification criteria submitted by the Contract Holder. Deliverable(s): -Tender Board minutes, endorsing Prequalification Criteria Page 13

19 -Minutes of Meeting to Contract Holder Reference Document(s): Transactions Regulation (of POGC) Task 12 Requalify Contractors Contract Holders, having taken the decision that prequalification is required, shall follow the procedures given in Task 10. When Contractor submissions are received, the Contract Holder will rate the submissions as described in Appendix B. The resulting Contractor Bid List will be submitted to the Tender Board with recommendation to approve. Contractors who are not approved shall be advised and assistance to prequalify for future Contracts shall be given, particularly in the case of Local Contractors, suppliers and manufacturers. Deliverable(s): Contractor Bid List to Tender Board Reference Document(s): Transactions Regulation (of POGC) Task 13 Tender Board Approve Contractor Bid List Tender Board shall review and endorse as appropriate the Contractor Bid List. Deliverable(s): -Approved Bid List -Minutes of Meeting to Contract Holder Reference Document(s): Transactions Regulation (of POGC) Page 14

20 4. Contract Phase: The Tender Period Task 14 Contractor Submission: Document HSE Requirements Contractor(s) shall execute a Hazards and Effects Management Process (HEMP), based on the information provided in the Contract Scope of Works and Document Exhibit L of Contract, (HSE Requirements). Contractor(s) shall detail all HSE issues discovered, including those advised in Exhibit L of Contract (HSE Requirements) and detail how these risks will be controlled, mitigated and managed. Details provided shall fully describe the manpower, equipment and broad details of the Contractor s HSE policies that will be applied to the management of HSE risk for the Contract. The Contractor will fully describe the manpower that will be applied to the HSE management of the Contract, including names, qualifications and experience. Copies of each individuals CV will be included in the Tender documentation for HSE Requirements. Contractor(s) shall cover all Contract Phases from mobilization through execution, demobilization and site restoration. Contractor(s) shall clearly indicate the policy, procedures and standards to be adopted during each phase of the Contract. Deliverable(s): HSE Requirements Submission in Tender Documents Reference Document(s): Exhibit L of Contract (HSE Requirements) Task 15 Site Visit Contract Holder shall arrange a site visit if requested by Contractor(s) or deemed appropriate by the Contract Holder. The purpose is to allow familiarization with the Contract Scope of Works and the impact that site conditions may have on all aspects of the Contract including HSE. In any contract of technical complexity and/or high value, the Contract Holder shall visit the site to become familiar with site conditions, prior to receipt of Tender Documents. Deliverable(s): Memo to Contract File detailing site visit Reference Document(s): Exhibit A of Contract, (Scope of Works, part I,II,III) Page 15

21 Task 16 Clarification Meeting Contract Holder shall hold a clarification meeting with Contractor(s) if requested. Mandatory statement below. See Mandatory Tender clarifications shall be approached with extreme care. Clarifications shall be required where the evaluation cannot be completed from the Tender due to either ambiguities or discrepancies. All Tender clarifications and responses shall be issued in written form using the standard template in and shall be forwarded by post or fax. The Unit Contract Section shall draft and issue the clarifications to the tendered to ensure that the risk of soliciting a price adjustment is avoided. Where clarification meetings are held with the individual Contractors these shall be minted and the minutes agreed with the Contractors. Unit Contract Section shall be present at any meeting. All technical meetings shall commence with the statement by the Company that no price change shall result from these technical discussions. Where technical discussions identify a price impact, the technical issues only shall be discussed. Meetings and discussions shall be immediately suspended if commercial/financial issues are raised. Minutes of a clarification meeting shall be formalised by a letter to the Contractors identifying the points of discussion and agreement. The Contractors shall confirm, by return, agreement with the contents of the letter and identify any further points not covered. Deliverable(s): Minutes of Meeting; Letter to Contractors Reference Document(s): Transactions Regulation (of POGC) Page 16

22 5. Contract Phase: Evaluation and Contract Award Task 17 Review Contractor Submission Document HSE Requirements Contract Holder shall carry out an initial review of each Contractor(s) HSE Requirements submission(s), and compare it (them) against the requirements of Exhibit L of Contract (HSE Requirements). A gap analysis shall be made between the requirements of HSE Requirements and each Contractor submission. Deliverable(s): Gap Analysis Memo to Contract File Reference Document(s): Contractor(s) HSE Requirements Tender Submission(s) Task 18 Evaluate Contractor Submission Document HSE Requirements Contract Holder shall meet with Contractor(s) if further clarification is needed for Tender submission of HSE Requirements. This meeting, if required to be held following written requests for clarification, shall establish where improvements in proposed HSE risk management will be required if contract is awarded. Refer to Mandatory statements in Task 16 for the conduct of any meeting with Contractor(s) during this Contract Phase. Minutes of a clarification meeting shall be formalised by a letter to the Contractors identifying the points of discussion and agreement. The Contractors shall confirm, by return, agreement with the contents of the letter and identify any further points not covered. Deliverable(s): Minutes of Meeting; Letter to Contractors Reference Document(s): -HSE Requirements Tender Submission Document -Transactions Regulation (of POGC) Task 19 Review Contractor Ability to Manage HSE Risk Contract Holder shall determine the likelihood that levels and classes of manpower, equipment, any other resources and policies detailed in the Contractor(s) HSE Requirements Tender submission will enable the Contractor(s) to manage Contract risk. HSE equipment and resources would normally include such items as: safety equipment, personal protective equipment (PPE) Page 17

23 HSE audits, induction and training, emergency response resources medical facilities, first aid training, Medieval, health surveillance waste disposal, promotion schemes, journey management financial resources of the Contractor that are available for HSE management The resources allocated for HSE provide only an indication of the Contractor's preparedness (at the time of tender) to comply with POGC s HSE requirements. Low HSE resource allocation could indicate that the Contractor s organization is at a high level of HSE implementation. Conversely, it could indicate the Contractor does not understand POGC s requirements. Contract Holders should be conscious of the fact that thorough understanding of a Contractor s abilities to manage HSE issues can only be obtained by careful study of the whole of a Contractor s HSE management system. Deliverable(s): Memo to Contract File Reference Document(s): HSE Requirements Tender Submission Document(s) Task 20 Contractor HSE Assessment Contract Holder shall evaluate which Contractor(s) will and will NOT require additional POGC supervision to ensure that the management of HSE risk is carried out correctly. The gap analysis developed in Task 17 shall be part of the evaluation. The evaluation may be used as part of the Contract Holder s award recommendation presentation to the Tender Board. Deliverable(s): Memo to Contract File Reference Document(s): submission(s) Contractor(s) Exhibit L of Contract (HSE Requirements) Tender Task 21 Contract Award Recommendation to Tender Board Contract Holder shall make a Contract award recommendation to the Tender Board, based on the technical and commercial reports as well as the Contractor HSE assessment. The award Page 18

24 recommendation shall highlight any anomalies or additional qualifications accepted from the original Tender documentation issued. Deliverable(s): Tender Board presentation Reference Document(s): Transactions Regulation (of POGC) Task 22 Advise Contractor of Company (POGC) Representative Contract Holder shall, upon award of a Contract and using document LE-01-POGC-001 (Letter of Approval), notify the Contractor of any duly appointed Company (POGC) Representative(s) for the Contract. This notification of delegated authority shall detail the name of the POGC employee, the position and reference indicator of that employee and the appropriate delegated responsibilities and authorities for the given Contract. POGC shall accept only those authorisation levels specifically delegated in writing by the Contract Holder. Contract Holder shall ensure that the delegated Company personnel are fully conversant with their authorities and responsibilities under the Contract. Authorities defined in the Manual of Authorities shall not be delegated by the Contract Holder. Contract Holder shall notify the Contractor, in writing, of all subsequent alterations in authority levels or personnel. Document LE-01-POGC-001(Letter of Approval), contains the approved letter to be used for Contractor notification. Deliverable(s): Letter to Contractor Reference Document(s): - LE-01-POGC-001(Letter of Approval) -Transactions Regulation (of POGC) Task 23 Advise Contractor of Company (POGC) Site Representative Contract Holder shall, upon award of a Contract and using document LE-01-POGC-001(Letter of Approval), notify the Contractor of any duly appointed Company (POGC) Site Representative(s) for the Contract. This notification of delegated authority shall detail the name of the POGC employee, the position and reference indicator of that employee and the appropriate delegated responsibilities and authorities for the given Contract. Page 19

25 POGC shall accept only those authorisation levels specifically delegated in writing by the Contract Holder. Contract Holder shall ensure that the delegated Company personnel are fully conversant with their authorities and responsibilities under the Contract. Authorities defined in the Manual of Authorities shall not be delegated by the Contract Holder. Contract Holder shall likewise notify the Contractor, in writing, of all subsequent alterations in authority levels or personnel. Document LE-01-POGC-001(Letter of Approval) contains the approved letter to be used for Contractor notification. Deliverable(s): Letter to Contractor Reference Document(s): -LE-01-POGC-001(Letter of Approval) -Transactions Regulation (of POGC) Task 24 Contractor Appoints Key HSE Personnel Contract Manager shall appoint the key HSE personnel advised in document HSE Requirements Tender submission. The Contractor s letter shall include the name(s), qualification(s), experience and CV(s) of the key HSE personnel. Approval shall be requested from Contract Holder for the list provided. Deliverable(s): Letter to Contract Holder Reference Document(s): document Contractor s Exhibit L of Contract (HSE Requirements) Contract Task 25 Approve Contractor Key HSE Personnel Contract Holder shall determine that the Contractor s key HSE personnel are described in the Contractor s HSE Requirements Tender submission (refer Task 14). If the list provided in the Contractor s advisory letter (refer Task 24) are not the same as in Exhibit L of Contract (HSE Requirements), the Contract Holder may withhold approval until the Contractor provides satisfactory explanations and assurances that no reduction in the quality of key HSE personnel will result from the changes. CVs shall be provided for any replacement personnel different Page 20

26 from those described in Exhibit L of Contract (HSE Requirements). In all cases, POGC reserve the right to interview Contractor s HSE personnel. Contract Holder shall approve the Contractor s appointed key HSE personnel when satisfied that the quality of management of HSE risk will be maintained to POGC standards. Contract Holder shall not unreasonably withhold approval of the Contractor s appointed key HSE personnel. Deliverable(s): Letter to Contract Manager Reference Document(s): Contractor s Exhibit L (HSE Requirements) Contract document Page 21

27 6. Contract Phase: Mobilization Task 26 On Site HSE Workshop Contract Holder shall conduct a separate on site HSE Workshop. Following both kick-off meetings (which discuss all issues in a contract, not exclusively HSE see below) the Contract Holder shall schedule an onsite HSE Workshop to focus on all outstanding HSE issues relating to a contract. An HSE Workshop is particularly relevant if the risks within a contract are high to extreme or if the Scope of Work has changed significantly since the contract award. In the case of Contracts and/or Contractors where all parties agree in writing that an HSE Workshop may not be required, the Contract Holder shall obtain clear, written permission from the Contract Owner that an HSE Workshop need not be held. The HSE workshop is an interactive session in which both POGC and Contractor should contribute if it is to be successful. For Contractors with no previous experience of POGC s HSE requirements a workshop is a useful mechanism to introduce the Contractor to the details of POGC s HSE Management Schedule. If however the workshop requires POGC to teach the Contractor basic HSE skills, then the effectiveness of the HSE pre-qualification system should be questioned as this is not the correct role of the workshop and Contract Holders should not find themselves in this position. Contract Holder shall hold a POGC internal kick off meeting to ensure that: Company Representative and Company Site Representative(s) are fully aware of their delegated powers under the Contract. All personnel involved with the Contract understand the contents of the Contract. Key factors considered during the Tender period are explained. Presentation and understanding of the penalties objectives and structures. Process of instructions, administration and reporting requirements are understood. Clarification of handover from existing Contractor (where applicable). As a minimum, the Contract Holder, Company Representative, Company Site Representative(s), HSE Professional(s) responsible for the Contract and Unit Contracts Sections shall attend the POGC internal kick off meeting. Contract Holder shall conduct a kick off meeting with the Contractor immediately after Contract award and before the execution of any work. This is essential to ensure that all contractual Page 22

28 obligations, including HSE, are thoroughly and mutually understood. The kick-off meeting is the first formal meeting between Contract Holder and Contractor after the award of a contract. The agendas of the kick-off meetings and the HSE workshop are entirely at the discretion of the Contract Holder. Should the Contract Holder require HSE assistance with either kick-off meeting or the HSE workshop, an HSE professional shall be requested to assist. During either or both of these meetings, the Contract Holder shall ensure the following minimum objectives are covered: Demonstrate to the Contractor that POGC is fully committed to HSE Establish that the Contractor completely understands the risks within the Scope of Work and has committed the resources detailed in the Contractors tender submission HSE Requirements. Ensure that the Contractor has or can put systems in place to manage risk and these are suitable and sufficient to meet standards Highlight any areas for improvement in the Contractors HSE Requirements Tender submission, and agree on any actions necessary, by either POGC or the Contractor, to remove deficiencies Resolve any issues arising from a variation to contract since the award Introduce any new Contractor(s) to the details of POGC s HSE policies, standards and systems Deliverable(s): Minutes of meetings to Contract file Reference Document(s): Transactions Regulation (of POGC) Task 27 Contractor to Prepare HSE Management Plan Contract Manager shall prepare the Contractor s HSE Management Plan following the kick off meeting and the HSE Workshop. This HSE Management plan shall incorporate any POGC comments arising from the kick off meeting and the HSE Workshop, and also any mandatory POGC training. Full details for the preparation of an HSE Management Plan are given in Contract HSE Management (PR-10-POGC-001) Part II. Contract Manager shall submit the Contractor s HSE Management Plan to the Contract Holder for approval. Page 23

29 Deliverable(s): Contractor s HSE Management Plan to Contract Holder Reference Document(s): HSE Requirements, Tender Submission Task 28 Review Contractor s HSE Management Plan Contract Holder shall review the Contractor s HSE Management Plan. Any modifications required by the Contract Holder shall be advised to the Contract Manager. Contract Holder shall use HSE professional assistance if necessary. Deliverable(s): Modifications Letter to Contract Manager (if required) Reference Document(s): Contractor s HSE Management Plan Task 29 Approve Contractor s HSE Management Plan. Contract Holder shall approve the Contractor s HSE Management Plan once all modifications required by the Contract Holder (if any) have been incorporated. Deliverable(s): Approval Letter to Contract Manager Reference Document(s): Contractor s HSE Management Plan Task 30 Contract Holder Develops POGC HSE Monitoring Program Contract Holder shall, throughout the period of a Contract, monitor the Contractor s HSE performance against the Contractor s HSE Requirements Contract document and its HSE Management Plan. Implementation of the POGC HSE monitoring program shall take place when the Contractor commences mobilization (refer Task 34). The HSE Monitoring Program shall include a pre-execution HSE audit (refer Task 35). Contract Holder shall prepare the POGC HSE Monitoring Program using the form contained in Appendix C. The Program shall be submitted to the Contract Owner for review and approval (see Tasks 31 & 32). Page 24

30 POGC Contract personnel shall complete Contract HSE Performance Reports to detail the results of all monitoring activities. A template for these reports is provided in Appendix D. Assistance with using the template is also provided in Appendix D. The following information provides guidelines on how monitoring is to be carried out to ensure maximum effectiveness. Refer to the various monitoring methods detailed below on monitoring objectives (Table 1). The monitoring program should be adapted to suit the length and nature of the contract. For short duration contracts monitoring should be weighted to the earliest stages of the work if it is to have significant influence on the remainder of the contract. As the contract duration gets longer then monitoring can be spread throughout the contract period. It is however still desirable to have a significant monitoring effort in the early stages as this will have the most benefit over the life of the contract. In addition, the monitoring program should take account of the level of HSE systems 'maturity' of the Contractor i.e. for the same scope of work, a more experienced Contractor may need less monitoring than one who is new to working with POGC. The monitoring program shall be periodically reviewed during the contract and revised according to findings of HSE audits and inspections. If performance and compliance is found to be good, it may be possible to reduce the frequency of monitoring. However if performance is poor it may be necessary to increase monitoring activities. It may also indicate a need to increase direct POGC supervision and allocate more resources to the contract if the work is to carry on in a safe manner. An effective monitoring program will take account of these factors and will blend the various approaches to determine the most effective approach. All monitoring programs shall be agreed with the Contractor prior to their execution. The kick off meeting is the recommended time to clarify and agree the program with the Contractor. Monitoring Methods The management of any activity requires monitoring, verification and reporting to ensure that activities are carried out and standards are maintained. The Contractor is expected to have a framework for monitoring, verification and reporting of the activities covered by the Contract. The Contract Holder, in turn, is expected to have a framework for verification and reporting to ensure that the Contractor has adequate control over its activities. This framework is documented in the POGC HSE Monitoring Program for each contract. Page 25

31 Effective control requires a process of monitoring through observation and/or measurement of what is actually happening, comparison with specified requirements, feedback and where necessary, correction. To be effective, the monitoring must be performed at several different levels of detail. Table 11ists a range of monitoring methods. Page 26

32 Table 1: Monitoring Methods Monitoring Method Unsafe act auditing Monitoring Objective A measure of how well individuals understand basic HSE standards. A demonstration of management commitment to detail. Supervisory checks A demonstration of management commitment to HSE. A reinforcement of the role of the HSE supervisor. HSE inspection A management check to ensure standards are being achieved. Non compliance is recorded and remedial action instigated. Localized improvements should result from an HSE inspection. HSE audit A management check to ensure, commensurate with risk, that the agreed systems are in place and standards are achieved. Non compliances are recorded and remedial action is instigated. Contract wide improvements should result from an HSE audit. HSE Review A management check that all action being taken to manage HSE is suitable and sufficient to ensure business objectives are being met. Current systems are challenged and new systems instigated if considered necessary. Recommendations are recorded and remedial action agreed. A complete change of approach towards HSE management should result from a review. Monthly Contract Review Meetings Good practice for commercial, technical and HSE monitoring. Shall review the results of all the above monitoring methods plus results of any performance indicators reported during the contract. A formal agenda shall be set and minutes recorded. The first meeting shall be chaired by the Contract Holder; thereafter the Company Site Representative. The Contract Manager should be present plus any other parties, both POGC and Contractor, who are directly influenced by the subject(s) under discussion. Meetings should be held on site. A clear distinction should be made between an HSE audit and an HSE inspection in the HSE monitoring program: Page 27

33 HSE audits are reviews of management controls to ensure contractual HSE requirements are fulfilled HSE inspections seek to identify specific deficiencies in meeting contractual HSE requirements For example, an inspection may note that a vehicle has a defective rear light and require it to be fixed; an audit would seek to establish that there is a defect reporting system which would ensure such deficiencies are identified, reported and corrected in a timely manner. Although POGC representatives may carry out unsafe act auditing, hardware inspections and supervisory checks, these are essentially the responsibility of the Contractor. The main emphasis of the inspections and audits performed by the POGC Contract Holder (or his representatives) is to verify and report that the Contractor s systems for Unsafe Act Auditing, hardware inspections, supervision checks etc. are in place and being implemented effectively. In order to encourage improvement in Contractor performance, POGC's responses to deviations from the Contractor s Exhibit L (HSE Requirements) Contract document and the Contractor s HSE Management Plan must be predictable and consistent. This requires clear standards against which the Contractor is monitored, transparent criteria for assessing performance and a fixed procedure for deciding upon the appropriate response when non-compliance is found. Work scopes are rarely static and changes are inevitable, especially in longer contracts. Contract Holder shall have in place a procedure, agreed with the Contractor, for amendments to the Contractor s HSE Management Plan. The procedure for any amendments to the HSE Management Plan shall, at all stages, include the Contractor all changes shall be made only with their knowledge and agreement. As the HSE Management Plan is frequently a contractual document, major alterations may require agreement on variations to contract. The HSE monitoring program is an internal POGC program but, as a matter of courtesy and for smooth working relationships, changes shall be communicated in advance and in writing to the Contractor, whose confirmation of and relevant comments on the changes shall be returned in writing. Deliverable(s): proposed HSE Monitoring Program Reference Document(s): Contractor s Exhibit L (HSE Requirements) Contract document Contractor s HSE Management Plan Page 28