SHE Annex .

Safety, Health and Environment ANNEX

for works performed on Buyers site

(“Annex J”)

BUYER SAFETY, HEALTH, FIRE-PREVENTION AND ENVIRONMENTAL REQUIREMENTS

to

CONTRACT

[Date/Contract Number/Parties]

(“Contract”)

Date: ………..

SAFETY, hEALTH, FIRE-PREVENTION AND ENVIRONMENTAL REqUIREMENTS

1.  Definition

1.1.  For the purpose of this Annex J, Supplier embraces all employees of the given individual or legal entity, as well as sub-suppliers and their employees or individuals acting on the behalf of the given individual or legal entity, its suppliers, lower tier suppliers and their employees on Buyer site.

1.2.  Employee means any individual, which is in civil, legal or labour relationship with the Supplier.

1.3.  SHE Specification means a set of site-specific requirements applicable to the project or work to be conducted.

2.  General SHE Requirements

2.1.  The Supplier undertakes to comply with local (including EU regulations (norms) legislation for safety, health, fire prevention, the environment and internal requirements of the Buyer (site-specific annex and SHE specifications). The Supplier has the duty to inform the Buyer of the status of their compliance before start of work as required by the Buyer. The Buyer has the right to review the compliance of such regulations at any time. The procedures in the event of a non-compliance or incident are described in this document.

2.2.  The Buyer supplies the Supplier with the internal SHE requirements.

2.3.  The Supplier shall provide the Buyer with proof of OHSAS18001 or equivalent certification. Where appropriate, the Buyer, at his discretion, will audit the Supplier as to his SHE compliance. This audit, can replace the certification requirements where the certification, e.g. due to the size of the Supplier, would not be appropriate. The Supplier needs to provide its current SHE policy and the SHE performance of the last 5 years calculated from the effective date of the Contract.

2.4.  The Supplier will describe and define the line and staff responsibilities for the project safety, health and environmental programme by appointing a responsible person (the „Supplier Manager“) who will be entrusted with the safe management of work. The Supplier Manager selected shall:

a)  develop and submit a Supplier SHE plan at tenders stage before awarding the contract which is aligned to the requirements of this annex as well as SHE specifications;

b)  be technically competent to carry out the work;

c)  have the commitment, resources and management structure to work according to Buyer’s requirements;

d)  have appropriate safety training programmes for his personnel;

e)  demonstrate that his employees have the necessary skills to carry out the contracted work in a safe manner;

f)  be fully aware of the SHE aspects of the project relevant to the work to be conducted;

g)  have plant and equipment which is properly maintained and have appropriate records thereof;

h)  ensure that all aspects of the Supplier SHE plan, Annex J and SHE specification are adhered to for the full duration of the work;

i)  has a system in place to comply fully with relevant legislation.

2.5.  The Supplier will also appoint at least one dedicated SHE professional person (the “SHE Professional[s]”) for 50 or more people employed for the work on site. Additional resources could be requested by the Buyer on a risk-based approach. The Buyer can request replacement of the SHE Professional(s) in case they are not suitable.

2.6.  The Supplier has the duty to prepare a SHE plan according to the requirements of the Buyer (site-specific annex and SHE specifications) where the Supplier describes how SHE issues are addressed to ensure zero harm. The SHE plan includes a reference and a statement of compliance with the Suppliers own SHE requirements and procedures, Buyer´s requirements and rules, any site specific procedures, instructions and work methods and will demonstrate compliance with local SHE legislation. The SHE plan will also schedule a weekly leadership safety walk-through, safety audits and regular safety meetings.

2.7.  Supplier conducts basic and site specific SHE trainings of its employees and all its sub-suppliers/leased labour through an authorised person before entering the premises of the Buyer. Proof of test and attendance will be provided by the Supplier to the Buyer prior to work commencing In case of repeated working site entries during an agreed upon period, repeated training will be carried out only if a change of the requirements of the Buyer occurs, however, at least once a year. The Buyer retains the right to conduct the training in addition to the Supplier.

2.8.  The Supplier will submit a list of employees with the respective qualifications for the activities that will be carried out by them on site. Access cards authorising the holder to enter the premises and to conduct the work will be issued to the employees of the Supplier based on the passed safety training. Visitors are not permitted to conduct any work on site. Sub-suppliers may not permit any work unless authorized by Buyer representative.

2.9.  Supplier management l is expected to lead in SHE including: including the topic of SHE into the agenda of all meetings, participating in site safety audits, closing out safety actions identified by audits or incident investigations, reporting SHE incidents to the Buyer, communicating SHE issues to their teams, daily supervisor safety talk recognizing safe performance and integrating SHE into planning, competence and equipment facets of the project.

2.10. Changes such as replacement of sub-supplier, change of agreed work method or equipment etc. need to be notified in writing and require prior approval from Buyer.

2.11. The Supplier will ensure that only best practice (including CE certification, EU directives, regulations and norm compliant, or as approved by Buyer) equipment is used on the project and that it is operated by competent and appropriately qualified personnel in accordance with the manufacturer instructions, local legislation and Buyer requirements.

2.12. The Supplier will identify its employees, including employees of all sub-suppliers/leased labour visibly with its commercial identification (company name) on working clothing or by using tags. The Supplier will identify all the facilities used by the Supplier on external doors or gates with its commercial identification (company name). The Supplier is responsible for all its employees to stay in the premises of the Buyer within the dedicated access roads and specified working sites only during implementation of the work. The Supplier also has the duty to ensure that its employees do not stay within the Buyer premises out of their working hours and obey the instructions of the site security.

2.13. The Supplier must obtain approval from the Buyer for any sub-supplier and/or leased labour of Supplier before starting work. Non approval is considered to be a material breach of the Contract. The Supplier is responsible to ensure that all sub-suppliers and/or leased labour are fully briefed on the contents of the SHE Plan and requirements on site.

2.14. The Supplier undertakes to identify the hazards and complete a risk assessment of his activities, processes or equipment installed. Effective risk reduction measures based on the hierarchy of controls will be implemented and described briefly before the start of work. The Buyer reserves the right to approve the methodology used.

2.15. Safe systems of work will apply including, standard operating procedures, instructions, work method statements and the use of permit to work for hazardous work in accordance with the SHE Specifications of the Buyer.

2.16. The Supplier undertakes to provide its employees and all its sub-suppliers and/or leased labour with best practice personal protective equipment according to individual professions of these employees and according to the activities and risks within the working site of the Buyer and compliant with the SHE Specifications of the Buyer and local legislation. The Supplier has the duty to train, check and ensure the correct use of the personal protective equipment.

2.17. The Supplier has to be equipped with means for emergency preparedness and response as prescribed in the Buyers SHE Specifications, including sufficiently qualified first aiders.

2.18. The Supplier has to be equipped with means for safe handling and storage of non-hazardous and hazardous chemical substances and wastes, including spill management equipment as per Buyers SHE Specifications.

2.19. The Supplier undertakes to provide the Buyer with a monthly summary of information on the completed working hours, lost working days and classification of injuries, in the working site in written form. All information to be provided by the 2nd day of the calendar month following the month for which the information is submitted.

2.20. The Supplier has the duty to notify the representative of the Buyer of any injury, incidents, damages and close calls within the Buyer´s premises immediately and to carry out an or participate in the investigation of the incident together with the representative of the Buyer. Copies of all relevant documentation related to the incident has to be provided to the Buyer in writing by the Supplier.

2.21. The Supplier undertakes to promptly notify the representative of the Buyer about all incidents that potentially affect the quality of water, atmosphere and/or other components of the environment (odour, noise, dustiness etc.).

2.22. The Supplier will notify the Buyer without undue delay of all circumstances that could lead to any risks for the operation or the condition of the technical equipment and facilities during its activities in the working sites of the Buyer. However, such notification does not release the Supplier from its responsibility for any (potentially) incurred damages. Any employee of the Supplier who notices any hazards or risk that could endanger the health or safety of persons and/or cause operational accident (breakdown) or any indications of such risk has the duty (if such employee is unable to eliminate the risk by himself/herself) to interrupt work and to report this fact to the responsible person who was appointed to manage the work and then to notify all persons who could be endangered by the possibilities of such risk.

2.23. The Buyer reserves the right to stop any work creating a risk of injury or health to persons or damage to the environment. Such delays are at the cost and risk of the Supplier without any reimbursement of such costs from the Buyer.

2.24. The Buyer has the right to test Supplier´s employees for alcohol or any other addictive substance abuse. Any employee who notices any person under the influence of alcohol or any other addictive substances within the working site has the duty to report this to the responsible person who was appointed to manage the work and then to notify all persons who could be endangered by such behaviour. No person may be under the influence, consume or be in possession of alcohol or drugs or any other addictive substances. No weapons, ammunitions or explosives may be brought on site.

2.25. The Supplier will implement a disciplinary system for violation of rules and defined requirements.

2.26. Upon agreement with the Buyer, the Supplier must have a recognition system in place where token gifts are given for continuous safe performance by the employees.

2.27. The Buyer has the right to stop any activity of the Supplier that would be in conflict with the local legislation, the Contract and/or its annexures as well as the SHE specifications and plans.

2.28.  In the event of a violation of the Buyer´s rules and requirements (i.e. the Contract and its annexes as well as the SHE specifications and plans), the Supplier undertakes to pay the Buyer a contractual penalty as agreed in local Safety Annex J.2.

2.29. The Supplier will list vehicles and machinery that will be used to access the premises of the Buyer and submit them to the Buyer for approval. The Supplier will be allowed to enter the Buyer premises only on the basis of issued permission and for necessary activities required for completing work in accordance with the Buyer´s SHE Specifications.

2.30. The Supplier is aware of the fact that in accordance with local legislation the Supplier has the general responsibility to compensaste damages under applicable civil and commercial laws.

3.  Specific requirements applicable to the Supplier

3.1.  Hazard identification and risk assessment

3.1.1.  The Supplier will list all activities undertaken at the Buyer´s site and identify the hazards associated with such activities prior to commencement of work.

3.1.2.  The Supplier will assess the risks of such hazards using a risk assessment methodology, which rates the risks.

3.1.3.  The Supplier will assess the risks with mitigating measures in place.

3.1.4.  The Supplier will apply the hierarchy of controls to implement actions that reduce the significance of the risk to as low as reasonably possible

3.1.5.  The Supplier will present the completed risk assessment to the Buyer before commencing work activities

3.1.6.  The Supplier shall ensure that pre-task assessments are conducted prior to work commencing.

3.2.  Safe systems of work

3.2.1.  The Supplier will provide safe systems of work including formal standard operating procedures describing safe completion of routine tasks.

3.2.2.  The Supplier is obliged to have permit to work issued for each work that is to be carried out in the Buyer’s premises in accordance with site specific requirements.

3.2.3.  If and to the extent applicable and in addition to the Buyer´s requirements the Supplier will use legally required specific permit to work systems as required by local legislation.

3.2.4.  The Supplier shall ensure that all its employees and sub-suppliers are fully instructed in the safe systems of work and are suitably trained and medically fit to conduct the work.

3.3.  Lifting activities

3.3.1.  All lifting equipment (including attachments) provided by the Supplier will be compliant with local legislation and Buyer`s site specific SHE Specifications , including – equipment numbered, registered, inspected by an independent certified 3rd party and found safe for use, identified and marked as safe for use and including the next inspection date. The inspection records must be kept on site for easy reference purposes.

3.3.2.  All crane operators and riggers will be competent (licensed to operate lifting equipment and rig loads and authorized to do so by their respective managers).

3.3.3.  In case that the Supplier will need to make use of a crane owned by the Buyer for execution of work, the Buyer will operate the crane, or the Supplier will provide a licensed crane operator for the specific crane and obtain the authorization for the use by the Buyer in advance.