PR-1171 - II - Contract HSE Management Part II - Mandatory for Contractors and Contract Holders

/ Petroleum Development Oman LLC / Revision: 6.0
Effective: November 2015

PR-1171 Part II

Petroleum Development Oman L.L.C.

Document: Contract HSE Management:

Document ID / PR-1171 PART II – Contract HSE ManagementMandatory for Contractor
Document Type / Procedure
Security / Un-restricted
Discipline / Management Health Safety & Environment
Document Owner / Corporate Functional Discipline Head MSEM
Month and Year of Issue / October 2015
Version / 6.0
Keywords / Contractor HSE Management of Contracts

Copyright: This document is the property of Petroleum Development Oman, LLC. Neither the whole nor any part of this document may be disclosed to others or reproduced, stored in a retrieval system, or transmitted in any form by any means (electronic, mechanical, reprographic recording or otherwise) without prior written consent of the owner.

DOCUMENT Authorisation

The following is a brief summary of the most recent revision to this document.
The Document Custodian holds details of all revisions prior to these on file.
Revision No / Date / Author / Scope / Remarks
Rev 6.0 / 30/11/ 2015 / MSE12 / Revision to reflect the simplification of HSE Management plans for contractors including management of sub contractors and elements of a HSE competence framework.

Related Business Processes & CMF Documents

Related Business Processes

Code / Document Title
PR-1233 / Contract C & P Management

Parent Document(s)

Doc. No. / Document Title
CP-122 / HSE Management System Manual

1.Introduction

1.1Purpose

PR-1171 Part II, referenced in document GU-140,C9 HSE SpecificationMinimumRequirements, is a key document designed to assist and enable Contractorto carry out Companyprescribed HSE activities in the manner and at the level required by Company. Of particular importance is the detail given for the preparation of Contractor Contract Specific HSE Management Plansection 2.6

It is mandatory that in any contract the HSE requirements of PR-1171 Part II are fulfilled by Contractor. PR-1171 Part II shall be given to Contractor to enable them to satisfy the requirements detailed below, in addition to all other contractual requirements.

1.2Distribution/Target Audience

This Procedure is a mandatory requirement for Contractor.PR-1171part II contains HSE instructions for Contractor. Distribution of this document is controlled by the Document Custodian.

2.Contract HSE Management Procedure

2.1Scope

This Procedure applies to all contracts tendered by Company regardless of size and value.

Throughout this document, “shall” means that an activity or requirement is mandatory.

2.2Definition

Contractor shall adhere to PR-1171 Part II in the preparation and use of documents to meet the HSE requirements of both the Tender documentation and the Post-Award HSE management requirements of a Contract. Other mandatory contractual requirements not given in this document remain obligatory on Contractor.

2.3Deliverables

2.3.1Retention of document information

Records shall be maintained to document the implementation of the requirements of this Procedure.A company Activity checklist is available in PR-1171 Part I. Other information is available in the web site stated below:

Contractor shall:

Provide the following deliverables, as stated in Contract Document C-9 HSE Specification – Minimum Requirements.

Contract HSE Management Plan, (refer to paragraph 2.6.2 -Appendix7) that details the arrangements explaining how Contractor will manage HSE risks throughout the duration of the contract.
As part of the Tender submittal, and as part of the HSE Plan, Contractor shall perform a Hazards and Effects Management Process (HEMP). The HEMP, following the format in appendix 6, shall be used to detail how Contractor will manage the HSE exposures related to the contract C4 Scope of work and the resources that will be allocated for control. Both the detailed information on the proposed HSE management and the HEMP will be included in document C9 HSE Specification - Minimum Requirements. Section 2.6 of this document provides further detail on the necessary information for Tender submission.
Appointment of HSE Key Personnel, including HSE Advisers (refer to paragraph 2.7.2)
Provide any further documentation deemed necessary

Companystaff: Any non-compliance with PR-1171 Part II shall be notified, investigated and reported asper document CP-122, HSE Management System Manual.

Contractor: Any non-compliance with PR-1171 Part II shall be reported in writing to the Contract Holder.

2.4Responsibilities

Contractor shall ensure they have a copy of PR-1171 Part II, ensuring that the requirements of PR-1171 Part II are adhered to within the scope of a Contract. (C4) In the event that circumstances prevent compliance with PR-1171 Part II, Contractor shall seek formal step-out approval (CP-122, HSE Management System Manual).

Contractor shall:

Be responsible for ensuring that activities undertaken within the C4 scope of their contracts are managed in accordance with the requirements of PR-1171 Part II, and all other obligations arising fromrelated contract documentation.

Ensure all required approvals are sought from Company and recorded in writing and retained for the duration for the contract

Be responsible for all HSE compliance, regardless of whether the relevant activities are delivered directly by Contractor or by a Subcontractor

2.5Performance Requirements

No contract specific activities in Companyconcession area or at Site may be commenced until Company has issued a HSE Commencement Certificate approved by MSE1 (refer Appendix 1). In the event Company permits mobilisation activities, the activity should be covered by a Commencement Certificate stating the scope of permitted work. Once Company is satisfied that all the pre-commencement steps are complete then a Commencement Certificate approved by MSE1 for the whole scope will be issued.

In the event that there is a significant change in the activity e.g. new Sub Contractor,Company shall direct the start of the new scope under the issueof a Commencement Certificate approved by MSE1 for that discreet part. In this way the measure of HSE is formally monitored.

2.6Contractor HSE Management Plan

2.6.1Preamble

This entire Section 2.6 of PR-1171 Part II provides basic assistance to Contractor in the development and application of HSE Management Plans. The Contract HSE Management Plan is a mandatory document and shall be specific to each individual contract scope (C4);itshall reflect the nature of the work to be performed and the specific hazards presented by the workactivities and the respective controls to mitigate the risk including roles and responsibilities.

MSE1 shall use this information when evaluating the suitability and adequacy ofContractor’s HSE Management Plan.

As part of the tendering process,Contractor is obliged to conduct a Hazards and Effects Management Process (HEMP) which shall be used to develop the information required for document C9 HSE Specification – Minimum Requirements:

Contractor shall:

Detail all HSE exposures identified, including those advised by Companyin C9 HSE Specification – Minimum Requirements, and detail how these risks will be controlled, mitigated and managed to ALARP[1].

Details provided shall fully describe the manpower, equipment and broad details ofContractor HSE policies, rules, procedures, standards, guidelines and specifications together with applicable HSE requirements imposed by legislationthat will be applied to the management of HSE risk for the Contract (See B below).

Contractorshall:

Fully describe the key manpower (HSE critical positions) that will be applied to the HSE management of the Contract, including names, qualifications and experience. Copies of each individual’s CV will be included in the Tender documentation for C9 HSE Specification – Minimum Requirements.

Contractor shall:

Cover all Contract Phases from mobilization through execution, demobilization and site restoration.

2.6.2Contract-Specific HSE Management Plan

Contractor shall:

a)following the Contract Award, kick-off Meeting and on site HSE Workshop, revise its original HEMP and from that develop the Contract-Specific HSE Management Plan

b)describe how the HSE Management Plan will apply its established, generic programs to manage its activities in the specific contract

c)identify the contract-specific work activities it will perform and the anticipated HSE hazards associated with the work

d)clearly describe its plan (controls) for minimizing the potential effects of these anticipated hazards. The plan shall identify specific deliverables, targets, performance measures, monitoring programs, etc. Where possible, responsibilities and accountabilities should be clearly defined and assigned

e)submit the completed HSE Management Plan together with the HEMP to the Contract Holder for approval by MSE1

f)obtain formal approval from the Contract Holderin writing for any proposed deviations from or amendments to its HSE Management Plan.

The approved HSE Management Plan shall become part of the contract documents and be legally binding.

The HSE Management Plan should contain only measurable, quantifiable, contract-specific actions that will be taken during the duration of the contract.

2.6.2.1.Leadership and Commitment

Contractor shall:

Provide a list of Contractor senior management and describe their typical participation in HSE activities related to contracts (meetings, inspections, audits, site visits, performance reviews etc.).

Contractor, as part of the plan must submit an organisation chart that clearly details the actual Contractor organisation structure from the top management to the site staff. The organisation chart must clearly identify the HSE personnel and identify the Key personnel, as stated in the contract, as well as identify the Level 1 and Level 2 HSE critical staff. The written detail of HSE roles and responsibilities must then match the organisation chart. It is important that Contractor ensures that all organisation staff are identified and listed in the HSE Roles and Responsibilities section of the written part of the document.

Contractor is to submit at the end of the section, a table to detail which senior managers in the organisation, will supportHSE management activities and when and where. The HSE plan will then requirean agreed monitoring planas well as an annual calendar of HSE activities approval to be sought from Contract Holder.The elements of the leadership may be combined in the section 2.6.2.3 below.

2.6.2.2.Policy and Strategic Objectives

Contractor shall:

Provide an authorised copy of the HSE Policy.Contractor HSE Policy shall be produced in an easy to read format in the working languages of staff and the workforce, endorsed and dated by Contractormost senior executive, and communicated to all employees and other relevant parties.ContractorPolicy should align with the Policy requirements of OHSAS18001:2007

The policy should be reviewed annually to reflect any changes. The review should be recorded as part of Contractor HSE quality system e.g.
HSE Manager with CEO / Policy Review / Annually / Head Office

2.6.2.3.Organization, Responsibilities, Resources, Standards and Documents

The HSE Plan must identify the HSE staff. It must detail the numbers of HSE staff (advisors), their positions in the organisation, their locations stated in the C4 Scope of Work and their lines of reporting.

Contractor to develop the monitoring plan. The company as well asContractor will have specific inspections and audits planned and it is prudent to align the plans to avoid duplication of effort. Nonetheless, it is incumbent onContractor to ensure that measures stated in the HSE plan or indeed the HEMP are identified to be included and managed in the monitoring programme.

Contractor must be specific in the plan to detail HOW HSE activities will be organised. As an example if they are to hold ‘Gate’ meetings instead of, or as well as Tool Box meetings this should be explained. Company prefers Craft group meetings e.g. welders as this ensures smaller groups and more interaction with the workers. Contractor must provide a sample of the agenda sheets designed to be used in particularly site meetings.

Contractor shall:

a)Prepare a contract-specific organization chart showing personnel responsible for the implementation of HSE targets and objectives.

b)Provide the number of competent HSE Advisers to be employed full time on the Contract, describe their roles, responsibilities and deployment(see section 2.7.2)

c)Provide CVs and qualifications for contract HSE Advisers.(see section 2.7.3)

d)Describe a typical schedule for contract specific HSE meetings to review and communicate HSE issues to all levels of the contract-specific organization and between Company andContractor including (as appropriate):

Company/Contractor HSE meetings (refer HSE Monitoring Plan/Program, Appendix 2);
Contractor HSE meetings;
Craft specific HSE meetings;(Preferred)
Toolbox meetings
Town hall meetings

e)Provide typical Terms of Reference for contract specific HSE meetings.

f)Provide a statement indicating the typical involvement of HSE support functions withinContractor organisation (if applicable) in:

preparing and monitoring departmental action plans;

Contractor must record a sample Action Tracking Register approval to be sought from the Contract Holder.

Formulating HSE rules;
Inspections and audits;

Contractor must submit a schedule of the intended inspections and audits. Inspections must be detailed to cover all the aspects of the activities for example workshops. (Inspection check lists) Audits must be specified to include significant risks identified in the HEMP process. An example of this would be an audit of PR1708 and 1709 Mechanical Lifting.

Developing promotional/incentivesmaterial;

Contractor must state what HSE promotional material and incentive programmes will be adopted to promote HSE in the organisation. Although the Company may provide some materials it is expected thatContractor will drive the HSE aspects of this.

Training;

Contractormust submit a training programme in line with the contract requirements of C9HSE Specification - Minimum Requirementsand the SP1157 required training attached. It must include additional details of any in house training or third party training which supports the competence of any staff included in the contract organisation. See also Appendix 3

Road Safety;

Contractor must submit Details of how they will manage the requirements of SP2000 and SP2001. Detail e.g. how will commuting be managed to assure, as far as reasonably practicable, that employees will not use private transport. Detail e.g. who in the organisation is competent to ensure that any loads being transported to site are secure and meet the SP2001 criteria?

Sub-contractor assessment;

Contractor must submit a sample of the Sub ContractorHSE Contract Risk Assessment process sheets that will be used and recorded as part of the HSE plan for the specific contract. The details of this should be available in the contract submission (T3 HSE Questionnaire) and Company may refer to this during an audit to ensure what was committed is actually applied. Suggest that this formsa part of an appendix to support the statement on managing sub Contractor.

Health risk assessment, performance monitoring and surveillance;

Contractor must detail how it will manage Health and Welfare through the duration of the contract. Company will refer to the Control Measures stated in the HEMP process and submitted as part of the HSE plan. It is expected that Contractor will detail all HRA documents as part of the HEMP controls and as appropriate to the activities. Company will strictly apply the requirements of C9 and therefore Contractormust have at least knowledge of the requirements e.g., SP 1231Occupational health, SP1230 Medical Examination, Treatment and Facilities(Fitness to Work) and SP1232 Public Health

Environmental monitoring;

Contractor must detail how it will manage Environmental issues through the length of the contract. Company will refer to the Control Measures stated in the HEMP process and submitted as part of the HSE plan. It is expected that Contractor will detail all Environmental documents as part of the HEMP controls and as appropriate to the activities. Company will apply strictly the requirements of C9 and therefore Contractor must have at least knowledge of the requirements e.g., SP1009 Waste Management

Incident Investigation.

Contractor must detail how it will manage Incident Investigations. All investigations must be managed and led by Contractor. Company will strictly apply the requirements of C9 and therefore Contractor must have at least knowledge of the requirements e.g., PR1418and GU612 unless otherwise stated. Ideally Contractor should submit a typical Incident investigation Presentation model and lesson learned model sheet as part of the HSE plan.

g)Allocate sufficient competent resources at all levels to effectively manage HSE.

Contractor shall submit an organisation chart as stated in 2.6.2.3 above. Contractor must state how it will meet the minimum requirements of C9 and at the same time manage the resources to match the stated control measures within the HSE plan (HEMP).

h)Ensure that all employees (including sub-Contractor) are competent to perform their work tasks, that relevant HSE training is provided, and that HSE requirements are incorporated into competency assessment and assurance programs.Contractor must identify Level 1 and Level 2 critical HSE positions in their organisation and that of their sub Contractor and ensure personnel are HSE competent to deliver the activity in a safe manner.

Contractor shall explain in detail how the HSE Competence is managed in house for their staff as well as how they measure the competence of the sub Contractor?Contractor is to detail how competence assessment of Contractoremployees are conducted. Details of whom in the organisation is qualified to conduct the HSE Competence assessments for individuals and competent to assess the sub Contractor are also to be included. Ideally Contractor will support the detail with a copy of the assessment forms used for HSE competence assessments.See Section 2.7