Csms 1999

Report No. 6.64/291
September 1999
HSE management -
guidelines for working
together in a contract
environment
IMCA
leadership
and
commitment
policy and
strategic
objectives
organisation,
resources and
documentation
evaluation
and risk
management
planning
implementation
and monitoring
review
a u d i t
leadership
and
commitment
policy and
strategic
objectives
organisation,
resources and
documentation
evaluation
and risk
management
planning
implementation
and monitoring
review
a u d i t

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HSE management - guidelines for working
together in a contract environment
Report No: 6.64/291
September 1999

These guidelines have been prepared for OGP by the Safety, Health and Personnel Competence Committee (SHAPCC),
through its Contractor HSE Task Force, in consultation with the International Association of Geophysical Contractors
(IAGC), and the International Marine Contractors Association (IMCA), who both endorse the use of these guidelines.
Task Force membership
R Kratsas Arco Chairman
R Moschetta Arco
C Preston Baker Hughes
R Shields BG Plc
D Laing BP Amoco
ER Moir BP Amoco
L Simpson BP Amoco
M Alexander Chevron
TL Thoem Conoco
Y Guenard Elf E&P
JL Monopolis Esso
D Krahn IADC
M Covil IAGC
JC Sanchez PDVSA
B Stene Saga Petroleum
A Kjelaas Saga Petroleum
G Kubala Schlumberger
P Mann Shell
R Sykes Shell Chairman
G Van der Graaf Shell
HJ Grundt Statoil
P Guyonnet Total
LA Tranie Total
DK Hide OGP Secretary
Following the Task Force work on developing the guidelines, Bob Moschetta undertook the role of Technical Editor to
review and address comments and suggested amendments.

i
HSE management - guidelines for working together in a contract environment
© 2000 OGP
Purpose/Intent..................................................................................................................................................................... ii
Description ....................................................................................................................................................................... ii
1 Introduction 1
1.1 Background ...................................................................................................................................................................1
1.2 Interrelationship with other systems..............................................................................................................................2
2 Overview of process 3
3 Planning 4
3.1 Objectives......................................................................................................................................................................4
3.2 Description of work.......................................................................................................................................................4
3.3 Risk identification .........................................................................................................................................................4
3.4 Contracting strategy......................................................................................................................................................5
3.5 Contract schedule..........................................................................................................................................................6
4 Pre-qualification 7
4.1 Objective .......................................................................................................................................................................7
4.2 Purpose and responsibilities...........................................................................................................................................7
4.3 Standard pre-qualification documents...........................................................................................................................7
4.4 Screening.......................................................................................................................................................................8
4.5 From pre-qualification to selection ................................................................................................................................8
5 Selection 9
5.1 Objective .......................................................................................................................................................................9
5.2 Bid documentation prepared by company .....................................................................................................................9
5.3 Bid preparation by contractor......................................................................................................................................10
5.4 Pre-award meetings .....................................................................................................................................................10
5.5 Incentive schemes for HSE ..........................................................................................................................................11
5.6 Contract award............................................................................................................................................................11
6 Pre-mobilisation activities 12
6.1 Objectives....................................................................................................................................................................12
6.2 Kick-off meeting..........................................................................................................................................................12
6.3 Pre-job audits...............................................................................................................................................................13
7 Mobilisation 14
7.1 Objectives....................................................................................................................................................................14
7.2 General ......................................................................................................................................................................14
7.3 Mobilisation audit .......................................................................................................................................................15
8 Execution 16
8.1 Objectives....................................................................................................................................................................16
8.2 Responsibilities............................................................................................................................................................16
8.3 Contractor compliance ................................................................................................................................................16
8.4 Competence assurance.................................................................................................................................................17
8.5 Inspection and HSE auditing/reviews .........................................................................................................................17
9 De-mobilisation 18
9.1 Objectives....................................................................................................................................................................18
9.2 Responsibilities............................................................................................................................................................18
10 Final evaluation and close-out 19
10.1Objectives....................................................................................................................................................................19
10.2Final evaluation and report..........................................................................................................................................19
APPENDIX I: HSE responsibilities for company and contractor key personnel................................................................ 20
APPENDIX II: Definition of consequence - severity of risk.............................................................................................. 22
APPENDIX III: Contractor HSE pre-qualification............................................................................................................24
APPENDIX IV: HSE pre-qualification points system........................................................................................................29
APPENDIX V: HSE Plan guideline for major contracts.....................................................................................................33
APPENDIX VI: HSE Plan guideline for small contracts....................................................................................................50
Table of contents

ii
International Association of Oil & Gas Producers
© 2000 OGP
The overall objective of this guideline is to improve
the company and contractor health, safety and environ-
mental (HSE) performance regarding exploration and
production activities. Active and ongoing participation
by both the company and contractors are essential to
achieve this goal. While each has a distinct role to play
in ensuring the ongoing safety of all involved, there is an
opportunity to further enhance the company/contractor
relationship by clearly defining roles and responsibili-
ties, establishing expectations and maintaining com-
munication throughout the relationship. For example,
one role of the company is to review and assess the con-
tractor’s HSE Management System and Programmes,
while one role of the contractor is to provide HSE infor-
mation as requested by the company. Often the infor-
mation requests vary from company to company. By
establishing a standard format, which streamlines the
bidding process, company and contractor resources can
be devoted to improving specific HSE issues.
This guideline is designed to:
1 improve workplace safety, health and environmen-
tal performance by assisting the company and con-
tractors in administering an effective HSE program
for the contract;
2 assist contractors in administering programs which
are consistent with the clients expectations;
3 facilitate the interface of contractor’s activities with
those of the company, other contractors and sub-
contractors.
These programs should be designed to protect both
company and contractor personnel from workplace inju-
ries and illness as well as from losses associated with the
incidents, while preserving the independent contractor
relationship.
This information is provided to assist company and
contractor management to visualise the process of man-
aging contractor HSE programs. This document is not
intended to replace the necessary professional judge-
ment needed to recommend the specific strategy to
follow. Each reader must analyse their particular situa-
tion, tailor the information in this document and obtain
the appropriate technical support.
Due to the rapid change that is occurring in the oil
and gas industry, together with the various company-
contractor interface systems and management practices
that are evolving, this guideline will be reviewed every
two years. The Safety Health and Personnel Compe-
tency Committee will make updates and modifications
based upon review.
Purpose/Intent
Description
The main section of the document covers various phases
of the contracting process and the associated HSE tasks
and responsibilities of the company and contractors.
This is an eight-phase process, which begins with plan-
ning, and ends in final evaluation and close out. The
objectives, roles and responsibilities are defined for each
phase.
A key part of the planning phase is risk identification.
It is also the prime factor in determining contracting
strategy. During this step the level of risk is assessed
and the most appropriate measures are identified to pre-
vent incidents from occurring. Included in the appendi-
ces are additional tools such as checklists for HSE Plan
development, severity of risk definitions, and guidelines
for small and large contracts.

1
© 2000 OGP
Within the oil and gas explo-
ration and production industry,
the pattern of use of contractors
has changed significantly over
the last ten years. Figure 1 shows
the pattern of company and
contractor hours reported to
E&P Forum for the period
1985-1998.
Prior to 1985 the work force was
predominately company employ-
ees. Since 1990 there has been a
significant increase in the use of
contractor staff, with a resulting
shift in responsibility and risk
from the company to the con-
tractor population.
It can be seen from figure 2 that
there have been significant improvements in the safety
performance of both the Companies and their contrac-
tors during this period.
Historically the contractor Lost Time Injury Frequency
(LTIF) has not been as good as that of companies,
though the gap is narrowing. The trend is encouraging,
since contractor personnel generally have a higher expo-
1 Introduction
1.1 Background
0
2
4
6
8
10
Overall
Company
Contractor
1998199719961995199419931992199119901989
8.1
3.0
2.73.4
2.5
3.1
6.1
5.2
4.7
4.1 3.9
6.6
2.8
3.3
3.0
2.5 2.6
1.92.0 2.0
0
200
400
600
800
1000
1200
Manhours Contractor
Manhours Company
1997199519931991198919871985
Figure 1 Company contractor hours worked
(millions of hours)
sure to risk, and it is important this trend continues,
particularly as use of contractors in the E&P industry
increases.
These guidelines have been produced to assist man-
agement of the company-contractor interface in this
changing environment and to help in the achievement
of further joint improvements in safety performance.
Figure 2 LTIF performance of E and P companies and contractors
(number of lost workday cases, including fatalities, per million hours worked)

2
© 2000 OGP
1.2 Interrelationship with other systems
While this document is designed to focus on improv-
ing contractor health, safety and environmental (HSE)
performance, it is an extension of the previous efforts
within the E&P Industry and various governmental
efforts around the globe to improve overall industrial
HSE performance.
This effort has utilised and built upon the E&P Forum’s
“Guidelines for the Development and Application of
Health, Safety and Environmental management sys-
tems”; and the API recommended practices documents
2220 and 2221, which address contractor-client inter-
actions and how to build an effective contractor HSE
program. Additional inﬂuences are the UK Health and
Safety Executive publication, “Successful Health and
Safety Management”; the U.S. Occupational Safety and
Health Administration’s Process Safety Management
Guidelines; the ISO 9000 and 14000 systems; and
numerous E&P Forum Member programs.
All of these documents/programs utilise the same basic
model for a system starting with leadership and com-
mitment and ﬂowing to testing and evaluation in a con-
tinuous cycle. Loss of any portion results in a system
failure.
This guideline follows the wording and structure used
in the Forum’s “Guidelines for the Development and
Application of HSE-MS.” However, by following the
guidelines in this document, a user should meet the
basic requirements of various industry associations, gov-
ernmental entities and the user’s own requirements.
These guidelines were developed for the “normal activi-
ties” expected in E&P operations. Each operation is,
however, unique. Therefore, the user should critically
evaluate these guidelines for his activities and their asso-
ciated risks, and may need to adapt them for the par-
ticular circumstances of the work.
This guidance is primarily developed for those responsi-
ble for contracting out activities, and personnel responsi-
ble for interface and operational oversight of contractors,
their employees and subcontractors.
This guidance document is mainly for activities with a
medium to high risk although similar principles may be
applicable to all contracted activities.
These guidelines in no way supplant a host country’s
requirements.

3
© 2000 OGP
2 Overview of process
Management of HSE in a business environment where
two or more companies work together requires co-oper-
ation between them and a clear deﬁnition of the tasks
and responsibilities of each of the parties.
The typical phases of a contracting process are shown in
Figure 3. The sectional headings addressing the phases
are shown on the right. Each section describes the tasks
and responsibilities showing a clear distinction between
the company and contractor(s). An overview of respon-
sibilities is given in Appendix I.
Joint company / contractor activities
Contractor Company
Description of work &
risk identification
Contracting strategy
Planning
Shortlist and
screen contractors
Establish bid
evaluation criteria
Contractor responds to
questionnaire and
provides HSE information
Pre-qualification
Contractor
database
Bid evaluation
and clarification
Contract award
SelectionContractor prepares
bid and HSE plan
Pre-mob audits
Pre-mobilisation
Preparations
Joint completion of HSE and execution plans
Pre-execution auditMobilisation
Kick-off meeting Mobilisation
Execution
De-mobilisation
Review of de-mobilisation HSE plans De-mobilisation
Final evaluation and report
Review Close-out
Execution, supervision
and reporting
Monitoring, audits
and inspection
Acceptance of work
and restored site
Report
Figure 3 Phases of the contracting process

4
© 2000 OGP
The objectives of this phase are to describe the work
and to assess the HSE risks associated with the work.
The contracting strategy is to be selected on the nature
and size of the work, and the risk involved.
3 Planning
3.1 Objectives
The planning phase is generally a company activity,
but can be enhanced by use of specialised advisers. The
company is responsible for describing the work to be
executed. The description should be supported by doc-
umentation in the form of standards, drawings, etc.
allowing selected contractors to obtain a full under-
standing of the work required. The company may also
specify HSE requirements to be met; examples include,
but are not limited to, the following:
• Emissions and waste generated by the activities
• Timing of the activities
• Location of the work
• Requirements for site restoration
• Reporting requirements, applicable laws and regu-
lations etc.
• Training expectations
• Competence assurance
• Materials to be utilised
• Alcohol and drug testing policies
• Medical policies
• Prohibited work practices.
3.2 Description of work
The company is responsible for making an initial assess-
ment of the HSE risks involved in execution of the
work. This will aid the contractor and company in
developing programs and safe work practices to protect
all workers. The focus of the assessment during this
phase should be to evaluate the inherent hazards in con-
ducting the work. In addition, the assessment addresses
the potential adverse consequences of an accident and
the potential adverse consequences of an incident to
the workforce, the public, the environment, company
and contractor assets and reputations. The level of risk
assessed for the proposed work should be the prime
factor in selecting a contracting strategy (as outlined
in Section 3.4) and in determining which measures are
most appropriate for consideration by the contractor to
prevent incidents from occurring and to minimise the
consequences of an event should it occur. The level of
risk is also indicative of the amount of time and effort
to be spent at later phases to provide assurance that con-
trols are in place to reduce the risks to as low as reason-
ably practicable.
As a minimum, a risk assessment should include con-
sideration of the following:
• Nature of the work - materials to be utilised
• Location of the work
• Potential for exposure to worksite hazards (H2S,
Asbestos, etc.)
• Potential exposure to hazards for all personnel
involved in the activities
• Potential consequences of incidents (environmen-
tal damage, delays of project development, delay in
production operations, legal claims)
• Exposure to negative publicity.
The risks assessed can be characterised as low, medium
or high in accordance with the Risk Assessment Matrix
approach shown in Figure 4. Deﬁnitions for the ratings
are provided in Appendix II.
3.3 Risk identification

5
© 2000 OGP
Figure 4 Risk assessment matrix
Severity
People
Assets
Environment
Reputation
0
1
2
3
4
5
Consequence Increasing probability
A B C D E
Never heard
of in E&P
industry
Heard of
in E&P
industry
Incident has
occurred in
our company
Happens
several times
per year in
our company
Happens
several times
per year in a
location
No health
effect/injury
Slight health
effect/injury
Minor health
effect/injury
Major health
effect/injury
Single
fatality
Multiple
fatalities
No
damage
Slight
damage
Minor
damage
Localised
damage
Major
damage
Extensive
damage
No effect
Slight
effect
Minor
effect
Localised
effect
Major
effect
Massive
effect
No
impact
Slight
impact
Limited
impact
Considerable
impact
National
impact
International
impact
Intolerable
Manage for continuous improvement
Incorporate risk
reduction measures
3.4 Contracting strategy
One of the most important strategic contract manage-
ment decisions to be made by the company is on the
way in which the contractor, or alliance of contractors,
is held responsible for the management of HSE. Two
distinctly different modes are described below.
Mode 1 The contractor provides people and tools for
the execution of work under the supervision,
instructions and HSE-MS of the company. The
contractor has a management system to pro-
vide assurance that the personnel for whom he
is responsible are qualified and healthy for the
job and that the tools and machinery he is pro-
viding are properly maintained and suitable for
the job.
Mode 2 The contractor executes all aspects of the job
under its own HSE Management System, pro-
vides the necessary instructions and supervi-
sion and verifies the proper functioning of its
HSE Management System. The company is
responsible for verifying the overall effective-
ness of the HSE management controls put in
place by the contractor, and assuring that both
the company’s and the contractor’s HSE-MS
are appropriately compatible.
Selection of one of these modes is preferred. However,
in certain situations it may be necessary to adopt a mix-
ture of the two modes. This can be accomplished by
following Section 3.5 of the E&P Forum “Guideline for
the development and application of health, safety and
environmental management systems”, report number
6.36/210. This section outlines the interfacing of con-
tractors’ activities with those of the company and with
those of other contractors as appropriate. This may be
accomplished by means of a specific interface document
between the company and the contractor so that dif-
ferences may be resolved and procedures agreed before
work commences. Examples of such situations are given
below.
• Operations in an area where there is a limited selec-
tion of contractors able to meet the evaluation crite-
ria. For example an alliance may have to be formed
between the company and available contractors
with the objective to develop, improve and imple-
ment an HSE Management System for the contrac-
tor while executing work under the management
system of the company. The management system
will initially aim at working under Mode 1.

6
© 2000 OGP
• Operations too large or diverse for a single contrac-
tor may require a number of contractors and sub-
contractors (a consortium) to work together under
the supervision of one main contractor working for
the company under Mode 2.
• The work is intimately associated with the activities
of the company, or presents such a high risk to the
company that the work is to be executed using the
company’s management system under Mode 1.
• The contractor executes most aspects of the job
under its own HSE Management System; however,
certain support activities such as transportation and
emergency response are provided by the company.
• A Drilling Contractor is responsible for identify-
ing and supplying personal protective equipment
to its personnel. A Fluids Contractor designs the
mud program for the Operator, with new additives
included in the well plan. In this case the company
has an interface procedure that details the respon-
sibilities of the drilling contractor and requires the
fluid contractor to provide chemical hazard infor-
mation to the Operator and drilling contractor
before shipping the materials. The interface pro-
cedure further requires the on-site fluids engineer
to communicate chemical hazards during the pre-
spud meeting.
Also, when working with an alliance of contractor(s) or a
consortium, it should be made clear in advance whether
the alliance or the lead contractor is fully responsible
for all instructions and supervision or whether that is
the responsibility of the company. If the alliance or con-
sortium is responsible, it should be made clear in the
contract how this is organised. In addition, the person
responsible for critical activities has to be clearly identi-
fied. Joint responsibilities should be avoided by break-
ing down the work into smaller identifiable activities,
each with a party assigned to it with responsibility for
the HSE aspects.
Usually Mode 2 is preferred except in “High Risk” situ-
ations where the work is highly interactive with compa-
ny’s activities.
Example:
On an offshore production platform, a modification
requiring welding and grinding has to be made in a
hazardous area. This is considered a “High Risk” oper-
ation. Moreover, the essential controls and emergency
response are arranged by the company. Typically Mode
1 would be used.
Example:
A consortium of contractors with one lead contractor
is responsible for the construction of a new onshore
production facility. Construction activities are always
“High Risk”. However, until the moment that hydro-
carbons are introduced, the lead contractor can be held
accountable for managing all aspects of the job pro-
vided the construction contractor can demonstrate its
capability to manage all HSE aspects. Typically Mode
2 would be used.
“Low Risk” contracted operations, e.g., deliveries of
non-critical materials, food, stationery, etc., are usually
covered by Mode 2 whereby the contractor provides the
HSE controls. Usually the company controls on such
low risk activities are minimal and Mode 2 is typical.
However, contractors working on company premises are
normally under the control of company personnel and
should follow company instructions.
Issues in setting a contract strategy might include:
number of contracts, contract schedule, rules and regu-
lations, and the use of company HSE standards and/or
relevant national HSE legislation and international con-
ventions.
3.5 Contract schedule
A contract schedule should be developed with due con-
sideration of the HSE issues and deliverables involved,
paying particular attention to allow adequate time for
mobilisation/demobilisation. This evaluation may well
highlight HSE issues that require special emphasis in
later contract phases.

7
© 2000 OGP
4 Pre-qualification
4.1 Objective
The objective of the Pre-qualification phase is to screen
potential contractors to establish that they have the nec-
essary experience, capability and financial viability to
undertake the activities in question safely and in an
environmentally sound manner.
4.2 Purpose and responsibilities
The general practice in Companies for selecting con-
tractors is through competitive tendering. In the pre-
qualification stage, potential contractors are screened to
establish that they have the necessary experience and
capability to undertake the activities in question. Only
those being able to demonstrate that they can manage
in a fully satisfactory manner the HSE risks of the work,
should be included on the pre-qualified list. A formal
historical record of the HSE performance, including
findings of audits and inspections, of all contractors
previously employed, should be maintained by the com-
pany for use during the pre-qualification process.
The pre-qualification process is a crucial step in which
assurance is sought that the risks of the work will be
managed. The purpose of the pre-qualification stage
is for the company to agree on a list of contractors
that will be invited to bid, and a list of HSE bid evalu-
ation criteria to be met. Pre-qualification is one of the
last safeguards in identifying suitable contractors. Once
contractors are qualified to bid, they are eligible for
award of a contract.
The company contract manager is responsible for pre-
qualification and providing assurance that the contrac-
tors invited to bid can manage the HSE risks associated
with the work.
4.3 Standard pre-qualification documents
Pre-qualification is usually achieved by issuing a stand-
ard format document for the contractor to complete,
supported where necessary by historical performance
records. It may be necessary to review the content before
issue and to add, remove or emphasise requirements
specific to the activity.
As a means to streamline the pre-qualification process,
the E&P Forum recommends that companies adopt
the pre-qualification questionnaire, located in Appendix
III. Requests for additional or company specific infor-
mation that is not included in the questionnaire can be
inserted into Section 9. By implementing this standard
format, both the company and contractors can devote
their resources to improving HSE performance rather
than reformatting existing information into a variety of
formats.
Of special importance is the management by contrac-
tors of their subcontractors and the need for the main
contractor to demonstrate understanding and commit-
ment to having full responsibility in this area. Similarly,
when contractors are working in an alliance or consor-
tium, it is of special importance to demonstrate that
each entity fully understands, and is committed to, the
HSE management of the assigned HSE critical activi-
ties.
A points system method, which minimises subjective
judgement, may be used to evaluate contractors’ submis-
sions. Contractors who achieve a pre-defined acceptable
score will then be judged to have met the HSE pre-con-
tract requirements. Appendix IV provides guidelines for
such a rating system.

8
© 2000 OGP
The screening process should be designed to assure that
the contractors invited to bid can perform the work to
the required HSE criteria.
The general approach is to send a uniform question-
naire to all potential contractors, initially assess their
HSE capabilities based on the questionnaire using an
equitable measuring system (see Appendix III) and sup-
plementing this with site inspections of current contrac-
tor work sites.
Contractors which have been used by the company pre-
viously can be assessed through the use of close out
reports and other historical records. A review of any
potential changes to the contractor’s organisation, pro-
grammes and systems should also be conducted.
During pre-qualification of large contractors, especially
those with many divisions in numerous countries, the
use of the record of the Corporation may not be appro-
priate. In such a case, the focus should be on the divi-
sion bidding for the work.
For those contractors not qualifying, a feedback mecha-
nism should be in place to inform them why they did
not qualify and that by correcting the identified defi-
ciencies; they may qualify for future work.
Where there is a policy to encourage selected contrac-
tors to develop an HSE management Plan, and these
contractors have little or no background in HSE man-
agement, then a plan to overcome the shortcomings
should be developed. Such a plan may require addi-
tional company supervision, more explicit procedures
or additional training. The HSE requirements should
be met before work commences. The scale of the con-
tract and the exposure must be matched accordingly.
Again, the details of the program and performance of
such contractors should be recorded and retained for
future reference.
4.4 Screening
Before entering the selection phase the company should
document the pre-qualified contractors and the ration-
ale for the selection. At this time, the company specifies
the minimum evidence to be produced during the selec-
tion phase by the potential contractors demonstrating
that a sound Plan exists for implementing HSE man-
agement during the potential contract work to control
risks to as low as reasonably practicable. This informa-
tion should be prepared by the contractor as part of the
HSE Plan.
Appendices V and VI provide requirements for an HSE
Plan for major and small contracts, respectively.
Dependent on the level of risk involved in the con-
tracted work, the company should establish yardsticks
to measure the quality of the contractor’s HSE Plan and
criteria to be met. These measuring methods and crite-
ria should be documented prior to the selection process
in the form of “Bid Evaluation Criteria”.
4.5 From pre-qualification to selection

9
© 2000 OGP
5 Selection
The objective of the selection phase is to assess whether
the HSE Plan and the Bid Evaluation Criteria have been
met and to select, where necessary on the basis of clari-
fication meetings, the successful bidder.
Pre-qualification is the most important screening tool
for the selection of contractors. All contractors that are
pre-qualified should be fully capable of managing all
HSE aspects of the job.
5.1 Objective
5.2 Bid documentation prepared by company
The selection criteria used should consider significant
aspects such as costs, technical ability, reputation, and
the ability to meet schedules. The overall risk of con-
tract and HSE management should be given appropriate
weighting along with other considerations when selec-
tion criteria are evaluated. This section outlines some
key considerations specific to the HSE portion of the
selection process.
Contractors should be given copies of the company’s
HSE documentation relevant to the contract. Docu-
mentation in the tender package may include:
• company HSE goals and objectives.
• company HSE-MS.
• definition of the scope of the HSE Plan and the
known hazards to be addressed.
• list of HSE controls procedures and compliance
issues for the contract.
• definition of the company/contractor anticipated
interfaces, the company supervision strategy and
interaction with company operations, interaction
with specific company plans such as emergency
response.
• type and schedule of company and contractor train-
ing requirements and competencies.
• specification of the minimum pre-execution require-
ments.
The HSE tender documentation should be compiled,
with due attention to the following:
• It is the company’s responsibility to assure that the
tender documents address the HSE requirements
for the contract and that knowledge about hazards
already identified by the company are passed on to
the contractor. The company should not assume
that the contractor knows of the hazards in the
workplace, which are associated with the execution
of contracted activities.
• The contractor has independent responsibility for
his own HSE Plan, but documents should make
clear provision for the company to perform HSE
audits on the contractor in order to assess compli-
ance.
• The documents should include provision for the
company to suspend work if the contractor does
not observe the HSE criteria spelled out in the con-
tract HSE Plan or HSE Case and, in particular at
mobilisation, to withhold permission to start exe-
cution and hold payments until a satisfactory pre-
execution audit has been achieved. Before any work
is suspended, the company should liaise with the
contractor to allow them the opportunity to rectify
any non-conformances.
• Where special HSE provisions are to be provided,
the documents should specify these clearly and
identify who is to pay for them. Any constraints on
the methods of working should also be specified.

10
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In preparing their bid, the contractor should demon-
strate compliance with such requirements and illustrate
their process for preparing their own HSE Plan within
the required framework. The actual plan will be devel-
oped after the contract is awarded. This may be accom-
plished by developing a system which facilitates the
interfacing of company, contractor and sub-contractor
activities, as described in section 3.5 of OGP’s “Guide-
lines for the development & application of health,
safety and management systems”. Contractors should
be allowed the freedom to use industry HSE
guidelines/recommended practices/standards, e.g., those
of the International Association of Drilling contractors
(IADC) or International Association of Geophysical
contractors (IAGC), or the International Marine Con-
tractors Association (IMCA), or of OGP, API and
IMO, if they are equivalent to or exceed the company’s
requirements. The company should have the expertise
and resources to evaluate the alternatives proposed. The
tender documents should allow flexibility for the con-
tractor to take ownership of HSE responsibilities under
the contract but allow for the company to effectively
manage the contract. Adequate lead times for tender
preparation should be allowed to avoid compromising
the establishment of a sound basis for HSE manage-
ment.
The company should assure that the mobilisation and
demobilisation phases are adequately covered in the
HSE Plan. In some instances the ability to exercise
influence may be limited (for example when work is
being carried out in a yard or factory where only a small
percentage of the contractor’s workload is for the com-
pany).
Some HSE requirements will have been supplied at the
pre-qualification stage. An important element that the
contractor should provide is their process for develop-
ing a written HSE Plan commensurate with the level of
risk involved in the work. This plan will be the main
element considered when carrying out evaluation of the
bid and should be regarded as the top document that
drives the specific HSE program for major contracts.
The HSE Plan could be developed along the lines pre-
sented in Appendices V and VI.
Examples of typical HSE Plans and Programs used
in similar contracts in which the contractor has been
involved may be submitted.
The contractor’s HSE Plan should clearly identify where
he believes his HSE-MS interacts with the HSE-MS of
the company and other contractors. A proposal should
be made by the contractor on the approach to manag-
ing these interactions and the allocation of responsibili-
ties for overlapping areas.
The interface document should demonstrate that both
parties have the necessary procedures (e.g., Permit to
Work, Hazard and Risk Assessment, Operating Instruc-
tions, Contingency Plans) and controls in place to
achieve the work program without compromising HSE
performance. These systems should be harmonised
where possible to minimise the potential for misunder-
standing.
If there is a considerable amount of time between pre-
qualification and the bid submission, contractors should
be asked to provide evidence of documenting their cur-
rent HSE systems and performance.
5.3 Bid preparation by contractor
The company’s internal pre-award meetings should con-
centrate on reviewing the HSE program prepared by
the contractor, and on assessing how effective the con-
tractor has been in providing assurance that all haz-
ards have been identified & that suitable controls are
planned to reduce the risk to a level as low as reasonably
practicable.
A joint company and contractor “pre-award” meeting
with contractors should be used to clarify and further
assess the suitability of contractors’ HSE Plans and how
that plan interacts with the HSE MS of the company
and of other contractors.
Following these “pre-award” meetings the company
should assess whether the HSE Plan and acceptance cri-
teria, as defined in Section 4.5 (Bid Evaluation Criteria),
have been met. This appraisal should be documented
as it is one of the crucial conditions for awarding the
contract.
5.4 Pre-award meetings

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© 2000 OGP
The best incentive scheme is one which values HSE per-
formance and which results in a continuing long-term
relationship between company and the contractor based
on good HSE performance.
The need for additional incentives should be carefully
considered. To be effective a scheme should:
• not discourage or suppress the reporting of inci-
dents.
• be proactive and reward effort, eg, audits and fol-
low-up rather than ‘after the event’ statistics.
• ensure that incentives are valued by the personnel
who are in a position to inﬂuence the performance
and maintain the systems.
• be culturally sensitive to the local environment.
• motivate personnel to change those behaviours that
detract from HSE performance.
• appreciate the HSE culture of the contractor
5.5 Incentive schemes for HSE
Award of the contract should consider a number of areas
such as technical competence, ability to meet schedule,
and cost. The documented appraisal of the contractor’s
capability to manage HSE should be available from pre-
vious phases. This appraisal provides a “go- no go” cri-
terion, i.e., if a contractor does not meet the minimum
criteria, he should not be awarded a contract.
Once the award has been made, joint meetings should
be held as soon as possible to agree on the ﬁnal HSE
Plan and detailed programmes.
5.6 Contract award

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6 Pre-mobilisation activities
The objectives here are to ensure that the relevant
aspects of the contract risk assessment and any other
HSE aspects of the contract are communicated and
understood by all parties prior to implementation of
the contract. Several activities such as reviews, meetings
and audits can be used. The amount of detail and effort
for pre-job activities should be commensurate with the
level of risk.
6.1 Objective
A kick-off meeting should be used as an opportunity for
the contractor(s) to become familiar with the location,
facility, personnel, and other work information. The
kick-off meeting is generally recognised as an impor-
tant bridging step in working together to prevent inci-
dents and resolve any health, safety and environmental
issues.
The kick-off meeting should be held immediately after
contract award and before the execution of any work.
For a new contractor, the kick-off meeting may include
the company’s and contractor’s local management.
If the contractor mobilises locally at the work site, the
kick-off meeting may be held locally. If not, it may
be necessary to hold the initial kick-off meeting at the
contractor’s base office. This should be followed by a
subsequent mobilisation of key contractor and subcon-
tractor personnel to the work site and possibly addi-
tional local kick-off meeting(s). The local meeting(s)
should be held immediately prior to the start of any
work as part of the mobilisation process.
The topics covered by the kick-off meetings might
include:
• review of associated major hazards
• confirmation of HSE Plan to be implemented
including confirmation that roles and responsibili-
ties have been clearly defined and understood
• confirmation of worker competence; this includes
both company and contract workers who are
exposed to workplace hazards as defined in the
description of work and risk assessment phases.
• confirmation of any HSE performance objectives
and targets
• distribution and explanation of the company’s HSE
policy statement, basic HSE rules and work proce-
dures in as far as the contractor works under the
company HSE-MS
• confirmation of the scope and schedule of HSE
activities for example; HSE meetings, audits and
reviews
• interaction of company’s and contractor’s contin-
gency plans
• contact with third parties to assure their role in
emergency response plans is known
• confirmation that HSE induction and training
plans are in place and ready for start up
• briefing of subcontractors on HSE requirements
• incident reporting and investigation procedures
The meeting(s) may be structured as an HSE work-
shop, with participation by both company and contrac-
tor management.
The kick-off meeting(s) should be used as an opportu-
nity to clarify or raise new HSE issues that may not have
been covered in the contract documentation. Account
should be taken in the meeting discussions of the con-
tractor’s own HSE Management System, work culture
and working practices.
6.2 Kick-off meeting

13
© 2000 OGP
The kick-off meeting may provide an opportunity to
discuss the mechanisms that will be involved to certify
that HSE systems are in place. It may also provide an
opportunity to check the condition of the equipment
and worksite in as far as is possible. It is important to
keep in mind that equipment and site may still be in use
for other jobs. The items listed under Section 6.2 can
be parts of the pre-job audit. Supplemental audit areas
might include the provision and maintenance of:
• equipment and site to be used for the work
• HSE equipment
• communication systems and procedures
• environmental protection systems
• health hazard identiﬁcation and assessment, medi-
cal facilities, Medivac procedures.
The audit should provide recommendations to be imple-
mented prior to commencing the work. The scope and
duration of the pre job audit can be determined by the
company and contractor, this determination is based
upon the job description and associated hazards.
6.3 Pre-job audits

14
© 2000 OGP
7 Mobilisation
The objectives of this phase are to assure that the HSE
Plan is modified, if warranted, and communicated to
all relevant personnel, both company and contractor.
7.1 Objectives
Prior to mobilisation, it is likely that the full HSE
Plan is known only to the principal members of the
company’s and contractor’s project management teams.
During mobilisation, the HSE Plan should be commu-
nicated by the management of both the company and
the contractor to all relevant personnel.
In the mobilisation phase some of the principal activi-
ties are:
• local kick-off meeting(s)
• mobilisation of contract staff and equipment
• finalise the contractor’s HSE Plan
• commence induction and site-specific training
• hold mobilisation HSE audit.
During mobilisation the company and contractor assure
that each sets up a method of operation that is in accord-
ance with the agreed HSE Plan. It is at this stage that
implementation of the HSE Plan by the contractor for-
mally begins. For contracts under “Mode 1” strategy,
the contractor’s operations should be fully compatible
with the company’s HSE-MS. For contracts under a
“Mode 2” strategy, any HSE Plan requirements should
be integrated into the contractor’s HSE-MS.
The company and contractor should confirm that each
has deployed his supervisory staff and is implementing
the agreed-upon briefing and training for his supervi-
sors and employees.
Depending on the circumstances, additional supervi-
sory staff from the contractor may be required to allow
rapid set-up and implementation of the HSE Plan.
The company and contractor may want to have addi-
tional staff available to verify that the HSE Plans are
fully implemented. This can be accomplished by a joint
company/contractor HSE field review or audit.
During the initial part of the mobilisation phase all
key personnel assigned to the project should attend an
HSE orientation program that should be used to com-
municate the HSE Plan and any other significant HSE
aspects of the contract.
Progress meetings should then be used as a formal
method of reviewing HSE implementation, along with
frequent walk-throughs by company personnel.
Aligning the various interests and areas of responsibility
requires good working relationships between the com-
pany and contractors, among contractors and between
contractors and sub-contractors. This is particularly
true if the subcontractor activities are difficult to moni-
tor (e.g. distributed work groups, transportation).
Once mobilisation activities have commenced, the
company should begin monitoring of the contractor’s
pre-execution activities to assure the HSE Plan is imple-
mented.
7.2 General

15
© 2000 OGP
In the final stages of the mobilisation, an audit or review
against the project’s HSE Plan should be completed
to determine whether the contractor has achieved the
necessary targets stated in the HSE Plan and whether
mobilisation can be considered complete. This can be
accomplished by a joint company/contractor HSE field
review or audit.
Achievement of HSE Plan targets for this stage should
represent the first milestone of the project.
Usually, the extent of the audit depends on the level
of risk associated with the activity. For a relatively low
risk contract, an audit may be conducted by means of
a simple checklist. For high-risk contracts, a more ana-
lytical approach may be used.
If the audit proves to be unsatisfactory, then the status of
the contractor’s progress should be carefully reviewed.
The options available at this stage are:
• Minor deficiencies: the contractor should be
requested to implement corrective action and the
audit repeated. It may be possible to allow this to
take place in parallel with initiating the execution
phase.
• Serious omissions: the option of withholding per-
mission to proceed or even terminating the contract
may be necessary.
To minimise the possibility that the company could be
perceived as assuming responsibility for HSE supervi-
sion, the results of the mobilisation audit are documented
and processed through the contractor’s HSE-MS.
The mobilisation audit usually is structured against the
elements of the HSE-MS or, more specifically against
the HSE Plan elements (as outlined in Appendix V).
7.3 Mobilisation audit

16
© 2000 OGP
8 Execution
The objectives of this phase are to assure that the work
to be performed is conducted according to the agreed-
upon HSE Plan, and that additional HSE needs, identi-
fied during the work, are properly addressed.
8.1 Objectives
The nature of the work determines the level of supervi-
sion necessary. For example, within or in close proximity
to operating plant, hazardous area zones or acknowl-
edged high risk operations, more direct company super-
vision may be required than on a new construction site
or the contractors own premises, i.e. MODU, lay barge,
etc. Only in particular circumstances should contractors
be directly supervised because too much instruction/
direction from the client tends to relieve the contractor
of the responsibilities stipulated in the contract.
Where responsibility for supervision rests with the con-
tractor, the company’s role should be to monitor com-
pliance to contractual terms and systems defined within
the contract. Unless the contract holder has a perma-
nent presence on site, it is usual to appoint representa-
tives from line management to monitor and verify that
contract HSE obligations are being met. The contract
holder and representative should have access to special-
ist HSE advice where needed, but accountability for
contract HSE lies with the contract holder. Responsibil-
ity may be delegated to the representative, but account-
ability needs to remain with the contract holder.
8.2 Responsibilities
The roles and functions of the company contract holder
includes assurance of:
• the contractor’s line management commitment to
HSE issues
• compliance with all HSE related clauses in the con-
tract and the HSE Plan
• the existence of contractor’s internal HSE control
system
• the contractor’s monitoring of the quality, condi-
tion and integrity of his Plan equipment and tools
• the contractor’s holding of toolbox and regular HSE
meetings
• contractor’s implementation and participation in
emergency exercises and drills
• proper management of HSE risks which arise from
changes to the Plan
• compliance with incident and near-miss reporting,
investigation and follow-up.
• the resolution of interface problems between con-
tractors.
An HSE audit and review programme should be pre-
pared, stating specifically what is expected of the com-
pany contract holder in ensuring that the HSE Plan is
finalised and adhered to, together with details of how
the performance of the contractor is to be measured.
8.3 Contractor compliance

17
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During execution of the work, the company contract
holder must monitor the continued competence of the
contractor. This refers to any associated training com-
mitment undertaken. Where necessary, the company
should also determine if any additional competence
assurance is needed as a result of local circumstances.
Monitoring should include a verification that the con-
tractor complies with his management system that may
include:
• competence and close monitoring of the replace-
ment of personnel
• provision of the necessary induction courses
• training of contractor personnel in job related activ-
ities and procedures
• completion of all agreed-upon HSE training, includ-
ing any specified statutory training requirements
• availability of HSE documents, instruction and
information leaflets with special attention to use of
local language reinforced with simple visual mes-
sages.
8.4 Competence assurance
Inspections and audits provide the methods for moni-
toring contractor HSE activities. Regular inspections by
company representatives provide a means of checking
compliance with contract requirements. The frequency
of such inspections/verifications depends on the size of
the work and the risks involved. Auditing provides the
more formal and comprehensive assessments of adher-
ence to the HSE Plan.
Inspections and audits should be performed by both
contractor and company. Joint inspection/audit pro-
grams may have the advantage of aligning sometimes
divergent objectives, enhancing common understand-
ing and promoting constructive participation.
Findings of inspections and audits should be shared
between client and contractor with positive commit-
ment from both parties to use the findings for improv-
ing performance.
8.5 Inspection and HSE auditing/reviews

18
© 2000 OGP
9 De-mobilisation
The objectives of this phase are to identify the hazards
associated with demobilisation and identify and imple-
ment controls to minimise the risks. The HSE Plan
should be modiﬁed, if need be, to address new or unex-
pected hazards.
9.1 Objectives
The contractor’s HSE Plan should continue to be the
vehicle for managing the HSE activities in this phase.
Demobilisation often is a phase of the project having an
increased chance of incidents as the project infrastruc-
ture and contractor HSE management structures are
being dismantled with people moving off the project
to new assignments. Assurance should be sought that
the appropriate organisational structures remain intact
until associated activities have been completed. These
should include:
• emergency response
• site restoration
• waste management and disposal.
Due consideration should be taken of any learning
points from mobilisation, the problems encountered
and solutions found.
The company and contractor should continue to moni-
tor performance against the Plan, including attention
to incident reporting. It is important to maintain vigi-
lance on HSE matters to the very end of the contract.
The close out report should be made after all activities
have been completed.
9.2 Responsibilities

19
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10 Final evaluation and close-out
The objectives of this phase are to conduct a joint evalu-
ation of the contractor’s and company’s HSE perform-
ance and to provide feedback to the contractor(s) and
company which can be a reference for future work.
10.1 Objectives
Contracts should be closed out with a report of HSE
performance, providing feedback for future knowledge
and learning.
Ideally, HSE performance should be tracked on a regu-
lar basis throughout the contract with the final report
being the distillation of the regular monitoring process
and the end of contract review. This may take the form
of a close-out meeting where all parties are represented.
Thus, throughout the contract, contractor performance
should be monitored against Plan and any deviations,
positive or negative, annotated for reference in the close-
out report/summary.
The format of the close-out report should reflect the
agreed Plan and contractual obligations between the
company and the contractor(s). However, there should
be sufficient flexibility to take account of mutually
agreed changes to the contract.
10.2 Final evaluation and report
The analysis and summary of conclusions should
address:
• quality of the original HSE Plan and its relevance to
the overall contractor(s) performance, stipulating
what was learned and how future contracts should
be structured.
• highlighting positive aspects of learning and how
they can be applied in the future. This learning
should be shared with the contractor.
• incorporation of any new hazards identified into
the hazard identification and evaluation process for
future contracts.
• analysis of both the client and contractor’s HSE
performance for mutual improvement.
• information on the contractor to be added as a ref-
erence for the client bid list and which may pro-
vide advice for improvements in assessing future
tenders.
The HSE close-out data should be recorded and made
accessible for future reference. A documented record of
HSE Performance should be kept on each contractor.
The contractor will again be advised that his overall
performance and HSE record will be taken into account
when being considered for future work.

20
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Appendix I: HSE responsibilities for company and
contractor key personnel
Contract Holder should:
• conduct a structured HSE assessment of the antici-
pated contract
• pre-qualify contractors for the bidders list using
standard HSE criteria
• prepare contract HSE specifications for inclusion in
the tender documentation
• prepare an HSE monitoring programme defining
the role of company representative(s) in ensuring
that the contractor’s HSE Plan is finalised and fol-
lowed
• prepare company audit and review programme and
secure appropriate resources
• evaluate contractor’s HSE Plans
• assure the adequacy of the contractor’s HSE Plan
• appoint competent company representative(s)
• supervise company representative(s)
• conduct a pre-execution HSE audit
• authorise the contractor to commence work if the
pre-execution HSE requirements are met
• monitor performance of the contractor against his
HSE Plan
• authorise deviations from the contractor’s HSE
Plan
• authorise additional HSE requirements as deemed
necessary
• apply sanctions in the event of unauthorised devia-
tions from the contractor’s HSE Plan
• prepare HSE close-out report and distribute to
appropriate company and contractor personnel for
feedback
Company Representative should:
• perform assurance checks on contractor’s review and
inspections and follow up
• verify hazards and effects management controls, as
specified in the contractor’s HSE Plan, are imple-
mented
• identify deficiencies in contractor’s HSE Plan and
agree to remedial action with contractor or instigating
sanctions in consultation with Contract Holder.
Company Site Representative:
Where a contractor may be working in a number of
areas it is common for a company to nominate some-
one who is responsible for the supervision of the physi-
cal work being executed under the contract at a specific
appointed site. The Site Representative’s HSE responsi-
bilities follow those of the company Representative, but
are specific to the site.
Company HSE Adviser:
Where there is access to company HSE advisers or spe-
cialists, it is important that the role of the adviser is
understood to be indeed that of an adviser. Advice, sup-
port or services may be sought from an HSE Adviser
on a routine or periodic basis but the responsibility for
HSE matters must remain unmistakably with the Con-
tract Holder and Representatives.
Normally, the HSE adviser provides:
• advice and support in HSE issues as requested
• review/audit services as requested
• additional advisory support, where needed, to small
contractors.
In the case of a small local contractor a decision may
have been taken to provide additional supervisory sup-
port and assistance in HSE matters. The company HSE
Adviser and related specialists may be tasked with pro-
viding support but must exercise care (unless other-
wise provided for by the contract or agreed to in the
HSE Plan) that this is recognised as a temporary phase
and that the contractor must be encouraged to develop
quickly to a point where such assistance is no longer
required.
Company

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Contractor Manager should:
• prepare and assure quality of contractor’s HSE
Plan
• define competencies required for HSE critical posi-
tions
• assign appropriate personnel to HSE critical posi-
tions
• assure adequate resources and time in the schedule
to manage the contract in accordance with the con-
tractor’s HSE Plan
• notify the Contract Holder in writing of his nom-
inated contractor representative(s) and contractor
Site Representative(s)
• provide resources to implement remedial actions
following audits in an expeditious manner.
Contractor Representative should:
• fulfil the pre-execution HSE requirements
• implement the contractor’s HSE Plan
• seek formal approval from the Contract Holder for
any proposed deviations from or amendments to
the contractor’s HSE Plan
• implement additional requirements as agreed upon
with the Contract Holder.
Contractor Site Representative:
Where a contractor may be working in a number of
areas it is common for the contractor to appoint a person
or persons to assume responsibility on behalf of the
contractor representative to supervise the work being
executed under the contract in the specific area. The
HSE responsibilities are as for the contractor represent-
ative but with responsibility for a specific site.
Contractor

22
InternationalAssociationofOil&GasProducers
©2000OGP
AppendixII
People (fatal, inj, occptnl health) Assets*, equipment Environment Reputation
Severity Potential Definition Potential Definition Potential Definition Contamination Potential Definition
rating impact impact impact (litres) impact
sensitive
areas offshore
0 No injury/ No injury or damage to health Zero No damage to Zero effect No financial Several Zero No public awareness
illness equipment consequences; impact
no environmental
risk
1 Slight injury/ Not detrimental to individual Slight No disruption to the Slight effect Negligible financial <10 0-100 Slight Public awareness of the
illness employability or to the damage process, minimum cost consequences; local impact incident may exist;
performance of present work. of repair (<$10,000) environmental risk; there is no public
Agents which are not hazardous within the fence concern
to health and within systems
2 Minor injury/ Detrimental to the performance Minor Possible brief disruption Minor effect Contamination; <100 100-1,000 Limited Some local public
illness of present work, such as damage of the process; isolation damage sufficiently impact concern; slight local
curtailment of activities or some of equipment for repair large to attack the media and/or local
days abscence to recover fully, (estimated cost environment; single political attention with
maximum one week. below $100,000) excedence of statutory potentially negative
Agents which have limited health or prescribed criteria; aspects for company
effects which are reversible, e.g. single complaint; no operations
irritants, many food poisoning permenant effect on
bacteria. the environment
3 Major injury/ Leading to permanent partial Local Plant partly down; Local effect Limited loss of 100 - 1,000 - Consider- Regional public
illness disablement or unfitness for damage process can (possibly) discharges of 1,000 10,000 able concern. Extensive
work or detrimental to be restarted (estimated known toxicity; impact negative attention in
performance of work over cost of repair below repeated excedence local media; slight
extended period, such as long $1,000,000) of statutory or national media and/or
term absence. Agents which are prescribed limit and local/regional political
capable of irreversable damage beyond fence/ attention with possibly
without serious disability, e.g. neighbourhood negative stance of
noise, poorly designed manual local government
handling tasks. and/or action groups
4 Single fatality/ Also includes the possibility of Major Partial loss of plant; Major effect Severe env. dmg; 1,000 - 10,000 - Major National public
permanent multiple fatalities (maximum 3) damage plant shut down (for the company is 10,000 100,000 national concern. Extensive
total disability in close succession dur to the at most two weeks required to take impact negative attention in
or unfitness incident, e.g. explosion. and/or estimated extensive measures national media and/or
for work Agents which are capable of repair costs below to restore the regional national
(small irreversible damage with $10,000,000) contaminated area policies with potentially
exposed serious disability or death, e.g. to its original state. restrictive measures
population) corrosives, known carcinogens Extended excedence and/or impact on grant
of statutory or of licences,mobilisation
prescribed limit of action groups
Definition of consequence – severity of risk

23
HSEmanagement-guidelinesforworkingtogetherinacontractenvironment
©2000OGP
People (fatal, inj, occptnl health) Assets*, equipment Environment Reputation
Severity Potential Definition Potential Definition Potential Definition Contamination Potential Definition
rating impact impact impact (litres) impact
sensitive
areas offshore
5 Multiple May include four fatalities in close Extensive Total loss of the plant; Massive Persistent severe >10,000 >100,000 Major International public
fatalities succession due to the incident or damage extensive damage effect environmental inter- attention. Extensive
multiple fatalities (four or more) (estimated cost of damage or severe national negative attention in
each at different points and/or repair exceeds nuisance extending impact international media
with different activities. Agents $10,000,000) over a large area. In and national/internat-
with potential to cause multiple terms of commercial ional policies with pot-
fatalities, e.g. chemicals with or recreational use or entially severe impact
acute toxic effects (e.g. H2
S, CO) nature conservancy, on access to new areas,
known human carcinogens a major economic loss grants of licences and/
for the company. Constant or tax legislation
high excedence of statutory
or prescribed limit
*Assets are understood as referring to: the oil and gas reservoirs, production facilities,
pipelines, money, capital, and other company, contractor and third party property.
*Incidents relating to air, noise, smell, light and soil vibrations should be addressed on the
basis of expert judgement and, in the case of uncertainty, local expertise may be called in.

24
© 2000 OGP
1 The questionnaire should cover the information required to assess the extent to which HSE
and its management are organised by the contractor.
2 The contractor should be advised to cover all (including support) relevant activities and not
just those conducted on company sites.
3 The questionnaire should be validated by a responsible contractor line manager prior to sub-
mission.
4 Emphasis should be placed on the need for complete answers substantiated by supporting
documentation as far as is practicable. Responses and any supporting documentation must
relate specifically to the policy and organisational arrangements of the company that would be
the signatory of any contract.
5 Submissions should be assessed by a scoring mechanism that can be used in the evaluation
process.
6 If necessary, follow-up discussion with the contractor’s management may be needed.
7 The contractor should be encouraged to identify where he exceeds company requirements and
this excellence should be recognised.
Appendix III: Contractor HSE pre-qualification
General guidelines for preparation of questionnaire
Section 1: Leadership and Commitment
(i) Commitment to HSE through leadership
a) How are senior managers personally involved in HSE management?
b) Provide evidence of commitment at all levels of the organisation?
c) How do you promote a positive culture towards HSE matters?
Section 2: Policy and Strategic Objectives
(i) HSE policy documents
a) Does your company have an HSE policy document? If the answer is YES please attach a copy.
b) Who has overall and final responsibility for HSE in your organisation?
c) Who is the most senior person in the organisation responsible for this policy being carried out at the premises and on site where
his employees are working? Provide name, title and experience.
(ii) Availability of policy statements to employees
a) Itemise the methods by which you have drawn your policy statement to the attention of all your employees?
b) What are your arrangements for advising employees of changes in the policy?
Table III: Questionnaire for contractor HSE pre-qualification

25
© 2000 OGP
Section 3: Organisation, Responsibilities, Resources, Standards and Documentation
(i) Organisation - commitment and communication
a) How is management involved in HSE activities, objective-setting and monitoring?
b) How is your company structured to manage and communicate HSE effectively?
c) What provision does your company make for HSE communication meetings?
(ii) Competence and Training of managers/ supervisors/senior site staff/ HSE advisers
Have the managers and supervisors at all levels who will plan, monitor, oversee and carry out the work received formal HSE
training in their responsibilities with respect to conducting work to HSE requirements? If YES please give details. Where the train-
ing is given in-house, please describe the content and duration of courses.
(iii) Competence and General HSE training
a) What arrangements does your company have to ensure new employees have knowledge of basic industrial HSE, and to keep
this knowledge up to date?
b) What arrangements does your company have to ensure new employees also have knowledge of your HSE policies and prac-
tices?
c) What arrangements does your company have to ensure new employees have been instructed and have received information
on any specific hazards arising out of the nature of the activities? What training do you provide to ensure that all employees are
aware of company requirements?
d) What arrangements does your company have to ensure existing staff HSE knowledge is up to date? (If training is provided in-
house please give details of content.)
(iv) Specialised training
a) How have you identified areas of your company’s operations where specialised training is required to deal with potential haz-
ards? (Please itemise and provide details of training given.)
b) If the specialised work involves radioactive, asbestos removal, chemical or other occupational health hazards, how are the haz-
ards identified, assessed and controlled?
(v) HSE qualified staff - additional training
Does your company employ any staff who possess HSE qualifications that aim to provide training in more than the basic require-
ments?
(vi) Assessment of suitability of subcontractors/ other companies
a) How do you assess:
i) HSE competence
ii) HSE record of the subcontractors and companies with whom you place contracts?
b) Where do you spell out the standards you require your contractors to meet?
c) How do you ensure these standards are met and verified?

26
© 2000 OGP
(vii) Standards
a) Where do you spell out the HSE performance standards you require to be met?
b) How do you ensure these are met and verified?
c) How do you identify new industry or regulatory standards that may be applicable to your activities?
d) Is there an overall structure for producing, updating and disseminating standards?
Section 4: Hazards and Effects Management
(i) Hazards and effects assessment
What techniques are used within your company for the identification, assessment, control and mitigation of hazards and
effects?
(ii) Exposure of the workforce
What systems are in place to monitor the exposure of your workforce to chemical or physical agents?
(iii) Handling of chemicals
How is your workforce advised on potential hazards (chemicals, noise, radiation, etc.) encountered in the course of their work?
(iv) Personal protective equipment
What arrangements does your company have for provision and upkeep of protective equipment and clothing, both standard
issue, and that required for specialised activities?
(v) Waste management
What systems are in place for identification, classification, minimisation and management of waste?
(vi) Drugs and alcohol
Do you have a drugs and alcohol policy in your organisation? If so, does it include pre-employment and random testing?
Section 5: Planning and Procedures
(i) HSE or operations manuals
a) Do you have a company HSE manual (or Operations Manual with relevant sections on HSE) which describes in detail your
company approved HSE working practices relating to your work activities? If the answer is YES please attach a copy of supporting
documentation.
b) How do you ensure that the working practices and procedures used by your employees on-site are consistently in accordance
with your HSE policy objectives and arrangements?
(ii) Equipment control and maintenance
How do you ensure that plant and equipment used within your premises, on-site, or at other locations by your employees are
correctly registered, controlled and maintained in a safe working condition?
(iii) Road Safety Management
What arrangements does your company have for combating road and vehicle incidents?

27
© 2000 OGP
Section 6: Implementation and Performance Monitoring
(i) Management and performance monitoring of work activities
a) What arrangements does your company have for supervision and monitoring of performance?
b) What type of performance criteria are used in your company; give examples
c) What arrangements does your company have for passing on any results and findings of this supervision and monitoring to
your:
i) base management
ii) site employees?
(ii) HSE performance achievement awards
Has your company received any award for HSE performance achievement?
(iii) Statutory notifiable incidents /dangerous occurrences
Has your company suffered any statutory notifiable incidents in the last five years (safety, occupational health and environmen-
tal)? (Answers with details including dates, country, most frequent types, causes and follow-up preventative measures taken.)
(iv) Improvement requirement and prohibition notices
Has your company suffered any improvement requirement or prohibition notices by the relevant national body, regulatory body
for HSE or other enforcing authority or been prosecuted under any HSE legislation in the last five years? (If your answer is YES
please give details.)
(v) HSE performance records
a) Have you maintained records of your incidents and HSE performance for the last five years? (If YES, please provide the follow-
ing: Number of Fatalities, Lost Time Injuries, Lost Workday Cases, Medical Treatment Cases and Restricted Work Day Cases. Also
include the Fatal Accident Rate, Lost Time Injury Frequency and Total Recordable Incident Rate for each year. (NOTE: Please
include your company definitions of a the above mentioned terms - for clarification refer to the OGP Safety Performance Accident
Data Report.)
b) How is health performance recorded?
c) How is environmental performance recorded?
d) How often is HSE performance reviewed? By whom?
(vi) Incident investigation and reporting
a) Who conducts incident investigations?
b) How are the findings following an investigation, or a relevant incident occurring elsewhere, communicated to your employees?
c) Are near miss safety learnings reported?

28
© 2000 OGP
Section 7: Auditing and Review
(i) Auditing
a) Do you have a written policy on HSE auditing?
b) How does this policy specify the standards for auditing (including unsafe act auditing) and the qualifications for auditors?
c) Do your company HSE Plans include schedules for auditing and what range of auditing is covered?
d) How is the effectiveness of auditing verified and how does management report and follow up audits?
Section 8: HSE Management - Additional Features
(i) Memberships of Associations
Describe the nature and extent of your company’s participation in relevant industry, trade, and governmental organisations?
(ii) Additional features of your HSE management
Does your company have any other HSE features or arrangements not described elsewhere in your response to the question-
naire?
Section 9: Company Specific Information

29
© 2000 OGP
Appendix IV: HSE pre-qualification points system
The contractor’s tender should be evaluated by attaching a score to the selected response for each
category (see Appendix III).
A suggested scoring system would be as follows (see Table II.1):
Scoring
Table IV: Rating of contractors’ pre-qualification by a point scoring system
(headings and item numbers refer to Appendix III)
A B C D
0
0
3
7
6
14
10
20
HSE Plan documentation [sections 1-5, 7, 8]
A B C D
Performance and experience factors (HSE incidents) [section 6]
Elements scoring 0 should normally disqualify a contractor from being included in a pre-qualifi-
cation list. Any elements rated so must be highlighted as a qualification on the tender if it is still
to be considered.
Section 1: Leadership and Commitment
Commitment to HSE through leadership: item 1 (i)
No commitment from senior
management
HSE disciplines delegated to line
managers - no direct involve-
ment by senior management
Evidence of active senior man-
agement involvement in HSE
aspects
Evidence of a positive HSE cul-
ture in senior management and
at all levels
Section 2: Policy and strategic objectives
HSE policy documents and availabilityL items 2(i) and 2(ii)
No written HSE policy A policy statement exists but
not in a widely distributed doc-
ument
HSE policy establishes respon-
sibility for HSE, but not widely
distributed
Policy with clearly established
responsibility and accountabil-
ity; is distributed to all employ-
ees; and is visible on notice
boards
Section 3: Organisation, responsabilities, resources, standards and documentation
HSE communication and meeting programmes: item 3(i)
None Periodic HSE meetings for spe-
cial operations only
HSE meetings performed on a
regular basis at management
and supervisor level
In addition to C, employees are
assigned topics to discuss on a
rotational basis
Staff HSE training item 3(ii)
No specialised staff training HSE training assigned to a spe-
cific person on location
HSE training applied to man-
agement but not comprehen-
sively covered
HSE training given formally to
all relevant staff on their respec-
tive responsibilities
Employee orientation and training programme: item 3(iii) (a)-(d)
No formal programme Verbal instructions on company
procedures only
Employee handbook provided
and supervisor outlines,
explains and demonstrates new
employee’s job
All under ‘C’ together with:
follow-up observation of the
new employee’s work is also
included. Employee has
explained to him safe practices
and emergency duties

30
© 2000 OGP
A B C D
Standards: items 3(vii)(a)-(c)
No HSE standards available Basic HSE standards exist Contractor has written HSE
standards to cover all hazard-
ous operations
Contractor has a system of spec-
ifying, monitoring compliance
and updating standards
Section 4: Hazards and effects management
Hazards and effects assessment: item 4(i)
Company’s HSE system does
not include hazards and effects
management
Company’s HSE system makes
reference to the need to assess
hazards and effects but has
no comprehensive structure to
carry this out
Company’s HSE system includes
methods for the assessment of
major hazards and effects
Company’s HSE system has a
comprehensive set of methods
for the assessment of all HSE
hazards and effects and applies
them to all of its contracts with
documentation
Exposure of the workforce: item 4(ii)
Company does not actively
advise the workforce nor moni-
tor exposure
Company advises the workforce
of the major hazards that they
are likely to be exposed to but
only monitors exposure ran-
domly
Company has formal methods
for monitoring exposure to the
major hazards
Company has a set of formal
methods for monitoring expo-
sure to all foreseeable hazards
(linked to its hazards and effects
assessment method) and
applies them to all contracts
Potential hazards (chemical, physical and biological hazards such as noise, radiation, vapours, fumes, temperature
extremes, etc.): item 4(iii)
Company makes no special
provision for advising the
workforce about properties of
potential hazards
Company provides information
to workforce in the workplace
on properties of potential haz-
ards but has no active fol-
low-up
Company distributes informa-
tion to individuals in the
workforce at start of their
involvement on-site
Company maintains a database
of the properties of all poten-
tial hazards encountered in its
contracts and has formal meth-
ods of information distribution
to all personnel and trains its
workforce in handling, etc.
Personal protective equipment: item 4(iv)
Basic PPE provided to person-
nel but no corporate procedure
for assessing individual needs
PPE requirements formally
assessed but little effort made
to ensure correct usage
PPE requirements formally
assessed with spot checks on
usage
Procedures in place to assess
all PPE requirements, monitor
and enforce usage and replace-
ment needs. Stock inventories
monitored, kept above demand
levels. Training in use provided
where needed
No HSE training established On-site basic training con-
ducted occasionally
HSE training is given for spe-
cialised operations, but no rou-
tine training conducted
Formal HSE training pro-
grammes have been developed
in all areas and are conducted
on a regular basis. Retraining
periods are established
Section 3 (continued): Organisation, responsabilities, resources, standards and documentation
Specialised training: items 3(iv) (a)&(b), 3(v)
No written arrangements Written arrangements in place
for basic HSE matters only
HSE arrangements incorpo-
rated in HSE manual but not in
a format which is distributed to
all employees
HSE arrangements exist in
handbook form, distributed to
all employees, subcontractors,
sub-contractor employees and
are enforced. Follow-up audits
held with discussion/feedback
to management and employ-
ees
Subcontractors: items 3(vi) (a)-(c)

31
© 2000 OGP
Section 5: Planning and procedures
HSE or operations manuals: item 5(i) (a)&(b)
No HSE procedures available Basic HSE procedures exist Contractor has written HSE pro-
cedures to cover all hazardous
operations
Contractor has procedures to
cover all HSE precautions,
typical contractor HSE Plan
requirements with a system of
updating and dissemination to
employees
A B C D
Equipment control and maintenance: item 5(ii)
No defined programme to
identify or evaluate hazardous
practices and equipment con-
ditions
Plan relies on outside sources,
i.e. company inspections.
Supervisory inspection of equip-
ment confined to worksite per-
sonnel only
A written programme outlining
supervisory guidelines, respon-
sibilities, frequency and fol-
low-up is in effect
In addition to C, periodic
inspections conducted by top
management or by teams of
specialists
Road safety management: item 5(iii)
No special attention paid to
road safety as an area of haz-
ardous activities
Importance of road safety
acknowledged but left to core
business managers/supervisors
to enact individually
Company has a general man-
agement strategy with some
procedures for its component
issues
Company has a complete strat-
egy and set of plans and proce-
dures covering vehicles, drivers
and operations management
Section 6: Implementation and performance monitoring
Management and performance monitoring of work activities: items 6(i) & 6(ii)
No system for formally monitor-
ing HSE performance
Performance monitoring in a
few areas carried out
Company has a system for mon-
itoring HSE performance in key
areas
Company has a comprehensive
system for monitoring perform-
ance in all areas with feedback
to employers for improvement
and has received awards for
achievement
Statutory notifiable incidents, dangerous occurrences, improvement requirements and prohibition notices:
items 6(iii) and 6(iv)
More than one occurrence of
major incident in last five years
One occurrence of a major inci-
dent in the last five years
Occurrences relate to minor
incident(s) only
No occurrences in the last five
years
HSE performance records (latest year injury rate comparison to contractor’s three preceding years average):
items 6(v) (a)-(d)
Contractor supplied insuffi-
cient
Rate is not improving Shows only minor rate improve-
ment
Rate steadily improving by more
than 20 per cent per year
Criteria for absolute performance
Rate over 200 per cent that of
company
Rate under 200 per cent that of
company
Rate under 120 per cent that of
company
Rate better than that of com-
pany
Incident investigation and reporting: item 6(vi) (a)-(c)
Findings not generally commu-
nicated
Findings communicated to key
personnel only via limited com-
pany internal memo or similar
media
Findings communicated to all
employees via specific company
notice
As in C but with the addition of
details of implication for improv-
ing HSE performance
Company has no formal meth-
ods for the control of waste
Company has general proce-
dures for waste disposal
Company has procedures for
the disposal of each of the main
categories of site wastes but
makes no provision for minimis-
ing environmental impact
Company has a formal system
for waste management (includ-
ing identification, minimisation
and classification), which
actively seeks to minimise envi-
ronmental impact
Section 4 (continued): Hazards and effects management
Waste management: item 4(v)

32
© 2000 OGP
Section 7: Auditing and review
Auditing: item 7(i) (a)-(c)
Audit process is cursory only -
HSE documents are not explicit
about auditing
Company HSE documents
include reference to auditing
but there are no speciﬁc details
about scheduling and cover-
age
Company HSE documents
include details of how audit-
ing is to be implemented with
schedules/coverage for the key
areas
As in C but additionally speci-
ﬁes management’s role in audit
and follow-up on action items
A B C D
Section 8: HSE management - additional features
Membership of associations: items 8(i) and (ii)
No memberships Company has membership of at
least one association but with
no prominence given to HSE
Company is a member of at
least one HSE association
Company is an active partici-
pant in at least one HSE asso-
ciation

33
© 2000 OGP
Appendix V: HSE plan guidelines for major
contracts
When the contracted activities are covered by a con-
tractor HSE Management System (e.g. in line with the
E&P Forum guidelines on HSE Management Systems),
including HSE Cases for contracted installations, the
HSE Plan should only address those issues that are
unique for the contract under consideration. It should
focus on contract specific risks and the management
of controls to eliminate, reduce or mitigate these risks.
Other contract specific issues that may be addressed in
the Plan are:
• organisation and personnel for the project
• project specific procedures
• project audit and review Plan
• compliance with local rules and legislation
The checklist in Tables V.1 to V.7 can be used to check
the HSE plans for the project specific issues, but can
also be used to assess the HSE Management System
if this has not been certified or assessed in any other
manner.
When the contractor does not have an HSE Manage-
ment System, the HSE Plan should be developed in line
with the principles of the E&P Forum guidelines for
HSE Management Systems or other comparable guide-
lines. The HSE Plan should follow principal headings
with an expansion into key checklist items (Tables V.1
to V.7) given on the following pages under the respec-
tive headings. The detail included in the tender should
be in keeping with the complexity of the contract and
should additionally include prompts for specific action
plans, target dates and action parties.
HSE plan definition guideline

34
© 2000 OGP
Section 1 Leadership and commitment
• Leadership and Commitment
Section 2 Policy and strategic objectives
• HSE Policy Statement
Section 3 Organisation, responsibilities, resources,
standards and documentation
• HSE Organisation
• HSE Professionals
• Subcontractors
• HSE Communications
• HSE meeting programme
• HSE promotion and awareness
• HSE competence requirements
• Employee orientation programme
• HSE training (general)
• HSE training (professionals)
• HSE legislation
• HSE standards
Section 4 Evaluation and risk management
• Methods and procedures for hazards and effects
management
• Assessment of exposure of the workforce to hazards
and effects
• Material data sheets for safe handling of chemicals
• Hazards and effects management and the assess-
ment of PPE requirements
• Methods and procedures for waste management
Section 5 Planning and procedures
• HSE procedures
• Basic HSE rules
• Emergency response procedures
• HSE equipment and equipment HSE inspection
• Occupational health
• Environmental
• Road transport
Section 6 Implementation and performance
monitoring
• HSE performance - general
• Incident investigation
Section 7 Auditing and review
• HSE auditing
HSE Management system

35
© 2000 OGP
Detailed checklists for HSE plan
Table V.1 Checklist for HSE plan: section 1 leadership and commitment
Leadership and commitment
Commitment to HSE aspects through leadership
Senior management should engender commitment to HSE issues at all levels through their personal style of leadership and manage-
ment. Key elements include:
• Visible expressions of commitment by senior people
• HSE matters should be placed high on personal and collective agenda
• All senior managers should set a personal example to others. They should be, and seen to be actively
involved in HSE matters, e.g. attendance at HSE meetings, personal instigation of HSE audits and reviews,
etc.
• A feedback system should be established to encourage and facilitate employee feedback on HSE mat-
ters
• A positive culture should be promoted at all levels
• Policies and standards should be endorsed and implemented at the local level
HSE policy statement
General
Written HSE policy
Dated and signed by Chief Executive
Policy statements:
• speciﬁc to individual parts of the contract (e.g. locations/sites/plants)
• cover specialised aspects (e.g. alcohol and drugs)
• consistent with company guidelines
• clear, concise and motivating
Content
Importance of HSE as a contract objective
Incidents and injuries are unacceptable
HSE established as a line management responsibility
Everyone is responsible for their own and their colleagues’ HSE at work
Distribution/availability
HSE policy distributed to all concerned, i.e.
• handed to each employee by their line manager when issued
• all new employees handed a copy by their line manager
• displayed on notice boards at each work location (worksites and ofﬁces)
• copies provided for each company on the contract (including subcontractors, suppliers and agents)
• available to company and contractor employees in their working languages)
Discussion
Policy and its implementation when issued discussed by line managers with each employee
Table V.2 Checklist for HSE plan: section 2 policy and strategic objectives

36
© 2000 OGP
HSE organisation
Key personnel
Personnel responsible for the implementation of HSE objectives clearly identified in an organisation chart
Responsibility adequately covered during all phases of the contract
Job descriptions in place showing each team member’s HSE competencies, responsibilities and function
Organisation clearly shows position of HSE professionals
Contract objectives/accountability
Defined to meet health, safety and environmental objectives as well as those of time, cost and quality
Accountability for HSE success and equally of any failure clearly stated
Focal point within the team structure ensuring that all HSE matters have been identified
Designated team leader to produce HSE objectives, tasks and targets for the contract
Targets, etc. to be realistic and consistent
Establish procedures for distribution, reporting and reviewing HSE issues
Manning/communications
Manpower philosophy
Manpower level to be defined correctly so as not to compromise HSE
Effective means to communicate HSE issues to the company, contractor and subcontractors
Organisation staffed by competent personnel with sufficient appreciation of HSE where necessary with specific training
in the issues involved
Corporate structure/responsibility
Company’s expectations on HSE management to be communicated in depth
Access of contractor’s line management to their corporate management structure on HSE issues to be defined
Level of handling project HSE issues by the contractor corporate structure (middle or senior management or board
level)
In the contractor’s corporate organisation, individuals charged with responsibility for HSE at middle senior manager or
board member level
Access to specialist HSE advice for line management, e.g.
• provision of HSE documentation for small contracts
• employment of HSE specialist for large contracts
HSE professionals
Job definition
Role of the contractor’s HSE advisers well defined
Job definition drafted
Reporting/follow-up
Reporting relationship with line management
Direct access to the Chief Executive
Does line management follow-up on advice offered
HSE department
Contractor’s HSE department involved in:
• preparing and monitoring departmental action plans
• formulation and suitability of HSE rules
• planned inspections and audits together with line management
• promotional material
Table V.3 Checklist for HSE plan: section 3 organisation, responsibilities, resources, standards
and documentation

Csms 1999

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