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Pars Oil & Gas Company

Contract HSE Management/Part I

HEALTH, SAFETY AND ENVIRONMENT PROCEDURE


DOCUMENT ID - PR-10-POGC-001

REVISION - 1.0

Contract HSE Management/Part II

HSE Department Document ID. PR-10-POGC-001

Revision 1.0

Pages 9


Document Authorization

Document Custodian Document

Authority/Owner Security Classification Document Type

HSE P.O.G.C Unrestricted HSE Procedure

Approved By Document Author

Ansari.Mazaher HSE – 564815



DOCUMENT TITLE: Contract HSE Management Part I Page a REVISION 1.0

Contents

1 Introduction 1

1.1 Background 1

1.2 Purpose 1

1.3 Distribution/Target Audience 2

2 Contract HSE Management Procedure 3

2.1 Scope 3

2.2 Description 3

2.3 Contract Owner’s Responsibilities 4

2.4 Contract Holder’s Responsibilities 4

2.5 Minor Contract 4

3 Contract Phase: Planning and Invitation to Tender 6

Task 1 Appoint Contract Holder 6

Task 2 Prepare Contract Scope of Work 6

Task 3 Preparation of the Contract Schedule 7

Task 4 Develop Contract Strategy 8

Task 5 Approval of the Contract Strategy 8

Task 6 Conduct HSE Assessment 9

Task 7 Prepare Exhibit L of Contract, (HSE Requirements) 10

Task 8 Prepare POGC Contract HSE Management Schedule 11

Task 9 Approve POGC Contract HSE Management Schedule 11

Task 10 Development of HSE Prequalification Criteria 12

Task 11 Tender Board – Endorse HSE Prequalification Criteria 13

Task 12 Prequalify Contractors 14

Task 13 Tender Board – Approve Contractor Bid List 14

4 Contract Phase: The Tender Period 15

Task 14 Contractor Submission: Document HSE Requirements 15

Task 15 Site Visit 15

Task 16 Clarification Meeting 16


DOCUMENT TITLE: Contract HSE Management Part I Page b REVISION 1.0

5 Contract Phase: Evaluation and Contract Award 17

Task 17 Review Contractor Submission – Document HSE Requirements 17

Task 18 Evaluate Contractor Submission – Document HSE Requirements 17

Task 19 Review Contractor Ability to Manage HSE Risk 17

Task 20 Contractor HSE Assessment 18

Task 21 Contract Award Recommendation to Tender Board 18

Task 22 Advise Contractor of Company (POGC) Representative 19

Task 23 Advise Contractor of Company (POGC) Site Representative 19

Task 24 Contractor Appoints Key HSE Personnel 20

Task 25 Approve Contractor Key HSE Personnel 20

6 Contract Phase: Mobilization 21

Task 26 On Site HSE Workshop 21

Task 27 Contractor to Prepare HSE Management Plan 22

Task 28 Review Contractor’s HSE Management Plan 24

Task 29 Approve Contractor’s HSE Management Plan 24

Task 30 Contract Holder Develops POGC HSE Monitoring Program 24

Task 31 Contract Owner Review HSE Monitoring Program 29

Task 32 Contract Owner Approve HSE Monitoring Program 29

Task 33 POGC and Contractor Training 29

Task 34 Contractor Mobilization 29

Task 35 Pre-execution HSE Audit of Contractor 30

Task 36 Contractor Completes Pre-execution HSE audit Items 32

Task 37 Contractor – Readiness to Commence 32

Task 38 Issue HSE Certificate 32

7 Contract Phase: Execution 33

Task 39 Supervision 33

Task 40 Monitor Contractor’s implementation of HSE Management Plan 34

Task 41 Additional HSE Requirements 35

Task 42 Contractor - Revise HSE Management Plan 35

Task 43 Review Revised Contractor’s HSE Management Plan 36

Task 44 Approve Revised Contractor’s HSE Management Plan 36


DOCUMENT TITLE: Contract HSE Management Part I Page c REVISION 1.0

Task 45 Implement POGC HSE Deviations and Amendments 36

Task 46 Contractor – Revise HSE Management Plan 37

Task 47 Review Contractor revised HSE Management Plan 37

Task 48 Approve Contractor revised HSE Management Plan 38

Task 49 HSE Penalties and Defaults 38

Task 50 Contract HSE Performance Reports 39

8 Contract Phase: Demobilization 40

Task 51 Site Restoration – Compliance 40

Task 52 Site Restoration Certificate Approval 40

9 Contract Phase: Close Out 41

Task 53 Final Contract HSE Performance Report 41

Appendix MC HSE Checklist for Minor Contracts 42

Appendix A Summary - Contract HSE Management Procedure 44

Appendix A1 Contract HSE Management Schedule 54

Appendix B HSE Prequalification Questionnaire 65

Appendix C HSE Monitoring Program 79

Appendix D Template, Contract HSE Performance Report 80

Appendix E HSE Certificate 84

Appendix F Site Restoration Certificate 85

Appendix G Variation to Contract – Tenders’ Law 88

Appendix H Accessing POGC and Shell Web Documents 91


DOCUMENT TITLE: Contract HSE Management Part I Page 1 REVISION 1.0

PART I: Mandatory for POGC personnel involved in Contract Management

1. Introduction

1.1 Background

POGC’s Policy Document, HSE Policy requires that a systematic approach to HSE management be applied

which shall require Contractors to manage HSE in line with POGC’s HSE Policy. POGC’s Code of Practice

Document, MA-12-POGC-001 (HSE Management System Manual), requires that POGC Asset Managers

shall ensure Contractors are made aware of POGC’s HSE management requirements and have adequate

business controls in place to meet them.

The International Organization for Standardization (ISO 14001) requires that procedures be established

and maintained to ensure that relevant environmental requirements are communicated to Contractors.

With the development of the Contract Holder ship Certification Scheme (CHCS) it became apparent that a

complete review and re-write of the suite of HSE Management of Contracts documents was desirable.

1.2 Purpose

Document PR-10-POGC-001 (Contract HSE Management) has two parts:

Part I: Mandatory for POGC Personnel involved in Contract Management

Part II: Mandatory for Contract Holders and Contractors

Part I follows the material delivered to Contract Holders during the Contract Holder ship Certification

Scheme. Each of the 53 activities related to Contract HSE management issues are described, together

with any Deliverable(s) and relevant Reference Document (s) that are obtainable on the POGC intranet

system (http://portal.pogc.org). Refer to Appendix H for assistance in accessing POGC Web Documents.

Part I describes the flow of activities to be executed by Contract Holders, from strategy definition to

close-out of a contract, to ensure that Contractors achieve the same (or higher) HSE standards as those

required by POGC for its own operations. The Procedure is based on a planned approach with attention

being paid to HSE issues in the early Contract Phases in order to properly address HSE through the entire

contract process.



Part II is referenced, in document Exhibit L of Contract, to enable Contractors, together with Contract

Holders, to carry out POGC prescribed HSE activities in the manner and at the level required by POGC. Of

particular importance in this section is the detail given for the preparation of the Contractor’s HSE

Management Plan. This information is to be used by both Contract Holders and Contractors, and is also

referenced throughout Part I where appropriate.

The input to each Contract Phase and the depth of analysis (the “Tasks”) primarily depends on the level

of HSE risk presented by the contract activities, which consequently determines the actions and input

required for the contract execution.

Whether a contract is large or small in scope and value the Tasks are all the same. Preparations for all

contracts shall utilize the same systematic process of hazard identification, assessment, control,

mitigation and recovery (Hazards and Effects Management Process - HEMP), together with the

demonstration that a system is in place to manage these hazards.

1.3 Distribution/Target Audience

This Procedure is a mandatory requirement for Contract Owners and Contract Holders.

Part I of this Procedure is targeted at Contract Owners, Contract Holders, Company Representatives,

Company Site Representatives and other POGC personnel tasked with the HSE aspects of contract

planning, tender preparation, evaluation and subsequent contract management.

Part II of this Procedure contains HSE instructions for Contractors. It is the obligation of Contract

Holders to ensure that Part II is supplied to Contractors and that the instructions in it are followed.

Distribution of this document is controlled by the Document Custodian.



2. Contract HSE Management Procedure

2.1 Scope

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

2.2 Description

This Procedure follows the HSE sequence of Tasks in contract management as detailed in the

Contract Holder ship Certification Scheme. These activities, specific to HSE in the preparation,

evaluation and execution of a contract, are summarized in Appendix A, “Summary - Contract

HSE Management Procedure”.

The sequence of events in any contract can be described in seven Contract Phases:

1. Planning and Invitation to Tender

2. The Tender Period

3. Evaluation of the Tenders and Contract Award

4. Mobilization

5. Execution

6. De-mobilization

7. Close Out

The succeeding sections of Part I of Contract HSE Management (PR-10-POGC-001) detail the

Tasks contained in these seven Contract Phases, finalizing with the summary in Appendix A.

In some of the Tasks, form(s) must be completed for the Contract to proceed. These are detailed in each Task where

required, including any reference documents that relate to the forms. All forms necessary for the HSE Management of a

Contract are given in the various Appendixes in this document.

Each Task paragraph also contains instructions for any relevant Deliverable(s), as well as the

document number and title for any reference material pertinent to that Task.

Appendix H provides guidance for retrieving documents from the POGC electronic system.



2.3 Contract Owner’s Responsibilities

Contract Owner shall be an individual with the right level of authority to direct the contracting

process to protect overall POGC and Asset objectives. Where relevant, Contract Owners should

attend Tender board presentations to support Contract Holders. Contract Owner should at all

times be cognizant of HSE issues in each Contract.

2.4 Contract Holder’s Responsibilities

Contract Holder shall have single point responsibility for the activity management of the

Contract and verification that the control mechanisms are in place.

Contract Holder shall have single point responsibility for advising Contractor and/or Contractor

Personnel of activities, stated in each relevant Task, requiring their action(s). These activities

are not necessarily repeated in Part II of Contract HSE Management (PR-10-POGC-001), as they

generally arise from the responsibilities and activities of the Contract Holder as stated in each

Task.

It is not expected that Contract Holders can carry out all the activities listed in the following

sections. Rather, Contract Holders shall call upon professional personnel from relevant POGC

departments when assistance with HSE issues is required. This does not in any way remove

from Contract Holders the absolute responsibility for ensuring that advice received and ensuing

actions taken are the best possible solutions to any point in the execution of a Contract.

2.5 Minor Contract

Contract Holder shall: Contract Holder shall complete the necessary sections of the table in

Appendix MC.

Contract Holder shall ensure that the Contractor is fully aware of and understands the

requirements of this table.

Contract Holder shall ensure that the Contractor is fully aware of and understands the following

statement:

“Contractor shall operate, and shall cause all sub-contractors and Contractor Personnel to

operate, with the utmost care for the health and safety of Contractor Personnel, Company



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



3. Contract Phase: Planning and Invitation to Tender

Task 1 Appoint Contract Holder

Contract Owner shall initiate the development and implementation of the Contract Management

Plan, covering all aspects of the integrity management of the Contract.

Contract Owner shall provide the necessary resources for the implementation of, and

compliance with, Contract HSE Management (PR-10-POGC-001), Contract HSE Management

Procedure.

Contract Owner shall appoint the Contract Holder, who shall have single point responsibility for

the activity management of the Contract and verification that the control mechanisms are in

place. In a technically complex or very large contract, the appointment of the Company (POGC)

Representative, by the Contract Owner, may also be required.

Contract Holder shall initiate the implementation and monitoring of the Contract Management

Plan. This shall include all aspects of the HSE Management Schedule in relation to the activity

management of the Contract. It is not to be expected that the Contract Holder shall personally

execute all the HSE activities detailed below; but it is mandatory that sufficient, suitable

professional assistance shall be called in by the Contract Holder when such assistance is

required.

The Contract Holder (CH) may delegate the execution of an activity to a Company (POGC)

Representative and/or Company (POGC) Site Representative (CR/CSR); however the Contract

Holder shall remain responsible for the execution of that activity. The outcomes of this

responsibility are subject to inspection and audit.

Deliverable(s): Memo to Contract File, recording appointment(s)

Reference Document(s): Transactions Regulation (of POGC)

Task 2 Prepare Contract Scope of Work

Contract Holder shall define the HSE aspects of the Contract Scope of Work and/or Services in

sufficient detail to identify the major hazards and provide a basis for executing the Hazard and

Effects Management Process (HEMP) for the contract (refer Task 6). This shall be determined



from a separate appraisal of the business area and activities themselves and shall include

aspects such as:

• type of work activities;

• location of site(s) and the workplace;

• location of Contractor’s base;

• mobilization/ demobilization point;

• personnel;

• plant and equipment used;

• materials and consumables.

Experience gained from previous projects should be utilized by reference to:

• Environmental Impact Assessments (EIAs) and close-out reports from similar

projects

• Formal records of previous HSE performance by Contractors on similar projects

• Quantitative Risk Assessments (QRAs) and HSE audits carried out in recent years

on similar activities

• General background information on planned areas of operations

Deliverable(s): Memo to file detailing HSE major hazards

Reference Document(s): -Exhibit A of Contract, (Scope of Works, part I,II,III)

-Exhibit L of Contract, (HSE Requirements)

-Transactions Regulation (of POGC)

Task 3 Preparation of the Contract Schedule

Contract Holder shall prepare the Contract Schedule by inserting planned dates to coordinate

with the execution of the Scope of Works

Deliverable(s): Memo to Contract file detailing Contract Schedule




Task 4 Develop Contract Strategy

Contract Holder shall determine the work and/or services required from mobilization to

demobilization (including site restoration). Using the Scope of Works and Schedule developed

above, the Contract Strategy can be developed; HSE exposure to risk shall be minimized during

execution of the Contract. The strategy document shall detail both POGC and Contractor HSE

obligations. It is recommended that suitable project management software be used to

determine the critical path for a Contract to assist in Contract Strategy development.

The factors to be considered in formulating the Contract Strategy shall include:

• Availability of suitable existing contracts (for example, service, call-off, etc.)

• Contractor resources and skills

• POGC supervision resources and skills

• POGC/Contractor responsibilities

• local environment

• project schedule

• competitive situation

• Iranian law, local rules and regulations

• influence of POGC to control the Contractor

• define boundaries of the contract (mobilization, demobilization)

• define limits of transport control

• provisions for delay or forfeit of contract payments

• extent to which project management control is relinquished to or shared with the

Contractor

• Results of HSE audit findings, unsatisfactory completion of action items.

• non-submission or late submission of key HSE Plans and documents shall be linked to

contract payments and penalties

Deliverable(s): Memo to Contract files detailing Contract Strategy


Task 5 Approval of the Contract Strategy

Contract Owner shall approve the Contract Strategy document(s).



Deliverable(s): Memo to Contract File approving Contract Strategy


Task 6 Conduct HSE Assessment

Contract Holder shall conduct a structured, formal HSE Assessment of the Contract, using the

Scope, Schedule and Strategy documents (as well as any existing HSE information from prior

documents related to the same package of work) with a view to minimizing the HSE exposure

and level of risk for the Contract.

Contract Holder shall use suitably qualified POGC personnel in developing the HSE Assessment.

These personnel shall include Professional HSE Advisors, personnel who will participate in the

work to be carried out under the contract, or those who have prior experience in the execution

of contracts.

The primary objectives of the HSE Assessment are:

• Identify and assess the major hazards and risks associated with the contract

• Determine methods for control, mitigation and recovery from risk – the Hazards and

Effects Management Process (HEMP)

• Provide the necessary input to prepare document HSE Requirements.

• Provide the necessary input to prepare the POGC Contract HSE Management Schedule

(refer Task 8)

The HSE Assessment shall include or enable:

• Hazard and Effects Management Process (HEMP), in accordance with instructions in

document MA-12-POGC-001 (HSE Management System Manual),

• Define the level of HSE risk presented by the contract

• Determine the levels of controls necessary to manage the risk

• Identify the applicable HSE legislation

• Identify the POGC standards to be applied



• Identify the HSE project organization/interfaces

• Evaluate critical time schedules with respect to HSE impact

• Evaluate resource limitations with respect to HSE impact

• Determine communication needs including scope and schedules for meetings

• Identify minimum competency for both POGC and Contractor personnel

• Identify the training requirements for both POGC and Contractor personnel

• Prepare a training schedule for both POGC and Contractor personnel, paying particular

attention to training needs for exceptional activities

Details shall be formally recorded with future actions identified and, wherever possible, action

parties nominated.

Contract Holder shall confirm the suitability of the HSE Assessment against contract scope,

schedule and strategy with the view to minimizing the HSE exposure and level of risk for the

contract.

Deliverable(s): Note to Contract file, HSE Assessment

Reference Document(s):


-MA-12-POGC-001 (HSE Management System Manual),

Task 7 Prepare Exhibit L of Contract (HSE Requirements)

The purpose of Section Exhibit L of Contract of the standard contract documentation is to: -

• Highlight the hazards and consequences related to the Works or Services being

provided under a contract.

• Act as the enforceable contractual link to the applicable POGC HSE Management System

documentation.

Detail the requirements for Contractors to examine the proposed Scope of Works (Exhibit A of Contract, (Scope of Works, part I,II,III)),determine the hazards and consequences and define how those hazards will be managed so that risk is minimized.

Document Exhibit L of Contract, (HSE Requirements) defines what the Contractor is required to

do to minimize the HSE risk to POGC and it provides the framework for the successful

Contractor’s HSE Management Plan.



Contract Holder shall use the results of the HSE Assessment to develop Document Exhibit L of

Contract, (HSE Requirements) for inclusion in Tender Documents. Exhibit L of Contract, (HSE

Requirements) shall be used by the Contract Holder and the successful Contractor for the

duration of the Contract.

Incorporating an incentive scheme for HSE management, involving additional payment in a

contract, requires very careful consideration. It can absorb a significant degree of effort to

administer and the longer-term effectiveness is questionable. Incentive schemes for HSE

management are STRONGLY discouraged and are not covered in the scope of this document.

Deliverable(s): Contract HSE requirements

Reference Document(s): Exhibit L of Contract, (HSE Requirements)

Task 8 Prepare POGC Contract HSE Management Schedule

Contract Holder shall use the results developed in the Contract Scope, Schedule and Strategy

documents, Exhibit L of Contract,(HSE Requirements) and the HSE Assessment, to complete the

column titled “Date (Planned/Actual)” in Appendix A1, thus preparing the POGC Contract HSE

Management Schedule for approval by the Contract Owner.

This schedule may be tracked by the Contract Holder by completing the actual dates in the

relevant columns in Appendix A1.

Deliverable(s): POGC Contract HSE Management Schedule for approval

Reference Document(s): -MA-12-POGC-001 (HSE Management System Manual),


Task 9 Approve POGC Contract HSE Management Schedule

Contract Owner shall review and approve Contract HSE Management Schedule

Deliverable(s): -Approved Contract HSE Management Schedule

-Memo to Contract File



Reference Document: MA-12-POGC-001 (HSE Management System Manual),

Task 10 Development of HSE Prequalification Criteria

POGC has a policy of encouraging Local Contractors, suppliers and manufacturers. These

Contractors often have little or no background in HSE Management, and a plan to overcome

these shortcomings shall be developed. Such a plan may require additional supervision, more

explicit procedures or additional training before Local Contractors, suppliers and manufacturers

can be deemed qualified to tender. Contract Holders should supervise this activity, but not

necessarily take an active part in it. However, Contract Holders shall remain responsible for

determining when to prequalify Local Community Contractors.

Contract Holders shall be responsible for the decision to pre-qualify Contractor(s).

In any contract of technical complexity and/or high value, or where a Contractor wishes to be

placed on POGC’s bid list, prequalification of Contractors may be carried out. This enables

POGC to ensure that the contract requirements are met for all technical and financial issues, as

well as meeting document Exhibit L of Contract, (HSE Requirements).

To ensure that HSE prequalification data obtained on each Contractor are standardized and thus

fully comparable, the use of common criteria is essential. Appendix B gives the base case

questionnaire and subsequent scoring system to be used for HSE prequalification. Only the

questionnaire shall be given to each Contractor for completion and return to the Contract

Holder. Contractor submissions can then be assessed by a scoring mechanism which is

consistent, transparent and can be presented to the Tender Board for endorsement.

Document HSW0800 (HSE Contractor Management system evaluation) shall also be used in

conjunction with the HSE prequalification document where Contract Holders deem

prequalification is necessary.

The HSE prequalification questionnaire as provided is a base case only and should be expanded

(or reduced) to meet any specific HSE management skills defined in the Exhibit L of Contract, (HSE

Requirements) for each contract. The questionnaire aims to discover the information required

to assess the extent to which the management of HSE is systematically organized by the

Contractor.



Contractor line management shall complete the questionnaire. The Contractor should be

advised by the Contract Holder to cover all activities relating to a contract (including off-site

support) and not just those conducted on POGC sites.

Contract Holders should emphasize the need for complete answers substantiated by supporting

documentation as far as is practicable. It should be remembered that increasing amounts of

detail (and therefore information required to support it) will need to be requested as risk

increases.

If extreme HSE risks are expected then the detail should extend to an HSE Case. An HSE Case

is typically described in a seven-part document. Full details can be obtained from document

MA-12-POGC-001 (HSE Management System Manual). HSE Cases shall be developed by

suitably qualified HSE Professionals, and it is not expected that the Contract Holder will be

personally required to develop any HSE Case necessary for a Contract.

All HSE requirements must be met before any Contractor is allowed to commence work (refer

also Tasks 37 and 38).

Contractors should be encouraged to identify where they exceed POGC requirements and this

excellence should be recognized.

For additional information to assist understanding of the questionnaire, refer to MA-13-POGC-

001(Management of Contractor HSE).

In all cases where it is deemed necessary that a Contractor shall be pre-qualified, the document

references given below must be used in addition to the HSE prequalification questionnaire in

Appendix B.

Deliverable(s): Contractor prequalification assessment for Tender Board endorsement

Reference Documents:

-MA-12-POGC-001(HSE Manual Management)

-MA-13-POGC-001(Management of Contractor HSE)


-HSW0800 (HSE Contractor Management system evaluation)

Task 11 Tender Board – Endorse HSE Prequalification Criteria

Tender Board shall review and endorse as appropriate the HSE prequalification criteria

submitted by the Contract Holder.

Deliverable(s): -Tender Board minutes, endorsing Prequalification Criteria



-Minutes of Meeting to Contract Holder


Task 12 Requalify Contractors

Contract Holders, having taken the decision that prequalification is required, shall follow the

procedures given in Task 10.

When Contractor submissions are received, the Contract Holder will rate the submissions as

described in Appendix B. The resulting Contractor Bid List will be submitted to the Tender

Board with recommendation to approve. Contractors who are not approved shall be advised

and assistance to prequalify for future Contracts shall be given, particularly in the case of Local

Contractors, suppliers and manufacturers.

Deliverable(s): Contractor Bid List to Tender Board


Task 13 Tender Board – Approve Contractor Bid List

Tender Board shall review and endorse as appropriate the Contractor Bid List.

Deliverable(s): -Approved Bid List

-Minutes of Meeting to Contract Holder




4. Contract Phase: The Tender Period

Task 14 Contractor Submission: Document HSE Requirements

Contractor(s) shall execute a Hazards and Effects Management Process (HEMP), based on the

information provided in the Contract Scope of Works and Document Exhibit L of Contract, (HSE

Requirements).

Contractor(s) shall detail all HSE issues discovered, including those advised in Exhibit L of

Contract (HSE Requirements) and detail how these risks will be controlled, mitigated and

managed. Details provided shall fully describe the manpower, equipment and broad details of

the Contractor’s HSE policies that will be applied to the management of HSE risk for the

Contract. The Contractor will fully describe the manpower that will be applied to the HSE

management of the Contract, including names, qualifications and experience. Copies of each

individuals CV will be included in the Tender documentation for HSE Requirements.

Contractor(s) shall cover all Contract Phases from mobilization through execution,

demobilization and site restoration.

Contractor(s) shall clearly indicate the policy, procedures and standards to be adopted during

each phase of the Contract.

Deliverable(s): HSE Requirements Submission in Tender Documents

Reference Document(s): Exhibit L of Contract (HSE Requirements)

Task 15 Site Visit

Contract Holder shall arrange a site visit if requested by Contractor(s) or deemed appropriate by

the Contract Holder. The purpose is to allow familiarization with the Contract Scope of Works

and the impact that site conditions may have on all aspects of the Contract including HSE.

In any contract of technical complexity and/or high value, the Contract Holder shall visit the site

to become familiar with site conditions, prior to receipt of Tender Documents.

Deliverable(s): Memo to Contract File detailing site visit

Reference Document(s): Exhibit A of Contract, (Scope of Works, part I,II,III)



Task 16 Clarification Meeting

Contract Holder shall hold a clarification meeting with Contractor(s) if requested. See

Mandatory statement below.

Mandatory

Tender clarifications shall be approached with extreme care. Clarifications shall be required

where the evaluation cannot be completed from the Tender due to either ambiguities or

discrepancies.

All Tender clarifications and responses shall be issued in written form using the standard

template in http://portal.pogc.org and shall be forwarded by post or fax. The Unit Contract

Section shall draft and issue the clarifications to the tendered to ensure that the risk of soliciting

a price adjustment is avoided.

Where clarification meetings are held with the individual Contractors these shall be minted and

the minutes agreed with the Contractors. Unit Contract Section shall be present at any

meeting. All technical meetings shall commence with the statement by the Company that no

price change shall result from these technical discussions. Where technical discussions identify

a price impact, the technical issues only shall be discussed.

Meetings and discussions shall be immediately suspended if commercial/financial

issues are raised.

Minutes of a clarification meeting shall be formalised by a letter to the Contractors identifying

the points of discussion and agreement. The Contractors shall confirm, by return, agreement

with the contents of the letter and identify any further points not covered.

Deliverable(s): Minutes of Meeting; Letter to Contractors


http://portal.pogc.org/



5. Contract Phase: Evaluation and Contract Award

Task 17 Review Contractor Submission – Document HSE Requirements

Contract Holder shall carry out an initial review of each Contractor(s) HSE Requirements

submission(s), and compare it (them) against the requirements of Exhibit L of Contract (HSE

Requirements). A gap analysis shall be made between the requirements of HSE Requirements

and each Contractor submission.

Deliverable(s): Gap Analysis Memo to Contract File

Reference Document(s): Contractor(s) HSE Requirements Tender Submission(s)

Task 18 Evaluate Contractor Submission – Document HSE Requirements

Contract Holder shall meet with Contractor(s) if further clarification is needed for Tender

submission of HSE Requirements. This meeting, if required to be held following written

requests for clarification, shall establish where improvements in proposed HSE risk management

will be required if contract is awarded. Refer to Mandatory statements in Task 16 for the

conduct of any meeting with Contractor(s) during this Contract Phase.

Minutes of a clarification meeting shall be formalised by a letter to the Contractors identifying

the points of discussion and agreement. The Contractors shall confirm, by return, agreement

with the contents of the letter and identify any further points not covered.

Deliverable(s): Minutes of Meeting; Letter to Contractors

Reference Document(s): -HSE Requirements Tender Submission Document


Task 19 Review Contractor Ability to Manage HSE Risk

Contract Holder shall determine the likelihood that levels and classes of manpower, equipment,

any other resources and policies detailed in the Contractor(s) HSE Requirements Tender

submission will enable the Contractor(s) to manage Contract risk.

HSE equipment and resources would normally include such items as:

• safety equipment, personal protective equipment (PPE)



• HSE audits, induction and training, emergency response resources

• medical facilities, first aid training, Medieval, health surveillance

• waste disposal, promotion schemes, journey management

• financial resources of the Contractor that are available for HSE management

The resources allocated for HSE provide only an indication of the Contractor's preparedness (at

the time of tender) to comply with POGC’s HSE requirements. Low HSE resource allocation

could indicate that the Contractor’s organization is at a high level of HSE implementation.

Conversely, it could indicate the Contractor does not understand POGC’s requirements.

Contract Holders should be conscious of the fact that thorough understanding of a Contractor’s

abilities to manage HSE issues can only be obtained by careful study of the whole of a

Contractor’s HSE management system.

Deliverable(s): Memo to Contract File

Reference Document(s): HSE Requirements Tender Submission Document(s)

Task 20 Contractor HSE Assessment

Contract Holder shall evaluate which Contractor(s) will and will NOT require additional POGC

supervision to ensure that the management of HSE risk is carried out correctly. The gap

analysis developed in Task 17 shall be part of the evaluation.

The evaluation may be used as part of the Contract Holder’s award recommendation

presentation to the Tender Board.

Deliverable(s): Memo to Contract File

Reference Document(s): Contractor(s) Exhibit L of Contract (HSE Requirements) Tender

submission(s)

Task 21 Contract Award Recommendation to Tender Board

Contract Holder shall make a Contract award recommendation to the Tender Board, based on

the technical and commercial reports as well as the Contractor HSE assessment. The award



recommendation shall highlight any anomalies or additional qualifications accepted from the

original Tender documentation issued.

Deliverable(s): Tender Board presentation


Task 22 Advise Contractor of Company (POGC) Representative

Contract Holder shall, upon award of a Contract and using document LE-01-POGC-001 (Letter of

Approval), notify the Contractor of any duly appointed Company (POGC) Representative(s) for

the Contract. This notification of delegated authority shall detail the name of the POGC

employee, the position and reference indicator of that employee and the appropriate delegated

responsibilities and authorities for the given Contract.

POGC shall accept only those authorisation levels specifically delegated in writing by the

Contract Holder.

Contract Holder shall ensure that the delegated Company personnel are fully conversant with

their authorities and responsibilities under the Contract. Authorities defined in the Manual of

Authorities shall not be delegated by the Contract Holder.

Contract Holder shall notify the Contractor, in writing, of all subsequent alterations in authority

levels or personnel.

Document LE-01-POGC-001(Letter of Approval), contains the approved letter to be used for

Contractor notification.

Deliverable(s): Letter to Contractor


- LE-01-POGC-001(Letter of Approval)


Task 23 Advise Contractor of Company (POGC) Site Representative

Contract Holder shall, upon award of a Contract and using document LE-01-POGC-001(Letter of

Approval), notify the Contractor of any duly appointed Company (POGC) Site Representative(s)

for the Contract. This notification of delegated authority shall detail the name of the POGC

employee, the position and reference indicator of that employee and the appropriate delegated

responsibilities and authorities for the given Contract.



POGC shall accept only those authorisation levels specifically delegated in writing by the

Contract Holder.

Contract Holder shall ensure that the delegated Company personnel are fully conversant with

their authorities and responsibilities under the Contract. Authorities defined in the Manual of

Authorities shall not be delegated by the Contract Holder.

Contract Holder shall likewise notify the Contractor, in writing, of all subsequent alterations in

authority levels or personnel.

Document LE-01-POGC-001(Letter of Approval) contains the approved letter to be used for

Contractor notification.

Deliverable(s): Letter to Contractor


-LE-01-POGC-001(Letter of Approval)


Task 24 Contractor Appoints Key HSE Personnel

Contract Manager shall appoint the key HSE personnel advised in document HSE Requirements

Tender submission. The Contractor’s letter shall include the name(s), qualification(s),

experience and CV(s) of the key HSE personnel. Approval shall be requested from Contract

Holder for the list provided.

Deliverable(s): Letter to Contract Holder

Reference Document(s): Contractor’s Exhibit L of Contract (HSE Requirements) Contract

document

Task 25 Approve Contractor Key HSE Personnel

Contract Holder shall determine that the Contractor’s key HSE personnel are described in the

Contractor’s HSE Requirements Tender submission (refer Task 14). If the list provided in the

Contractor’s advisory letter (refer Task 24) are not the same as in Exhibit L of Contract (HSE

Requirements), the Contract Holder may withhold approval until the Contractor provides

satisfactory explanations and assurances that no reduction in the quality of key HSE personnel

will result from the changes. CVs shall be provided for any replacement personnel different



from those described in Exhibit L of Contract (HSE Requirements). In all cases, POGC reserve

the right to interview Contractor’s HSE personnel.

Contract Holder shall approve the Contractor’s appointed key HSE personnel when satisfied that

the quality of management of HSE risk will be maintained to POGC standards.

Contract Holder shall not “unreasonably” withhold approval of the Contractor’s appointed key

HSE personnel.

Deliverable(s): Letter to Contract Manager

Reference Document(s): Contractor’s Exhibit L (HSE Requirements) Contract document



6. Contract Phase: Mobilization

Task 26 On Site HSE Workshop

Contract Holder shall conduct a separate on site HSE Workshop. Following both kick-off meetings

(which discuss all issues in a contract, not exclusively HSE – see below) the Contract Holder shall

schedule an onsite HSE Workshop to focus on all outstanding HSE issues relating to a contract.

An HSE Workshop is particularly relevant if the risks within a contract are high to extreme or if

the Scope of Work has changed significantly since the contract award. In the case of Contracts

and/or Contractors where all parties agree in writing that an HSE Workshop may not be

required, the Contract Holder shall obtain clear, written permission from the Contract Owner

that an HSE Workshop need not be held.

The HSE workshop is an interactive session in which both POGC and Contractor should

contribute if it is to be successful. For Contractors with no previous experience of POGC’s HSE

requirements a workshop is a useful mechanism to introduce the Contractor to the details of

POGC’s HSE Management Schedule. If however the workshop requires POGC to teach the

Contractor basic HSE skills, then the effectiveness of the HSE pre-qualification system should be

questioned as this is not the correct role of the workshop and Contract Holders should not find

themselves in this position.

Contract Holder shall hold a POGC internal kick off meeting to ensure that:

• Company Representative and Company Site Representative(s) are fully aware of their

delegated powers under the Contract.

• All personnel involved with the Contract understand the contents of the Contract.

• Key factors considered during the Tender period are explained.

• Presentation and understanding of the penalties objectives and structures.

• Process of instructions, administration and reporting requirements are understood.

• Clarification of handover from existing Contractor (where applicable).

As a minimum, the Contract Holder, Company Representative, Company Site Representative(s),

HSE Professional(s) responsible for the Contract and Unit Contracts Sections shall attend the

POGC internal kick off meeting.

Contract Holder shall conduct a kick off meeting with the Contractor immediately after Contract

award and before the execution of any work. This is essential to ensure that all contractual



obligations, including HSE, are thoroughly and mutually understood. The kick-off meeting is the

first formal meeting between Contract Holder and Contractor after the award of a contract.

The agendas of the kick-off meetings and the HSE workshop are entirely at the discretion of the

Contract Holder. Should the Contract Holder require HSE assistance with either kick-off

meeting or the HSE workshop, an HSE professional shall be requested to assist.

During either or both of these meetings, the Contract Holder shall ensure the following

minimum objectives are covered:

• Demonstrate to the Contractor that POGC is fully committed to HSE

• Establish that the Contractor completely understands the risks within the Scope of Work

and has committed the resources detailed in the Contractors tender submission HSE

Requirements. Ensure that the Contractor has or can put systems in place to manage

risk and these are suitable and sufficient to meet standards

• Highlight any areas for improvement in the Contractors HSE Requirements Tender

submission, and agree on any actions necessary, by either POGC or the Contractor, to remove deficiencies

• Resolve any issues arising from a variation to contract since the award

• Introduce any new Contractor(s) to the details of POGC’s HSE policies, standards and

systems

Deliverable(s): Minutes of meetings to Contract file


Task 27 Contractor to Prepare HSE Management Plan

Contract Manager shall prepare the Contractor’s HSE Management Plan following the kick off

meeting and the HSE Workshop. This HSE Management plan shall incorporate any POGC

comments arising from the kick off meeting and the HSE Workshop, and also any mandatory

POGC training. Full details for the preparation of an HSE Management Plan are given in

Contract HSE Management (PR-10-POGC-001) Part II.

Contract Manager shall submit the Contractor’s HSE Management Plan to the Contract Holder

for approval.



Deliverable(s): Contractor’s HSE Management Plan to Contract Holder

Reference Document(s): HSE Requirements, Tender Submission

Task 28 Review Contractor’s HSE Management Plan

Contract Holder shall review the Contractor’s HSE Management Plan. Any modifications

required by the Contract Holder shall be advised to the Contract Manager. Contract Holder shall

use HSE professional assistance if necessary.

Deliverable(s): Modifications Letter to Contract Manager (if required)

Reference Document(s): Contractor’s HSE Management Plan

Task 29 Approve Contractor’s HSE Management Plan.

Contract Holder shall approve the Contractor’s HSE Management Plan once all modifications

required by the Contract Holder (if any) have been incorporated.

Deliverable(s): Approval Letter to Contract Manager


Task 30 Contract Holder Develops POGC HSE Monitoring Program

Contract Holder shall, throughout the period of a Contract, monitor the Contractor’s HSE

performance against the Contractor’s HSE Requirements Contract document and its HSE

Management Plan. Implementation of the POGC HSE monitoring program shall take place when

the Contractor commences mobilization (refer Task 34). The HSE Monitoring Program shall

include a pre-execution HSE audit (refer Task 35).

Contract Holder shall prepare the POGC HSE Monitoring Program using the form contained in

Appendix C. The Program shall be submitted to the Contract Owner for review and approval

(see Tasks 31 & 32).



POGC Contract personnel shall complete Contract HSE Performance Reports to detail the results

of all monitoring activities. A template for these reports is provided in Appendix D. Assistance

with using the template is also provided in Appendix D.

The following information provides guidelines on how monitoring is to be carried out to ensure

maximum effectiveness. Refer to the various monitoring methods detailed below on monitoring

objectives (Table 1).

The monitoring program should be adapted to suit the length and nature of the contract. For

short duration contracts monitoring should be weighted to the earliest stages of the work if it is

to have significant influence on the remainder of the contract. As the contract duration gets

longer then monitoring can be spread throughout the contract period. It is however still

desirable to have a significant monitoring effort in the early stages as this will have the most

benefit over the life of the contract.

In addition, the monitoring program should take account of the level of HSE systems 'maturity'

of the Contractor i.e. for the same scope of work, a more experienced Contractor may need less

monitoring than one who is new to working with POGC. The monitoring program shall be

periodically reviewed during the contract and revised according to findings of HSE audits and

inspections. If performance and compliance is found to be good, it may be possible to reduce

the frequency of monitoring. However if performance is poor it may be necessary to increase

monitoring activities. It may also indicate a need to increase direct POGC supervision and

allocate more resources to the contract if the work is to carry on in a safe manner.

An effective monitoring program will take account of these factors and will blend the various

approaches to determine the most effective approach. All monitoring programs shall be agreed

with the Contractor prior to their execution. The kick off meeting is the recommended time to

clarify and agree the program with the Contractor.

Monitoring Methods

The management of any activity requires monitoring, verification and reporting to ensure that

activities are carried out and standards are maintained. The Contractor is expected to have a

framework for monitoring, verification and reporting of the activities covered by the Contract.

The Contract Holder, in turn, is expected to have a framework for verification and reporting to

ensure that the Contractor has adequate control over its activities. This framework is

documented in the POGC HSE Monitoring Program for each contract.



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



Table 1: Monitoring Methods

Monitoring Method Monitoring Objective

Unsafe act auditing A measure of how well individuals understand basic HSE standards.

A demonstration of management commitment to detail.

Supervisory checks A demonstration of management commitment to HSE.

A reinforcement of the role of the HSE supervisor.

HSE inspection A management check to ensure standards are being achieved.

Non compliance is recorded and remedial action instigated.

Localized improvements should result from an HSE inspection.

HSE audit A management check to ensure, commensurate with risk, that the agreed

systems are in place and standards are achieved.

Non compliances are recorded and remedial action is instigated.

Contract wide improvements should result from an HSE audit.

HSE Review A management check that all action being taken to manage HSE is suitable and

sufficient to ensure business objectives are being met.

Current systems are challenged and new systems instigated if considered

necessary.

Recommendations are recorded and remedial action agreed.

A complete change of approach towards HSE management should result from a

review.

Monthly Contract

Review Meetings

Good practice for commercial, technical and HSE monitoring.

Shall review the results of all the above monitoring methods plus results of any

performance indicators reported during the contract.

A formal agenda shall be set and minutes recorded.

The first meeting shall be chaired by the Contract Holder; thereafter the

Company Site Representative.

The Contract Manager should be present plus any other parties, both POGC and

Contractor, who are directly influenced by the subject(s) under discussion.

Meetings should be held on site.

A clear distinction should be made between an HSE audit and an HSE inspection in the HSE monitoring

program:



HSE audits are reviews of management controls to ensure contractual HSE requirements are fulfilled

HSE inspections seek to identify specific deficiencies in meeting contractual HSE requirements

For example, an inspection may note that a vehicle has a defective rear light and require it to be fixed; an audit would seek to establish that there is a defect reporting system which would ensure such deficiencies are identified, reported and corrected in a timely manner.

Although POGC representatives may carry out unsafe act auditing, hardware inspections and supervisory

checks, these are essentially the responsibility of the Contractor. The main emphasis of the inspections

and audits performed by the POGC Contract Holder (or his representatives) is to verify and report that

the Contractor’s systems for Unsafe Act Auditing, hardware inspections, supervision checks etc. are in

place and being implemented effectively. In order to encourage improvement in Contractor performance, POGC's responses to deviations from the

Contractor’s Exhibit L (HSE Requirements) Contract document and the Contractor’s HSE Management Plan

must be predictable and consistent. This requires clear standards against which the Contractor is

monitored, transparent criteria for assessing performance and a fixed procedure for deciding upon the

appropriate response when non-compliance is found. Work scopes are rarely static and changes are inevitable, especially in longer contracts. Contract Holder

shall have in place a procedure, agreed with the Contractor, for amendments to the Contractor’s HSE

Management Plan. The procedure for any amendments to the HSE Management Plan shall, at all stages,

include the Contractor – all changes shall be made only with their knowledge and agreement. As the HSE

Management Plan is frequently a contractual document, major alterations may require agreement on

variations to contract. The HSE monitoring program is an internal POGC program but, as a matter of courtesy and for smooth

working relationships, changes shall be communicated in advance and in writing to the Contractor, whose

confirmation of and relevant comments on the changes shall be returned in writing. Deliverable(s): proposed HSE Monitoring Program

Reference Document(s): Contractor’s Exhibit L (HSE Requirements) Contract document

Contractor’s HSE Management Plan



Task 31 Contract Owner Review HSE Monitoring Program Contract Owner shall review the proposed HSE monitoring program, confirming resources, competencies

and capabilities of Contract Holder, Company (POGC) Representative and Company (POGC) Site

Representative to discharge their duties taking into account level of HSE Risk. Deliverable(s): None

Reference Document(s): proposed HSE Monitoring Program

Task 32 Contract Owner Approve HSE Monitoring Program

Contract Owner shall approve the proposed HSE monitoring program once confirmation is obtained that all

necessary resources, competencies and capabilities of Contract Holder, Company (POGC) Representative

and Company (POGC) Site Representative to discharge their duties are in place and appropriate for the

level of risk in the Contract. Deliverable(s): Memo to Contract File Approving HSE Monitoring Program

Reference Document(s): approved HSE Monitoring Program

Task 33 POGC and Contractor Training

Contract Holder shall ensure that all POGC and Contractor personnel training has been completed with all

personnel involved receiving approval from HSE trainers. Training records will contain name(s) of

trainee(s), name of training course and completion grade (Satisfactory or Unsatisfactory). Deliverable(s): POGC and Contractor Training records

Reference Document(s): Tasks 6, 7 and 27 above.

Task 34 Contractor Mobilization

Contract Manager shall commence mobilization activities only upon satisfactory completion of Tasks 24 and

27 and having confirmed receipt of all necessary POGC approvals on file.



Contract Holder shall, concurrent with Contractor mobilization, implements the HSE Monitoring Program.

Deliverable(s): Contract HSE Performance Report – Mobilization Status

Reference Document(s): -Contract HSE Monitoring Program

-Contractor’s HSE Management Plan

-Contractor’s Exhibit L (HSE Requirements) Contract document

Task 35 Pre-execution HSE Audit of Contractor Contract Holder shall conduct a pre-execution HSE audit to determine that the Contractor has achieved the

pre-execution targets stated in the Contractor’s Exhibit L (HSE Requirements) Contract document and HSE

Management Plan, and that mobilization is complete. The execution of the post mobilization phase of Contract work shall not be initiated until the requirements

of the pre-execution HSE audit have been met. For some contracts it may not be possible to carry out a

pre-execution HSE audit at a single point in time. This often occurs with long mobilization periods. It may

then be necessary to specify a list of HSE audits/checks/verifications to be completed during the

mobilization period. The Contract Holder must approve each of the checks before subsequent actions can

be started. For example, the Contractor cannot start transporting material from the Coast until drivers

have been qualified and vehicles have passed inspection checks. In such a situation, the pre-execution

HSE audit may consist of the Contract Holder determining the satisfactory completion of driver training and

vehicle inspection before the field site is audited and fieldwork begins. Mobilization payments may be

attached to specific pre-execution requirements. The pre-execution HSE audit should focus on the pre-execution requirements as stated in the Contract, the

Exhibit L (HSE Requirements), and the general capability of the Contractor to meet and maintain the

required standards of HSE during the execution of the contract. It should be built around the standards

specified in the Exhibit L (HSE Requirements) and in the HSE Management Plan. It should provide the

Contract Holder with confidence that the Contractor in the field understands these standards and that the

systems put in place by the Contractor will ensure these standards are met. These systems should ensure

that failure to meet standards will be quickly recognized either by the Contractor's Site Representative or

by the Company (POGC) Site Representative. Any action agreed to eliminate any recognized deficiency in the Contractor’s HSE Management Plan should

be verified in the field and at Contractor’s offices during the HSE audit. HSE Management Plans and their



remedial action plans, which are acceptable on paper, have sometimes been found to be lacking in the

field, and it is essential for all aspects of HSE in a Contract that the working relationship between POGC

personnel and Contractor personnel is continuously one of mutual respect, courtesy and cooperation. Following any HSE audit, or any inspection in support of an audit, the resulting findings should be

discussed with the Contractor's site and office management. This will help to avoid misunderstandings and

aid the implementation of the inspection/HSE audit recommendations. Discussions shall be minuted, with

a copy to the Contractor; Contractor shall respond to the Contract Holder, confirming the minutes and

advising the remediation schedule and/or confirming that all audit recommendations will be or have been

carried out. The Contract Holder should agree with the Contractor on a procedure for monitoring the implementation of

the inspection/HSE audit findings. The Contract Holder can delegate the necessary authority to the

Contractor for undertaking the administration of these procedures if regular status reports are presented at

the contract review meetings. Contractor shall ensure that the Contract Holder documents this approval. Effective follow up of inspection/HSE audit findings is a prime indicator of management commitment. As a

consequence it is important that all findings are followed up and cleared in a satisfactory manner. Inspection/HSE Audit finding reports should:

• detail personnel responsible for correcting each finding

• be measurable - i.e. state exactly what remedy is required by each finding

• state completion dates for each finding

Deliverable(s):

-Contract Holder letter to Contractor giving minutes of inspection/HSE audit findings meeting

-Contractor letter to Contract Holder confirming minutes of inspection/HSE audit findings meeting

-Contract Holder letter to Contractor documenting delegation of authority to undertake remediation of

inspection/HSE audit findings.

Reference Document(s): - HSE Requirements Tender submission




Task 36 Contractor Completes Pre-execution HSE audit Items

Contract Manager shall complete remediation of all findings resulting from the pre-execution HSE Audit

Deliverable(s): Remediation completed and action items “Signed off” by Contract Manager

Reference Document(s): Minutes of Pre-execution HSE Audit meeting.

Task 37 Contractor – Readiness to Commence

Contract Manager shall advise, in writing, Contract Holder that all items from the pre-execution audit

requiring remediation have been completed.

Contract Manager shall issue Pre-execution Completion Report and request HSE Certificate.

Deliverable(s): -Letter to Contract Holder

-Pre-execution Completion Report

-HSE Certificate request

Reference Document(s): Minutes of Pre-execution HSE Audit meeting

Task 38 Issue HSE Certificate

Contract Holder shall issue the HSE Certificate (refer Appendix E) to Contract Manager, subject to any

exceptions noted on the HSE Certificate.

Contract Holder shall withhold issuing the HSE Certificate if any of the activities listed on the HSE

Certificate require exception that leads to unsafe operating conditions.

Deliverable(s): HSE Certificate

Reference Document(s): -Minutes of Pre-execution HSE Audit meeting

-HSE Certificate (Appendix E)



7. Contract Phase: Execution

Mandatory

Contract Holder shall assume single point responsibility to ensure the effective execution of the Contract

by the Contractor. This shall require proper management of POGC resources and provisions involved in

the execution of the Contract (personnel, facilities, equipment, materials, expenditure forecasts, user

requirements etc), and full compliance with the Contract requirements.

Contract Holder shall include as a minimum:

• Supervision of the Work/Services period.

• Verification and enforcement of HSE requirements.

• Verification and enforcement of the Contractor’s Quality system.

• Monitoring of financial controls; commitments to date; values of work done; invoices received and

payments made, as well as performance against Company controls.

• Certification of Work/Services and acceptance of Milestones.

• Monitor usage of Company provided facilities and materials throughout Contract period.

• Any other specific Contract requirements.

• Maintain up-to-date register of all correspondence between Contractor and the Company, this

register shall include as a minimum: - date of receipt or dispatch together with date of relevant response.

• Claims Register update.

Deliverable(s): All necessary memos, letters to Contractor and reports.


Task 39 Supervision

Company (POGC) Representative/Site Representative shall have continuous assurance and verification

that Contractor HSE systems are performing in accordance with the Contractor’s HSE Management Plan.

Deliverable(s): Contract HSE Performance Reports (refer Appendix D)




Task 40 Monitor Contractor’s implementation of HSE Management Plan

Contract Owner/Holder/Site Representative shall monitor the Contractor’s performance against the

Contractor’s HSE Management Plan, using the POGC HSE Monitoring Program.

Contract Owner/Contract Holder shall participate in all HSE audits, incident investigations, meetings and

reviews.

Deliverable(s): Contract HSE Performance Reports (refer Appendix D)



-POGC HSE Monitoring Program



Task 41 Additional HSE Requirements

Contract Holder shall maintain, continuously monitor, update and make available on a quarterly basis

the Health Safety & Environment performance criteria in accordance with Transactions Regulation (of

POGC).

Contract Holder shall perform a Hazards and Effects Management Process (HEMP) periodically in the

execution of a Contract. In particular, revised HEMP shall be triggered by any additional requirements

that lead to an increased Scope of Works, thereby requiring a Variation in the Contract.

Revision will also allow the incorporation of any additional HSE requirements arising from the process of

Contract execution. Any additional POGC-originated HSE requirements discovered, including those

arising from “Substantial Completion”, shall be advised to the Contract and Procurement Systems and

Procedures Department (SUPPORT SERVICES) and to the Contractor.

Deliverable(s):

Note to Contract File, Variation to Contract – POGC HSE Requirements

Memo to SUPPORT SERVICES, Variation to Contract – POGC HSE Requirements

Letter to Contractor, Variation to Contract – POGC HSE Requirements

Reference Document(s): -Contractor’s HSE Management Plan


Task 42 Contractor - Revise HSE Management Plan

Contract Manager shall revise the HSE Management Plan as often as required to accommodate POGC’s

advice that additional HSE requirements need to be incorporated. All unforeseen work activities shall

be assessed and incorporated. Authorization for all deviations from and/or amendments to the

Contractor’s HSE Management Plan shall be sought from the Contract Holder.

Deliverable(s):

Letter to Contract Holder advising revised Contractor’s HSE Management Plan



Contractor’s HSE Management Plan



Task 43 Review Revised Contractor’s HSE Management Plan

Contract Holder shall review Contractor’s revised HSE Management Plan. Any further revisions required

by POGC shall be advised to Contractor.

Deliverable(s): -Note to Contract file

-Letter to Contractor as required by additional revisions



Letter to Contract Holder advising revised Contractor’s HSE Management Plan

Revised Contractor’s HSE Management Plan

Task 44 Approve Revised Contractor’s HSE Management Plan

Contract Holder shall approve revised Contractor’s HSE Management Plan when all proposed revisions

fulfill POGC’s HSE requirements.

Deliverable(s): Letter to Contractor approving revised HSE Management Plan


-Letter to Contractor, Variation to Contract – POGC HSE Requirements

-Letter to Contract Holder advising revised Contractor’s HSE Management Plan

-Revised Contractor’s HSE Management Plan

Task 45 Implement POGC HSE Deviations and Amendments

Contract Holder shall notify Contract Manager that any POGC HSE deviations and/or amendments to the

Contractor’s HSE Management Plan are to be implemented.

Deliverable(s): Letter to Contractor authorizing implementation of Contractor’s revised HSE

Management Plan


-Letter to Contractor, Variation to Contract – POGC HSE Requirements



-Letter to Contract Holder advising revised Contractor’s HSE Management Plan

-Revised Contractor’s HSE Management Plan

Task 46 Contractor – Revise HSE Management Plan

Contract Manager shall revise the HSE Management Plan as often as required by circumstances arising

from the execution of the Contract. The Contract Holder shall be advised of any required variations

and/or amendments.

Contract Manager shall advise Contract Holder of variations to Contract Scope of Works as required by

revised HSE Management Plan.

Deliverable(s):

Letter to Contract Holder advising required variations and/or amendments


Task 47 Review Contractor revised HSE Management Plan

Contract Holder shall review the Contractor revised HSE Management Plan and variations to the

Contract Scope of Works. Any further revisions required by POGC shall be advised to Contractor.

Deliverable(s):

-Note to Contract file

- Letter to Contractor as required by additional revisions


-Letter to Contract Holder advising required variations and/or amendments

-Contractor revised HSE Management Plan



Task 48 Approve Contractor revised HSE Management Plan

Contract Holder shall advise Contract Manager that the Contractor revised HSE Management Plan is

approved.

Deliverable(s):

-Note to Contract file

-Letter to Contractor approving revised HSE Management Plan

-Memo to SUPPORT SERVICES advising of amendments to HSE Management Plan


-Contractor revised HSE Management Plan

- Exhibit A of Contract, (Scope of Works, part I,II,III)

NOTE TO POGC PERSONNEL INVOLVED IN MANAGEMENT OF CONTRACTS:

TASKS 42 THROUGH 48 ARE ITERATIVE AND SHALL BE REPEATED AS OFTEN AS REQUIRED THROUGHOUT THE EXECUTION OF A CONTRACT.

Task 49 HSE Penalties and Defaults

Company (POGC) Representative/Site Representative(s) shall apply HSE penalties and defaults on the

Contractor, as allowed in the Contract, for unauthorized deviation(s) from the Contractor’s HSE

Management Plan and Exhibit L (HSE Requirements). The Contract Manager is to be advised in writing

of all Penalties and Defaults being imposed.

HSE Penalties and Defaults shall be determined from the POGC HSE Monitoring Program and its related

inspections and audits, as well as any Contract HSE Performance Reports detailing unauthorized

deviations.

Deliverable(s): Letter to Contractor advising HSE Penalties and Defaults

Reference Document(s): -POGC HSE Monitoring Program

-Contract HSE Performance Reports




-Contractor’s HSE Requirements, Tender submission

Task 50 Contract HSE Performance Reports

Contract Holder shall prepare Contract HSE Performance Reports (refer Appendix D) providing feedback

to POGC Management on the overall HSE performance of the Contractor and any sub-Contractors.

Reports to be submitted as frequently as required (usually annually in a long-term contract), or as

requested, to Contract Owner and Service Group Custodian.

Deliverable(s): Contract HSE Performance Reports

Reference Document(s): -POGC HSE Monitoring Program

-Contract HSE Performance Reports



8. Contract Phase: Demobilization

Task 51 Site Restoration – Compliance

Company (POGC) Representative/Site Representative shall ensure that the Contractor demobilizes from

the site of work in accordance with all contractual agreements including the Contractor’s HSE

Management Plan.

Company (POGC) Representative/Site Representative shall issue the HSE Site Restoration Certificate

(refer Appendix F) for approval when demobilization and site restoration are complete and satisfy all

contractual agreements.

Deliverable(s): Site Restoration Certificate for Approval by Contract Holder


All relevant Contract documents, including the Contractor’s HSE Management Plan.

Task 52 Site Restoration Certificate Approval

Contract Holder shall approve the Site Restoration Certificate (refer Appendix F) and issue it to the

Contractor.

Company (POGC) Representative/Site Representative may sign the Site Restoration Certificate at the

discretion and approval of the Contract Holder.

Deliverable(s): Approved Site Restoration Certificate


All relevant Contract documents, including the Contractor’s HSE Management Plan.



9. Contract Phase: Close Out

Task 53 Final Contract HSE Performance Report

Contract Holder shall prepare the Final Contract HSE Performance Report to be submitted to the

Contract Owner and Service Group Custodian. The report is to be finalized and submitted not later than

90 days after demobilization.

Service Group Custodian shall review report, update the Service Group as necessary and file the report

for future use.

Close Out Responsibilities for Contracts over US $200,000:

Mandatory for Contract Close Out Reports

Contract Holder shall:

• Agree and confirm physical status of the Work /Services against the Contract.

• Issue substantial completion certificate for Lump Sum Contracts.

• Note all items to be completed and/or rectified and formally document with Contractor.

• Prepare a Contractor Performance Report to record the execution of the Contract, including technical

competence, Organization and all HSE aspects.

• Conclude all claims and disputes in line with Company Procedures.

• Ensure any penalties have been applied in accordance with the Contract.

• Issue the Completion Certificate, applicable for all Contracts.

• Compile the Contract feedback report, for Contract values of over US$10M

• Consolidate all documentation to support close out.

• Confirm that all charges made under the Contract are valid.

• Agree and sign the statement of final account, applicable for all Contracts.

Note: The Contract Holder’s responsibility for management of the Contract shall end on completion of

the statement of final account

Deliverable(s): Final Contract HSE Performance Report

Reference Document(s): -CONTRACT HSE MANAGEMEN (PR-10-POGC-001),Appendix D

-According current national laws and regulations in Lump Sum Contract




Appendix MC: HSE Checklist for Minor Contracts

Contract Holder Name: Contracting Company:

Contract Number:

Item

No.

Contract Holder Action Required for Contract?

Coastal Interior

If Required,

Action

Completed?

Pre-execution of Contract:

1 POGC Emergency number/procedure explained MANDATORY MANDATORY NO

2 Permit To Work requirements explained MANDATORY MANDATORY NO

3 Report ability of HSE incidents explained MANDATORY MANDATORY NO

4 POGC Road Journey Management Procedures

explained

Not required MANDATORY NO

5 Vehicle(s) meet POGC standards Not required MANDATORY NO

6 Area Coordinator briefed about interior visit Not required

NO

NO

7 HSE workshop with contractor completed

NO

NO

NO

8 Identification of Hazards & Effects completed

for Contract Scope of Work

NO

NO

NO

9 HSE Certificate signed

NO

NO

NO

10 HSE Training requirements explained

NO

NO

NO

11 HSE Training commenced

NO

NO

NO

During Execution of Contract:

11 Contractor working practices monitored by

Company Site Rep.

NO

NO

NO

12 HSE Training completed

NO

NO

NO



Post-execution of Contract:

13 Site Restoration Certificate Issued

NO

NO

NO

14 Contract HSE Report filed

NO

NO

NO

All Mandatory and Contract Requirements completed

Signed:

Date:

Contract Holder

All Mandatory and Contract HSE Requirements explained and understood.

Signed: Date:

Contractor


Appendix A: Summary - Contract HSE Management Procedure

Contract Number: Contract Title:

Prepared by: Contract Holder

Approved by: Contract Owner

Name and Reference Indicator:


Date:

Date:

Contract Phase: Planning and Invitation to Tender

Task

Number

Activity

Action

Activity Description

Reference

Deliverable(s)

1

Appoint Contract Holder

Owner

Appoint Contract Holder (CH) and, if required, Company (POGC) Representative (CR)

Transactions Regulation (of

POGC)

Memo to file

2

Prepare Contract Scope

of Work

Holder

Define work and/or services required for Contract:

assess activities required for each contract commensurate with level of HSE risk

evaluate resources required to manage HSE in the contract

Exhibit L (HSE

Requirements)contract

Doc.

Memo to file

3

Prepare Contract

Schedule

Holder

Prepare contract schedule by inserting planned dates


POGC)

Contract Schedule

4

Develop Contract

Strategy

Holder

Summarize work and/or services required from mobilization to demobilization, with particular

attention to all interfaces and define the boundaries of the contract


POGC)

Contract Strategy

5

Approval of Contract

Owner

Contract Owner (CO) to approve Contract Strategy


Memo to file

DOCUMENT TITLE: Contract HSE Management Part I REVISION 1.0 Page 45



Strategy POGC)

6

Conduct HSE

Assessment

Holder

Conduct a structured, formal HSE Assessment of the contract, using the Scope, Schedule

and Strategy documents. Identify major hazards and methods for their control (Hazards and

Effects Management Process – HEMP)

Exhibit L (HSE

Requirements) contract

Doc.

MA-12-POGC-001 (HSE

Management System

Manual),

Formal HSE Assessment

for doc.HSE

Requirements

7

Prepare Exhibit L (HSE


Doc.

Holder

Use the results of the HSE Assessment to develop document Exhibit L (HSE

Requirements)contract Doc.

for inclusion in Tender

Exhibit L (HSE


Doc.

Exhibit L (HSE


Doc.

8

Prepare POGC Contract

HSE M’gmnt Schedule

Holder

Prepare POGC Contract HSE Management Schedule using the results of the HSE Assessment.

Send to CO for approval

MA-12-POGC-001 (HSE

Management System

Manual),

POGC Contract HSE

M’gmnt Schedule

9

Approve POGC Contract

HSE M’gmnt Schedule

Owner

Approve POGC Contract HSE Management Schedule. Make necessary resources available.

MA-12-POGC-001 (HSE

Management System

Manual),

Memo to file

10

Develop HSE Pre-

Qualification Criteria

Holder

Develop HSE Pre-qualification criteria based on the HSE Assessment and HSE Requirements.

Submit to Tender Board for endorsement.

MA-12-POGC-001(HSE

Manual Management) &

MA-13-POGC-001(HSE

Manual Management)

HSE Pre-qualification

criteria

11

Endorse HSE Pre-

Qualification Criteria

Tender

Board

Tender Board to endorse HSE Pre-qualification Criteria


POGC)

Memo to Contract File

12

Pre-qualify Contractors

Holder

Perform HSE pre-qualification exercise to ensure contractors invited to bid meet or exceed

POGC’s HSE standards. Submit to Tender Board for approval


POGC)

Contractor bid list

13

Approve Contractor bid

Tender

Tender Board to approve Contractor Bid list


Approved Contractor Bid



list

Board POGC)

List

Appendix A: (Continued)

Contract Phase: The Tender Period

Task

Numb

er

Activity

Action


Reference

Deliverable(s)

14

Contractor Submission

HSE Requirements

Contract

Manager

Perform HEMP. Detail all HSE issues discovered including those in Exhibit L (HSE


as issued and detail how these risks will be controlled, mitigated and managed. Detail any

HSE issues additional to those outlined in Exhibit L (HSE Requirements) Contract Doc.

and include how these will be controlled, mitigated and managed.

Exhibit L (HSE


HSE Requirements

submission

15

Site Visit

Holder

Arrange any Contractor requested site visits.

Scope of Work

Minutes of Site Visit

16

Clarification Meeting

Holder

Arrange any Contractor requested tender clarification meeting. Arrange meeting(s) to

clarify technical (including HSE) aspects of bid documents if necessary.


POGC)

Letter to

Contractors;

Minutes of Meet.

Contract Phase: Evaluation and Contract Award

Task

Numb

er

Activity

Action


Reference

Deliverable(s)

17

Review Contractor

HSE Requirements

Submission

Holder

Initial review of Contractor’s submission against the requirements of Exhibit L (HSE

Requirements) Contract Doc. . Carry out gap analysis between Scope of Works and

Contractor’s HSE Requirements submission.

Exhibit L (HSE

Requirements) Contract

Doc.

Gap Analysis Memo

to file



18

Evaluate Contractor HSE

Requirements Submission

Holder

Meet with Contractors and clarify HSE Requirements Submission to make bid compliant.

Establish where improvements will be required if contract is awarded.

Exhibit L (HSE


Doc.

Letter(s) to

Contractor(s)

19

Review Contractor(s)

Ability to Manage HSE

Risk

Holder

Determine the likelihood that levels and classes of manpower, equipment, other resources

and policies proposed in Contractor(s) Exhibit L (HSE Requirements) Contract Doc.

Submission will enable the Contractor(s) to manage contract HSE risk.

Exhibit L (HSE


Doc.

Memo to Contract

file

20

Contractor HSE

assessment

Holder

Assess which Contractor(s) will require additional POGC supervision to ensure Exhibit L (HSE

Requirements) Contract Doc. Submission is carried out correctly; assess which

Contractor(s) will NOT require additional POGC supervision. Advise SUPPORT SERVICES.

Exhibit L (HSE


Doc.

Memo to Contract

file

21

Make recommendation

Holder

The CH shall make a recommendation for contract award to the Tender Board, highlighting

any anomalies or qualifications relating to each Contractor.


POGC)

Tender Board

presentation

22

Advise Contractor of

POGC Representative

Holder

Confirm appointment of Company (POGC) Representative (CR) and advise Contractor by

letter using document LE-01-POGC-001(Letter of Approval).


POGC)

LE-01-POGC-

001(Letter of

Approval)

23

Advise Contractor of

POGC Site Representative

Holder

Appoint Company (POGC) Site Representative and advise Contractor by letter, using

document LE-01-POGC-001(Letter of Approval).


POGC)

LE-01-POGC-

001(Letter of

Approval)

24

Appoint Contractor key

personnel

Contract

Manager

Appointment of Contractor’s HSE key personnel listed in Exhibit L (HSE Requirements)

Contract Doc. . Advise CH.

Exhibit L (HSE


Doc.

Letter to Contract

Holder

25

Approve Contractor key

personnel

Holder

Confirm to Contract Manager POGC’s acceptance of HSE key personnel listed in the contract.

Exhibit L (HSE


Doc.

Letter to Contract

M’ger




Contract Phase: Mobilization

Task

Numb

er

Activity

Action


Reference

Deliverable(s)

26

Kick off meetings and

HSE workshop

Holder

Conduct POGC internal kick off meeting and POGC/Contractor Kick off meeting to ensure

that HSE and other contractual obligations are thoroughly understood. Hold a separate HSE

Workshop at site.


POGC)

Minutes of meetings

and HSE workshop

27

Prepare HSE Management

Plan

Contract

Manager

Prepare HSE Management Plan, incorporating any POGC comments arising from the kick off

meeting and the HSE Workshop, including any necessary POGC mandatory training, for

submission to CH

Exhibit L (HSE


Doc.

HSE Management

Plan

28

Review Contractor’s HSE

Management Plan

Holder

Review Contractor’s HSE Management Plan; issue Modifications Letter if required.

Exhibit L (HSE


Doc.

Modifications letter

if required.

29

Approve Contractor’s HSE

Management Plan

Holder

Advise Contract Manager of CH’s approval of HSE Management Plan

Contractor’s HSE M’gmnt

Plan

Letter to Contractor

30

Develop HSE monitoring

program

Holder

Detail how the performance of the Contractor will be monitored against the Contractor’s

HSE Management Plan. Prepare the HSE Monitoring Program documentation

HSE M’gmnt Plan

Proposed HSE

Monitoring Plan

31

Review HSE Monitoring

Program

Owner

Contract Owner shall review HSE Monitoring Plan

Proposed plan

32

Approve HSE Monitoring

Program

Owner

Contract Owner shall approve HSE Monitoring Plan and advise CH

Approved plan

Memo to file

33

POGC & Contractor HSE

training

Holder

Schedule and complete all necessary POGC and Contractor staff training as identified in the

POGC and Contractor’s HSE assessments

Tasks 6,7, and 27

Training records



34

Contractor Mobilization

Contract

Manager

Contractor to commence mobilization activities. CH to monitor, inspect and audit to ensure

that Contractor complies with the Contractor’s HSE Management Plan and Exhibit L (HSE

Requirements) Contract Doc.

HSE Monitoring Program

Contract HSE

Performance

Report.

35

Pre-execution HSE Audit

of Contractor

Holder

Conduct an audit against the Contractor’s HSE Management Plan to determine if the

Contractor has achieved the pre-execution targets stated in the Exhibit L (HSE

Requirements) Contract Doc. and Contractor’s HSE Management Plan, and that mobilization

is complete. Forward report to Contract Manager.

HSE M’gmnt Plan

Minutes of Pre-

execution meeting

36

Complete Pre-execution

HSE Audit Items

Contract

Manager

Contractor completes all items flagged in the pre-execution HSE audit.

Minutes of Pre-exec.

meeting

37

Contractor – Readiness to

Commence

Contract

Manager

Contractor confirms to CH that all pre-execution items are completed and issues Pre-

execution Completion report. CM also forwards Contractor’s HSE certificate (CONTRACT

HSE MANAGEMENT (PR-10-POGC-001), Parts II, Appendix 1) for authorization by CH


meeting

Completion report &

HSE Certificate

38

Issue HSE Certificate

Holder

If no unsafe operating conditions exist, CH issues the HSE Certificate (refer Appendix E) to

Contract Manager, subject to any exceptions noted on the HSE Certificate.


meeting

HSE Certificate




Contract Phase: Execution

Task

Numb

er

Activity

Action


Reference

Deliverable(s)

39

Supervision

POGC

Rep/Site

Rep

Continuous assurance and verification that Contractor systems are performing in accordance

with the Contractor’s HSE Management Plan

HSE M’gmnt Plan

Contract HSE

Performance

Reports

40

Monitor implementation of

HSE M’gmnt Plan

Owner/Ho

lder/ Site

Rep.

Monitor Contractor’s performance against the Contractor’s HSE Management Plan using the

HSE Monitoring Program. CO and CH to participate in audits, incident investigations,

meetings and reviews.

HSE M’gmnt Plan

Contract HSE

Performance

Reports

41

Additional HSE

Requirements

Holder

Carry out HEMP to incorporate any additional HSE requirements arising from contract

execution leading to enlarged Scope of Work. Advise SUPPORT SERVICES and Contractor of

any additional POGC HSE requirements.


POGC)

Variation letter to

Contractor; memo

to file

42

Contractor – revise HSE

Management Plan

Contract

Manager

Following on from the variation letter received from POGC, any unforeseen work activities

shall be assessed and the Contractor shall revise HSE Management Plan accordingly.

Authorization for all deviations and amendments to HSE Management Plan shall be sought

from CH.

HSE M’gmnt Plan

Letter to CH

43

Review revised HSE

Management Plan

Holder

CH shall review revised HSE Management Plan received from CM. Advise Contractor of any

further revisions required by POGC to HSE Management Plan.

Revised HSE M’gmnt Plan


44

Approve revised HSE

Management Plan

Holder

CH shall advise CM when revised HSE Management Plan is approved



45

Implement POGC HSE

deviations and

Holder/Re

p/

CH shall notify CM that any POGC deviations and/or amendments to the HSE Management

Plan are to be implemented.


Letter to Contractor;

memo to file



amendments

Site Rep

46

Contractor - revise HSE

Management Plan

Contract

Manager

CM shall revise the HSE Management Plan as required by circumstances arising from the

execution of the contract. CH shall be notified of any required variations and/or

amendments.

HSE M’gmnt Plan

Letter to CH

47

Review revised HSE

Management Plan

Holder

CH shall review Contractor revised HSE Management Plan received from CM

HSE M’gmnt Plan

48

Approve revised HSE

Management Plan

Holder

CH shall advise CM that Contractor revised HSE Management Plan is approved

HSE M’gmnt Plan


NOTE: Task Numbers 42 through 48 are iterative and shall be repeated as often as required throughout the execution of a contract

49

HSE Penalties and

Defaults

POGC

Rep/Site

Rep.

Applications of HSE defaults and penalties on the Contractor, as allowed in the contract for

unauthorized deviation from the Contractor’s HSE Management Plan and Exhibit L (HSE

Requirements) Contract Doc. CM to be notified in writing

HSE M’gmnt Plan

Letter to Contractor;

memo to file

50

Contract HSE Performance

Reports

Holder

Prepare Contract HSE Performance Report(s) providing feedback to POGC management on

the overall HSE performance of the Contractor and any sub-contractors. Reports to be

submitted annually to CO and Service Group Custodian (SGC).

HSE Monitoring Program

Contract HSE

Performance

Report(s)

Contract Phase: De-mobilization

Task

Numb

er

Activity

Action


Reference

Deliverable(s)

51

Site Restoration –

compliance

Holder/

Site Rep

Ensure Contractor de-mobilizes from site of work in accordance with HSE Management Plan.

Site Rep. Shall issue HSE Site Restoration Certificate (CONTRACT HSE MANAGEMENT (PR-

10-POGC-001) Part I, Appendix F)

HSE M’gmnt Plan

Site Restoration

Certificate

52

Site Restoration

Certificate

Holder/

Site Rep.

Approve Site Restoration Certificate and issue to Contractor. CSR can sign Site Restoration

Certificate at the discretion of the CH.

HSE M’gmnt Plan

Site Restoration

Certificate



Contract Phase: Close-out

Task

Numb

er

Activity

Action


Reference

Deliverable(s)

53

Final Contract HSE

Performance Report

Holder

Prepare Final Contract HSE Performance Report to be submitted to CO and Service Group

Custodian (SGC). Report to be finalized and submitted not later than 90 days after de-

mobilization. SGC to review report, update Service Group as necessary and file report for

future use.

CONTRACT HSE

MANAGEMENT (PR-10-

POGC-001), Part I,

Appendix D

Final Contract HSE

Performance Report



Appendix A1: Contract HSE Management Schedule

Contract Number: Contract Title:

Prepared by: Contract Holder Approved by: Contract Owner



Date:

Date:

Contract Phase: Planning and Invitation to Tender

Task

Numb

er

Activity

Action


Reference

Deliverable(s)

Date

(Planned/actu

al)

Mandays

(Planned/Actual

)

1

Appoint Contract

Holder

Owner

Appoint Contract Holder (CH) and, if required, Company (POGC) Representative

(CR)

Transaction

s

Regulation

(of POGC)

Memo to file

2

Prepare Contract

Scope of Work

Holder

Define work and/or services required for Contract:

assess activities required for each contract commensurate with level of HSE risk

evaluate resources required to manage HSE in the contract

Exhibit L

(HSE

Requiremen

ts) Contract

Doc.

Memo to file

P: A:

P: A:

3

Prepare Contract

Schedule

Holder

Prepare contract schedule by inserting planned dates

Transaction

s

Regulation

(of POGC)

Contract

Schedule

P: A:

P: A:



4

Develop Contract

Strategy

Holder

Summarize work and/or services required from mobilization to demobilization, with

particular attention to all interfaces and define the boundaries of the contract

Transaction

s

Regulation

(of POGC)

Contract

Strategy

P: A:

P: A:

5

Approval of

Contract Strategy

Owner

Contract Owner (CO) to approve Contract Strategy

Transaction

s

Regulation

(of POGC)

Memo to file

P: A:

P: A:

6

Conduct HSE

Assessment

Holder

Conduct a structured, formal HSE Assessment of the contract, using the Scope,

Schedule and Strategy documents. Identify major hazards and methods for their

control (Hazards and Effects Management Process – HEMP)

Exhibit L

(HSE

Requiremen

ts) Contract

Doc.

MA-12-

POGC-001

(HSE

Manageme

nt System

Manual),

Formal HSE

Assessment

for doc.

Exhibit L (HSE

Requirements

) Contract

Doc.

P: A:

P: A:

7

Prepare Exhibit L

(HSE

Requirements)

Contract Doc.

Holder

Use the results of the HSE Assessment to develop document Exhibit L (HSE

Requirements) Contract Doc. for inclusion in Tender

Exhibit L

(HSE

Requiremen

ts) Contract

Doc.

Exhibit L (HSE

Requirements

) Contract

Doc.

P: A:

P: A:

8

Prepare POGC

Contract HSE

M’gmnt Schedule

Holder

Prepare POGC Contract HSE Management Schedule using the results of the HSE

Assessment. Send to CO for approval

MA-12-

POGC-001

(HSE

POGC

Contract HSE

M’gmnt

P: A:

P: A:



Manageme

nt System

Manual),

Schedule

9

Approve POGC

Contract HSE

M’gmnt Schedule

Owner

Approve POGC Contract HSE Management Schedule. Make necessary resources

available.

MA-12-

POGC-001

(HSE

Manageme

nt System

Manual),

Memo to file

P: A:

P: A:

10

Develop HSE Pre-

Qualification

Criteria

Holder

Develop HSE Pre-qualification criteria based on the HSE Assessment and HSE

Requirements. Submit to Tender Board for endorsement.

MA-12-

POGC-

001(HSE

Manual

Manageme

nt)& MA-

13-POGC-

001 (HSE

Manual

Manageme

nt)

HSE Pre-

qualification

criteria

P: A:

P: A:

11

Endorse HSE Pre-

Qualification

Criteria

Tender

Board

Tender Board to endorse HSE Pre-qualification Criteria

Transaction

s

Regulation

(of POGC)

Memo to

Contract File

P: A:

P: A:

12

Pre-qualify

Contractors

Holder

Perform HSE pre-qualification exercise to ensure contractors invited to bid meet or

exceed POGC’s HSE standards. Submit to Tender Board for approval

Transaction

s

Regulation

Contractor bid

list

P: A:

P: A:



(of POGC)

13

Approve

Contractor bid list

Tender

Board

Tender Board to approve Contractor Bid list

Transaction

s

Regulation

(of POGC)

Approved

Contractor Bid

List

Appendix A1: (Continued)

Contract Phase: The Tender Period

Task

Numb

er

Activity

Action


Reference

Deliverable(s)

Date

(Planned/Actu

al)

Mandays

(Planned/Actual

)

14

Contractor

Submission

Exhibit L (HSE

Requirements)

Contract Doc.

Contract

Manager

Perform HEMP. Detail all HSE issues discovered including those in Exhibit L (HSE

Requirements) Contract Doc. as issued and detail how these risks will be

controlled, mitigated and managed. Detail any HSE issues additional to those

outlined in Exhibit L (HSE Requirements) Contract Doc. and include how these will

be controlled, mitigated and managed.

Exhibit L

(HSE

Requiremen

ts) Contract

Doc.

Exhibit L (HSE

Requirements

) Contract

Doc.

submission

15

Site Visit

Holder

Arrange any Contractor requested site visits.

Scope of

Work

Minutes of

Site Visit

P: A:

P: A:

16

Clarification

Meeting

Holder

Arrange any Contractor requested tender clarification meeting. Arrange meeting(s)

to clarify technical (including HSE) aspects of bid documents if necessary.

Transaction

s

Regulation

(of POGC)

Letter to

Contractors;

Minutes of

Meet.

P: A:

P: A:

Contract Phase: Evaluation and Contract Award

Task

Numb

er

Activity

Action


Reference

Deliverable(s)

Date

(Planned/Actu

al)

Mandays

(Planned/Actual

)



17

Review Contractor

Exhibit L (HSE

Requirements)

Contract Doc.

Submission

Holder

Initial review of Contractor’s submission against the requirements of Exhibit L (HSE

Requirements) Contract Doc. Carry out gap analysis between Scope of Works and

Contractor’s Exhibit L (HSE Requirements) Contract Doc. submission.

Exhibit L

(HSE

Requiremen

ts) Contract

Doc.

Gap Analysis

Memo to file

P: A:

P: A:

18

Evaluate

Contractor Exhibit

L (HSE

Requirements)

Contract Doc.

Submission

Holder

Meet with Contractors and clarify Exhibit L (HSE Requirements) Contract Doc.

Submission to make bid compliant. Establish where improvements will be required

if contract is awarded.

Exhibit L

(HSE

Requiremen

ts) Contract

Doc.

Letter(s) to

Contractor(s)

P: A:

P: A:

19

Review

Contractor(s)

Ability to Manage

HSE Risk

Holder

Determine the likelihood that levels and classes of manpower, equipment, other

resources and policies proposed in Contractor(s) Exhibit L (HSE Requirements)

Contract Doc. Submission will enable the Contractor(s) to manage contract HSE

risk.

Exhibit L

(HSE

Requiremen

ts) Contract

Doc.

Memo to

Contract file

P: A:

P: A:

20

Contractor HSE

assessment

Holder

Assess which Contractor(s) will require additional POGC supervision to ensure

Exhibit L (HSE Requirements) Contract Doc. Submission is carried out correctly;

assess which Contractor(s) will NOT require additional POGC supervision. Advise

SUPPORT SERVICES.

Exhibit L

(HSE

Requiremen

ts) Contract

Doc.

Memo to

Contract file

P: A:

P: A:

21

Make

recommendation

Holder

The CH shall make a recommendation for contract award to the Tender Board,

highlighting any anomalies or qualifications relating to each Contractor.

Transaction

s

Regulation

(of POGC)

Tender Board

presentation

P: A:

P: A:

22 Advise Contractor

of POGC

Holder

Confirm appointment of Company (POGC) Representative (CR) and advise Transaction

s

LE-01-POGC-

001(Letter of

P: A:

P: A:



Representative

Contractor by letter using document LE-01-POGC-001(Letter of Approval).

Regulation

(of POGC)

Approval) to

Contractor

23

Advise Contractor

of POGC Site

Representative

Holder

Appoint Company (POGC) Site Representative and advise Contractor by letter, using

document LE-01-POGC-001(Letter of Approval).

Transaction

s

Regulation

(of POGC)

LE-01-POGC-

001(Letter of

Approval) to

Contractor

P: A:

P: A:

24

Appoint

Contractor key

personnel

Contract

Manager

Appointment of Contractor’s HSE key personnel listed in Exhibit L (HSE

Requirements) Contract Doc. . Advise CH.

Exhibit L

(HSE

Requiremen

ts) Contract

Doc.

Letter to

Contract

Holder

25

Approve

Contractor key

personnel

Holder

Confirm to Contract Manager POGC’s acceptance of HSE key personnel listed in the

contract.

Exhibit L

(HSE

Requiremen

ts) Contract

Doc.

Letter to

Contract

M’ger

P: A:

P: A:




Contract Phase: Mobilization

Task

Numb

er

Activity

Action


Reference

Deliverable(s)

Date

(Planned/Actu

al)

Mandays

(Planned/Actual

)

26

Kick off meetings

and HSE

workshop

Holder

Conduct POGC internal kick off meeting and POGC/Contractor Kick off meeting to

ensure that HSE and other contractual obligations are thoroughly understood. Hold

a separate HSE Workshop at site.

Transaction

s

Regulation

(of POGC)

Minutes of

meetings and

HSE workshop

P: A:

P: A:

27

Prepare HSE

Management Plan

Contract

Manager

Prepare HSE Management Plan, incorporating any POGC comments arising from the

kick off meeting and the HSE Workshop, including any necessary POGC mandatory

training, for submission to CH.

Exhibit L

(HSE

Requiremen

ts) Contract

Doc.

HSE

Management

Plan

P: A:

P: A:

28

Review

Contractor’s HSE

Management Plan

Holder

Review Contractor’s HSE Management Plan; issue Modifications Letter if required.

Exhibit L

(HSE

Requiremen

ts) Contract

Doc.

Modifications

letter if

required.

P: A:

P: A:

29

Approve

Contractor’s HSE

Management Plan

Holder

Advise Contract Manager of CH’s approval of HSE Management Plan

Contractor’s

HSE

M’gmnt

Plan

Letter to

Contractor

P: A:

P: A:

30

Develop HSE

monitoring

program

Holder

Detail how the performance of the Contractor will be monitored against the

Contractor’s HSE Management Plan. Prepare the HSE Monitoring Program

documentation

HSE

M’gmnt

Plan

Proposed HSE

Monitoring

Plan

P: A:

P: A:



31

Review HSE

Monitoring

Program

Owner

Contract Owner shall review HSE Monitoring Plan

Proposed

plan

P: A:

P: A:

32

Approve HSE

Monitoring

Program

Owner

Contract Owner shall approve HSE Monitoring Plan and advise CH

Approved

plan

Memo to file

P: A:

P: A:

33

POGC &

Contractor HSE

training

Holder

Schedule and complete all necessary POGC and Contractor staff training as

identified in the POGC and Contractor’s HSE assessments

Tasks 6,7,

and 27

Training

records

P: A:

P: A:

34

Contractor

Mobilization

Contract

Manager

Contractor to commence mobilization activities. CH to monitor, inspect and audit to

ensure that Contractor complies with the Contractor’s HSE Management Plan and

Exhibit L (HSE Requirements) Contract Doc.

HSE

Monitoring

Program

Contract HSE

Performance

Report.

35

Pre-execution HSE

Audit of

Contractor

Holder

Conduct an audit against the Contractor’s HSE Management Plan to determine if the

Contractor has achieved the pre-execution targets stated in the Exhibit L (HSE

Requirements) Contract Doc. and Contractor’s HSE Management Plan, and that

mobilization is complete. Forward report to Contract Manager.

HSE

M’gmnt

Plan

Minutes of

Pre-execution

meeting

P: A:

P: A:

36

Complete Pre-

execution HSE

Audit Items

Contract

Manager

Contractor completes all items flagged in the pre-execution HSE audit.

Minutes of

Pre-exec.

meeting

37

Contractor –

Readiness to

Commence

Contract

Manager

Contractor confirms to CH that all pre-execution items are completed and issues

Pre-execution Completion report. CM also forwards Contractor’s HSE certificate

(CONTRACT HSE MANAGEMENT (PR-10-POGC-001), Parts II, Appendix 1) for

authorization by CH

Minutes of

Pre-exec.

meeting

Completion

report & HSE

Certificate

38

Issue HSE

Certificate

Holder

If no unsafe operating conditions exist, CH issues the HSE Certificate (refer

Appendix E) to Contract Manager, subject to any exceptions noted on the HSE

Certificate.

Minutes of

Pre-exec.

meeting

HSE

Certificate

P: A:

P: A:




Contract Phase: Execution

Task

Number

Activity

Action


Reference

Deliverable(s)

Date

(Planned/Actual

)

Mandays

(Planned/Actual

)

39

Supervision

POGC

Rep/Site

Rep

Continuous assurance and verification that Contractor systems are performing in

accordance with the Contractor’s HSE Management Plan

HSE

M’gmnt

Plan

Contract HSE

Performance

Reports

P: A:

P: A:

40

Monitor

implementation of

HSE M’gmnt Plan

Owner/Hol

der/ Site

Rep.

Monitor Contractor’s performance against the Contractor’s HSE Management Plan

using the HSE Monitoring Program. CO and CH to participate in audits, incident

investigations, meetings and reviews.

HSE

M’gmnt

Plan

Contract HSE

Performance

Reports

P: A:

P: A:

41

Additional HSE

Requirements

Holder

Carry out HEMP to incorporate any additional HSE requirements arising from

contract execution leading to enlarged Scope of Work. Advise SUPPORT

SERVICES and Contractor of any additional POGC HSE requirements.

Transaction

s

Regulation

(of POGC)

Variation letter

to Contractor;

memo to file

P: A:

P: A:

42

Contractor –

revise HSE

Management Plan

Contract

Manager

Following on from the variation letter received from POGC, any unforeseen work

activities shall be assessed and the Contractor shall revise HSE Management Plan

accordingly. Authorization for all deviations and amendments to HSE Management

Plan shall be sought from CH.

HSE

M’gmnt

Plan

Letter to CH

43

Review revised

HSE Management

Plan

Holder

CH shall review revised HSE Management Plan received from CM. Advise

Contractor of any further revisions required by POGC to HSE Management Plan.

Revised

HSE

M’gmnt

Plan

Letter to

Contractor

P: A:

P: A:

44

Approve revised

HSE Management

Plan

Holder

CH shall advise CM when revised HSE Management Plan is approved

Revised

HSE

M’gmnt

Letter to

Contractor

P: A:

P: A:



Plan

45

Implement POGC

HSE deviations

and amendments

Holder/Rep

/

Site Rep

CH shall notify CM that any POGC deviations and/or amendments to the HSE

Management Plan are to be implemented.

Revised

HSE

M’gmnt

Plan

Letter to

Contractor;

memo to file

P: A:

P: A:

46

Contractor -

revise HSE

Management Plan

Contract

Manager

CM shall revise the HSE Management Plan as required by circumstances arising

from the execution of the contract. CH shall be notified of any required variations

and/or amendments.

HSE

M’gmnt

Plan

Letter to CH

P: A:

P: A:

47

Review revised

HSE Management

Plan

Holder

CH shall review Contractor revised HSE Management Plan received from CM

HSE

M’gmnt

Plan

P: A:

P: A:

48

Approve revised

HSE Management

Plan

Holder

CH shall advise CM that Contractor revised HSE Management Plan is approved

HSE

M’gmnt

Plan

Letter to

Contractor

P: A:

P: A:

NOTE: Task Numbers 42 through 48 are iterative and shall be repeated as often as required throughout the execution of a contract

49

HSE Penalties and

Defaults

POGC

Rep/Site

Rep.

Applications of HSE defaults and penalties on the Contractor, as allowed in the

contract for unauthorized deviation from the Contractor’s HSE Management Plan

and Exhibit L (HSE Requirements) Contract Doc. CM to be notified in writing

HSE

M’gmnt

Plan

Letter to

Contractor;

memo to file

P: A:

P: A:

50

Contract HSE

Performance

Reports

Holder

Prepare Contract HSE Performance Report(s) providing feedback to POGC

management on the overall HSE performance of the Contractor and any sub-

contractors. Reports to be submitted annually to CO and Service Group

Custodian (SGC).

HSE

Monitoring

Program

Contract HSE

Performance

Report(s)

P: A:

P: A:



Contract Phase: De-mobilization

Task

Numb

er

Activity

Action


Reference

Deliverable(s)

Date

(Planned/Actual

)

Mandays

(Planned/Actual

)

51

Site Restoration –

compliance

Holder/

Site Rep

Ensure Contractor de-mobilizes from site of work in accordance with HSE

Management Plan. Site Rep. Shall issue HSE Site Restoration Certificate

(CONTRACT HSE MANAGEMENT (PR-10-POGC-001), Part I, Appendix F)

HSE

M’gmnt

Plan

Site

Restoration

Certificate

P: A:

P: A:

52

Site Restoration

Certificate

Holder/

Site Rep.

Approve Site Restoration Certificate and issue to Contractor. CSR can sign Site

Restoration Certificate at the discretion of the CH.

HSE

M’gmnt

Plan

Site

Restoration

Certificate

P: A:

P: A:

Contract Phase: Close-out

Task

Numb

er

Activity

Action


Reference

Deliverable(s)

Date

(Planned/Actual

)

Mandays

(Planned/Actual

)

53

Final Contract

HSE Performance

Report

Holder

Prepare Final Contract HSE Performance Report to be submitted to CO and Service

Group Custodian (SGC). Report to be finalized and submitted not later than 90 days

after de-mobilization. SGC to review report, update Service Group as necessary and

file report for future use.

CONTRACT

HSE

MANAGEME

NT (PR-10-

POGC-001),

Part I,

Appendix D

Final Contract

HSE

Performance

Report

P: A:

P: A:


DOCUMENT TITLE: Contract HSE Management Part I Page 65 REVISION 001

Appendix B: HSE Prequalification Questionnaire

This Pre-Qualification questionnaire shall be given to contractors. Refer Tasks 10, 11, 12.

BASE CASE HSE PRE-QUALIFICATION QUESTIONNAIRE

Section 1: Leadership and Commitment

Commitment to HSE

Through leadership

a) Are senior managers personally involved in HSE management?

b) Is there evidence of commitment at all levels of the organization?

c) Is there a positive culture towards HSE matters?

Section 2: Policy and Strategic Objectives

(I) HSE policy

document

a) Does your Company have an HSE policy document? (If YES please

attach a copy).

b) Who has overall and final responsibility for HSE in your organization?

c) Who is the most senior person in the organization responsible for this

policy being carried out on site where employees are working? (Provide

name, title and experience).

(ii) Employee access to

HSE policy document

a) Itemize the methods by which you have drawn your HSE policy

document to the attention of all your employees.

b) What are your arrangements for advising employees of changes in the

policy?

Section 3: Organization, Responsibilities, Resources, Standards and Documentation

(I) 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

a) Have the managers and supervisors at all levels received formal HSE

training in their responsibilities with respect to conducting work to HSE

standards? (If YES please give details. Where the training 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 work related HSE issues, and to keep this knowledge up

to date?



b) What arrangements does your Company have to ensure new employees

have knowledge of your specific HSE policies and practices?

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 their work scope?

d) What training do you provide to ensure that all employees are aware of

Company HSE requirements?

e) What arrangements does your Company have to ensure that the HSE

knowledge of existing staff is up to date? (If training is provided in-house

please give details of course contents.)

(iv) Specialized training a) Have you identified areas of your Company operations where specialized

training is required to deal with major hazards? (If YES please itemize and

provide details of training given.)

b) If the specialized work involves the following hazards, how are the

hazards identified, assessed and controlled?

Road transport

Working in heat

Camp hygiene

Waste disposal

Communication to a multi-cultural workforce

Radiation

Chemical handling

(v) HSE qualified staff –

additional training

a) Do any of your staff conduct HSE training? If so, what are their

qualifications?

(vi) Assessment of

suitability of

subcontractors/ other

companies

a) For your sub-contractors, how do you assess:

HSE competence

HSE performance

b) How do you ensure your sub-contractors meet your HSE standards?

(vii) Standards a) Where do you record your HSE standards

b) How do you ensure these are met and verified?

c) Is there a system for producing, updating and disseminating standards?



Section 4: Hazards and Effects Management

(I) Hazards and effects

assessment

a) What techniques are used within your Company for the identification,

assessment, control and recovery of hazards and effects?

(ii) Exposure of the

workforce

a) Do you have in place any systems to monitor the exposure of your

workforce to chemical or physical agents?

(iii) Handling of

chemicals

a) How is your workforce advised on the properties of chemicals

encountered in the course of their work?

(iv) Personal protective

equipment

a) What arrangements does your Company have for provision and upkeep

of protective clothing, both standard issue, and that required for

specialized activities?

(v) Waste management a) Does your Company have in place systems for identification,

classification and management of waste?

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

a) 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

a) What arrangements does your Company have for combating road and

vehicle incidents?



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:

Management

site employees?

(ii) HSE performance

achievement awards

a) Has your Company received any award for HSE performance

achievement?

(iii) Statutory modifiable

incidents/dangerous

occurrences

a) Has your Company suffered any statutory notifiable incidents in the last

five years (safety, occupational health and environmental)?

(Answers with details including dates, most frequent types, causes and

follow-up preventative measures taken.)

(iv) Improvement

requirement and

prohibition notices

a) Has your Company suffered any improvement requirement or prohibition

notices by the relevant national body, regulatory body for HSE or other

enforcing authority (including POGC or another Operating Company) 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 give following details for each year:-

number of Non Lost Time Injuries, number of Lost Time Injuries, numbers

and types of injuries, total hours worked by workforce for each

corresponding year, Frequency Rates, your Company definition of a Lost

Time incident).

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 misses reported?



Section 7: Auditing and Review

(I) Auditing a) Do you have a written procedure on HSE auditing and how does this

specify the standards for auditing (including unsafe act auditing)?

b) Do your Company’s HSE Plans include schedules for auditing and what

range of auditing is covered?

c) 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

a) Does your Company hold membership of any industry, trade or HSE

organization?

(ii) Additional features

of your HSE

management

a) Does your Company have any other HSE features or arrangements not

described elsewhere in your response to the questionnaire?



Appendix B (Continued)

Evaluation of Base Case HSE Pre-qualification Questionnaire

General guidelines for evaluation.

1 The contractor's response to the questionnaire should be evaluated by attaching a score to

the selected response for each category. A suggested scoring system would be as follows

A B C D

Above satisfactory

response

Satisfactory response Below satisfactory

response

Unacceptable response

An evaluation that includes one or more ‘D’ ratings, (with the exception of section 8 where only

credit shall be given) shall lead to disqualification.

An evaluation that includes 50% of ‘C’ and 50% of ‘B’ shall be acceptable provided all responses

relating to the management of the major hazards recorded in the HSE Specification are rated ‘B’ or

above.

2 Responses should be evaluated against recorded standards such as found in document

MA-12-POGC-001 (HSE Management System Manual),

3 Evaluations should be recorded and maintained in the event that the evaluation is

challenged at a later date.

4 Contract Holders shall complete the evaluation and ensure the Contract Owner endorses

the evaluation and the Service Group Custodian accepts the evaluation.

5 Feedback to the contractor of the evaluation is encouraged but must first be cleared with

SUPPORT SERVICES. The evaluation preformed shall not be released to the contractor.

WARNING:

A questionnaire such as this relies upon contractor honesty and integrity to be effective. If the

responses are considered ‘inappropriate’ then the questionnaire should be verified by personal

inspection of the contractor’s operations. Note; this may only be practicable for high risk, high

cost contracts.

The evaluation process should be aware that honest reporting, especially of HSE performance

statistics can result in an honest contractor’s performance appearing worse that of a dishonest

contractor. For example, contractor A reports all near misses, FAC’s, MTC’s, LTI’s diligently and

has extensively educated their work force to report against a wide range of hazards. Contractor B

only reports when it suspects it is obliged to. Its employees are only aware of and therefore only



report against major safety hazards. In this situation, the LTI and overall HSE performance of A

will appear to be worse than B. However, it is clear that A is the preferred contractor.

A similar situation could occur if contractor A always undertakes high-risk work in difficult locations

and therefore incurs incidents, despite working hard to avoid them. Contractor B only undertakes

lower risk work where the Client takes greater responsibility for HSE management and so has a

near perfect incident record. Awarding the high risk, remote location work to B would be a

mistake.

These and other similar problems must be considered during the evaluation. No contractor is

perfect, but some contractors try harder to improve than others.




BASE HSE PRE-QUALIFICATION QUESTIONNAIRE EVALUATION SCHEME

Section 1: Leadership and Commitment

Commitment to HSE through leadership: Item (i) - a) to c)

A B

C

D

Evidence of a positive

HSE culture in senior

management and at all

levels

Evidence of active senior

management

involvement in HSE

aspects

HSE disciplines

delegated to line

managers – no direct

involvement by senior

management

No commitment from

senior management

Section 2: Policy and Strategic Objectives

HSE policy documents and availability: Items (i) – a) to c) and (ii) – a) to b)

A

B

C

D

HSE Policy with clearly

established responsibility

and accountability; is

distributed to all

employees; is

prominently displayed.

A satisfactory HSE policy

establishes responsibility

for HSE, but is not

widely distributed.

An unsatisfactory HSE

policy statement exists;

is not widely distributed

No written HSE policy.

A ‘satisfactory’ HSE Policy contains all the basic elements in POGC’s HSE Policy. Further guidance is

provided in ,MA-12-POGC-001(HSE Manual Management) detailed guidance can be obtained from

POGC personnel.



Section 3: Organization, Responsibilities, Resources, Standards and Documentation

HSE communication and meeting programs: Item (I) – a) to c)

A

B

C

D

In addition to B,

employees are actively

involved in meetings.

Effective management

review of the entire

structure.

Structured involvement

and HSE meetings

Ad hoc involvement,

structure and HSE

meetings.

No management

involvement, no

structure, no meetings.

Staff HSE training Item (ii)

Specialized HSE training

given comprehensively

and formally to all

management.


given to all managers

but not comprehensively

covered.


given to a specific

person on location.

No specialized staff

training.

Employee orientation and training program: Item (iii) - (a) - (e)

All under B together

with a follow-up

mechanism and

reorientation as roles

change.

Employee induction

(handbook?) provided

supported by site

orientation. Supervisor

outlines, explains and

demonstrates new

employee's job

Verbal instructions only.

Basic orientation booklet

(or similar) provided for

new employees.

No formal program.

Specialized training: Item (iv) - (a) to (b) and (v)

Formal HSE training

programs have been

developed in all areas

and are conducted on a

regular basis.

Retraining periods are

established. Training

staff suitably qualified.

HSE training is given for

specialized operations,

but no routine training

conducted. Staff not

formally qualified.

On-site basic HSE

training conducted

occasionally.

No HSE training

established




Subcontractors: Item (vi) - (a) to (b)

As for B but

comprehensive.

Included as part of

standard HSE

Procedures

Structured

arrangements in place

and recorded but not

comprehensive.

Arrangements in place

on ad hoc basis.

No arrangements.

Standards : Item (vii) - (a) to (c)

Contractor has a system

of specifying, monitoring

compliance and

updating HSE standards.

Contractor has written

HSE standards to cover

all major hazards.

Basic HSE standards

exist.

No HSE standards

available.

Section 4: Hazards and Effects Management **

Hazards and Effects Assessment : Item (i)

A

B

C

D

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. Supporting

documentation

maintained.

HSE system includes

methods for the

assessment of major

hazards and effects

HSE system makes

reference to the need to

assess hazards and

effects but has no

comprehensive structure

to carry this out.

HSE system does not

include hazards and

effects assessment.

Exposure of the workforce: Item (ii)

Formal methods (linked

to hazards and effects

assessment method) in

place for advising and

monitoring exposure to

all foreseeable hazards

Does advise the

workforce and monitor

exposure to the major

hazards.

Does advise the

workforce of the major

hazards that they are

likely to be exposed to.

Does not actively advise

the workforce nor

monitor exposure

Handling of chemicals: Item (iii)



Maintains a database of

the properties of all

chemicals encountered

and has formal methods

of information

distribution to all

personnel and trains its

workforce in handling,

etc.

Distributes information

to individuals in the

workforce at start of

their involvement on-site

Provides information to

workforce in the

workplace on properties

of chemicals

No provision for advising

the workforce about

properties of chemicals

Personal protective equipment : Item (iv)

Procedures in place to

assess all PPE

requirements, monitor

and enforce usage and

replacement needs.

Stock inventories

monitored, kept above

demand levels. Training

in use provided where

needed

PPE requirements

formally assessed with

spot checks on usage.

PPE requirements

assessed by job but little

effort made to ensure

correct usage.

Basic PPE provided



Waste management: Item (v)

Formal system for waste

management (including

identification and

classification), which

actively seeks to

minimize environmental

impact.

Procedures for the

disposal of each of the

main categories of site

wastes but makes no

provision for minimizing

environmental impact.

General procedures for

waste disposal.

No methods for the

control of waste.

** This section of the evaluation shall relate directly to the HSE Specification. The example shows chemicals and waste for

demonstration purposes only. The specific hazards of the work scope should be assessed using similar criteria. Section 3-

(iv) b) in the pre-qualification questionnaire considers hazards commonly encountered in general operational work scopes.

Section 5: Planning and Procedures

HSE or operations manuals : Item (i) - (a) to (b)

A B C D

Contractor has

Procedures to cover all

HSE precautions; typical

HSE Management Plan

requirements with a

system of updating and

dissemination.

Contractor has written

HSE Procedures to cover

all major hazards.

Basic HSE Procedures

exist.

No HSE Procedures

available.

Equipment control and maintenance : Item (ii)

In addition to B routine

inspections conducted

by management or by

specialists

Formal control through

written procedures

outlining supervisory

guidelines,

responsibilities,

frequency and follow-up.

Ad hoc control on site

only.

No control.

Road Safety Management : Item (iii)

A strategy and set of

plans and procedures

covering vehicles,

drivers and operations

management in place

and shown to be

working.

A general management

strategy in place with

some procedures.

Importance of road

safety acknowledged but

left to supervisors to

manage individually.

No special attention paid

to road safety as an

area of hazardous

activities.




Section 6: Implementation and Performance Monitoring

Management and performance monitoring of work activities : Items (i) – a) to b) and (ii) a)

A

B

C

D

Comprehensive system

for monitoring

performance in all areas

with feedback to

employees for

improvement. Has

received awards for HSE

achievement.

Systematic monitoring of

HSE performance in key

areas.

Ad hoc performance

monitoring carried out.

No monitoring of HSE

performance.

Statutory modifiable incidents / dangerous occurrences and improvement requirements and

prohibition notices: Items (iii) and (iv)

No occurrences in the

last five years.

Occurrences relate to

minor incident(s) only.

One occurrence of a

major incident in the last

five years.

More than one

occurrence of major

incident in last five

years.

HSE Performance records (Latest year injury rate comparison to contractors three preceding years

average) : Item (v) - (a) to (d)

Rate steadily improving

by more than 5 per cent

per year.

Rate shows minor

improvement.

Rate not improving.

Contractor supplied

insufficient information

to establish rate or rate

increases.

Criteria for absolute performance

Rate better than that of

POGC.

Rate under 120 per cent

that of POGC.

Rate under 200 per cent

that of POGC.

Rate over 200 per cent

that of POGC.

Incident Investigation and reporting : Item (vi) (a) to (c)

As in B but with the

evidence that

improvement has taken

place

Structured investigation

with findings

communicated to all

employees.

Investigation ad hoc

with poor

communication of

findings and limited

follow up.

No investigation.



Section 7: Auditing and Review

Auditing: Item (i) - (a) to (c)

A

B

C

D

As in B but additionally

specifies management's

role in audit and follow-

up on action items

HSE documents include

details of how auditing

is to be implemented

with schedules/coverage

for the key areas

Auditing occurs but

there are no specific

details about scheduling

and coverage.

No audit process, or

process is cursory only.

Section 8: HSE Management – Additional Features

Membership of Associations : Items (I) and (ii)

A

B

C

D

Company is an active

participant in at least

one HSE association.

Company is a member

of at least one HSE

association.

Company has

membership of an

association but with no

prominence given to

HSE.

No memberships or

additional features.



Appendix C: HSE Monitoring Program

Contract Number Contract Name

Prepared by: Contract Holder/ Rep. Name / Reference Ind.

Approved by: Contract Owner Name / Reference Ind.

Activity Responsible Person

(Leader)

Participants Resources Frequency T I M I N G

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Meetings

Inspections

Management

Walkabouts

Audits

Emergency Exercises

/ Drills

Follow-up

Note. Template should be expanded as required


Appendix D: Template, Contract HSE Performance Report

These reports shall contain factual information on the HSE performance of POGC and Contractor

throughout the contract. The analysis and summary at the conclusion should address the

following:

• assess the effectiveness of the Contractor’s HSE Management Plan (including the quality of

follow-up to inspections, audits and accidents);

• identify those areas unanticipated in the plan, how they were overcome and the future

approach to be taken;

• highlight successful positive aspects that should be used in the future;

• provide a concise analysis of both POGC’s and the Contractor's HSE performance for discussion

with the Contractor's management as a means of improvement;

• provide input information on the Contractor for POGC's bid list to identify actions needed in

assessments for future tenders.

A formal record of HSE performance shall be kept on each Contractor by the Service Group

Custodian for future reference.

Suggestions to aid completion of this template are provided in italics in the ‘comment’ column.

The ratings can be: U = Unsatisfactory; J = Just Satisfactory; F = Fully Satisfactory. (See

SUPPORT SERVICES for definitions). In the event of an unsatisfactory rating, the reason for the

rating shall be given in the comments column. In the event of an item being not being assessed it

will be assumed that the item is rated as Fully Satisfactory unless otherwise indicated. Comments

should be kept as brief as possible.


Contractor HSE Performance Report

CONTRACTOR

CONTRACT NUMBER

CONTRACT NAME

DATE(S) OF CONTRACT

SUBJECT RATING COMMENT

Leadership and Commitment Did management promote a strong HSE culture?

Were sufficient resources allocated to manage HSE?

Were all deficiencies cleared promptly and effectively?

Implementation of HSE Policy Was Policy communicated and enforced?

Implementation of Contract HSE

Plan Was the Contract HSE Plan followed and updated as

required?

Effectiveness of HSE

Organization

Were the resources provided adequate?

Did all systems perform to standard?

Did the organization learn from mistakes?

Employee HSE Induction and

Training Completed to standard and on time?

Sub-Contractor HSE

Management

Did sub contractors perform to the same standard as

the contractor?

Were efforts made to improve when deficiencies were

noted?

HSE Personnel: Competence Were personnel competent?

Did they provide effective training and advice?

Did management respect their role?

HSE Meetings Was a cascaded hierarchy of meetings in place,

effective and attended by all personnel?

Tool Box Talks Were these conducted to standard?

Driving/Journey Management Were all vehicles to specification?

Was journey management followed and controlled?


Quality of Contractor’s HSE

Manual and Documentation Was documentation available, comprehensive, in

correct languages and used?

Emergency Response

Procedures

Were all credible scenarios supported by procedures?

Were procedures tested and improved when found

lacking?

Safety Rules/Job Instructions Were correct rules in place based upon job hazard

analysis?

Accident Investigation Procedure Were all incidents investigated to standard?

Implementation of HSE

Standards Manual

Were the requirements of the Manual followed and

incorporated in to contractor standards?

Briefly summarize major contravention’s of standards

FATALITIES Describe in detail any fatalities (cross reference to

reports), comment on contractor response to

investigation recommendations

LTIF Brief comment on reasons for LTIs. Comment on

contractor response to investigation recommendations

TRCF

Man-hours worked/Total

workforce

Maintenance and Control of

Plant Was equipment maintained and capable of completing

the work?

Maintenance and Control of

Other Equipment Was equipment maintained and capable of completing

the work?

Camp Facilities/Hygiene Were standards maintained?

Were there any outbreaks of illness?

Site Restoration Completed to the standard required?

Waste Management Conducted according to standard?

HSE Audits Summarize the main findings and conclusions

HSE Inspections Summarize the main findings and conclusions


Management Review Was this carried out?

Was this a ‘learning’ organization prepared to improve?

Data Compiled By Reviewed By

Date

Recommendations on Future Use of Contractor

Unconditional Conditional

(list conditions below)

Not to be used again

(list reasons why)

Contract Holder Contract Owner

Date Date


Appendix E: HSE Certificate

National Iranian Oil Company H S E C E R T I F I C A T E

Contract Title

Contractor Contract No.

Sub-Contractors

Contract Plan Activity Date Completed Exceptions

Contract HSE Plan Endorsed

Kick Off Meeting Held

HSE Workshop Held

Residential Camp Accepted

Industrial Site Accepted

Vehicle/Plant Accepted

Training Completed: (Part II Appendix 3)

Required to attend prior to commencing, C:

Required to attend within 2 months, M:

Recommended only, R:

Pre-execution Audit Completed

Essential Audit Items Completed

Notes:

On behalf of the Contractor I confirm that the activities stated above have been carried out and we

are capable of performing the work in a healthy, safe, and environmentally responsible manner.

Name Date Responsibility Signature

Contract Manager

We hereby agree that the HSE status of this Contract allows work to proceed, subject to the above

exceptions.

Name Ref. Ind. Responsibility Signature

Contract Holder

Representative*



*At Contract Holder's discretion



Appendix F: Site Restoration Certificate

National Iranian Oil Company S I T E R E S T O R A T I O N C E R T I F I C A T E

Contract Title

Contractor Contract No.

Sub-Contractors

Site Restoration Activity Date Completed Exceptions

Demobilization Date Approved

Requirement for Isolation of Facilities

(telecoms, electricity, water) notified to

POGC

Residential Camp Inspection Completed

Office Inspection Completed

Industrial Area Inspection Completed

Work-site Inspection Completed

All POGC Assets handed over to POGC

All Outstanding materials handed over to

POGC

Summary file of Contract Waste Log

handed over to POGC

Notes:

On behalf of the Contractor I confirm that the activities stated above have been carried out and we

have restored the site(s) according to the Contract Requirements



Name Date Responsibility Signature

Contract Manager

We hereby agree that the HSE status of this Contract allows the Contractor to Demobilize subject to

the exceptions listed above.

Name Date Ref.

Ind.

Responsibility Signature

Contract Holder

Representative *

* At Contract Holder's discretion



Appendix G: Variation to Contract – Transactions Regulation (of POGC)

Mandatory

A Variation to Contract shall be required to formalise and execute changes to the original

Contract scope, work, specification or Conditions of the Contract.

A Variation to Contract shall be required for the following:

• Change in Scope of Work/Services (positive or negative).

• Change in execution of the Work/Services.

• Change in resources or facilities required.

• Rate Revisions, where applicable.

• Extension of time, where applicable.

• Settlement of a claim arising from the Contract, adjusting scope or Contract Value.

• Change to the Terms and Conditions of the Contract.

All changes to the General Conditions of the Contract shall be agreed only after consultation with

Procurement & Contract Dept (Support Services) and the Legal Dept (POGC – Legal Dept).

Contract Holder shall be responsible to ensure that all changes are correctly covered by a

Variation to Contract, authorised in accordance with the Manual of Authorities and executed to

completion by the Contractor.

Advisory

Asset Manager may approve, if necessary, the execution of operational restrictions or items of

urgency, providing formal documentation is completed retrospectively.

Additional Work/Services that is unrelated to the originally tendered scope shall be provided for

under a separate Contract. However, where there is an economic advantage or synergy in

undertaking the unrelated work, such an addition may be considered and approved by Asset

Manager and Tender Board as appropriate.



Establishing a Variation to Contract

Mandatory

Where a Change Order form or Variation to Contract form is required the standard forms in

http://portal.pogc.org shall be used. Assistance from SUPPORT SERVICES shall be requested.

The finalisation of a Variation to Contract and assessment of value shall be undertaken by the

Contract Holder with assistance from the Unit Contracts Section and specialist functional advice.

All Variations to Contracts shall be agreed and signed by the Contractor and authorised according

to the Manual of Authorities unless further Tender Board approval is required.

All Variations to Contracts shall be circulated in accordance with the standard circulation and checklist

and in accordance with Transactions Regulation (of POGC).

Variations shall be logged on to the http://portal.pogc.org system by Procurement & Contracts

Dept ,as part of the approval circulation.

The signed original of the Variation to Contract shall be retained as follows:

Contracts in excess of US$ 200,000 by the Procurement & Contracts Dept (SUPPORT SERVICES).

Contracts up to US$ 200,000 to be retained by the Unit Contracts Section with original Contract

documentation and information advised for updating to Procurement & Contracts Dept (SUPPORT

SERVICES).

Contract Holder shall ensure adequate budgetary cover exists and the approved limit of

expenditure/Review Limit of the Contract is not exceeded.

Contract Holder shall require prior Tender Board approval in all cases stipulated in Transactions

Regulation (of POGC) Advisory.

The Contract Holder, Company Representative, Company Site Representative or Contractor may

identify the requirement for a Change Order and subsequent Variation to Contract to reflect

financial, scope change or program schedule impacts.

Discussion may take place with the Contractor to establish the magnitude of the change and

requirements prior to approval of the Variation to Contract. Such discussions may only occur on a

‘No commitment’ basis with the Contractor.

Variations to Contract with a nil value, or a reduction in Contract Price, or inclusion of additional

rates/work elements shall be reviewed by the Unit Contracts Section. The background to the

Variation to Contract shall be fully documented.






Appendix H: Accessing POGC Web Documents

Throughout this document, references are made to documents from one source:

Access to POGC documents:

1. Open the internet browser to the POGC Home Page at http://portal.pogc.org/SitePages/Home.aspx

2. Left click on Health, Safety and Environment.

3. Left click on “Control Documents”. This opens the POGC Business Control Documents in

"portal.pogc.org "page.

4. Enter the document title in the dialog box on the left hand side. A hit is more likely if only key

words such as “HSE” are used. It is helpful to sort the documents by document number rather than

document title.

5. If the document number is known, left click on the “Detailed” button in the lower left hand

corner. This opens the “Business Control Documents Detailed Search” dialog box.

6. Enter the EXACT document number in the “Document ID” box. Use title only to ensure

maximum returns for the search.

7. DO NOT try to print the document from this window. Copy the document to a blank Word

document as follows:

a) Open Word in a separate window with a new, blank document

b) Left click once in the "portal.pogc.org" document, and type “Ctrl + A”. This selects the entire

document.

c) Type “Ctrl + C”. This copies the entire document

d) Go to the new blank Word document and left click in it.

e) Type “Ctrl + V. This pastes the entire document

f) The document can now be manipulated as required.

http://portal.pogc.org/SitePages/Home.aspx