General Contract Management Structure Nzama Baloyi / Richard Jennings

What we have for you? General Contract Management Structure Pre-contract risk- based assessment of contractors Contractor Control system Red and Yellow Card System Management Frame work Sample site contract Contractor management COP Prospecting Contractor management I-Campus prospectus Energy Coal – Ingwe Collieries Ltd 22/11/2018

Management Standard - Contracting Checklist 2. Tender Process Formal tender undertaken Site information kit to contractors Define tender assessment process Define and establish internal financial control Change management system defined Conduct tenderers site visit 3. Contractor Evaluation Conduct inspection of contractors activities Assess contractor personnel capability Define contractors HSEC system Assess contractors HSEC performance against BHPB requirements and determine gap action plan Map contractor against FRCP and determine gap action plan Assess contractors use of sub-contractors Determine and agree hazard identification system Determine and agree a work planning system Risk assess contractors ability to do works Formal approval to engage contractor Notify contractors 4. Works Execution Induction and site procedure training Site location and facilities reviewed for gap’s Equipment, procedures and sub-contractor review for gap’s Accident/incident reporting works effectively Daily site inspection regime Daily safety meetings and reporting Monthly safety meetings and reporting Ad-hoc safety inspections Regular project reporting and tracking reviews Scope ‘creep’ monitored Non-conformance reporting Change management system audits Risk and opportunity identification and management 1. Request for Contract Contracting strategy in place Scope and time of works defined Risk assessment of required works Management understands works Single point accountability for contract Capable contractors – pre-qualification Assess leading practice for the works Type and style of contract defined Formal authorisation to contract works 3 2 4 1 5 5. Closure of Contract Regular review of contractor capability Close-out report on HSEC performance, scope, time and money = 41 Energy Coal – Ingwe Collieries Ltd 22/11/2018

Contractor management framework 1 Vendor pre-qualification Tendering Evaluation And award Access and Activation Execution and Monitoring Completion and Closeout To Next phase Input POTENTIAL CONTRACTOR INITIAL EVALUATION Request For contract New vendor request Tools Assessment Request Initial Evaluation Letter Acknowledgment Letter Approved Letter Not Approved More Information Vendor Assessments Contracting strategy Existing vendor re-evaluation Invitation From Site to apply Evaluation of new vendor request Scope and time of work defined Classification system Updated Approved Vendor List Appoint Single point of accountability. Risk assessments of work to be conducted Completion and closeout report Approved Vendor List Management must understand the work and know best practice of carrying out the job. No NEED for Service or Business ! Check BSA site database. YES Notify Contractor of decision Output Invited to Tender Energy Coal – Ingwe Collieries Ltd 22/11/2018

Contractor management framework 1 Vendor pre-qualification Tendering Evaluation And award Access and Activation Execution and Monitoring Completion and Closeout To Next phase Input APPROVED AND AWRD CONTRACT Request for work Tendering process TOOL KIT BHPB Documents: BAS SITE HSEC Policy Fatal Risk Control Protocols BSA site toolbox meeting House Keeping (GHK) One Page Standards Key Performance Indicators (KPI’s) Training Matrix Determine and agree on Work planning system Send / Hand out Information Kit to Approved contractor Defn & establish internal fin. control Tender Adjudication as per procedure. Risk assess contractors ability against work Review the Contractor’s Safety Management Plan for the Works against BSA site requirement Agreed KPI’s and SLA Signed contract Conduct tenderer site visits for inspections Determine and agreed on hazard ident. system Approval to engage contractor Output Award of Contract Notify Contractor of the decision Energy Coal – Ingwe Collieries Ltd 22/11/2018

Contractor management framework 1 Vendor pre-qualification Tendering Evaluation And award Access and Activation Execution and Monitoring Completion and Closeout To Next phase Input CONTRACTOR ACTIVATION TO SITE BSA site Toolkit Contractor Enters BSA site Appoint Single point of accountability. Permit To Work Flow Training Matrix One Page Standards Etc. Contract documents/ order documents Roles, resp &lines of communications Site Access according to Vendor contract classification Site establishment information Licensing/permit to work Contractor Prepare for people to come to site (competencies, inductions, etc.). Prepare for equipment to come on to site. Safe access of personnel ,equipments &materials Contractor has access to BSA site and established and ready to work and equipments on site Output Energy Coal – Ingwe Collieries Ltd 22/11/2018

Contractor management framework 1 Vendor pre-qualification Tendering Evaluation And award Access and Activation Execution and Monitoring Completion and Closeout To Next phase Input EXECUTION AND MONITORING PERFORMANCE Contractor Report to BSA site single point of Accountability Contractor Start to Work at site Submit Risk Assessment & Receive Permit to Work (Valid 24hrs) Renew Permit daily and use Safety Toolkit Always remember to Report all incidents on same shift. Submit Delivery Note/Day work sheet / Pro forma Invoice on Completion Update skills and training matrix Submit KPI report to Coordinator BSA Site Contract Coordinator Check Training Matrix & equipment Contact Coordinator hand over to Originator (“line”) Perform ad hoc Safety Visits and Inspections Evaluate Job/Task – use KPI’s , ensure PTW is signed off & do SES Ensure that there is agreed Performance Consequence Management system in place Output Perform Incident/accidents investigations Contractor (Monthly) Report incl KPI’s & SES tracking Energy Coal – Ingwe Collieries Ltd 22/11/2018

Contractor Management Framework Energy Coal – Ingwe Collieries Ltd 22/11/2018