SABIC partnership WITH CONTRACTORS

Contents Introduction and Background The Objective Recommendations The Result SABIC Contractor Management System Features SABIC Contractor Management System Benefits SABIC Contractor Management System Process Summary

INTRODUCTION * More than 30 Years of Partnership * More than 500 Service Contractors * More than 5,000 Contractor Employees * 64,630,954 Contractor Man-hours (K.S.A.) (Year 2011) * 70,795,010 Contractor Man-hours (K.S.A.) (Year 2012)

background COLLABORATIVE EFFORTS SABIC Contractors SABIC EHSS SABIC Sites Other SABIC Functions Global Procurement Services

THE OBJECTIVE 1. STRENGTHEN THE PARTNERSHIP BETWEEN SABIC & CONTRACTORS. 2. LEVERAGE THE PERFORMANCE OF CONTRACTORS

TO STUDY AND REVIEW CURRENT SABIC SHEMS. RECOMMENDATIONS SHEM-04 Training & Competency SHEM-08 Safe Work Practice TO STUDY AND REVIEW CURRENT SABIC SHEMS. SHEM-05 Contractor Management System SHEM-10 Incident Reporting System SHEM-15 Transportation

TO STUDY AND REVIEW CURRENT CONTRACTOR MANAGEMENT SYSTEM PROCESS. RECOMMENDATIONS evaluation execution TO STUDY AND REVIEW CURRENT CONTRACTOR MANAGEMENT SYSTEM PROCESS. Registration mobilization Pre-qualification De-mobilization selection

RECOMMENDATIONS SABIC KSA TO STUDY AND REVIEW BEST PRACTICES AVAILABLE GLOBALLY IN MANAGING CONTRACTOR SAFETY. SABIC EUROPE NON-SABIC GLOBAL SABIC IP NON-SABIC - KSA

Contract Management System The result Contract Management System SHEMs Procedures Policies & Regulations Best Practices

SABIC Contractor Management System features? Robust Comprehensive Contract Management System Easy Clear Unified

SABIC Contractor Management System Benefits? I N P U T P R O C E S S O U T P U T S SHEMS Contractor EHSS /Quality Compliance Contractor Competency Procedures Contract Management System Improve Relationship / Engagement Policies/ Regulatory Contractor Management / Leadership Contractor Performance Best Practices Value, Business Growth and Continuity

SABIC Contractor Management System PROCESS Re-Qualification Registration Phase Planning Registration EHSS & Technical Assessment Process. Re-Qualification: EHSS & Technical assessment process for existing contractors. Planning: Developing a clear Scope of Work and complete the Selection Process. Pre-Execution: Involve selected contractors in the Prior Arrival requirements, Mobilization of the manpower & equipment and prepare for next phase. Execution: Getting the site required Training & keep frequent Audit and Evaluation. Post-Execution: Site Restoration & Demobilization. Post -Execution Pre-Execution Execution

SABIC Contractor Management System PROCESS REGISTRATION/RE-QUALIFICATION PHASE No No Service Provider as New Registration or Re-Qualification Fulfilled Require- ments? (GPS) SABIC Contractor Qualification Team(SCQT) [under SQ Section] Qualified to be a vendor? Yes Yes SABIC Registration Number/Re-Qualified

SABIC Contractor Management System PROCESS PLANNING PHASE Fulfilled PR Require- ments? New Service Request thru SAP PR (End User) GPS Yes GPS RFQ Contractor to Submit Bid EHSS & Technical Bid Evaluation (Site EHS/End User) No EHSS/Tech. Bid Acceptable? No Correct Gaps Contract Award Commercial Bid Evaluation (GPS) Yes

SABIC Contractor Management System PROCESS PRE-EXECUTION PHASE Conducted as per Matrix ? (End User) Prior Arrival Training (Contractor) Safety Induction Program I.D. Cards Yes No Kick-off Meeting Points Cleared? Kick-off Meeting Yes Permitted for Plant Entry No Correct Gaps Inspection Passed? Equipment/Tools Inspection Stickers Yes No Reject Entry

SABIC Contractor Management System PROCESS EXECUTION PHASE Is contractor ready for execution? Execution Preparation Certificate to Start Work Site EHSS Training (End User/ Contractor) Work Permit Yes No Contract period more than 3 months? No Yes Found Gaps in Audit ? Frequent Audit & Evaluation Monthly Monitoring Report (contractor) Declare completion of activities No Yes Correct Gaps

SABIC Contractor Management System PROCESS POST EXECUTION PHASE All points in Site Restoration Checklist cleared? Contractor Ready for Demobilization from Site Site Restoration Certificate Final evaluation and report Yes No Upload Final Evaluation Report in SABIC Supplier Portal

SUMMARY SABIC & Contractors Partnership. Contractors Engagement with SABIC System Development. Having common systems at SABIC Sites. Helping contractors by doing frequent Audits & Evaluation.

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