BUILD WITH US. ™ Contractors

BUILD WITH US. ™ Contractors: Who is a good one and Who is NOT When hiring a contractor to work in your facility there are many things to consider –Cost –Knowledge or certification –Insurance –Liability –Efficiency –Reputation –Safety

BUILD WITH US. ™ How do you know for sure who you are hiring? We use a Pre Qualification Process to ensure we know who we are hiring and if they are capable of working safety within our facilities

BUILD WITH US. ™ Who has to Pre-Qualify? All contractors and sub-contractors meeting the requirements below: –Construction - mechanical, electrical, civil contractors doing project work to include new installation and major retrofits, over hauls and modifications. –Supplemental maintenance – mechanical, electrical and civil contractors doing equipment and facility maintenance and repairs inside the plant facility. –Specialty contractors doing HVAC, roofing, high-pressure water cleaning (greater than 3000 psi) and other High Hazard work (work at heights) as determined by the requisitioner.

BUILD WITH US. ™ Benefits include a contractor selection process that provides for the selection of contractors that have: A proven history of low injury frequency and severity rates as validated by OSHA TIR (total incident rate) 3 year TIR Must be 4.0 or under. Must provide 3 previous years OSHA 300 logs. WC EMR. (experience modification rate) Must be 1.0 or under and be verified by a letter with the insurance carriers letter head. Along with Insurance Certificate Any specialty license or certificates Must be valid and current. Written EHS programs and policies meeting regulatory requirements that allow for sustaining and improving injury performance. Written policies that provide for management commitment and employee involvement in meeting established company goals and objectives. EHS Training programs to ensure employees are adequately trained to perform their work in a manner that protects themselves and their co-workers. Job skills and qualifications to perform the assigned work.

BUILD WITH US. ™ Benefits = The use of safe contractors provides for the opportunity to: Better protect LP employees, facilities and assets from contract work in our facilities. Lesson the opportunity for civil actions and liability claims from contractor injuries, property damage and business interruptions. Reduced costs through lower contractor WC and GL insurance coverage's. Lesson opportunities for regulatory citations and penalties as it relates to OSHA's "Multi-Employer Worksite Policy" and OSHA's ability to address contractor safety through owner accountability of contractor activities. It's the right thing to do.

BUILD WITH US. ™ Benefits Helps ensure safe contractors are used. Takes the responsibility off LP and places it on the contractor. Little effort required by the plants to implement. TVTC is the resource to the contractors. Any calls from contractors should be referred to TVTC. Less follow-up required by LP personnel to ensure information is complete and current. No more reviews and interpretation of completed contractor information required by LP personnel (simply check database to see if contractor is registered). The opportunity to share contractors among plants. Second party administration of the program through TVTC –To conduct audits of the information submitted by the contractors. –To place all registered contractors in our database. –To house the database on the TVTC website.

BUILD WITH US. ™ Benefits to the Contractor Eliminates paperwork burden and duplicate reporting for the same companies/different plants. Contractors can provide access to other owners instead of filling out multiple forms. Exposure to additional businesses utilizing PQF. (pre qualification form) Serves as cost effective advertisement. Allows owners to search for contractors by specialty, EMR, TIR, Specialty, etc.

BUILD WITH US. ™ Variance Procedures A variance is required for contractors who do not meet the safety criteria. Variances are discouraged and should be used only when there is a well defined business need such as specialization of the contractor and no other contractors with this specialty are available, location of the site and availability of contractors with the required skills and qualifications. The variance request shall be completely filled out by the requisitioner and approved by the Plant Manager, Plant Safety Manager, Project Engineer, and the Operations Manager. The variance form must be accompanied by a Commitment Letter from the contractor stating what they are going to do (with no additional cost to LP) to ensure their employees safety on our site. All variances will be reviewed by the Functional Area Safety Manager and forwarded to TVTC so that they can be maintained in the PQF database.

BUILD WITH US. ™ Variance Form

BUILD WITH US. ™ Once a contractor is Qualified The On site safety orientation is started. As each facility does things just a little bit different We review the job function / task that is being completed and facility area Delegate an LP point of contact for the contractors Evaluate what PPE will be required to complete the task What Permitting will be required (Confined Space / hot work /etc) MSDS needs and locations Emergency evacuation meeting area and alarms Safe Work Expectations Daily tool box forms that will be required – depending on the length of on site work Safety inspections that will be completed while the work is in progress Field any questions the contractors may have

BUILD WITH US. ™ Contractors The Greatest challenge is making sure Your contractors Understand YOUR safety Rules and Expectations There are differences between General industry Safety and Construction safety – however while on OUR site they will follow OUR Rules.

BUILD WITH US. ™ QUESTIONS?

BUILD WITH US. ™ Who does not have to Pre-Qualify? Vendors making deliveries or servicing their own equipment at the plant (UPS, vending machine personnel, copy machine repair, truck drivers, warranty repairs, etc.). Work outside the process areas (lawn care, landscaping, cafeteria contractors, security, janitorial, etc.). Consultants/technical experts who will not do any “hands-on” work in the process area. Temporary employees working under direct LP Supervision (temp agencies, temporary mechanical employees for down days, etc.). Contractors providing off site fabrication in their own facilities or other off site work. Single owned operations (owner / worker / rep)