1. Supplier ESH Management Process Jose Valdez, CHST Benchmark Consulting Group, LLC

2. Agenda Typical Supplier Management Process Recommended Supplier Management Process

3. Supplier ESH Management Process Most employers rely on procurement and contract language to protect themselves from supplier related liabilities. You do not know what you are getting from an ESH standpoint. You’re increasing your liabilities Typical Supplier Management Process: What are some of the negatives related to this approach?

4. Supplier ESH Management Process The following sequential approach is what we have used and recommend: Recommended Process : 1) Get ESH involved from the very beginning (design) 2) Receive a list of potential bidding contractors from project management. 3) Send out questionnaires and collect each for review. 4) Rate contractors and provide project management with summary. 5) Lay out ESH expectations during pre-bid meetings.

5. Supplier ESH Management Process Recommended Process: 6) Contract awarded 7) Request and review contractor project safety plan. 8) Conduct site expectation training for contractor management – line supervision. 9) Complete contractor reviews, in the field, during the project. 10) Close out project. Collect lessons learned, best work practices and trending information.

6. Supplier ESH Management Process #2 ESH Assessment Questionnaire (Past 5 Years) Experience Modification Rates Recordable Injury Rates OSHA Citations Fatalities Employee Training Planning Process Send out questionnaires and collect each for review:

7. Supplier ESH Management Process Evaluation Summary Written Safety Program 1 Management Involvement 2 Training & Record Keeping 3 Job Planning & Execution 4 Field Performance 5 Subcontractor Control 6 Improve Supplier Safety Programs GOAL Identify Program Strengths Identify Program Weaknesses Offer Recommendations for Improvements Key Eval. Components Complete contractor reviews, in the field:

8. Benefits of a Proactive ESH Management Process You can locate and utilize contractors with better ESH programs. Decrease/understand liabilities. Improve your Project Managers knowledge of ESH programs and how they should function. Improved contractor performance and lower incident, accident, and interruption rates. Contractors programs improve.

9. Q&A