1. 1 214 34 43 72 83 92 117 135 147 212 218 222 240 204 205 248 232 238 236 225 ©2014 Al Jaber Group - Private and Confidential Contractor Management Peter Jolly Director HSE AL JABER Group

2. 2 214 34 43 72 83 92 117 135 147 212 218 222 240 204 205 248 232 238 236 225 ©2014 Al Jaber Group - Private and Confidential AD EHSMS RF  Systematic approach; obligation to ensure contractors perform work in a safely  Features: Principal Contractor, Contractor management process  Requirements for Risk Management, Training, Communication and Consultation Element 03  Establishment of Project HSE Requirements  Evaluation / Selection  Contractual Agreement  Co-ordination and Communication  Mobilization / Work in Progress  Monitoring Performance  Commissioning  Demobilization / Decommissioning & Close-Out 3.1.1 Requirements; Tender HSE specification; TG 4.0  Detailed SOW, hazards and risks, minimum HSE requirements  Legal compliance, risk management programs, HSE resources, HSE performance monitoring & incident reporting, competency, non-compliance & enforcement procedure COP 53.1 HSE CMP 4.5 Sub-Contractor Risk Assessments & Method Statements MANUAL 4.5 Management of Contractors  Review and Approval Process

3. 3 214 34 43 72 83 92 117 135 147 212 218 222 240 204 205 248 232 238 236 225 ©2014 Al Jaber Group - Private and Confidential Contractor Management Oil & Gas Sector Challenges  Contractor management process  The quality of contractors  Contractors HSE standards  Contractors HSE Policies  Contractors HSEMS  HSE Planning & coordination  Communication  Safe systems of work - compliance Pitfalls to avoid  Paper exercise  Meetings, letters, claims  Accept Contractors (as is)  Accept Contractors  Demand Contractor produces HSEMS  Minimal inclusion  Poor record keeping  Lack of enforcement

4. 4 214 34 43 72 83 92 117 135 147 212 218 222 240 204 205 248 232 238 236 225 ©2014 Al Jaber Group - Private and Confidential Contractor Management Within the Group Internal contractors  Apathy “they are not Contractors” “we are all AL JABER” “HSE is their responsibility”  Legal compliance?  Poor prequalification processes  Poor contractor management  Disparity in HSE standards  Poor HSEMS/implementation  Lack of coordination & monitoring  Unsafe systems of work  Lack of continual improvement  Costs CultureIssues/Consequences External contractors  Apathy “we pay them to do a good/safe job” “HSE is their responsibility”

5. 5 214 34 43 72 83 92 117 135 147 212 218 222 240 204 205 248 232 238 236 225 ©2014 Al Jaber Group - Private and Confidential Contractor Management Solutions? Mobilization stage  Communication with Contractors  Engage; foster teamwork  Communication with client separately Monitoring  Lead; internally then externally  Assign single points of contact  Measure & report performance Close-out  Successes & failures/costs! Bidding & Prequalification Stage  Doc review/gap analysis  Audit ‘fit for purpose’; HSEMS review, KP interviews, facilities, plant and equipment, transportation, accommodation  Set HSE standards; HSE COP, fill gaps, bridge  Remember 2nd, 3rd Tiers etc. Planning Stage  Integrate; communications, objectives, meetings, training, monitoring

6. 6 214 34 43 72 83 92 117 135 147 212 218 222 240 204 205 248 232 238 236 225 ©2014 Al Jaber Group - Private and Confidential Contractor Management Role of the HSE Professional Documentation  Embed Contractor Management in your HSEMS  Consider Contractor HSE CoP  ID & deliver the HSE specification Management  Strong personal HSE leadership  Get involved with the bid & prequalification process per project  Start Contractor management internally  Embed Contractor engagement in HSE Plans & programs Control  Assign single points of contact/coordinators  Site Prep, Construction, Pre/Commissioning & HSE  Site monitoring  Actively engage Contractors in your programs Performance Reporting  Capture & feedback lessons learned  Recognize successes/failures  Quantify injuries, damage & down time