AI-PS Element Guide

Element 11: Contractor Management

Doc. Reference: GU-XXX-11

Version: Issue 1.0
Date: 10 August 2011
Doc. Owner: Head of Technical Safety Engineering (MSE4)
Element Owner: Head of Operational Safety (MSE1)
AI-PS Element Background There are 20 elements in total within the PDO AI-PS Management
System as follows:
AI-PS in PDO
Elements list:
Assuring the safety of our people, our assets, the environment and
the companys reputation is a core value of PDO and providing Element 1: Process Safety Culture
assurance that we are managing our major process safety risks is a Element 2: Compliance with Standards
critical aspect of our corporate governance. Asset Integrity Process Element 3: Corporate Process Safety Competency
Safety (AI-PS) describes the way we manage our assets so that the
process risk is As Low As Reasonably Practicable (ALARP). Element 4: Workplace Involvement
Element 5: Stakeholder Outreach
What it is Element 6: Process Knowledge Management
Element 7: HEMP
Asset Integrity Process Safety (AI-PS) is the means of ensuring that
the people, systems, processes and resources, which deliver Element 8: Plant Operating Manuals
integrity, are in place, in use and fit for purpose throughout the Element 9: PTW
whole lifecycle of the asset. The aim is to be able to confidently Element 10: Technical Integrity
state that our assets are safe and we know it. Element 11: Contractor Management
Element 12: Training and Performance Assurance
Asset Integrity Process Safety Management is a complex area of
expertise covering a wide range of components, all of which are Element 13: Management of Change
essential to ensuring systems, processes and equipment perform as Element 14: Readiness for Start Up
required. There are a number of Elements which make up the Asset Element 15: Conduct of Operations
Integrity Process Safety management system. Element 16: Emergency Management
Structure of AI-PS Assurance in PDO Element 17: Incident Management
Element 18: Measurements and Metrics
PDO has a three-tiered approach to AI-PS assurance: Element 19: Audit and Verification of Level 2 Process
Level 1: Includes audits conducted on behalf of PDO's Internal Audit Element 20: Management Review and Continuous Improvement
Committee (IAC) as part of the Integrated Audit Plan. This includes
independent audits carried out by external bodies, such as Shell. Element 11: Contractor Management
Level 2: Includes audits carried out on behalf of Asset Managers as Background to Element
part of their own Asset level assurance processes.
Delivery of AI-PS requires that all major and high risk hazards are
Level 3: Includes task verification and assurance activities that
identified, prevented and mitigated. The systems and their
supplement the formal audit process.
subsidiary components critical to managing risks must be properly
designed, procured, built, installed, tested and maintained such that
the risk of a major or high risk accident event is ALARP.
The Contractor Management element has been developed to
provide assurance that contractors selected and approved for use
by PDO, continue to satisfy the key AI-PS objectives and deliverables
whilst working at the asset e..g. the contractor will:
provide suitably qualified, trained and experienced staff;
maintain adequate levels of supervision;
ensure staff are aware of the hazards and risks present
across their work locations whilst at the PDO asset;
work within the safe system of work operated by PDO e.g.
Permit To Work (PTW), Job Safety Analysis (JSA).
Aims and Objectives of Element
The Contractor Management element aims to ensure that
contracted services do not affect process safety risk by ensuring
familiarity and application of a formalised process to manage
contractor activities.
This element aims to cover the use and monitoring of contracting
services at the asset. It does not address the assessment and
selection process operated by PDO for identifying and appointing 3rd
party suppliers.
Scope of Element
The scope of this element applies to all PDO assets and the
contractor workforce present. The element applies to the use of
contractors in all application during all phases of the facility
lifecycle.
AI-PS Element Guide Implementation
Aims and Objectives of AI-PS Element Guide
The aim of this AI-PS Element Guide is to provide background to AI-
PS and a structured and consistent approach to carrying out Level 2
Self Assessments and Level 3 Verification for all AI-PS Elements
within PDO.
The intended audience for the guide are the members of the
AIPSALT although this can be used as a basis for training and
awareness for all staff at the asset.
Responsibilities and Accountabilities for AI-PS Element Guide
Implementation
The Operations Manager is accountable for the Level 2 Assurance
process at the asset.
Completion of the Level 2 Self Assessment and Level 3 Verification
Checklists, as provided in this element guide, is the responsibility of
the Element Champions and AIPSALT. The Delivery Team Leader
(DTL) is accountable for the AIPSALT.
AI-PS Assurance Leadership Team (AIPSALT)
The AIPSALT is comprised of the asset DTL and Process Safety
Element Champions (PSEC).
The DTL and PSEC roles include: reporting the status of the Level 3
Verification activities for the relevant Element at the AIPSALT
meeting; maintaining Key Performance Indicators (KPIs) for the
Element; monitoring the effectiveness of the Level 3 Verification
activities in assuring AI-PS, and recommending changes to improve
effectiveness and efficiency as appropriate; monitoring the progress
of corrective actions and improvement plans associated with that
Element; and leading Level 2 Self-Assessment of compliance with
the requirements of that Element.
Level 2 Assurance
Level 2 Self Assessment and Audit
Level 2 assurance is provided by a series of AI-PS audits carried out
on behalf of Asset Directors and Operations Managers as part of
their own Directorate-Level assurance processes.
Level 2 Audits (and Level 2 Self Assessments) are conducted at each
Directorate using standard protocols and templates described in
this series of AI-PS Element Guides.
The Level 2 Self Assessment Checklist (provided in this AI-PS
Element Guide) can be viewed as a health check of asset
performance again the element. Completing the Level 2 Self
Assessment will help the asset to identify areas for improvement
ahead of the Level 2 Audit.
Frequency of Level 2 Assurance
Level 2 Audits are conducted annually at each Directorate but the
frequency and duration may be adjusted to reflect either positive or
negative trends, recent audit findings, emerging risks and alignment
with other audit activities. The schedule of Level 2 audits is set in
the Directorate HSE Plan.
The frequency of Level 2 Self Assessment should also reflect how
well the asset is performing against all AI-PS Elements and be
performed no less than on an annual basis (ahead of the Level 2
Audit).
Level 3 Verification Checklist
Level 3 Verification Description
Level 3 Verification demonstrates compliance with the asset HSE
Case barriers, HSE Critical Tasks, operational procedures and other
requirements defined in the HSE Management System. These
activities provide an ongoing check that the procedures, tests and
inspections necessary to maintaining the functionality of Safety
Critical Elements and systems are completed as required so that
process risk is managed to a level that is As Low As Reasonably
Practicable (ALARP).
In summary, the Level 3 Checklists are an operational level sample
check or mini audit completed by the asset against PDO and asset
based procedures. The effectiveness of the Level 3 Verification
process is assessed during the Level 2 Self Assessment process and
ultimately via the Level 2 Audit programme.
Verification Checklists
Level 3 Verification checklists have been developed for each AI-PS
Element within PDO in order to provide a structured and consistent
approach to Level 3 Verification across all assets. The Level 3
Verification checklists are structured as a sample check or specific
and localised audit of the Element in question.
By successfully verifying that the Level 3 Verification activities are
being completed correctly it provides a strong indication that the
element is being implemented at the system level (assessed via the
Level 2 Self Assessment and Level 2 Audits).
The Level 2 Self Assessment and Level 3 Verification checklists for
this element are provided below.
Level 2 Self Assessment
SN Protocol Y / N / NA & Evidence Possible approaches
11.1 Are contractors performing the following Ask PDO Contract Holders. Confirm that, at
types of work in process facilities or a minimum, any contractor or subcontractor
hydrocarbon areas covered by the PDO that does physical work on or adjacent to
Contractor HSE Management system and any process facility or hydrocarbon area is
aware of PDO AI-PS requirements? included in the PDO Contractor HSE
Maintenance or repair? program and have been engaged on AI-PS
Planned shutdowns? requirements.
Major renovation?
Specialty work, e.g. Ex equipment
installation, flange make-up, NDT,
tank cleaning, etc?
11.2 Was contractor HSE performance evaluated
during tender evaluation?
11.3 Did the contractor complete the HSE
Capability Assessment questionnaire prior
to tender award?
11.4 Has PDO informed the contractor(s) of the Review the facility induction that is provided
known potential fire, explosion, or toxic to assess the comprehensiveness and
release hazards related to the contractors clarity of the content and to be sure the
work and the facility they are working at? information is up-to-date.
11.5 Has PDO explained the applicable Ask the contractor staff.
provisions of the emergency response plan
to the contractor?
11.6 Is the contractor covered by the PTW Ask the Contract Holder. Review interface
system? If not, has the safe system of work arrangements
applied by the contractor been approved by
the Head of Production?
11.7 Has an HSE management plan been
developed for each contract?
11.8 Is contractor HSE performance monitored Ask the Contract Holder.
on a regular basis?
11.9 Has any action been taken, where
deficiencies in HSE performance have been
identified (particularly non-compliance to AI-
PS requirements)?
SN Protocol Y / N / NA & Evidence Possible approaches
11.10 Does the contractor maintain a record of Ask the Contract Holder.
contractor employee injuries and illnesses
(particularly for contractor employees
working in a process facility or hydrocarbon
area)?
11.11 Does the contractor have a competence Review the contractors competence
assurance program for contract employees, assurance program to confirm that the
to assure that they are trained in the work correct skills are provided with respect to
practices necessary to safely perform the the host site being audited.
job / deliver technical integrity?
11.12 Have the contractors Key HSE Personnel
been assessed against the relevant
requirements?
Is a plan in place to address any
competency gaps (if required)?
11.13 Have key sub-contractors been assessed
using the Sub-Contractor 10 Point HSE
Checklist?
11.14 Has a Level 3 verification schedule been Review Level 3 Verification check lists and
implemented at the asset for Element 11 ensure action are proactively closed out.
Contractor Management?

Has the schedule been followed?

 AI-PSM Level 3 Contractor Management Verification Checklist

Area _________________________________________________________________ Date ___________

Name ____________________________________________ Contractor / Ref. ID. ___________________

SN Question Yes No Remarks

11.1 Have the contractor employees received
information regarding the hazards of the facility
prior to beginning work, e.g. during the facility
induction, Toolbox Talk, etc? Do they
understand potential fire and explosion
hazards and toxic hazards?
11.2 Are the contractor employees aware of the
PDO Emergency Response arrangements and
site specific actions to b e followed?
11.3 Are the contractor activities covered by the
PDO PTW system (or a UOP-approved PTW
system)?
Review a sample of Permits and confirm that
the written scope matches that of the work
location.
11.4 Was the contractor employee or someone from
the contract organisation involved in carrying
out the risk assessment?
11.5 Are the contractor employees complying with
the requirements of the task risk assessment?
11.6 Do the contractor employees have adequate
craft skills to enable them to perform their jobs
in a safe manner, e.g. do they know how to
make-up a flange, install Ex equipment; do
they have the correct welding certificates, etc?

Note: If the activity requires specific skills or

competencies to assure that it as carried out to
the required standard, they should be listed in
the contract.
11.7 Have the contractor employees completed the
necessary HSE training for the task, e.g. PTW,
gas testing, H2S awareness, SCBA, etc?
Check HSE passports.
11.8 Are the contractor employees aware of the
Lifesaving Rules (particularly those relevant to
AI-PS)?
11.9 Are the contractor employees aware of the
PDO Golden Rules and that they can stop the
job?
11.10 Are the contractor employees aware of any
unique process hazards that they may
encounter in the activity, e.g. Hydrogen
Sulphide, Mercury, NORM, etc?
SN Question Yes No Remarks
11.11 Are the contractor employees aware of their
responsibility to report process leaks and other
unsafe conditions?
11.12 Through walkthrough and inspection confirm:
That access control is adequate at the
asset
That contractors are working within
permitted areas cross reference
location against the available PTW.
That the contractors are aware of
which route to take though the asset to
access the permitted work area safely.
Is understanding demonstrated?
11.13 Are the contractor employees carrying /
wearing PPE applicable to the task (check Job
HSE Plan) and process hazards, e.g. personal
H2S monitor, escape set, SCBA, etc?
11.14 Is the work adequately supervised?

Auditor overall comments

Auditor Name________________ Signature _______________ Indicator ________________ Date _____________