These guidelines provide consistent HSSE management practices for working with contractors in the Execute stage of Major Projects. The guidelines are based on good practices and lessons learned, and should be implemented in alignment with OMS Practice for Working with Contractors. They are also consistent with industry guidance, such as that provided by the International Association of Oil and Gas Producers.1 Although the focus is on Execute stage activities (e.g. fabrication, construction and installation), the principles can be applied to other contracted work (e.g. geophysical, drilling and engineering). Refer to the MPcp Procurement and Supply Chain Management Guidelines for additional information.
The guidelines define an eight-phase process for construction contractor HSSE management:
Planning
Pre-qualification
Selection
Pre-mobilization
Mobilization
Execution
De-mobilization
Final evaluation and close-out
Risk identification is a key part of the process and a key factor in determining contracting strategy. Active participation from BP and the contractor(s) is essential to achieving excellent HSSE performance.
8.2 Planning
The objectives of this phase are to clearly define the scope of work, assess the HSSE risks associated with the work, and clearly define Project HSSE standards. The contracting strategy is selected based on many factors, including the nature of the work and the risks identified.
1 HSSE management – guidelines for working together in a contract environment, International Association of Oil & Gas Producers, Report No 6.64/291, September 1999
MPcp HSSE Guidelines ©2007 BP International Limited
96 ©2007 BP International Limited MPcp HSSE Guidelines 97
Applications (Circles of Influence) should be developed for the scope of work and prospective contractors.
Key outputs are:
A documented HSSE management process for selection, working with and retention of contractors, that meets the requirements of OMS Practice for Working with Contractors
Risk Assessment – HSSE risks captured from Golden Safety Rules assessments, health impact assessments, ESIAs, security risk assessments, etc
Contracting Strategy - Recommendation to the Project Leadership Team as to whether the work will be managed under BP or the contractor’s HSSE Management System.
8. Pre-qualification
The HSSE objective of the pre-qualification phase is to screen potential contractors to ensure that they meet BP’s minimum HSSE requirements and that they are capable of conducting the work in a safe, healthy and environmentally sound manner.
Key activities in this phase are:
Short listing and screening of contractors
Establishing bid evaluation HSSE criteria
Assessment of the potential contractor’s project site, infrastructure and equipment
Assessment of the contractors’ site infrastructure and equipment is necessary to identify the time and resources required to bring them into compliance with Project HSSE standards. Special attention should be focused on heavy equipment used during onshore construction and offshore installation, such as barges, heavy trucks, side booms, excavators and cranes, etc.
An assessment of the existing HSSE culture at the facility will give an early indication of the potential issues which will need to be managed. “Subject to existing contractual constraints, contractors shall demonstrate and document that their staff are competent to carry out their assigned work.” (BP Group Standard for Integrity Management).
8.4 Selection
The objective of the selection phase is to assess the short list of potential contractors against the bid evaluation criteria, then select the contractor to perform the work. A senior HSSE Manager with construction experience should be part of the contractor selection team and HSSE should be an integral part of the decision-making process.
Key activities in this phase include:
Preparation of bid documentation by BP
Evaluation of contractors’ bid and HSSE Plan
Contract award
BP should endeavor to hire contractors with Control of Work (CoW) programmes and Integrity Management Standards that are as protective, or more protective, than the BP Group Standards for CoW and Integrity Management; and encourage those who do not have such a programmes to adopt one. The programmes should be agreed prior to selection of the contractor, and the agreement should be an absolute pre-requisite for selecting the contractor.
The construction contractor should be required to disclose all relevant subcontractors working within the BP scope of work, and should be required to implement appropriate processes to ensure that the subcontractors conform to BP safety requirements.
Consideration should be given to a reimbursable contract for HSSE work scope.
8.5 Pre-mobilization
The objectives of the pre-mobilization phase are to ensure that the relevant aspects of the contract risk assessments and any other HSSE aspects of the contract are communicated and understood by all parties prior to implementation of the contract.
Key activities in this stage include:
Kick-off meetings between BP project management and contractors to review major hazards, communicate BP’s HSSE expectations, and ensure that the Construction HSSE Plan is fit for purpose
A Pre-mobilization Review and formal ‘go’ or ‘no go’ decision made by management regarding mobilization
Planning prior to mobilizing the BP site team to the construction site is critical to ensuring BP’s HSSE expectations are met. The Construction HSSE Plan defines HSSE responsibilities, assurance processes and the relationships between BP, construction contractors, contractors’ workforce, and subcontractors. The plan describes how the gaps will be addressed where gaps in the Contractor HSSE-MS have been identified.
A Pre-mobilization Review should be conducted to ensure that all necessary HSSE plans are in place prior to mobilizing the BP project team to the site. The review is initiated prior to any construction mobilization and results in a ‘go’ or ‘no go’
decision to mobilize endorsed by the appropriate level of management.
8.6 Mobilization
The objective of the Mobilization phase is to ensure that BP and contractor personnel are mobilized to the work site safely. Key activities include:
Implementation and communication of the Construction HSSE Plan to all relevant personnel
Auditing or reviewing against the Construction HSSE Plan during the final stages of mobilization to determine compliance with the plan
During mobilization, BP and contractor(s) ensure that each sets up operations in accordance with the agreed Construction HSSE Plan. One critical objective during mobilization is to ensure communication of the HSSE Plan, BP HSSE expectations and any other significant aspects of the contract. A culture needs to be in place to ensure that HSSE is embedded within line management down to foreman level (i.e. owned by BP’s and contractor’s leadership and supervision, rather than HSSE specialists).
A system must be in place to ensure that all equipment identified as necessary for safe completion of the task (including contractor supplied equipment) is checked by a competent person prior to work commencement to ensure it is of an adequate specification for the task, within date for testing and re-certification, and free from obvious defects / excessive wear (BP Group Standard for Control of Work).
8.7 Execution
The objectives of the Execution phase are to performance-manage the work and assure that the work is conducted according to the Construction HSSE Plan. Key activities in this phase include:
Monitoring and auditing to ensure that Control of Work (CoW) procedures are implemented and enforced
Conducting a Construction Stage PHSSER
On BP premises, the BP Group Standard for CoW shall be implemented for BP employees and every employee of any other company that has been engaged to perform work on BP premises. The further intent is to promote adoption of the standard by companies working on behalf of BP on non-BP premises. Rigorous enforcement of CoW procedures is critical to maintaining safe operations.
BP managers are accountable for visiting the worksite and ensuring:
• BP’s HSSE expectations have been communicated to the workers
BP’s CoW procedures are fully implemented and rigorously enforced on BP premises
CoW programmes implemented on contractor premises are as protective as BP’s CoW procedures and rigorously enforced
Adequate BP presence and contractor supervision onsite to support and monitor the work
Pre-job risk assessments are task specific, available in the language(s) of the workers performing the work, and workers are aware of the hazards associated with their work
The Construction Stage PHSSER shall be used to verify that the contractor’s HSSE management system and the Construction HSSE Plan is in place, that it is being implemented, and that it will assure HSSE performance during construction.
8.8 Demobilization
The objective of the demobilization phase is to ensure that hazards associated with demobilization are identified and appropriate Management of Change for organizational structures and HSSE remain intact until activities have been safely completed.
MPcp HSSE Guidelines ©2007 BP International Limited
100 ©2007 BP International Limited MPcp HSSE Guidelines 101
The job isn’t over until all work is completed and the paperwork is finished. This message needs to remain constant and be consistently re-enforced with everyone.
The last minute demob to save money must be avoided by both BP and the contractors. It is important to maintain focus on HSSE until the very end of operations.
This is especially challenging when there is no additional immediate work for the workforce and workers; they are more concerned about the ‘next paycheck’ rather than completing the current job safely.