Fluorcorp05 Env Usa

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-Table of Contents:

3 Chairman and CEO Message 4 Sr. VP of HSE Introduction 5 Rewards & Recognitions

9 Fluor HSE Professional Publications and Presentations 10 HSE Management System

11 Sustainable Development and Corporate Responsibility 21 HSE Performance

24 Client Perspective

25 Client Review Results for HSE 26 People Development

26 HSE in Design 28 Global HSE Initiatives 29 HSE Awareness

31 Executive Management Perspective on HSE 33 Project Achievements



The challenge of protecting the environment for future

generations is everyone’s business, but success depends on

leaders of industry stepping up and leading the charge. At

Fluor, we want to leave the world better than we found it.

As a leading engineering and construction contractor in a range of global industries with diverse cultures and operations in remote locations, Fluor strives to set a benchmark for excellence in the protection and development of health, safety, and environmental assets and endeavors. We recognize that with leadership comes great responsibility and that future generations are relying on us to protect and preserve the natural environment. We promote sustainable development by managing our operations in a responsible way.

Fluor works closely with our clients, suppliers, and contractors to implement and sustain a comprehensive Health, Safety, and Environmental (HSE) program. Our proven HSE Management System integrates the highest international standards into each project phase and verifies our consistent and complete performance. Sustainable development in project execution has increased our clients’ interest in our significant HSE achievements. Using a total project approach, our experts strive to meet clients’ HSE objectives and to provide safe, cost-effective facilities in harmony with their communities.

Many of Fluor’s recognized experts in specific health, safety, or environmental disciplines work with public agencies and professional associations worldwide to develop industry and governmental standards, as well as industry best practices, to protect people, property, and the earth’s precious environment and resources. While Fluor has been supporting emergency relief efforts in the U.S. and around the globe for many

years, 2005 proved to be an unprecedented year for natural disasters. From tsunamis to earthquakes to hurricanes, Fluor was there to provide support through the Fluor Foundation, as well as individual employee contributions. When Hurricane Katrina, the worst natural disaster in U.S. history, caused devastation across the Gulf Coast, Fluor was there, and we continue to be there today repairing lives and rebuilding communities.

Fluor’s commitment to maintaining a healthy, safe, and environmentally sound workplace extends to every employee in our company. Our management team’s actions reflect their commitment to our HSE program and are recognized by our employees worldwide. We expect both organizational and personal accountability for HSE performance.

Success in sustainable development comes down to commitment, leadership, and perseverance. I am pleased to present you with Fluor’s HSE Annual Report, and I am proud of our employees’ commitment to HSE excellence.




A world-class HSE function is reflected in a

company’s culture. At Fluor, HSE considerations

are put at the forefront of everything our

employees do – whether designing a large-scale

pharmaceutical laboratory or constructing that


One of the biggest challenges to achieving a world-class HSE culture is managing change in the organization, the company,

and subcontracting organizations. One of the major changes occurred in 2005 when Fluor established a new HSE Operating Board charged with enhancing our overall integrated HSE approach and setting strategic direction for Fluor.

We strive to continually improve our HSE Management System through an annual review process, based on comments received from design, construction, operations, and maintenance personnel within Fluor. Employees are encouraged to submit feedback through our award-winning knowledge management tool.

Our HSE Management System put us in good stead to respond to the unprecedented number of disasters in 2005, including Hurricanes Katrina, Rita, and Wilma. As part of our overall HSE program, we are an active member in the Disaster Resource Network, an adjunct of the World Economic Forum. As a result of our long-standing relationship with the Federal Emergency Management Agency, we have developed a professional staff that is sensitive and responsive to disaster environments, and as a construction industry leader, we maintain a variety of skills required to perform disaster recovery operations. Fluor is one of only three companies to hold a contract with the agency, and our employees’ training and experience working in a FEMA environment is a clear differentiator.

In 2005, our HSE performance continued to lead the industry, although incidence rates increased fractionally. We encountered more exposure due to 13 percent more hours worked than in 2004. Of total hours worked, non-U.S. markets accounted for more than 75 percent in 2005. Our lost work day case incidence rate was 0.05, the same as our 2004 rate, while our total recordable incidence rate was 0.46, which is an increase of 24 percent from 0.37 in 2004. I am sad to report that despite our excellence in HSE performance, we suffered four employee and six subcontractor fatalities. To address such incidents, we strengthened processes to focus on specific preventive actions. In addition the HSE Board is evaluating new methods of disseminating information in these specific areas of focus.

In 2006, we will continue to embrace change and provide a strong HSE approach for our clients, our workers, and surrounding communities.


To be the preeminent HSE leader, consistently delivering solutions to improve the life cycle of our projects and promote the well-being of our employees, clients, and the communities in which we work and live.

Areas of Responsibility • Work Processes & Procedures • Communications

• People Development & Training • Audit & Assessment • Performance & Improvement • Regulatory Compliance



In 2005, Fluor was recognized for excellence in HSE performance by several external organizations.

Fluor Fernald won one of only three Best-in-Class Awards given in the Waste / Pollution Prevention category from the U.S. Department of Energy’s Office of Environmental Management.

The Fernald Closure project won an award for innovatively deploying on-site, used equipment that had been scheduled for demolition to construct a treatment facility for removing radium from washwater as part of the cleanup of highly radioactive waste stored in silos.

Fluor’s IBM Tucson project received the Governor’s Pride in Arizona Award in the Recycling Category. The award recognizes achievements to promote recycling on the project and surrounding community.

AMECO was recognized by the National Safety Council (NSC) and the South Carolina Chamber of Commerce for achieving an outstanding record of safety excellence. Three distinguished awards were presented by the NSC:

• Million Work Hours Award for surpassing 10 million safe work hours without a lost-time injury • Perfect Record Award for completing 12 consecutive months without incurring an occupational

injury or illness leading to days away from work or a fatality

• Green Cross for Safety Excellence Award for achieving a total lost workday case incidence rate of zero and with no fatalities during the 2004 calendar year

AMECO also received the South Carolina Chamber of Commerce Safety Award for achieving 1,000,000 safe work hours without a lost-time incident.

Fluor Constructors received four awards:

• The Fluor Constructors’ BP Toledo Refinery Project received an Award of Merit from the National Maintenance Agreements Policy Committee for 87,692 work hours performed from January 1 through December 31, 2004 with zero recordable injuries.

• 22nd Annual Thomas J. Reynolds Award for Excellence in Construction Safety & Health 2004 from the National Erectors Association – Fluor Constructors has won this award for the past 20 consecutive years. The NEA is a nationwide network of more than 5,000 union contractors, local union contractor trade associations, industrial-maintenance contractors and industry suppliers. The safety awards were created in 1982 by the NEA Safety & Health Committee to recognize outstanding achievement in minimizing the number of worksite accidents.

• Safety Award from the Gas Processing Association of Canada (GPAC) – Fluor Constructors Canada received this distinguished award for its combined field-safety and office-safety excellence. Fluor Constructors Canada’s self-perform operations had no recordable incidents during the entire year. GPAC is a nonprofit organization formed to promote the interaction and exchange of technology with those involved in the hydrocarbon-processing industry.

• Award of Merit from the National Petrochemical & Refiners Association (NPRA) – Fluor Constructors received this milestone award for having incurred no recordable incidences during 2004 for work at the BP Toledo refinery in Oregon, Ohio. This award is for self-perform and subcontractor operations. NPRA membership is composed of more than 450 companies, including virtually all U.S. refiners and petrochemical manufacturers. The Contractor Award for Meritorious Safety Performance is presented to process-area contractors that have achieved a total recordable-incidence rate of 1.5 or less during the year and worked a minimum of 20,000 hours at the site.

‘‘It is with sincere pride that Fluor Constructors received these prestigious awards which are an acknowledgement of the dedication and commitment of our craft workers and staff,’’ said FD Construction Operations leader Ron Pitts. ‘‘With ongoing continuous performance improvement, we can look forward to enhancing the high standards of health, safety and environmental excellence, to which we’re all committed.’’


 -Ro SP A O c cu pat iona l H e al th & Sa fe ty A w a rd s

Fluor Australia earned Western Australia WorkSafe Plan’s highest honor, the Platinum Award. The honor, bestowed by the West Australian government, is in recognition of the excellent management of safety and health in the workplace, as well as Fluor’s contribution to the reduction of work-related injury and disease in Western Australia. The Platinum Award went to the Perth office and an Operations & Maintenance (O&M) site in the Pilbara CMM, located in Karratha.

Another Fluor O&M team working at Fluor Australia Karratha Engineering services was presented with the prestigious Gold Award for its contribution to the WorkSafe Plan.

The WorkSafe Plan is an occupational safety and health (OSH) management system

assessment methodology developed and promoted by Western Australia’s safety regulatory authority, Western Australia WorkSafe. Each key element of the plan indicates well-developed OSH management systems, a high level of implementation, and evidence of ongoing OSH improvement and OSH system maintenance activities.

Fluor United Kingdom earned two Royal Society for the Prevention of Accidents (RoSPA) awards based on a detailed summary of the implementation of Fluor’s HSE Management System, incident statistics, and HSE training.

• RoSPA Presidents Award (for the fourteenth year!) • RoSPA Construction Engineering Industry Sector Award

Fluor UK also received the British Safety Council National Safety (BSC) Award, for the 18th consecutive year. The BSC award was based on Fluor’s HSE policy, organization, staff competence, planning, and incident statistics.


Fluor made a bold commitment to safety excellence with the introduction of our ZERO AccidentsSM recognition and reward program in 1994, which established stringent standards for safety worldwide. Fluor’s program was based on the Construction Industry Institute Task Force’s recommendations for achieving zero injuries, which had identified high–impact zero incidents techniques used to achieve safety excellence.

In 2004, Fluor upgraded the ZERO AccidentsSM program by incorporating health and environmental facets and renaming it the ZERO IncidentsSM program.

Because Fluor takes great pride in its accomplishments in this area and in being an industry leader, the company continues to recognize and promote outstanding HSE performance. In 2005, the program was upgraded again to include Four and Five Star awards.

The ZERO Incidents program stringent criteria are updated annually to reflect the company’s performance goals. The five criteria in 2005 included the recordable rate plus four additional criteria as follows.


Additional Criteria Award Recordable Rate Award Recordable Rate

H 0.57 – 0.75 H 0.15 – 0.20 4 No Lost Time Injuries or Illnesses

4 No Environmental Citations or other Regulatory Agency Citations

4 Successful completion of the Award Verification Audit and/or Corporate HSE Audit

4 Implementation of the 12 High-Impact Zero Incident Techniques

HH 0.38 – 0.56 HH 0.10 – 0.14

HHH 0.19 – 0.37 HHH 0.06 – 0.09

HHHH 0.01 – 0.18 HHHH 0.01 – 0.05


The following projects achieved zero incidents in 2005 and earned the prestigious ZERO Incidents program Five-Star Award.

Project Location Safe Hours

Integrated Isocyanates Project Shanghai, China 15,000,000

ICA Fluor Offshore Yards Mataredona, Veracruz and

El Empalme, Mexico 6,000,000

Procter & Gamble Cabyao Plant Laguna, Philippines 6,000,000

KOC Effluent Water Disposal Plants Ahmadi, Kuwait 5,000,000

AFCAP II Program Kirkuk, Iraq 3,500,000

Fluor Daniel India Private Limited New Delhi, India 3,500,000

Kuwait Oil Company Rebuilding of GC-15 and the Upgrade of BS-131 Ahmadi, Kuwait 3,000,000

Civel Mechanical Maintenance Dampier, Western Australia 1,250,000

Fluor SA Espana, Madrid and Asturias offices Madrid, Spain 1,000,000

IE30 Bulk Clean Manufacturing Facility Kinsale, Ireland 1,000,000

Katrina Relief Project Louisiana 1,000,000

Kharafi National Construction Activities for BS-131 Phase 2 Ahmadi, Kuwait 1,000,000

NOx Reduction Project Baytown, Texas 1,000,000

Sakhalin-1 EPC-1 Chayvo, Sakhalin Region Russia 1,000,000

Chuck Lenzie Generating Station Las Vegas, Nevada 750,000

Hazelwood Power Station Morwell Victoria, Australia 750,000

Merk MK-431 & SAS Project Barceloneta, Puerto Rico 750,000

TXU Energy Monticello SES Tatum, Texas 750,000

Corning Taichung Project Taichung, Taiwan 500,000

Fluor San Jose Hitachi IBM San Jose, California 500,000

Fluor United Goninan Maintenance Alliance, Bluescope Steel Warrawong, Australia 500,000

FMS@Georgia Power Plant Bowen Cartersville, Georgia 500,000

Progress Energy, FGD Project Roxboro, North Carolina 500,000

Revisie 2005 @ Levensduurverlenging Project BS12 The Netherlands 500,000

The Kennecott Smelter Project Magna, Utah 500,000

Victory Complex O&M Baghdad, Iraq 500,000

BP Toledo Clean Fuels Oregon, Ohio 250,000

Cetac II - Task Order 6 - Manas Air Base Baghdad, Iraq 250,000

Fluor / 3 M D-10 Project Decatur, Alabama 250,000

Fluor Trinidad Operations, Port of Spain Trinidad & Tobago, West Indies 250,000

Genesis - New Cell Room Project, Inoes Chlor Ltd. Runcorn Cheshire, England 250,000

Karratha Engineering Services, 7 Mile Dampier Karratha , Western Australia 250,000

Kennecott Smelter Project Magna, Utah 250,000

KPNC Project Engineering Services, Mina Abdulla Ahmadi , Kuwait 250,000

Lyondell Chemie Nederland SBET, Botlek Maasvlakte Rotterdam,

The Netherlands 250,000

Merck VMF Project Durham, Raleigh, N. Carolina 250,000

Chevron Phillips Maintenance Guayama, Puerto Rico 100,000

DuPont-Chambers Works Deepwater, New Jersey 100,000

Fluor Daniel Consultants BV Bergen Op Zoom, The Netherlands 100,000

GSK Dartford Project Dartford, Kent, United Kingdom 100,000

Immobilization Consolidation Project 3M Wroclaw, Poland 100,000

Luna Energy Facility Deming, New Mexico 100,000

Tyndall AFB Tyndall AFB, Florida 100,000

Waterschap Hollandse Delta SBET Dokhaven, Rotterdam,

The Netherlands 100,000


-The following projects or office earned Million Plus Safe Work Hour achievement awards, meaning they had no lost workday cases.

Project Location Safe Hours

Greenville S.C. Office Greenville, South Carolina 30,000,000

Sakhaln-1, EPC-1 Project Chayvo, Sakhalin Region, Russia 7,000,000

Connect Project for London Underground Limited

London, England 6,000,000

ICA Fluor IH Offshore Yards Mataredona, Veracruz and

El Empalme, Mexico


AFCAP II Program Kirkuk, Iraq 4,500,000

Chuck Lenzie Generating Station Las Vegas, Nevada 2,000,000

K Basin Closure Richland, Washington 2,000,000

Plutonium Finishing Plant Closure Richland, Washington 2,000,000

Sulfide Leach Project Antofagasta, Chile 2,000,000

Waste Storage and Disposal Richland, Washington 2,000,000

Corning Taichung Taichung, Taiwan 1,000,000

Deactivation & Decommissioning Project Richland, Washington 1,000,000

San Jose Hitachi (formerly IBM) San Jose, California 1,000,000

Genesis New Cell Room Project, Ineos Chlor Ltd Runcorn, Cheshire, England 1,000,000

ICA Fluor Paleocanal Chicontepec Poza Rica, Veracruz Mexico 1,000,000

ICA Fluor Terminal LNG Altamira, Mexico 1,000,000

NEC US Embassy Kingston, Jamaica 1,000,000

NOx Reduction Project Baytown, Texas 1,000,000

Progress Energy FGD Project New Hill, North Carolina 1,000,000

Soil & Water Remediation / Groundwater Vadose Zone

Richland, Washington 1,000,000

Fluor Hanford Projects Drive Environmental Stewardship With Technical Achievements

Four Hanford projects received awards, ranging from improved worker safety to reduction in costs. The Plutonium Finishing Plant Closure Project earned the 2004 Fluor Hanford Environmental Stewardship Award. The Waste Receiving and Processing Facility was presented a Technical Innovation Award. Two projects of Fluor’s Closure Services and Infrastructure organizations received Environmental Recognition Awards.

‘‘Our real mission is environmental cleanup,’’ said Fluor Hanford’s President & CEO Ron Gallagher. ‘‘I am very proud to assist in presenting these awards that recognize the efforts and innovation of our projects and employees.’’ These awards highlight daily work practices that demonstrate environmental compliance and stewardship.

The Silver Cross Award is bestowed upon employees who have performed life-saving actions. It is the highest recognition the company can give a member of the Fluor team. In 2005, Fluor’s four Silver Cross recipients aided others who experienced life-threatening situations ranging from a heart attack to a potential fall or suspension hazard. They included a citizen of China and an employee who was named Firefighter of the Year in his community.



In 2005, Fluor employees worldwide logged more than 60 papers and presentations regarding health, safety, and environmental topics by authors who are experts in various industries and businesses. Papers stem from new or unique ideas, which are presented to or published by a local or national society or conference. Fluor employees are encouraged to stay abreast of emerging and current technologies and share their knowledge outside the company. Fluor’s Professional Publications & Presentations Program (P4) promotes employees’ depth of expertise through the industry’s trade media and professional conferences. By promoting this expertise, employees contribute significantly to Fluor’s ongoing efforts to differentiate the company from our competition.

P4’s purpose is to champion, encourage, guide, track, and recognize all technical publications and presentations by Fluor employees. Employees develop and present technical papers to local, national, and international audiences and also publish them in leading trade magazines. P4 provides a unique forum for Fluor to demonstrate its depth of expertise and creates opportunities to collaborate with our clients to document joint achievements, thereby extending client relationships well beyond the time frame of a project. The following list shows a few examples of Fluor employees’ HSE-related professional publications and presentations in 2005. (Only Fluor authors for each paper are named on this list.)

‘‘An Evaluation of Cost Effective Fireproofing for Process Structures’’ by Sourabh Marakhwar and Srivalsan K.G. ‘‘Annual VPP Self-Evaluation: By the Numbers’’ by Richard O Zimmerman and Jack Griffith

‘‘Bringing Fluor’s Safety Culture to Iraq’’ by Phil Watson ‘‘Building a Strong Culture for Health and Safety’’ by Nancy Kralik ‘‘CO2 Capture and Transport Technologies’’ by John Barrie ‘‘Construction Safety in Sub-Arctic Conditions’’ by Pat Caughey

‘‘Construction Hazard Recognition and Control’’ by Miles Jaeger and Mark Hermanson ‘‘Disaster Response in APEC - A Unique Opportunity’’ by Bob Prieto

‘‘Effective Environmental Compliance Strategy for the Cleanup of K Basins at Hanford Site, Washington’’ by Thiruchitr Ambalam and David J Watson

‘‘Evolution of DOE Safety Basis Documentation from Production to Closure at Fernald’’ by Tulanda Brown ‘‘Electromagnetic Radiation and Human Health’’ by Cy Hardiman and Ali Zamanian

‘‘Experience with NOx Continuous Emission Monitoring Systems, A Rational Approach’’ by Vince Griffin and Murali Nannegari ‘‘Fitness for Service and its Role in Mechanical Integrity: An Essential of PSM’’ by Trevor Seipp, Shiju George and Alister Chieng ‘‘Fuels Specification - Legislation and Industry Challenges’’ by Irena Widziszowska

‘‘Fundamentals of Construction Safety and Health’’ by Tony O’Dea ‘‘Hanford ALARA Center Showcases ALARA Techniques’’ by Larry Waggoner

‘‘Hazard Controls and ALARA Protective Measures at DOE Sites’’ by Mark Hermanson, Larry Waggoner and Miles Jaeger ‘‘Impacts of Safety and Quality in Environmental Restoration at Hanford’’ by Steven S. Prevette

‘‘Integration of HSE Issues in the Engineering and Construction Industry’’ by Nancy Kralik ‘‘Managing Project Health, Safety & Environmental’’ by Guido Simons

‘‘Process Hazard Analysis’’ by Hans Göebel

‘‘Safety & Productivity: A Case for the Link’’ by Bob Prieto

‘‘Safety Studies to Measure Exothermic Reactions of Spent Plutonium Decontamination Chemicals Using Wet and Dry Decontamination Methods’’ by Michael J Minette, George W. Jackson and Andrea Hopkins

‘‘The Partnering Against Corruption Initiative’’ by Lee Tashjian

‘‘The Impact of Environmental Legislation on Transportation Fuels and Costs–Has the paradigm shifted?’’ by Claus-Peter Haelsig ‘‘Turning a Borrow Pit into a Wetland Mitigation Site: An Example of Opportunistic Environmental Management’’ by Daniel Freeman ‘‘Visionary Leaders at Work: Expanding the Fight Against Corruption’’ by Alan Boeckmann



Fluor’s HSE Management System (described in company practice 000-653-8000) was originally implemented in January 2004. At the end of 2005, revisions were made, reflecting our continual improvement process.

The system provides an integrated tool for demonstrating the company’s commitment to continually improve HSE performance, and it establishes a framework for how HSE aspects of Fluor projects will be addressed. Fluor’s corporate culture, supported by this HSE Management System, gives priority to HSE considerations for our employees and our stakeholders and is fundamental for achieving profitability. The structure of the HSE Management System incorporates several levels of control documents as indicated in the following diagram.

Some of the enhancements made to the HSE system during 2005 include:

• HSE Engineering Glossary and Reference document developed to provide non-HSE professionals with a quick reference to HSE terminology and to provide guidance to HSE professionals as they plan, budget, and execute projects.

• ‘‘Stakeholder’’ added to the HSE policy to better identify the comprehensive group the policy serves.

• Fluor’s HSE Operating Board responsibilities introduced and defined.

• References to the HSE Operating Board updated to reflect the new organizational structure. • Forms removed as attachments and hyperlinked to the practices and procedures.

• Practices and procedures made more robust in the areas of environmental awareness, contractor selection and alignment, and HSE engineering.

• Practices and procedures revised to provide better clarification in the areas of substance abuse, emergency contact personnel, training, pre-task planning, incident reporting, and health management in the field.


• Revised HSE Management System available to employees • Enhanced home page to reflect

organizational changes and Management System

• Fluor named a 2005 North American Most Admired Knowledge Enterprise winner


-As stated by Alan Boeckmann, Fluor’s Chairman and CEO, in this year’s

message, ‘‘sustainable development in project execution has increased our

clients’ interest in our significant HSE achievements.’’ Fluor incorporates

sustainable development and corporate responsibility in a myriad of aspects

of engineering, procurement, construction, operations, and maintenance,

ranging from community service and philanthropy to conservation to training

of nationals.


In May 2005, Fluor announced that our corporate headquarters would move to the Dallas/Ft. Worth area. The move reflects the company’s strategy to reduce operating costs, enhance efficiency, and become more customer focused.

Fluor is seeking Leadership in Energy & Environmental Design (LEEDTM) certification from the U.S. Green Building Council (USGBC) for our new corporate headquarters. LEED is a green building rating system designed to guide and distinguish high-performance commercial and institutional projects, with a focus on office buildings. Fluor is submitting its application for certification to the USGBC in the Spring of 2006 and anticipates certification award in late 2006, pending USGBC final review.

Supported by an ‘‘inside-out-outside-in’’ approach to the building design, the workspaces are efficient and infused with technology and furniture supporting Fluor’s global focus. A dynamic and light-filled 55-foot high atrium with cantilevered balconies and wood-clad dining room seems to float 40 feet in the air.

The natural site, use of regional materials and low volatile organic compound products, and a high percentage of recycled materials used for construction of the headquarters building demonstrate Fluor’s commitment to sustainable design. The lighting and mechanical design emphasize reduced energy consumption. Fluor’s corporate headquarters is designed to achieve LEED certification for both the building and the interiors.



Fluor’s outreach tool SCORE! (Supplier and Contractor Online Registry E-version) continued its success by registering twice as many suppliers in 2005, as compared to 2004. The database of perspective suppliers proved to be a major resource in achieving Fluor’s ambitious goals for using local suppliers in the aftermath of Hurricane Katrina (see 2005 Project Achievements – FEMA Individual Assistance Project) by allowing easy access through the web-based application. During 2005, the functionality of the tool was enhanced by adding the capability to notify registered suppliers regarding opportunities on projects within Fluor. This tool has been very helpful in diversifying our supplier base as shown in the following graphic.


Fluor project manager Tulanda Brown earned a professional achievement award as the Black Engineer of the Year for her work at the Department of Energy (DOE) Fernald site in Ohio where she was responsible for HSE initiatives. She developed an innovative approach to safety documentation that is now supported by both the DOE and the Defense Nuclear Facilities Safety Board as a new standard for remedial activities and site closure for DOE nuclear sites. Ms. Brown transferred to Fluor’s Government Group last year and is now assigned to Fluor Hanford’s regulatory compliance organization.


Fluor believes that global business has a responsibility to create a brighter future for the nations of the world. Corruption is especially damaging to the engineering and construction sector because that sector makes such a critical contribution to international development. Corruption is also damaging to citizens of countries where it is practiced because foreign investment tends to be directed to other countries where business is predictable and operates within the rule of law.

The single most important change in the fight against corruption over the past few years has been the ‘‘globalization’’ of American-style, anti-corruption standards. As part of the World Economic Forum, Alan Boeckmann chaired a multinational task force charged with establishing benchmark ‘‘Business Principles’’. To date, more than 80 companies have signed these anti-corruption principles that

Breakout of SCORE! Diversity Supplier Registrants at Year’s End

15% 17% 36% 1% 5% 10% 6% 7%

3% Women Owned BusinessEnterprise Minority Owned Business Enterprise

Small Business

Disabled Owned Business/NISH Hub Zone (SBA)

Small Disadvantaged Business (SBA) 8(a) Program (SBA) Veteran-Owned Business Tribally-Owned Business Service-Disabled Veteran Owned Business


-address ethical conduct regarding bribes, facilitation payments, political contributions and gifts, charitable contributions, and sponsorships. Signatory companies are required to commit to two ideas: 1) a zero-tolerance policy toward bribery and corruption and 2) a broad-based, anti-corruption program implemented to guide the behavior of its employees.


Green purchasing attempts to identify impacts on the environment and to maximize resource efficiency. Fluor addresses the impacts of our operations by reducing wastes, emissions, and discharges, and by meeting the needs of the present without depleting future generations’ resources. In keeping with this commitment, Fluor has established HSE principles that emphasize green purchasing. The Fluor HSE principle for Sustainable Development states that ‘‘procurement activities shall address ‘‘green processes.’’ Green purchasing is an important tenant of these ‘‘green processes’’.

As a global company, Fluor is working to educate our employees about green purchasing and to develop policies and programs that comply with requirements and offer green-purchasing options to clients for the execution of their projects. Now, more than ever, contractors are focusing on more than just technical decisions. Every ‘‘technical’’ decision has some degree of social, economic, and environmental implications that must be recognized and balanced.


In addition to green purchasing, Fluor looks for opportunities to minimize waste. For example, renovation of Fluor’s Greenville office complex resulted in approximately 6,500 square yards (5,435 square meters) of 22-year-old carpet slated for disposal in a landfill. This volume of old carpet raised obvious environmental concerns, so recycle opportunities were investigated. With the support of suppliers, Milliken and Bonitz Flooring Group, Fluor identified a local charity eager to accept the donation of used carpet. AID Upstate, a local nonprofit agency serving more than 750 people living with HIV/AIDS in the communities surrounding Greenville, used the excess carpet in its renovation of an assisted living facility, an office annex, and a building to be used as a thrift store.

The U.S. Office of the Federal Environmental Executive defines green purchasing as ‘‘the acquisition of recycled content products, environmentally preferable products and services, biobased products, energy- and water-efficient products, alternate fuel vehicles, products using renewable energy, and alternatives to hazardous or toxic chemicals.’’



There are innumerable opportunities to develop sustainability in construction. As Dave Stayshich, one of Fluor’s Construction Technology Managers states, ‘‘It makes too much sense to leave it alone!’’ In the long run, sustainability benefits everyone. For sustainability, the question is when will overall company savings be realized as a result of implementing sustainability principles?

On many of its projects, Fluor uses the 3Rs of resource conservation that apply to construction operations as described in the ‘‘Sustainable Building Technical Manual’’ published by Public Technology, Inc.:

• Reduce – reduce waste production by increasing labor efficiency / productivity through a waste management program (e.g., reusable formwork)

• Reuse – reuse leftover materials that are in satisfactory condition (e.g., wood), and • Recycle – recycle as much waste material that cannot be reused (e.g., sheetrock, siding,

steel, insulation)

Examples of steps that Fluor may implement to advance construction waste management are: • Assessment of probable waste streams prior to construction

• Direct involvement of local recyclers

• Work with subcontractors on specific measures; reduction, recycling, reverse distribution • Provision of waste management measures in contracts

• Emphasis of a clean site: continuous cleanup, end-of-day wrap-up • Provision of training for everyone on the jobsite

• Publication of results • Rewards for good results

Other methods that Fluor employs to make projects sustainable are to train local craft workers, use eco-labeled products, use fly ash in concrete, and return unused materials to suppliers.


The Lone Star Infrastructure team, led by Fluor, is involved in several environmental projects. Crews building State Highway (SH) 130 outside Georgetown, Texas are creating more than just a new road. They are making sure that bats have a home.

Bat habitat construction, along with tree relocation and a fish-recovery program, are examples of the broad environmental outreach the SH 130 project has implemented. Bat houses were installed on the SH 130 bridges over the San Gabriel River in Georgetown. These houses can hold between 3,000 and 5,000 Mexican free-tail bats. Up to 70 percent of the bats’ diet consists of corn and cotton pests such as moths and beetles. Georgetown is pleased to welcome the animals because bats consume insects and offer a better alternative to pest control than using insecticides that are harmful to people and the environment.



“Development which

“Development which

meets the needs of

meets the needs of

the present without

the present without

compromising the

compromising the

ability of future

ability of future

generations to meet

generations to meet

their own needs.”

their own needs.”

— Commission on Environment and — Commission on Environment and Development



Through our work in designing and building some of the world’s most complex industrial projects, Fluor has an extensive history of providing craft training in locations globally to meet client needs. The company continues to be actively engaged in providing training for local residents, thereby obtaining a local skilled workforce while providing career and economic growth for the local population. Four cases highlight the diversity of training programs and the personnel affected.

• Iraq – Fluor trained Iraqi Ministry and City Municipality employees throughout Iraq. Each person received a total of four weeks of instruction. More than 83,000 individuals were trained in 2005 on basic safety, including fall protection, personal protective equipment, trenching and excavation, confined space entry, danger tag and lock-out, hazard communication, equipment operations, and rigging safety.

• Louisiana – In an effort to support the economic recovery of Hurricane Katrina victims and accelerate the rebuilding process in the region, Fluor created several craft training centers and funded the training of the first 1,000 citizens whose homes and/or jobs were lost by the catastrophic storm. In total, the company

trained thousands of individuals in centers in and around the areas where concentrated rebuilding of hurricane-damaged infrastructure occurred. Providing local jobs is a focus of our efforts,’’

said Alan Boeckmann. ‘‘We are pleased to fund the cost of training for the first 1,000 who were affected by Hurricane Katrina. Through teamwork and ingenuity, America will turn this tragedy into a new beginning for the entire region.’’

Fluor’s work for the Federal Emergency

Management Agency (FEMA) of providing temporary housing units for individuals displaced by the storm required a significant number of craft personnel. Prior to the hurricane, the craft labor market was already stressed due to outages, shutdowns, and turnarounds that occur this time of year across the U.S. Fluor’s rapid response in creating craft training centers to educate individuals in virtually every civil craft (electricians, pipe fitters, welders, equipment operators and riggers) accelerated the recovery progress in the Gulf region. Many of these workers became employed by Fluor, our Louisiana-based subcontractors, or other construction companies to install temporary housing units and perform other related work. Individuals who were interested in training or craft employment opportunities with Fluor were encouraged to register through the company’s Job2Help program, a web site created through a Fluor and Monster.com teaming effort.

• Kazakhstan – Fluor, in partnership with Parsons, is constructing a major oil and gas facility for Tengiz Chevroil. During 2005, the partnership trained approximately 25,000 Kazakh citizens in a broad range of topics, including office safety, confined space entry, protection from hydrogen sulfide, welding safety, permit to work, environmental compliance, and electrical safety. Total instruction hours exceeded 350,000 hours.

• Indonesia –Fluor’s Behavioral Based HSE Program (BBHP) was implemented in Indonesia in late 2005 at an oil drilling field situated in a jungle environment spanning approximately 217 miles (350 kilometers). BBHP’s objective is to increase safe work behaviors and influence the HSE culture through effective implementation of formal and informal safe work observation processes. The program’s goal is to support the zero incident policy and to minimize injury, incidents, and loss.


A formal safe work observation process is a major factor in successfully implementing the BBHP. For the roll-out in Indonesia, initial training and information sessions involved more than 40 individuals. These individuals included clients, HSE compliance staff, key site management, and other site personnel.

Ongoing BBHP training was positioned to align with the site contractor processes, with BBHP training systematically cascading down through the workforce. An initial questionnaire provided valuable insights into the existing site culture and a baseline designed to track HSE

culture development over the longer term. Substantial work was done for the initial BBHP roll-out, including creating an original design team and subsequent steering committee to oversee ongoing program maintenance.

Challenges to the BBHP roll-out included language barriers, cultural differences, different levels of acceptable safety standards, workforce development challenges, logistical issues (e.g., site size, terrain, and weather conditions), and other local demographics. However, daily implementation challenges to the BBHP have not prevented the emergence of valuable quality data as a result of effective safe work observations. The data analysis process resulted in the identification and targeting of key areas of work behaviors for further action. The flexible nature of the BBHP allows for ongoing site adjustments, as necessary.

As the program roll-out emerges from its infancy into a more mature stage, individual focus and commitment to safety issues and the effective use of the key BBHP tools, such as safe work observations, will have the greatest impact on the outcome. The BBHP will continue to be systematically implemented and adjustments made according to site requirements.


The Fluor Foundation, established in 1952, is the company’s philanthropic organization. Its purpose is to respond to the needs, challenges, and opportunities of our society by providing financial assistance to various nonprofit organizations and educational institutions. Fluor Corporation and the Fluor Foundation annually contribute $4 million to $5 million to global programs and organizations.

One of the Foundation’s four areas of giving is health and human services that focus on providing financial support to groups that provide community services in the areas of food, shelter, family

assistance, emergency relief, and youth services. The Foundation can respond to disaster relief through a number of mechanisms including corporate contributions, employee giving, and Fluor employee community service. In 2005, the Fluor Foundation and employee contributions totaled more than $675,000 for disaster relief worldwide.

Three other areas that the Foundation addresses are:

• Education Related, focusing on educational organizations and programs, universities and schools

• Cultural, providing support to visual and performing arts, museums, art education programs, symphonies, community art festivals, arts funds/councils and public television/radio

• Public/Civic Affairs, providing support to community and economic development organizations, organizations promoting volunteerism, and some public-policy organizations


-Each year, employees contribute to local community organizations by volunteering their time and talent to raise money. In North American locations, Fluor supports the United Way and provides the Make-A-Difference Program in which Fluor matches 50 cents for every dollar donated by employees to the United Way, as well as other health and human services organizations. In 2005, employees at more than 40 Fluor offices and project sites pledged more than $2 million to the United Way and other human services agencies throughout the U.S. and Canada. This amount increased to more than $3 million with the Make-A-Difference Program match. These contributions support 200 local United Way organization and more than 400 other human service agencies.


Fluor has an international workforce of more than 35,000 employees and a network of offices in more than 25 countries across six continents. The global reach, industry expertise, and broad capabilities support Fluor’s ability to quickly respond to disaster relief, recovery, and reconstruction throughout the regions of the world.

Fluor maintains a leadership role in the development of the Disaster Resource Network (DRN), an adjunct of the World Economic Forum (WEF), and is an active member of the organization. The DRN is a global network of companies in the engineering, construction, logistics, and transportation sectors committed to helping

humanitarian organizations’ disaster relief efforts. Through annual membership in the WEF, we help to sustain the activities of the DRN to identify and deliver human, material, and financial help to relief areas. The DRN’s mission is to ‘‘leverage the resources of the international business community to mitigate the human suffering associated with disasters.’’ It acts as a bridge between businesses and humanitarian organizations making it easier for businesses to offer talent or in-kind donations during the emergency response phase of disaster relief.

Fluor is working with member companies of the DRN to develop a mechanism to talk with governments at the national level to create systems that will help communities prepare for disaster or mitigate the effect of a disaster. Fluor strongly supports the development of employees’ skills that will benefit their local community in the recovery from local disasters such as floods, earthquakes, hurricanes and tornados, fires or explosions. Daily experience in safely working in hazardous environments such as chemical plants and refineries, nuclear facilities, and military installation refurbishment prepares us to help recovery efforts in hazardous environments.

Fluor has worked with FEMA since 1997 to provide emergency and disaster response services across the United States. As a result, the company has developed a professional staff that is sensitive and responsive to disaster environments. Technical specialists are not only experts in their field, but also have FEMA training, enabling them to quickly and effectively respond to emergency situations. Fluor is one of only three companies to hold a contract with the agency, and and our employees have extensive training and experience working in a FEMA emergency environment.

Specific Fluor disaster response actions in 2005 included the following examples. tSuNAMI RElIEF FuND

On Sunday, December 26, 2004, a magnitude 9.0 earthquake rocked the ocean floor off the east coast of Indonesia, creating a massive tidal wave that caused the loss of nearly 150,000 lives and severe damage across southern Asia and eastern Africa. People all over the world rushed to help survivors and provide relief in affected countries, including Indonesia, Sri Lanka, India, Thailand, Maldives, Malaysia, Myanmar, and Bangladesh, as well as Somalia, Kenya, Tanzania, and the Seychelles.


The Fluor Foundation made an initial contribution of $100,000 to the American Red Cross International Response Fund in December. In addition, Fluor Corporation donated $10,000 to the Disaster Resource Network. In January 2005, Fluor employees from offices and projects around the globe contributed $176,747 to help ease the suffering of those hit by the tsunami in southern Asia and eastern Africa. Employees were invited to contribute to relief agencies of their choice around the globe.


Hurricane Katrina was the third major hurricane and first Category 5 hurricane of the record-breaking 2005 Atlantic hurricane season, hitting the southern U.S. coast on Auguest 29, 2005. The storm surge from Katrina caused catastrophic damage along the coastlines of Louisiana, Mississippi, and Alabama. Levees separating Lake Pontchartrain from New Orleans were breached by the surge, ultimately flooding about 80 percent of the city. Katrina is estimated to be reponsible for $75 billion in damages, making it the costliest hurricane in United States history; the storm killed at least 1,383 people.

In the wake of Hurricane Katrina, the Fluor Foundation donated $100,000 and invited employees and retirees around the world to contribute to relief efforts. By September 30, those individual donations exceeded $329,000. The Fluor Foundation provided a 50 percent match to United Way of America Hurricane Katrina Response Fund and the American Red Cross. In addition, the company provided personnel to the World Economic Forums Disaster Relief Network. ICA and ICA Fluor in Mexico

together pledged $100,000, and individual projects and offices around the world joined to raise funds, as well as collected donations of clothing and food. Employees in the United States also donated the value of Time Off With Pay/Vacation/Paid Time Off through December 21. These donations were matched by the Foundation on a 50 percent basis, and the employee and Foundation contributions were designated to the United Way.


The Kashmir earthquake (also known as the Northern Pakistan earthquake or South Asia earthquake) occurred on October 8, 2005 with the epicenter in the Pakistan-administered region of the disputed territory of Kashmir in South Asia. It registered 7.6 magnitude on the Richter scale. The Pakistani government’s official death toll was more than 87,000.

Employees in the Camberley, U.K., office raised about $1,000 in contributions. Fluor Foundation contributed $15,000 to Save the Children, designated for earthquake relief.


Support for schools

Employees at Fluor’s Santiago, Chile, office were in the middle of their campaign to collect school supplies, tennis shoes, and jackets for 150 children at Escuela Basica No. 478 when they noticed the lack of books in the school library and the state of disrepair of the pre-school bathrooms.

As soon as their backpacks were distributed, they started a collection of books for the library and volunteered to repair the bathrooms. Employees working on three projects in Peru collectively distributed nearly 3,000 backpacks, and in Ilo, they conducted much needed renovation of the school.

The combined efforts of Fluor employees in 26 locations who participated in the company’s Building Futures Project touched the lives of more than 10,000 children around the world.



-At the Ford Island project in Hawaii, after delivering 50 backpacks and supplies to children in a low-income community, Fluor volunteers were inspired to begin planning the installation of a playground for the children.

For the Fluor offices that decided to collect school supplies or other personal items for disadvantaged children, Fluor donated more than 7,000 backpacks, and ICA Fluor an additional 250. Employees also donated supplies to fill the backpacks.


Aliso Viejo, California: Spirit of Volunteerism Award

In April, the Fluor Community Involvement Team at Fluor’s Aliso Viejo office was recognized as an outstanding corporate volunteer team at the Orange County Spirit of Volunteerism Awards by the Volunteer Center Orange County.

Greenville, South Carolina: 2005 South Carolina Governor’s Volunteer Award

In April, Fluor’s Greenville office was presented with the South Carolina Governor’s Workplace Volunteer Award. This award is given to a corporation, business, or trade association that has demonstrated commitment to the community by supporting volunteer activities. One company is selected from a number of nominated companies and is recognized by the governor of South Carolina at a ceremony at the State Capitol in Columbia.

Hanford, Richland, Washington: ESD123 Award (Educational Service District 123)

Sponsored by the Southeastern Washington Association of School Administrators, school districts recognize someone from their community each year who has given to education. Fluor’s Hanford office and Bob Fluor, Vice President of Global Public Affairs, have been recognized for their outstanding contributions to students and communities across the region.

The Educational Service District 123 covers 23 school districts throughout the area from Richland to North East Oregon and the Idaho border. The Hanford office supports seven of those districts.

Houston, Texas: Firefighter of the Year – Assistant Chief Shayne Carter, Cat Spring Volunteer Fire Department

Shayne Carter, Health, Safety & Environmental Manager at Fluor’s Houston office, and a fellow volunteer were recognized for exceptional achievements by the 100 Club. The 100 Club is a nonprofit organization that benefits law enforcement and firefighters in a 14-county area in and around Houston. Last summer, both men were called into action after a cement truck rolled over on a narrow road trapping the driver inside the cab. After 90 minutes of grueling work, the driver was removed. Both volunteer firefighters have more than enough tenure to retire, but they continue to serve their community in an unselfish and valuable manner.



Fluor is proud of another year of outstanding HSE performance. The company’s HSE performance goals were aggressive in 2005, but collectively, Fluor employees rose to the challenge.

Fluor’s commitment to protecting our greatest asset – our employees – began five decades ago. Today, Fluor’s strong world-class HSE culture is sustained by unwavering dedication and personal commitment that begins with the CEO and is shared by every employee. This diligent commitment is evident on Fluor’s diverse and complex projects, which are often faced with geographical, social, cultural, economic, political, and environmental challenges.

• Exposure hours increased from 239,384,806 in 2004 to 269,717,990 in 2005, representing an increase of 13 percent. International markets accounted for more than 204 million, or 76 percent of work hours in 2005.

• Fluor ended the year with restricted workday case incidence rate of 0.15, a lost workday case rate of 0.05, and a total recordable case incidence rate of 0.46 per 200,000 hours worked.

Fluor employees continue to put forth extraordinary effort to maintain the strong health, safety, and environmental culture and performance. In 2006, Fluor will strive to improve upon our HSE progress in 2005.


Fluor’s office exposure hours increased slightly from 21,680,105 in 2004 to 22,154,183 in 2005. International offices represented 53 percent of the hours.

In 2005, Fluor showed improvements in the safety performance rates for office operations:

2004 2005 Total recordable case incidence rate 0.06 0.05 Restricted workday case incidence rate 0.01 0.00

Fluor offices experienced one lost workday case in 2005, for over 22 million worldwide exposure hours, resulting in a rate of 0.01 per 200,000 hours worked.


• Field operations ended 2005 with positive momentum. Collectively, Fluor projects met the company’s goals for restricted and recordable case incidence rates, 0.18 and 0.75 respectively.

• Worldwide field operations reduced lost workday cases from 20 in 2004 to 16 in 2005. This improvement is a result of a decline in U.S. lost workday cases, from 10 in 2004 to 6 in 2005. The U.S. achieved a lost workday case rate of 0.03 and non-U.S. field operations had a rate of 0.05, which was a decrease from 0.07 in 2004. This is a remarkable achievement considering that there was a 31 percent increase in exposure hours in 2005 for non-U.S. field operations.

• Exposure hours for field projects worldwide increased by 23 percent, from 58,705,097 in 2004 to 72,298,410 in 2005. Activity in Fluor’s U.S. markets increased by 16 percent, from 30 million in 2004 to 35 million in 2005. Non-U.S. hours increased from 28 million in 2004 to 37 million in 2005, an increase of 31 percent.

Some 337 projects and offices performed the entire year without experiencing a lost workday case. Additionally, 265 projects and offices ended the year without experiencing a single recordable case.

.46 .05

Lost Workday Case (with days away) per 200,000 hours worked

Total Recordable Cases per 200,000 hours worked ‘00 ‘01 ‘02 ‘03 .05 .06 .06 .08 .01 .99 .87 .64 .50 .37 ‘04 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘05

* Fluor & Subcontractors Worldwide * *



• Exposure hours for Fluor’s subcontractor field operations increased from 158,999,604 hours in 2004 to 167,128,431 in 2005.

• Non-U.S. markets accounted for more than 149 million or 89 percent of the subcontractor exposure hours.

• More than 2,100 contractor and subcontractor companies ended the year without

experiencing a lost workday case. More than 2,060 subcontractor companies at Fluor sites achieved ZERO INCIDENTS and did not experience a single recordable incident in 2005 FluOR’S PROjECt SAFEty AlERt SyStEM

Fluor’s Project Safety Alert System quantifies the safety status of each project so that outstanding performance can be recognized and additional focus can be placed on those projects where improvement is needed. The Project Safety Alert System identifies projects with a total recordable case incidence rate exceeding the Fluor goal for the reporting period. Categories include:

1) Blue - World-Class: Managing safety at an incidence rate of zero 2) Green - Warning: Managing safety at or below the goal

3) Red - Alert Status: Managing safety above the goal

world-class warning alert 95% 3% 1%

Fluor projects, offices, and contractors (total of 2,480 in 2005)




On a scale of one to 10, with 10 being the most important, how critical to Corning is a contractor’s HSE capability? Can you explain why?

There’s no question about it. The HSE capability of a contractor like Fluor is an absolute 10 in importance to Corning. Our people and safety are the highest priorities for us and we will never compromise on that.

I write monthly reports which focus on four areas – safety, schedule, quality, and cost. The priorities change from month to month, with one exception. Safety is always at the top of the list. A poor safety performance can override any accomplishments you might have on a project.

So the ability of a company like Fluor to enforce and uphold the highest possible safety standards is an absolute necessity if they are going to do business with us.

Have you seen a shift in importance of HSE performance over time? If so, what’s driving the shift and do you think it will continue?

Yes, there’s been a shift. I think it’s driven by a Western influence, coupled with a growing universal care for people. Said another way, the value for individuals has taken its rightful place as a top priority. I think HSE is particularly critical when a project is outside of North America, like the Taichung project.

Fluor is the contractor for the Corning Taichung project. Can you cite some examples where the Fluor HSE function has made a difference for the project in areas such as whole lifecycle costs, field performance, subcontractor management and the like?

The fact that the Taichung project is in Asia is an important consideration. The lifecycle cost to enforce safety in Asia is more expensive. Corning and Fluor really have to manage safety ourselves here. We’ve trained more people and, because of our stringent safety requirements, we’ve kept only the people who maintain the highest safety standards. At the same time, safety has improved the workmanship. High safety standards actually help maintain our timeline with fewer setbacks due to haste and carelessness. So, it has an overall positive effect and improves the project quality.

Can health and safety performance add to the profitability and value of a project?

No matter how you look at it, health and safety are costs to a project. They’re not meant to save you money. When contractors ask us what the budget is for safety, we tell them there are no budget constraints.

But safety pays off in many other ways. I mentioned earlier that I write a monthly report that always includes our schedule. It’s really important for us to hit our timelines, and having good health and safety performance keeps us on track with our schedule.

How about environmental performance? Can it make a difference in the profitability and value of a project?

Good environmental performance is in line with Corning’s values. We live and work in the communities surrounding our facilities. So do many of our customers. So, even though it does have associated costs, it’s very important.



In 2005, as a part of Fluor’s Client Review program, 156 clients provided feedback on Fluor’s HSE Performance. Overall results of all reviews conducted resulted in a total HSE Customer Confidence Index of 74. The following breakdown shows the types and percentage of the 156 clients who participated in the review process, listed first according to Fluor’s business organization and then by the clients’ position in their companies.

by Business Group:

Energy and Chemicals Operations & Maintenance AMECO Government 33% 28% 27% 12% by Client Functions: Senior Management Project Management Project Controls/Finance Engineering Construction Plant/Site Management Process Procurement

Business / Finance Management Maintenance Operations Other 4% 23% 3% 10% 11% 4% 1% 3% 1% 25% 10% 5% Client Responses:

1. Does Fluor Conform to Your HSE Requirements? (134 valid responses) 49% Always Conforms

49% Usually Conforms 1% Sometimes Conforms

2. Have You Noticed Any Improvement in Fluor’s HSE Performance? (156 valid responses)

10% Improved Significantly 31% Improved

58% Stayed the Same 1% Declined

3. How Does Fluor Compare to Our Competitors

in HSE Performance? (156 valid responses) 40% Above Competitors

44% Slightly Above Competitors 16% Same As Competitors

4. How Important Is HSE Performance to You (the client)? (151 valid responses)

75% Extremely Important

16% More Than Somewhat Important 9% Somewhat Important

‘‘The Client Review process provides a formal, yet flexible, framework for engaging both Fluor and client personnel in a structured conversation. The process allows the client to communicate his or her issues and concerns, and encourages collaborative feedback. This process promotes an open dialogue in a neutral environment, avoiding the interrogative approach used in most traditional satisfaction surveys.’’

Lynn Kelly, Fluor Global Services


Performance Indicator Index* Health, Safety & Environmental 74 * 71 – 100 = High;

41 – 70 = Moderate; 1 – 40 = Low



Focused career development is critical to maintaining the superiority of our people’s skills, knowledge, and experience and is a critical component of the Fluor HSE business strategy. A robust development process benefits Fluor, clients, and employees and allows Fluor to provide a highly skilled workforce for complex projects.

In 2005, the corporate HSE group issued its Global Functional Track (GFT) for use in career planning. The HSE GFT is a set of documents that provides the framework and tools for understanding potential career paths and the required

skills, behaviors, and knowledge required for those positions within the HSE discipline. The GFT addresses all HSE career paths, including HSE engineering and HSE construction management. In late 2005, the corporate HSE group finalized planning for its first Functional Development Forum (FDF). The HSE FDF is charged with identifying and developing individuals who have the desire and capability to become recognized experts in HSE and to ensure the continued development, recognition, and retention of seasoned Fluor HSE professionals. The FDF will designate protégées and their mentors and sponsors and will also capture individual development plans in an online database. The FDF will be implemented in 2006.


Fluor places special emphasis on developing engineering designs that fully consider and mitigate inherent risks associated with projects that could have the potential to cause harm to people or the environment. Appropriate, cost-effective HSE features are incorporated into project designs to minimize the potential for hazardous events or environmental impacts.

HSE design criteria are incorporated into the engineering design of each project component, including processing equipment, supporting infrastructure, and ancillary facilities. Fluor requires that the HSE philosophy developed and applied to the basic engineering phase of a project also be applied consistently through the detailed engineering and construction phases

of the project.

Fluor’s formalized techniques for HSE reviews provide the mechanism for documented evaluation and verification of a safe, compliant, and environmentally responsible facility or project design. HSE in design revolves around the following concepts:

• Consistency in engineering to achieve a low-risk design

• Design that follows standards • Adherence to regulations and codes

• Design that minimizes engineering oversights and errors leading to changes

• Satisfactory resolution of all risk mitigation issues • HSE in design according to a plan

While HSE plays a pivotal role in all projects, what follows are a few of the best examples from 2005.

The earlier in the project

HSE opportunities are

identified, the more cost

effective are the solutions.



Plans to create a wetland mitigation site in support of State Highway 130 (SH 130) in Williamson County, Texas represent a true win-win mutual benefit to the environment and to the community. The project proposes to create a wetland mitigation site from an area excavated to provide construction materials. The impacts resulting from the construction of SH 130 include effects to surface waters and other wetlands. The creation of this mitigation site is part of the compensatory mitigation requirement established by the U.S. Army Corps of Engineers (USACE) individual permit for the project.

The plans for the creation of this wetland mitigation site, adjacent to the San Gabriel River, require approval of the USACE prior to initiation of construction of the mitigation site. Coordination has also been initiated with local government bodies to explore possible passive recreational uses by the public and long-term maintenance arrangements.

Creating a wetland mitigation site provides an opportunity to plan for various features to realize the maximum value of the area, including planting of vegetation that encourages wildlife use by creating diverse habitat types on the site. The vegetation species will provide both cover and food sources for animals that are attracted to a wetland habitat. The animals provide a source of passive recreation for people who want to observe mammals, birds, and fish in a natural setting. With the City of Georgetown and public school nearby, this mitigation site will provide educational opportunities as the wetland and the surrounding woodlands mature. In addition, the school may develop opportunities for enhancement of the habitat in and around the wetland as part of educational programs.

Interpretive features can be installed to facilitate the public’s understanding of the benefits and functions of wetlands and riparian habitats. Furthermore, the design of the site will allow the wetland to function as a water quality feature by filtering storm water that runs from the north end of the site through a series of grassy swales into the wetland itself before entering the San Gabriel River on the south side of the site. Because this site was a large borrow source, it will be able to detain a significant amount of flood water by acting as a detention basin in the lower pond.


Because of skyrocketing oil and gas prices, many of our clients are turning towards coal (and other solid fuel) utilization projects. With this trend, carbon capture, or reducing carbon dioxide (CO2) emission into the atmosphere, has become a more important goal for many major energy companies. Fluor has been active in developing CO2 recovery processes for many years, and in 2005 engineering work in this area substantially increased. Fluor worked with numerous client companies and technology providers in the development and application of both post-combustion and pre-combustion CO2 removal systems. Recovered CO2 from these systems

will be beneficially used in applications such as enhanced crude oil production or will be permanently sequestered from the atmosphere in deep underground formations.





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