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Contract HSE Risk Assessment

April 2008

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Objectives of this workshop

To understand the risk assessment process and

risk assessment matrix

To practice application of the risk assessment

process

To categorize the HSE risk of

selected key contracts

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Why do a contract risk assessment?

Implementation of Contractor HSE Management standard
AFPC management decision to implement new standard by end 2008
Structured process covering pre and post award
Step 1 assess the risk of each contract

Goal Zero 5 must win improvement areas

Leadership
Land transport
Process safety
Worksite hazards
Contractor HSE management

Prioritization of activities and resources

Management team focus
Contract holder capability
Contractor HSE plans and supervision
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Application of the risk assessment

Contract Holder competency
HSE competence requirements depend on contract HSE risk
Competence gap analysis, plan to close gaps

Contract HSE clauses

Appropriate clauses depend on contract HSE risk
Contract Holder will select relevant clauses from matrix

Selection of contractors
More capable contractors required to manage higher risks
Impact on bid lists, prequalification and evaluation criteria

HSE plans
More controls required to manage higher risks
Contract Holder will apply relevant HSE plan template from procedure

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Typical Examples of Jobs By Risks

High Risk

Road Transport

Working At Heights

Confined Space Work

Catering in
Camps
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Typical Examples of Jobs By Risks

Medium Risks

Office
Maintenance
Vehicle Maintenance

Security Car Rentals

Electrical Maintenance

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Typical Examples of Jobs By Risks

Office
Low Risks Cleaning

General IT
Services

Admin Support

Pantry
Activities

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Risk assessment process

1) Identify the hazards associated with activities in the

contract work scope

2) Assess the HSE risk of each hazard using the Risk

Assessment Matrix
Estimate the severity of potential consequences
Estimate the likelihood of these same consequences
Assess the risk rating

3) Categorize the contract HSE risk

corresponding to the highest risk
inherent in the contract scope

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Risk Assessment Matrix

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What is the Contract Mode?
MODE 1 CONTRACT
Contractor provides people
and tools for the execution of
work under the supervision,
instructions and HSE MS of
Company.
The contractor has a MS to
provide assurance that its
personnel are qualified and
healthy and that its tools and
machinery are properly
maintained and suitable for
the job.
Small maintenance
company working on
project owned equipment
at a Company location.
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MODE 2 CONTRACT MODE 3 CONTRACT
The contractor executes all Not Work Related Activities.
aspects of the job under its own Contractor operates within its
HSE MS that interfaces with the own HSE MS that has no
Company HSE MS and provides interfaces with Company
the necessary instructions and
supervision and verifies the HSE performance data is not
reported to Company.
proper functioning of its HSE
MS.
Company is responsible for
verifying the overall
effectiveness of the HSE
management controls put in
place by the contractor.
Drilling rig, well services, Off site manufacture or
completion or sub sea fabrication of major
intervention contract, standard components,
EPC contract. design office work.
 Assessing the Contractor Capability
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Contract
Clauses
HSE
Capability
Questionnaire
Mode 1
High
Contract HSE
Risk Mode 2 Contractor Past
HSE Risk Capability HSE
Assessment Performance
Mode 3 To mange
HSE
Risks
Hazard On site Audit
&
(if required)
Environment Mode 1
Register
Medium
HSE Mode 2
Risk

Other Mode 3
HSE Risk
Assessments

Historical
Performance
Mode 1 Shall be
Low Evaluated
HSE &
Risks Mode 2 Deemed
Acceptable
Shell
Yellow Mode 3
Guide
No
Activity Assessment
HSE Risks Required
- Contract mode
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Recording the results

DATE: PROJECT / PLACE:
DOCUMENT NO: CONTRACT HOLDER:
CONTRACT / ACTIVITY:
CONTRACT M ODE 1 2 3
RISK CATEGORY: LOW Medium HIGH
EVALUATION TEAM: HSSE: SCM: CONTRACT USER:
RAM: SEVERITY: LIKELIHOOD: TARGET:
COMMENT

Contract Scope:

RISK IDENTIFICATION AND ASSESSMENT

HAZARD RISK CONSEQUENCE TARGET RAM

Signatures

HSE ADVISOR CONTRACT HOLDER SCM/C&P CONTRACT USER

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