Perspective Competency

4.3.3 - Compliance, Standards and Regulations

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Regulatory Compliance

• Compliance is a term that describes conforming to a standard, rule, law

or requirement.

• Regulatory Compliance describes the goal that organizations aspire to

achieve in their efforts to ensure that they are aware of and take steps to
comply with relevant laws, policies and regulations. Laws as are in force
in the region and country where project is getting executed.

• ISO 21500 is an international standard for Project Management

published in 2018.

• ISO TC/258 is a Technical Committee of International Organization for

Standards responsible for designing standards for Project, Programme
and Portfolio Management under ISO 21500.
• IPMA as a body has laid down its own standards for Project
Management Competencies. 2
HSSE Policy
• The Health, Security, Safety and Environment Policy of an organization
commits it to provide a safe, secure and healthy environment at its
work locations.
• Provide a clean, safe environment for work.
• Ensure safe drinking water, provide safety devices, tools while
working in an unsafe environment.
• Monitor all accident-prone work areas and take precautionary and
preventive steps.

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 Health, Security, Safety and Environment Policy

• Health, Security, Safety and Environment (HSS&E) deals

with the legal and statuary requirements to ensure proper
safety is maintained and health facilities are provided as
per the law at the work place.
• This element covers the activities that help ensure the
organisation behaves appropriately in the context of
(HSS&E) and during the planning phase of the project, its
execution, and during the delivered product’s lifecycle
and its decommissioning and disposal.

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Sample HSSE Policy

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Health & Safety in Project Organizations

• Project organizations need to ensure the following:

• Health, security and safety of the work force
• Control and restrict usage of hazardous substances
• Protect the environment against emissions and toxic
effluents
• Protect community from the actions of the organization
• A health, security, safety and environment plan needs to be
developed in each project and dovetailed in the project
management plan.
• Help plan and control “ green” projects
• Involve in CSR activities for the benefit of community, we
live in.

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Important Labour Laws in India
• List of major labour laws in India:

 Worker's Compensation Act, 1923.

 The Trade Unions Act, 1926.
 Payment of Wages Act, 1936.
 Industrial Employment (Standing Orders) Act, 1946.
 Indian Industrial Disputes Act, 1947.
 Minimum Wages Act, 1948.
 Factories Act, 1948.
 Maternity Benefits Act, 1961.

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 National Legislation

• The main health and safety laws are derived from British
factories Act as enumerated below:
• The factories Act 1948 provided health, safety and
welfare for factories in India
• Indian Boiler Act, 1923, regulates working in boilers
• Dock workers Act, 1966 for workers in shipyards
• Mines Act,1952 for safety of workers employed in mines
• Plantation Labour Act, 1951
• Explosives Act,1884

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Safety of Employees

• Securely guarding of all ports of dangerous machinery

• Ensure required precautions for workers on machinery
• Emergency shut OFF of power
• Maintenance of hoists and lifts
• Lifting machines, chains, ropes etc to be maintained in
good conditions
• Provision of protective clothing and equipment
• Preventive measures for fires and explosions

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 Environment

• Environment includes water, air, land and their inter-

relationship with human beings, living creatures, plants
and property.
• Environmental pollutant means any solid, liquid, or
gaseous substance present in such concentration so as to
cause harm to the environment.
• Handling includes the manufacture, processing,
treatment, package, storage and transportation of goods,
products and services.
• Hazardous substance includes any substance likely to
cause harm to humans, living creatures and plants.
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 Legal

• This competence element describes the impact of the law

and regulations on projects and programmes.
• Project, programme and portfolio management also focus
on avoiding torts (tort law protects a person’s interest in
personal security, tangible assets, financial resources, or
reputation) and claims as a result of actions such as breach
of contract.
• In a project, decisions are made which may have legal
implications.
• Knowledge and experience in contract law are essential for
the management of some kinds of projects.
• International projects can be subject to the requirements of
more then one legal system. 11
 Steps for Legal Compliance
• Set legal standards and guidelines appropriate to the
organization or portfolio.
• Initiate processes for implementing appropriate standards
and guidelines.
• Manage the project’s or programme’s contracts, claims and
changes appropriately.
• Respond effectively to organize labour challenges.
• Respond appropriately to claims of harassment,
discrimination, safety issues or non performance. Document
lessons learnt.
• Provide feedback on lessons learnt and adjust standards and
guidelines if needed.

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Important Subjects where laws exist

• Companies Act
• Criminal law
• Contract law,
• Commercial law,
• Employment laws,
• Health and safety,
• Data protection,
• Building regulations,
• Intellectual property,
• Copyright law,
• Patents and royalties.
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Some important definitions - Contracts
• Laissez Faire Policy -Laissez-faire, (French: “allow to do”) policy of minimum governmental
interference in the economic affairs of individuals and society.
• Force Majeure clause : Force majeure, sometimes, but erroneously, referred to as force
majure,[1] is a common clause in contracts which essentially frees both parties from
liability or obligation when an extraordinary event or circumstance beyond the control of
the parties, such as a war, strike, riot, crime, epidemic, sudden legal changes or an event
described by the legal term act of God, prevents one or both parties from fulfilling their
obligations under the contract. In practice, most force majeure clauses do not excuse a
party's non-performance entirely, but only suspend it for the duration of the force majeure.
[2]

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Some important definitions- Contracts
• Indemnity clause :To indemnify someone is to absorb the losses caused to that
party. ... Indemnity clause often sets out a list of what actions a party is insured against, for
example: All lawsuits, actions or proceedings, demands, damages and liabilities. All claims,
liabilities, losses, expenses and damages arising from a contract.

• What is Tort Law? Tort law in India is a relatively new common law development
supplemented by codifying statutes including statutes governing damages. While India
generally follows the UK approach, there are certain differences which may indicate
judicial activism, hence creating controversy. Tort is breach of some duty independent of
contract which has caused damage to the plaintiff giving rise to civil cause of action and for
which remedy is available. If there is no remedy it cannot be called a tort because the
essence of tort is to give remedy to the person who has suffered injury.

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