HSE MANAGEMENT OF CONTRACTORS
By: Venkatesh Murthy
Abu Dhabi Polymers Company LLC (Borouge), Abu Dhabi
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Introduction
As the safety culture evolves in the Petrochemical industry, it is
becoming evident that long-term business success, as well as the
HSE performance of an organization, depends on the performance of
its contractors and suppliers.
In this presentation we discuss the key elements of the contractor
management process as applied within the HSE Management
System on Borouge sites. I will be presenting a step-by-step process
flow and the various management tools that are used for the
management of contractor HSE.
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Who we are?
 Leading provider of innovative, value
creating polyethylene and polypropylene
plastics solutions;
 Based on proprietary Borstar®
technology;
 Focus on infrastructure, automotive and
advanced packaging markets of the
Middle East, Asia-Pacific, Indian sub-
continent and Africa;
 Customers in more than 50 countries,
over USD 3 billion in annual sales
(2012);
 More than 3,000 employees.
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Borouge milestones and achievements
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Borouge and Borealis emerging as global
players
Top 12 PO Global Competitor Capacity [MT per year]
Average annual available capacity based on ownership share; * Figures include announced projects. Intended restructurings and speculative capacities not reflected
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Source: CMAI, Strategy & Group Development
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Borouge 3: A major milestone in our
journey of growth
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Why Contractor Management?
2014
(4.5 Million Tonnes per annum)
2010
(2 Million Tonnes
per annum)
2001
(0.6 Million
Tonnes per
annum)
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“Be recognized as a leader in HSE
Performance across the
Petrochemical Industry”
We cannot achieve this without the
support of our contractor community
Video - Click here
Where it emanates from?
Borouge HSE-MS
Leadership & Commitment
Policy & Strategic Objectives
Organisation, Resources & Competence
Risk Evaluation & Management
Planning, Standards & Procedures
Implementation & Monitoring
Audit
Management Review
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Contractor Management – An integral process
Contractor Management is an integral part of Borouge HSE-MS;
Sub Element 3.5 under Organisation, Resources & Competence
deals in greater detail on the subject of Contractor HSE management.
Stages of Contractor Management
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7 Stages of
Contractor
management
Cycle
Contractor Management Process – Stage 1
Stage 1 - Planning & Invitation to tender
• Establishing of Contract Risk
Category The risk category will influence the
HSE requirements specified for the contract and how
it is managed
• Contract Request Form
• HSE Pre-Qualification Questionnaire
• HSE Plan
• Tender evaluation criteria
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Planning & Invitation to tender
It is important that at the planning stage for any contract / Project ,
Contract specific HSE requirements & procedures are identified.
Contractor Management Process – Stage 1
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Contractor Management Process – Stage 2
Stage 2 – Tender period
Where required, Tender Clarification Meetings and site visit are
organised to answer tenderer’s questions and allow full
familiarization with the work scope.
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Tender Phase
As part of bidding process, the contractor performs HSE risk
assessment, HSE MS self assessment and prepares a preliminary
Project HSE Plan to demonstrate understanding of the HSE
specifications and how compliance shall be achieved.
Contractor Management Process – Stage 3
Stage 3 – Bid evaluation and contract award
50% score must be achieved in HSE evaluation only then further technical
evaluation is carried out for the bidder.
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Bid evaluations & contract award
User department representative & HSE representative shall evaluate the submissions &
Preliminary Contract HSE Plans against the HSE Specification.
Contractor Management Process – Stage 4
Stage 4 – Mobilization
This is the most important phase of the project, which will see the earlier planning coming
to life.
Mobilization
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Contractor Management Process – Stage 5
Stage 5 – Project execution
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
The contractor's line management
commitment to the HSE issues;

Reinforcement of the HSE targets as
defined in the contractor's HSE Plan;

The provision of training as needed
for specific contractor employees;

The regular checking and review of the
contractor's performance;

The contractor's monitoring of the
condition and integrity of his plant,
equipment and tools;

The contractor's holding of daily toolbox
meetings and regular HSE meetings;

The contractor's implementation of
Inspections, audits, exercises and
drills of contingency plans;

Any deviations from the HSE Plan formally
assessed and approved.
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Project Execution
Under the contract, the responsibility for proper supervision of the
contractor's personnel on HSE matters rests with the contractor
himself. However, Borouge representative ensures that contractor's
supervision complies with the requirements defined in the contractor's
HSE Plan.
Contractor Management Process – Stage 5
Contractor annual HSE awards are organised to encourage
competition amongst contractors.
Contractor representatives are part of the
incident investigation teams.
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Project Execution
HSE workshops are carried out annually to
cover subjects for alignment with Borouge
HSE MS..
Contractor Management Process – Stage 6
Stage 6 – Demobilization
The contractor's HSE Plan continues to be the vehicle for monitoring HSE activities in
this phase. Two new areas figure prominently:
Site restoration;
Waste management and disposal.
It is important to maintain vigilance on HSE matters to the very end of the contract.
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Demobilization
•
•
Contractor Management Process – Stage 7
Stage 7 – Project closeout
The close-out report provides the formal method of providing feedback to the
management and for recording a concise history of the contract for future use.
Project closeout
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Challenges ahead
 Continuing the HSE performance against set HSE targets in a
sustainable manner.
 Ensuring contractor(s) understanding of the HSE requirements on
projects right from the conception stages of the project on all our
locations.
 Simplification of the Contractor HSE management process to ensure
line management commitment deliverables become easy to comply
with.
 Raising overall HSE awareness of contractors workforce to ensure that
we have “ZERO” injuries on site .
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Any Questions?
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VENKATESH MURTHY
HSE Specialist (Projects & Turnarounds)
02-6074773, 050-8124837
Venkatesh.murthy@borouge.com
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THANK YOU FOR YOUR TIME
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