Management Plan. Contractor Management

Transcription

1 Management Plan Contractor Management Doc ID No. Version No. Owner Next Review Date Management Plan Contractor Management Risk Statement: High This document will be reviewed on a one yearly basis, unless a process change occurs earlier than this period, due to significant changes in the operation that may affect contractors or if required to, as instructed by an official from the NSW regulators; or by the legislation. THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 1 of 18

2 Revision Summary First Issue Issue Date Implementation Requirements Approved By 0 28 Aug 08 Formation of Contractor Management Plan in accordance with legislative requirements (Rachael Whiting). NMT Version No. Revision Date Clause No. Revision Details Approved By Reviewed in relation to its compliance with / MHSR (Blake Dawson, Lawyers). Updated in accordance with advice from Lawyers (Rachael Whiting). 1.3 Reworded first paragraph and added s29, s32, s109 and s147 of to table. 3.1 Reworded Contract Superintendent Responsibilities and included a Reference List. 3.2 & 3.3 Included a Reference List. 3.4 Reworded paragraph regarding use of non-prequalified contractors and included a Reference List. 1 6 Feb Reworded dot point regarding draft Contract and included a Reference List. Reworded paragraph to include a compliance with NPMs MSMP and additional requirements if the contractor s SMP has been accepted by NPM and included a Reference List. NMT 3.8 Reworded paragraph regarding contractor compliance with all statutory obligations and included a Reference List. 3.9 Included additional dot point regarding tools and equipment, etc. meeting NPMs minimum requirements Reworded paragraph to include Site Access Approval requirements, methods of consultation and included a Reference List. Included additional paragraph regarding contractor s noncompliance with NPMs requirements and included Reference List 2 31 Jan & 3.13 Included Reference List. Updated to reflect change in ownership from Rio Tinto to China Molybdenum. Rob Cunningham HSE Manager Approval Position HSE Manager Automatic Notifications All Personnel Hard Copy Locations Nil Associated Documents to be reviewed Nil THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 2 of 18

3 TABLE OF CONTENTS 1.0 OVERVIEW Background Mining Context Regulatory Requirements PURPOSE SCOPE CONTRACTOR MANAGEMENT PLAN OUTLINE Nomination of Contract Superintendent and their Responsibilities Nomination of Contract Superintendent Contract Superintendent Responsibilities Appointment of Contract Superintendent s Representative and their Responsibilities Appointment of Contract Superintendent s Representative Contract Superintendent s Representative s Responsibilities Scope of Work and Implementation Scope of Work Implementation Pre-Qualification Use of Non Pre-Qualified Contractors Sub-Contractors Tender Process Pre-Bid Meeting Contractor to Prepare and Provide Safety Management Plan Assessment and Selection Award and Let Contract Pre-Job Discussions Inductions and Consultation Inductions Consultation Monitoring and Review Evaluation Feedback Variation and Claims Management ATTACHMENTS / DEFINITIONS Definitions...18 THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 3 of 18

4 1.0 OVERVIEW In order to reduce the risk of an incident by a contractor and to ensure that all concerned, including Northparkes Mines (NPM) employees, are aware and understand their responsibilities for managing contractor safety, it is essential to have a detailed knowledge of the relevant control systems and procedures implemented. In addition, ineffective management of contractors could involve additional costs to NPM in terms of incidents. Unwanted and unplanned events invariably involve financial penalties for the company either directly or indirectly. Typically, injuries and damage to NPM property and the environment are examples of losses that could be incurred. Incidents can generally be attributed to the lack of systems and/or failure to control within the company. Further, contractors are generally less familiar with the workplace and safety systems than NPM employees and are often exposed to work that is more hazardous. Therefore, this Management Plan will provide the necessary information needed to ensure a consistent and effective control in managing contractor safety in terms of the health, safety and environmental requirements. 1.1 Background CMOC Mining Services Pty Limited (CMOC) is the manager of the Northparkes Joint Venture, an unincorporated joint venture between CMOC Mining Limited (80%); Sumitomo Metal Mining Oceania Pty Ltd (13.3%); and SC Mineral Resources (6.7%). Northparkes Mines (NPM) is a copper-gold operation in Goonumbla, situated 27 kilometres north west of the town of Parkes (refer to Figure 1 and Figure 2). Construction of the ore processing plant and associated facilities began in Open cut mining commenced on the E22 and E27 ore bodies in late Development of the E26 Lift 1 block cave underground mine began in 1995, with full scale production commencing in Figure 1: Project Location THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 4 of 18

5 Figure 2: Exploration Licences Mining Tenement Area * Expiry Date Minerals Notes EL gu 17 Jul 2013 Group 1/10 Pending renewal application lodged 9 July 2013 EL gu 8 Jun 2015 Group 1/10 EL gu 7 Jan 2014 Group 1 / 10 Pending renewal application lodged 17 Dec 2013 ML1247 1,629.6 ha 26 Nov 2033 Cu, Ag, Au ML ha 26 Nov 2029 Cu, Au ML ha 25 Mar 2031 Cu, Ag, Au * gu refers to graticular unit 1.2 Mining Context Current operations at NPM primarily comprise the E48 block cave mine that feeds a processing plant with a capacity of approximately 6 million tonnes per annum (Mtpa). The underground mine is accessed via a decline ramp from the surface for people and materials with ore transported to the surface via inclined conveyors and a hoisting shaft with a nominal capacity of 7.2 Mtpa. NPM utilise low cost block cave mining and exploits industry leading technology such as semi-autonomous loaders and various cave monitoring systems. THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 5 of 18

6 The E48 block cave mine is currently the only ore body actively being mined and is located approximately 2 kilometres north of the E26 block caves (Lift 1 and Lift 2). The mine is accessed via existing underground mine infrastructure. Ore handling systems for the E48 mine leverage the existing underground material handling system in place for E26. The E48 mine comprises approximately 12 kilometres of underground development, ten extraction drives (an additional three are currently being constructed), crusher, workshops and facilities and an additional section of underground conveyor. Ore processing consists of four stages: crushing; grinding; flotation; and thickening / filtering. In addition to producing concentrate, the ore processing team also manages tailings disposal and concentrate logistics to port. The concentrator was constructed in two modules. Each module consists of its own grinding and flotation circuit, concentrate thickener and filter. After extracting the copper and gold bearing minerals, the tailings are combined in a single tailings thickener before being deposited in the new Estcourt tailings storage facility. NPM copper concentrate is transported to a rail siding at Goonumbla where it is then transported by rail to Port Waratah, for shipping to overseas customers. A summary of the mining process is captured in Figure 3. Figure 3: Process Flow Chart Open Cut stock piles Underground E48 Rail to Port Waratah 1.3 Regulatory Requirements This Management Plan has been developed in accordance with the requirements of the Mine Health and Safety Act () 2004 and the Mine Health and Safety Regulations (MHSR) Table 1 indicates the applicable sections / clauses 1 of the legislation that this document addresses and where it is addressed within this document. 1 Note: Table 1 is not an exhaustive list and is intended as a general guide only. THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 6 of 18

7 Table 1: Contractor Management Plan Requirements Legislative Reference Requirement Section s29 Duty of operator to ensure compliance with MSMP The operator of a mine must ensure that work at the mine is carried out in compliance with the Mine Safety Management Plan for the mine. This includes work undertaken by contractors who undertake work at the mine. s32(c) Obligations concerning MSMP Ensure that no contractor starts work at the mine without having been provided with a copy of, or with access to, the Mine Safety Management Plan for places of work relevant to the contractor. s37 Operator to prepare Contractor Management Plan As part of the Mine Safety Management Plan for a mine, the operator of a mine at which contractors are proposed to be used must prepare a Contractor Management Plan stating how the risks arising from the use of contractors at the mine will be managed. s38 Content of Contractor Management Plan A Contractor Management Plan for a mine must make provision for the matters prescribed by the regulations. s39 Operator to ensure contractor s familiarity with systems The operator of a mine at which any contractor proposes to work must ensure, before that work commences, that consultation occurs with the contractor so that: (a) the contractor is familiar with the relevant parts of the Mine Safety Management Plan for that mine, and (b) the contractor s arrangements for safety management are consistent with the Mine Safety Management Plan for that mine. s40 Duties of operator regarding contractors (1) An operator of a mine must ensure: (a) that every contractor who works at the mine is directed to comply with the requirements of this Act and the regulations and the Occupational Health and Safety Act 2000 and the Regulations under that Act, and (b) that the activities of the contractor are monitored to the extent necessary to determine whether or not the contractor is complying with the operator s Mine Safety Management Plan or with the contractor s Safety Management Plan (if it has been accepted under section 63) and with the requirements of this Act and the regulations and the Occupational Health and Safety Act 2000 and the Regulations under that Act, and (c) that, if the contractor is not so complying, the contractor is directed to take action immediately to comply with the Safety Management Plan or the requirements of this Act and the Regulations and the Occupational Health and Safety Act 2000 and the Regulations under that Act, and (d) that if a risk to the health or safety of a person arises because of such noncompliance, the contractor is directed to stop work immediately and to not resume work until those requirements are complied with, unless an immediate cessation of work is likely to increase the risk to health and safety, in which event the contractor must be directed to stop work as soon as it is safe to do so, and (e) that the contractor and the contractor s employees receive induction training with respect to occupational safety and health as specified in the Mine Safety Management Plan for the mine, and (f) that the contractor is provided with details of any relevant changes made to the Mine Safety Management Plan for the mine. s62 Contractor must comply with operator s Mine Safety Management Plan Except as provided by section 63, a contractor who works at a mine must comply with the Mine Safety Management Plan of the operator for the mine to the extent that it applies to work done by the contractor Noted Noted 3.6 & & THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 7 of 18

8 Legislative Reference S63 Contractor s Safety Management Plan Requirement (1) A contractor who works at a mine may prepare a Safety Management Plan that includes an assessment of risks associated with the work to be carried out by the contractor at the mine. (2) Any such Safety Management Plan must address occupational health and safety issues and must include (but is not limited to) details of the following: (a) the work process, (b) the equipment to be used in the work process, (c) the standards or codes to be complied with, (d) the records to be kept of the process, (e) the competencies of the personnel doing the work, (f) safe work method statements for all work activities assessed as having risks, (g) any other matter prescribed by the regulations. (3) A contractor may provide the Safety Management Plan of the contractor to the operator of a mine at which the contractor proposes to work for the operator s acceptance. (4) The operator of a mine must not accept the Safety Management Plan of a contractor, or any proposed amendment to the plan, unless: (a) in the opinion of the operator, the plan is compatible with, and contains an equivalent standard of risk assessment and provides for an equivalent standard of safety to, the Mine Safety Management Plan for the mine, and (b) the plan is otherwise acceptable to the operator. (5) If the Safety Management Plan of a contractor is accepted by the operator of a mine, the contractor must maintain and keep the Safety Management Plan upto-date and must submit to the operator any proposed amendment to the plan for the operator s acceptance. (6) A contractor who has prepared and had accepted a Safety Management Plan must make the Plan available for inspection on request by any authorised representative or by any site check inspector. (7) A contractor, employee of a contractor or subcontractor of the contractor who works at a mine must comply with the contractor s Safety Management Plan, if that plan has been accepted by the operator in accordance with this section. (8) Despite sections 50, 54, 58, 62 and 66, a contractor, employee of a contractor or subcontractor who works at a mine in compliance with the contractor s Safety Management Plan accepted by the operator under this section only needs to comply with the Mine Safety Management Plan of the operator to the extent that they are required to do so by the contractor s Safety Management Plan. (9) A contractor must ensure that a copy of the contractor s Safety Management Plan is available for inspection during the course of work: (a) by any person working at the place of work concerned and by any person about to commence work at that place, and (b) by a representative of the operator, a government official, a site check inspector or an authorised representative. s64 Duties of contractors regarding safe work method statement (1) A contractor must not undertake work at a mine unless the contractor: (a) has undertaken an assessment of the risks associated with the work to be carried out by the contractor, and (b) has prepared a written safe work method statement that includes a copy of the assessment of those risks, and (c) has provided a copy of that statement to a person designated by the operator of the mine. (2) A safe work method statement must: (a) describe how work is to be carried out, and Section Noted & THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 8 of 18

9 Legislative Reference Requirement (b) identify the work activities assessed as having safety and health risks, and (c) identify those safety and health risks, and (d) describe the control measures that will be applied to the work activities, and (e) make provision for any matters that may be required by the regulations. (3) A contractor: (a) must maintain and keep up-to-date the contractor s safe work method statement, and (b) must provide a person designated by the operator with any changes made to the safe work method statement. s65 Contractor to ensure work carried out in accordance with safe work method statement (1) A contractor must ensure that all work carried out by the contractor, or by an employee of the contractor, at a mine is carried out in accordance with the safe work method statement prepared by the contractor in relation to that mine. (2) If a risk to the health or safety of a person arises because of non-compliance with the statement, the contractor must ensure that work is stopped immediately and does not resume until the statement is complied with. (3) However, if the immediate cessation of work is likely to increase the risk to health or safety, the contractor is not required to stop the work immediately but must stop the work as soon as it is safe to do so. (4) If there is a conflict between the Mine Safety Management Plan for a mine and the safe work method statement of a contractor, the Mine Safety Management Plan prevails. s66 Contractor s duties regarding subcontractors (1) A contractor who works at a mine must ensure that any subcontractor of the contractor provides the operator of the mine, or a person nominated by the operator, with a written safe work method statement, for the work to be carried out by the subcontractor, before the subcontractor commences work at the mine. (2) A contractor who works at a mine must ensure that any subcontractor of the contractor complies with the Mine Safety Management Plan of the operator of the mine. (3) A contractor must ensure that, if any change is made to the safe work method statement during the course of work, a copy of any part of the statement that has been changed and that is relevant to a subcontractor or employee of the contractor is provided to the subcontractor or employee as soon as practicable after the change is made. s109 Contractor to ensure only competent persons employed to perform specified functions A contractor must not employ a person at a mine to perform a specified function unless the person holds specified evidence of competence to perform that function. Section s147 Duties of contractors in relation to Site Check Inspectors NA MHSR c29 Content of Contractor Management Plan The following are prescribed as matters for which a contractor management plan for a mine must make provision under section 38 of the Act: (a) assessment of contractor health and safety policies, procedures, competence of persons, occupational health and safety performance and the extent to which plant is fit-for-purpose prior to engagement, (b) site induction of contractors, contractor employees and sub-contractors, (c) monitoring of contractor compliance with site health and safety requirements, including requirements imposed by the Act or this Regulation, (d) communication arrangements between the operator and contractors and appropriate consultation with the contractor s employees THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 9 of 18

10 2.0 PURPOSE NPM routinely engages contractors to perform work throughout its operations. In order to achieve the goal of an incident and injury free workplace, the health, safety and environmental performance of its contractors is of equal importance to that of its employees. Therefore, the purpose of this Management Plan is to ensure a systematic approach to the management of contractors so that their work does not adversely impact the health and safety of themselves or others; the environment; or the community. 3.0 SCOPE This Management Plan intends to specify the requirements for control of the risk that may be introduced to the company, through the engagement of contractors by: assessing the contractors health, safety and environmental arrangements prior to engagement; ensuring hazards associated with proposed contract work are identified; communicating safe work requirements for the work to be performed; assessing potential contractors and only awarding contracts to those who can perform safe work; briefing all contractors prior to work commencing, including details of relevant safe work procedures; monitoring the work of contractors during the contract; and evaluating the work of contractors at the end of the contract. Further, this Management Plan will enable the Contract Superintendent to: develop a good understanding of the contract and the responsibilities of the parties involved; and establish a system against which the performance of both parties can be monitored and problems can be identified, either before or as they occur. 4.0 CONTRACTOR MANAGEMENT PLAN OUTLINE This Management Plan has three parts divided into 13 major steps as follows: Part A: Part B: Contract Superintendent Step 1: Nomination of Contract Superintendent and their Responsibilities Step 2: Appointment of Contract Superintendent s Representative and their Responsibilities Contractor Engagement Step 3: Scope of Work and Implementation Step 4: Pre-Qualification Step 5: Tender Process Step 6: Pre-Bid Meeting Step 7: Assessment and Selection THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 10 of 18

11 Part C: Step 8: Award and Let Contract Step 9: Pre-Job Discussions (Risk Assessment / FFP / Inspections) Step 10: Induction Managing and Monitoring Contractor Step 11: Monitoring and Review Step 12: Evaluation and Feedback Step 13: Variation and Claims Management 4.1 Nomination of Contract Superintendent and their Responsibilities Nomination of Contract Superintendent For every contract, there shall be a nominated Contract Superintendent, who will have the sufficient skills and knowledge to competently and safely manage contractors whilst on site Contract Superintendent Responsibilities The nominated Contract Superintendent must ensure that the work to be carried out will be in compliance with the Mine Safety Management Plan. The Contract Superintendent, therefore, must manage and monitor: appointments and authorisations for the contractors; authorisation and control of fit for purpose equipment brought onto site by the contractor; communication between the contractor and other relevant parties; required risk assessments, ESH Management Plans and other documentation as required; regular workplace inspections and planned interactions to check compliance; and recording, reporting and investigating any ESH incident in which the contractor was involved. Contract Management Manual Management Plan (A111507) Company Contract Superintendent Approval SOP (A463554) Company Contract Superintendent Accreditation Standard (A463555) Contract Superintendent Accreditation Scenario Assessment (A469509) 4.2 Appointment of Contract Superintendent s Representative and their Responsibilities Appointment of Contract Superintendent s Representative A Contract Superintendent may appoint a Representative to assist with the management of the contract and although the Contract Superintendent may delegate their duties, delegation does not remove the Contract Superintendent s accountability. A Contract Superintendent has a responsibility to ensure that their appointed Representative has the necessary resources and skills and displays a capability and willingness to apply themselves to the assigned duties. THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 11 of 18

12 4.2.2 Contract Superintendent s Representative s Responsibilities Typical duties delegated to an appointed Contract Superintendent Representative may include, but are not limited to: daily administration of time sheets; receipt / dispatch of goods; on-site supervision; and facilitation of risk assessments. Contract Management Manual (A111507) 4.3 Scope of Work and Implementation Scope of Work The Contract Superintendent is accountable for the preparation of a Scope of Work, which should include, but is not limited to: the mobilisation of the contractor to site (if required); the purpose of work; the output required (including ESH outcomes); the resources available to be deployed; the time for completion; applicable constraints (including costs); any specific ESH hazards that need to be controlled to undertake the work safely and without harm to reputation, the environment or the community; and the demobilisation of the contractor from site (if required). This Scope of Work shall form part of the contract, which is prepared by the Contracts Team Implementation The Contract Superintendent is to determine the category of the contractor, however, should the Contracts Team or the ESH Department not agree with the categorisation, they may challenge the category determination. If the category cannot be agreed upon between the parties, then the ESH Department will determine the categorisation. Category 1 Contractors: are treated the same as employees in all aspects of health, safety and environmental management; attend pre-shift briefing with NPM employees and receive instruction and direction directly from an NPM supervisor; and a risk assessment must be completed prior to undertaking work. Category 2 Contractors: must have in place systems, including those for the management of all ESH aspects, monitoring and reporting on costs, schedule, variations and KPI s and supervision that meet or exceed the NPM ESH Standards; THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 12 of 18

13 the Contract Superintendent must ensure that the Contractor carries out their duties in accordance with the contract and includes the requirement to: o o conduct risk assessments before undertaking work; and reviewing the risk assessments at the start of each shift and when the scope or circumstances of the work changes. Category 3 Contractors: involves working in existing operational areas; their ESH Management Plan for the work to be undertaken must consider the additional risk associated with the interaction of contractor personnel within existing activities of the NPM work area; the Contract Superintendent must ensure that the contractor implements the ESH Plan as agreed; and before starting work, they must: o o complete a risk assessment for the work about to be undertaken; and obtain a Permit to Work and have it reviewed and signed by the NPM Contract Superintendent or Representative or area supervisor. Formation Manual (A332916) Risk Assessment Standard (A238190) Permit to Work SOP (A111930) 4.4 Pre-Qualification All contractors should be pre-qualified prior to working on site, with a register being maintained, showing the pre-qualification status of the contractor. Wherever practical, NPM shall prepare a list of contractors whose performance, including ESH performance and business management are chosen to undergo a pre-qualification process. Pre-Qualification of Contractors SOP (A590007) Requirements to Pre-Qualify for Tender (A341132) Pre-Qual Register (A233909) Use of Non Pre-Qualified Contractors Circumstances may arise where it is necessary to use contractors who have not been pre-qualified. This should be avoided wherever possible. If repeated or long term use of a non pre-qualified contractor is expected, then the contractor must become qualified. The NPM General Manager is accountable for determining the limit on duration of use of a non pre-qualified contractor. When engaging non pre-qualified contractors to site, they must follow the Access to Site procedures. Access to Site Procedure (A609294) Sub-Contractors Sub-contractors are not a means of transferring ESH risk and are subject to the same ESH management requirements and controls as contractors and employees. The THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 13 of 18

14 following applies for any sub-contractors engaged by a contractor to conduct work at NPM: the Contract Superintendent must approve the use of the sub-contractor; the contractor shall ensure that all its ESH requirements are extended to any sub-contractor; contractors who engage sub-contractors must control the work of that subcontractor; and sub-contractors must provide the Contract Superintendent with all the required safety documentation, prior to commencing work. 4.5 Tender Process The Contract Superintendent and the Contracts Team determine a list of Tenderers from the register of pre-qualified contractors or advertise for Expressions of Interest. The Contracts Team then issue Tender Packs to pre-qualified Tenderers, which include: Request for Tender (Tender Information and Conditions); Request for Tender (Form of Tender Questionnaire); Draft Contract, which: o o includes NPM s MSMP, relevant Policies, Standards, Management Plans, SOPs and Rio Tinto s The Way We Work; and clearly outlines the requirements for all vehicles, tools and equipment that is to be used at NPM, to be in a safe condition, fit for purpose and meet NPM requirements. General Conditions of Contract; and Register of Concerns. All tenders submitted must include a site specific ESH Management Plan that identifies and addresses the specific ESH hazards related to the planned work. Where there is a conflict between the site specific ESH Management Plan and NPM s Mine Safety Management Plan (MSMP), then NPM s MSMP will prevail. NPM will inform pre-qualified contractors of any changes to the MSMP that may have impact on the performance of their work whilst at NPM. Contract Formation Manual (A332916) 4.6 Pre-Bid Meeting The Contract Superintendent must conduct a Pre-Bid Meeting with contractors to inform them of the Scope of Work for the project or contract. The subjects for discussion at the meeting should include: compliance with NPM s MSMP; potential ESH hazards the work may involve; standard commercial terms required by NPM; requirements for measuring and reporting on aspects of the contracts including ESH; costs; schedules; variations; and KPI s; and THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 14 of 18

15 claims must be approved in accordance with the rates set out in the Contract. Where commercial aspects related to the work are discussed, Contracts Team representatives should be involved Contractor to Prepare and Provide Safety Management Plan If determined, a contractor may be required to prepare, implement, provide and maintain a site specific Safety Management Plan (SMP) prior to commencing work at NPM. Any such SMP must address the following issues: the work process; the equipment to be used in the work process; the Standards or Codes to be complied with; the records to be kept of the process; the competencies of the personnel doing the work; some form of risk assessment for all work activities assessed as having risks; and any specific ESH hazards that needs to be controlled to undertake the work safely and without harm to reputation, the environment or the community. Further, if the contractor s SMP is accepted by NPM, then the contractor: must maintain and keep the SMP up to date and must submit any proposed amendments to NPM for acceptance; must make the SMP available for inspection on request by NPM or a government official; must comply with the contractor s SMP; and only needs to comply with NPM s MSMP to the extent that they are required to do so by the contractor s SMP Where there is a conflict between the contractor s SMP and NPM s MSMP, then NPM s MSMP will prevail. Risk Assessment Standard (A238190) 4.7 Assessment and Selection Contractor s bid documents may include a site specific SMP that identifies and addresses ESH hazards. ESH considerations shall receive no less weight than other considerations such as costs and technical capabilities. The bid assessment must include consideration of: the contractor's SMP and the contractor s ability to implement the plan; information relating to the contractor s ESH history, non-conformances and performance reviews, where available; technical capabilities and resourcing levels to perform the work; costs and hours to perform each parcel of work and the project as a whole; and any exclusions. 4.8 Award and Let Contract THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 15 of 18

16 The Contract Superintendent is to ensure that the contractor s duties and responsibilities are embedded in the contract. The contract must contain provisions covering all aspects of the required work output and management of the contract; technical specifications; measurement; monitoring and reporting of costs and KPI s; any special considerations relating to the work and ESH provisions. The ESH provisions shall include the contractor s responsibility to comply with their SMP (if accepted) or NPM s MSMP and ESH policies. In addition, the contractor must also comply with all applicable statutory obligations including the, the MHSR, the Occupational Health and Safety Act 2000 and the Occupational Health and Safety Regulations Any variation to the Contract must be in writing. Contract Formation Manual (A332916) 4.9 Pre-Job Discussions The Contract Superintendent must conduct Pre-Job Discussions with the successful bidder to review relevant aspects of the contract including: ESH expectations and other requirements based on the site specific ESH plan (including the reporting of injuries or incidents); and confirmation that all vehicles, tools and equipment that is to be used on site will be in a safe condition, fit for purpose and meet NPM requirements Inductions and Consultation Inductions All contractors (including employees of contractors and sub-contractors) will be required to: receive site access approval (this will ensure that each person has been deemed medically fit and has all the necessary training and skills in order to perform the tasks required); and attend NPM s General Induction (which has been developed in accordance with the Environment, Safety and Health Management System (ESHMS) and NPM s MSMP) prior to commencement of work, which includes training in emergency procedures and appropriate orientation to their work area. Access to Site Procedure (A609294) Contractor Site Access Approval Request Induction General (A434606) Consultation Channels are maintained at NPM for internal communication and consultation of environment, safety and health information and ESHMS requirements at relevant levels throughout the organisation. NPM communicates its MSMP, relevant procedures, requirements and changes (that may affect employees, suppliers, customers and/or contractors) in a variety of ways including, but not limited to: general inductions; THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 16 of 18

17 re-inductions (every second year); monthly ESH forums; reporting system (HIAS); tool box meetings; daily shift change meetings; safety notice boards; and contractor principal meetings (quarterly). Communication, Involvment and Motivation (A117928) Mine Safety Management Plan (A564802) ESH Communication SOP (A299085) 4.11 Monitoring and Review During implementation of the contract, the Contract Superintendent must monitor the contractors performance and conduct formal audits and reviews with them to see that the contractor carries out its duties in accordance with the MSMP, the contract, the contractor s SMP (if applicable) any and applicable regulatory requirements. The Contract Superintendent must involve the Contracts Team representatives when commercial aspects of contract and contract performance are being reviewed. If during the implementation of the contract, the Contract Superintendent determines that the contractor is not complying with the requirement described in the previous paragraph, the Contract Superintendent will direct the contractor to take action to immediately comply. However, if a risk to the health and safety of a person arises because of such non-compliance, the Contract Superintendent will direct the contractor to stop work immediately and not to resume work until there is compliance unless an immediate cessation of work is likely to increase the risk to health and safety, in which event the contractor must be directed to stop work as soon as it is safe to do so. Action plans must be developed, documented and implemented immediately to correct areas of non-conformance / under performance. There must be ongoing review of the action plans to ensure that any controls implemented are being maintained. At the completion of the agreed Scope of Work, the contractor must advise the Contract Superintendent that the work is complete and that all the contractor s resources have been removed from the work area. Contract Management Manual (A111507) 4.12 Evaluation Feedback At the completion of the contact, an evaluation of the performance of the contractor must be made and feedback given to the contractor and the Contracts Team. THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 17 of 18

18 Performance records must be kept and used in future selection processes. The ongoing validity of the retained data needs to be assessed before it is used. Contract Management Manual (A111507) 4.13 Variation and Claims Management Variations to the agreed Scope of Works must be approved by NPM before any work related to the variation is undertaken. The Contract Superintendent must prepare an application for variation that includes: a detailed scope of the variation; a statement identifying the ESH, cost and technical impacts of the variation; and a risk assessment detailing the potential hazards and risks created by the variation and the controls required. Contract Management Manual (A111507) 5.0 ATTACHMENTS / DEFINITIONS 5.1 Definitions Company Northparkes Mines. Contractor any firm or any person not a direct employee of Northparkes Mines, commissioned to do work on a Northparkes Mines controlled facility. Contract Superintendent a Northparkes Mines employee, designated to act on behalf of Northparkes Mines for all matters regarding the contract, including contractor work performance, safety management, claim and payment approvals and dispute resolution. Contract Superintendent s Representative a person appointed to assist the Contract Superintendent with the management of a contractor, however, overall responsibility will still vest in the Contract Superintendent. Contracts Team the Procurement Team, including but not limited to the Contracts Team Leader, Contracts Administrators, Contracts Officers and Contracts Administration Assistants. ESH Environment, Safety and Health. ESHMS Environment, Safety and Health Management System. THIS DOCUMENT IS UNCONTROLLED WHEN PRINTED Page 18 of 18