Thursday, March 6, 2014 Houston, TX. 1:15 2:30 p.m. BEST-IN-CLASS CONTRACTOR MANAGEMENT
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1 Thursday, March 6, 2014 Houston, TX 1:15 2:30 p.m. BEST-IN-CLASS CONTRACTOR MANAGEMENT Presented by Moderator: Panelists: Jack Gibson President and CEO IRMI Jared Blong Co-founder, President, and CEO Octane Energy Eric McGinnes Vice President HUB International Brett Parker Senior Project Lead ISN Software Corporation Dag Yemenu Vice President, Technical Services ISN Software Corporation Energy industry trends indicate a continued growth of outsourcing noncore business activities to third-party contractors, ranging from construction and maintenance activities to security and catering functions. Outsourcing services to third-party entities inevitably comes with risk exposures of harm to human beings, the environment, property, and business reputation. The hiring entity must ensure all operations are undertaken in a safe and sustainable manner and only qualified contractors are utilized throughout the life of a project. This session will explore the challenges and opportunities in establishing a robust contractor management strategy to effectively mitigate risk exposures while allowing the hiring entity to streamline its operations and focus on its core competencies. Copyright 2014 International Risk Management Institute, Inc. 1
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3 Jack Gibson President and CEO IRMI Mr. Gibson has been an integral part of International Risk Management Institute s management team since 1982 and became president of IRMI in Prior to joining IRMI, Mr. Gibson was a consultant with a leading national risk management firm. His consulting practice focused on financial institutions, public entities, and contractors. Mr. Gibson majored in risk management at the University of Georgia where he received a bachelor of business administration degree, cum laude, in 1977 and a master of business administration in In 1996, he was honored as Georgia s Outstanding Insurance Alumnus of the year. He is a Chartered Property and Casualty Underwriter (CPCU), is a Construction Risk and Insurance Specialist, and holds the Associate in Risk Management designation. Mr. Gibson is the coauthor of 11 reference works on insurance and risk management, all of which have been published by IRMI. In addition to his management duties, he continues as editor of The Risk Report and is currently editor-in-chief of IRMI.com. A sought-after and highly rated seminar speaker, Mr. Gibson has been a presenter at the annual conventions or meetings of virtually every major industry trade association serving the risk management and insurance communities as well as many construction industry and lawyer seminars and meetings. He serves as cochair and presenter at the IRMI Construction Risk Conference and received the Words of Wisdom award. Mr. Gibson is an active member of the CPCU Society. He has held many committee and officer positions, including president, in the Dallas Chapter. Additionally, he has served on many committees and the Board of Directors at the national level for the CPCU Society. Jared Blong Co-founder, President, and CEO Octane Energy Mr. Blong is co-founder, president, and CEO of Octane Energy, a privately held energy venture participating primarily in contract drilling, oilfield services, and consulting. He is also chairman of the board of the International Association of Drilling Contractors Permian Basin. Prior to founding Octane Energy, he was director of risk management for Western Drilling, Inc., a privately held legacy drilling contractor, specializing in the Permian Basin and southeastern New 3
4 Mexico. He has also been director of risk management for R.K. Ford & Associates, Inc., a privately held consulting firm specializing in drilling, completions, workovers, AFEs, and well plans. Mr. Blong holds the Associate in Risk Management designation, the Commercial Lines Coverage Specialist designation, and the Chartered Benefit Consultant designation. He received a B.B.A. in interdisciplinary business, international trade emphasis, from Tarleton State University and completed the Petroleum Extension Service executive certificate in petroleum fundamentals at the University of Texas at Austin. Eric McGinnes Vice President HUB International Mr. McGinnes is a vice president with HUB International Insurance Services in its El Paso office. Prior to the John D. Williams Company s acquisition by HUB, Mr. McGinnes was senior vice president and a shareholder with the company in El Paso. His primary areas of focus include risk assessment and analysis, coverage placement, contractual review from a risk management perspective, and coordination of safety and claims management services for firms in the construction, oil and gas, and social services industries. Mr. McGinnes currently serves on the Budget and Finance Committee for the Independent Insurance Agents of Texas and has served as regional vice president of the Insurance Men and Women s Political Action Committee of Texas. He serves as chair of the Contracts/Risk/Insurance Committee for the Permian Basin Chapter of the International Association of Drilling Contractors. He also serves on the Board of Directors for the Paso del Norte Children s Development Center and as a trustee for the Center s Foundation. Mr. McGinnes graduated from Texas Tech University with a bachelor of science degree in agricultural and applied economics in 1999 and a master of business administration degree in general business/finance in Since entering the insurance industry in January of 2003, he has earned the designations of Certified Insurance Counselor and Commercial Lines Coverage Specialist. In addition, he is a Texas Licensed Risk Manager. 4
5 Brett Parker Senior Project Lead ISN Software Corporation Brett Parker is a senior project lead at ISN Software Corporation. Mr. Parker has nearly 15 years of insurance industry experience in the carrier, brokerage, and alternative risk fields. He holds the Chartered Property Casualty Underwriter, Certified Insurance Counselor, Construction Risk and Insurance Specialist, and Associate in Reinsurance designations and is a member of the Risk and Insurance Management Society. Mr. Parker holds a degree in military science from studies at the University of Southern California, Oxford University, and Southern Methodist University. Dag Yemenu Vice President, Technical Services ISN Software Corporation Dag Yemenu currently serves as the vice president of technical services at ISN. Prior to his current role, he has held positions in the company s various operational groups in the United States and abroad. Before joining ISN, Mr. Yemenu had engineering careers in the power generation and aviation industries. Mr. Yemenu is a frequent speaker on the topic of contractor management and has presented on this topic at various industry conferences. He holds degrees in mechanical engineering and industrial engineering and an M.B.A. 5
6 Notes This file is set up for duplexed printing. Therefore, there are pages that are intentionally left blank. If you print this file, we suggest that you set your printer to duplex. 6
7 Best-in-Class Contractor M anagement Jared Blong Co-founder, President & CEO Octane Energy Eric M cginnes Vice President HUB International Presented By: Panelists: M oderator: Jack Gibson President & CEO IRMI Brett Parker Senior Project Lead ISN Software Corporation Dag Yemenu Vice President, Technical Services ISN Software Corporation 1 IRMI.com 1 Increasing Contractor Hours, More Incidents Source: International Association of Oil and Gas Producers, Safety Performance Indicators 2012 Data, Report No. 2012s, June 2013, 2 7
8 Case Study: An Offshore Exploration and Production Company Grade Components A-B No Restrictions C Mitigation plan and pre-job meeting required D Mitigation plan, pre-job meeting required; management approval in writing; trained HES person on site during work F Not allowed to be used; VP approval required 3 8
9 Case Study: Insurance Compliance over Time 4 9
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11 Case Study: Insurance Expirations Contractors vs. Agents: Insurance Submittals/Expiration Not Expired Expired On average, agents submit 5 days prior to contractors Agents Contractors *Data based on 268,884 insurance submissions from August 1, 2012, to August 1,
12 Top Five Reasons for a Rejected Certificate 1 Inadequate Coverage (31.5%) 2 Missing Specialty Coverage (28.9%) 3 Naming Convention (28.4%) 4 Missing Waiver of Subrogation or Additional Insured (27.4%) 5 Expired Coverage (18.4%) 7 12
13 What Is ISNetworld? Web-based contractor/supplier information management Collect and review HSE, quality, procurement, compliance, and other data Industries served: Oil and gas Chemical Mining Manufacturing Utilities/PowerGen Healthcare and pharma For a complete copy of the ISN whitepaper What is Best-in-Class in Contractor Management? please visit
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