The Contractor EHS Management Process
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- Colin Nelson
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1 The Contractor EHS Management Process 2012 EHSCP Santa Rosa, CA A process and philosophy to manage AND influence contractors, subcontractors and noncompany personnel. Presented by: Kent Kunce 1
2 Objectives Why have a contractor EHS management process Real world evolution The contractor EHS management process Challenges and learning points Success Benefits 2
3 Why be Interested? Assumptions: $500 million capital budget 25% Labor Ave Insurance Rate $10.75 per $100 Expected Credits: (($500M x.25)/100) x $10.75 = $13,437,500 (approx. 2.6% of project) Additional Consideration: Experience Modification Rate 3 Source: David Grenier, CFMA Building
4 Why be Interested? The Learning Curve Improvement Learning Success! What do you want to be? Recognition Unawareness Getting Started 4
5 Why be Interested? The Real World Learning Curve Improvement Learning Success? Getting Started Recognition Unawareness 5
6 The Process Balance Too much control, direct, take over Just right manage, hold accountable 6 Not enough hands off, comply with given standards, laws
7 The Process 7 Written Contractor EHS Mgt Program Administrative Section Policy Statement Goals for Process Disciplinary Action Emergency Procedures» News Media Promotion, Signage Partnerships Recognition Program Required Training Roles and Responsibilities Work Hour Reporting Technical Section
8 The Process Pre-Work Activities EHS Project Checklist Review and Address Package/Project Logistics and Hazards Contractor Prequalification System Written Safety Programs Experience Modification Rate Incident Statistics Program Evaluations Implementation Evaluations 8
9 Pre-work 9 Pre-Bid Activity Communicate Unique Contract Requirements: Subcontractor Prequal Personal Protective Equipment Designated EHS Person Permits Training Certification Fall Protection Incident Reporting Recognition Plan Site Specific/Daily Plans Orientation Equipment Inspection Substance Abuse Field EHS Reviews Training and Tool Box Talks EHS Committee Partnerships Lead Team - Council Communications Vehicle Requirements Project EHS Requirements
10 Pre-work Cont d Competent Persons Certifications Orientation Requirements Site Specific Plans Contracting More Communication Confirm EHS Expectations» Subcontractor Information» EHS Plans» Training Certifications» Designated EHS Person, Committee members, etc. 10
11 Work almost 11 Site Communication Contractor Management and Onsite Supervision Site Programs/Standards/Req ts./procedures Purpose/Details of the Project Leadership expectation Periodic Craft Persons EHS Orientation and Handbook Site Programs/Standards/Req ts./procedures Purpose/Details of the Project Updates as needed
12 Contractor Performance 12 Ongoing Activities Permit System Hot Work, Lockout, Scaffolding, etc. Training, Learning EHS Observations Progress Meetings EHS Committee Meetings Tool Box Talks EHS Plans Site Plans Substance Abuse Programs Disciplinary Action
13 Contractor Performance Process Verification 13 Leading Metrics Systems» Prequalification» Orientation» Incident Reporting» Training» EHS Plans» Observations - Inspections» Substance Abuse Program Trailing Metrics Recordable and Lost Time Incidents
14 Communications 14 Organized Consistent System Project Progress Meetings Field Conditions Activities Reports Prevention Techniques Learning Points / Incidences Leading Metrics Bulletin/EHS Boards Planned Activities Recognition
15 Incidents Management Analysis Treatment Reporting Incidents, Near Hit/Observation Structured, Documented Review with Contractor 15
16 The Challenges Documented Process Administrative Planning Prequalification Contracting Site Communication Ongoing Field Activities Verification Incidences Learning 16 Fundamental Contractor and Subcontractor Education Documented Program and Specifications Role/Responsibilities Owner Construction Manager General Contractor Safety Financial Investment Administrative (Staff) Programs (Specifications, Recognition)
17 The Challenges cont d. Administrative Types of Contractors Contract Management # of Contracts, # of Project Managers/Engineers Medical Case Management who does what? (CM, contractor, subcontractor) Onsite, Designated, etc Substance Abuse Programs 17
18 The Challenges cont d. Tangible Security Contractor Personnel Tracking Work Hour Collection 18 Intangible Leadership Education and Execution Teamwork EHS Culture
19 Success It s Culture Defined as the beliefs, values, and behaviors that are consistent among all members of a population the company with the best EHS record also had the most consistent EHS culture 19 Source: Corporate Culture, Professional Safety, July 2002, page 27.
20 Success? We DO everything - talk EHS - have a EHS person - spend a fortune - have a EHS program - wear hard hats - do tool box talks - follow the rules - perform audits - have incentives - have discipline But we don t get results!!! 20 Just tell me what to do!!!
21 Success? The answer is not 21 believing compliance is EHS exhibiting EHS performance is common sense discussing recordability in front of the injured discussing insurance ratings in front of the injured delegating EHS responsibilities believing discipline alone promotes EHS behaviors stating incidents happen etc., etc,
22 The Answer is * ** 22 *Source: Tom Peters, In Search of Excellence, 2004 **Source: Ed Oakley and Doug Krug, Enlightened Leadership, 2002
23 Benefits Return on Investment Sense of DOING the RIGHT THING!! Improved EHS Performance $$ Savings to Contractor and subs External Recognition / Marketing Successful Contractor Performance Services Projects 23
24 Summary Why be Interested? The Process The Challenges Success Benefits 24
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