MARANA GLOBAL

SERVICES LTD
Rc: 1305260

Training Guide for

Management of HSE in Contracts

Website: www.maranaglobal.com, Authorized Training Provider for

www.maranaglobal.com.ng Institute of Safety Professionals of Nigeria
Email: info@maranaglobal.com
Phone: +2348110141960, 08138591811

www.ispon.gov.ng
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Why Manage HSE in Contracts?
Institute of safety Professionals of Nigeria expects
companies operating in Nigeria to manage HSE in
contracts in order to minimize accidents, risks and loss of
lives.
Companies are encouraged to manage HSE in contracts
to be capable of :
• Achieving the same or higher HSE standards as those
required by international standards for its own
operations.
• Ensuring that the elements of IACR in HEMP are
effectively utilized to address all hazards to the
contractor’s personnel, companies staff, the public, the
environment, and the assets of the contractor,
company or the public.
Why Manage HSE in Contracts
• Ensuring that both the contractor and the contract
holder are mutually aware of their minimum
obligations to achieve the above and that these
obligations are within mutually agreed contractual
term.
• Ensuring that the means to monitor the contract HSE
management systems are mutually defined,
understood, accepted and agreed by both parties as
contractually binding.

In pursuance of these objectives, companies, throughout

all the phases of a contract award, must ensure that the
contractor makes provisions for HSE at every stage, as
described in the following sections.
Project Definition – HSE Requirements
• The company (project owner) must draw up the policy
statement on HSE that is to be observed;
• Define the organization, i.e. the formal structure for
planning, communications and responsibilities on HSE
issues;
• Define minimum competence levels and training
requirements in HSE for contract staff expected on the
project;
• Develop a comprehensive listing of HSE standards and
procedures applicable to the project, which should also
include national HSE regulations;
• Define the criteria for HSE performance monitoring;
• Define the basis under which internal and external HSE
auditing will be conducted.
 Project Definition – HSE Requirements
The company or owner of the project must:
• Determine the HSE impact on scope, schedule and
strategy for the contract.
• Assess HSE content of the contract.
• Confirm suitability of contract scope, schedule and
strategy against HSE assessments.
• Prepare HSE related contract documents.
• Pre-qualify potential contractors for HSE suitability.
• Prepare the outline contract with appropriate
milestone hold points.
The company must set a reasonable time sufficient for
contractors to provide tender responses that reflect a
sound HSE management.
Tendering and Selection of Contractor
Tender processes may vary in organizations but the
following are important for consideration.
• Before awarding contract to a contractor, the company
needs to consider the overall competence of the
tenderers so that the best can be selected.
• Contractor’s personnel competence, educational
requirement where applicable, relevant years of
experience, equipment list, financial capacity required
for the project, ability to deliver within budget, time
and other project requirements, etc.
• The previous HSE performance of the contractor must
be assessed to determine their commitments to sound
HSE management and identify evidence of
improvements.
• The company should also be assessed for ability to
meet project specific HSE requirements.
Planning- HSE Requirements/Activities
• Contractor must prepare their HSE plan for the
project.
• Company must respond to contractor’s HSE
clarification requests; copies of queries and replies
should be documented.
• Clarification meetings may be held with the
contractor; all such meetings should be recorded by
both the company and contractor.
• Site visits by contractor may also be necessary even
before contract award or project commencement.
• All meetings and visits should be recorded by both
the company and contractor.
Important HSE Documentations
The company and contractor should consider the
following as may be applicable:
HSE plan (containing project description, key
personnel, responsibilities, how hazards and risks will
be managed, etc)
Security plan
Waste management plan
Risk assessment/job hazard analysis
Emergency plan
Other documents that may be required for safe
management of the project.
Evaluation/Pre-mobilization– HSE Activities
• Evaluate thoroughly the contractor’s HSE plan to
ensure it achieves the minimum acceptable
standards, including reference to proposed key
personnel competences, sub-contractors, manning
levels, plant and equipment resources.
• Clarify the contractor’s HSE plan where necessary
and record all clarifications.
• Carry out pre-mobilization inspection to further
confirm status of listed personnel, equipment, tools
and all items/resources planned for the project.
Mobilization– HSE Activities
• Before commencing mobilization activities, the
company and contractor must hold a final kick-off
meeting to review readiness and confirm that minimum
HSE requirements for the projects have been met.
• The contractor must commence mobilization, using a
mobilization checklist and other tools that can enhance
effectiveness and efficiency.
• The company must supervise, inspect and monitor
progress of the mobilization activities.
• The contractor must fulfill pre-execution milestone
requirements, including complete mobilization as at
when required.
• Upon complete mobilization, the company may hold
pre-execution audit.
Project Execution– HSE Activities
• During project execution, the company and
contractor must observe the PDCA (plan, do, check,
act) improvement cycle.
• This is simply to ensure that the planned activities
(plan) were executed (do) as planned. As the
company carries out project supervision and
monitoring (check), any deviation from planned
activities can be identified and corrected for
improvement (act).
Mobilization– HSE Activities
During project execution, the contactor’s performance can
be assessed in line with the PDCA improvement cycle by:
• Reinforcement of the HSE targets as defined in the HSE plan.
• Regular checks/reviews of the contractor’s performance by
the company.
• Contractor’s monitoring of the quality, condition and
integrity of his plant, equipment and tools.
• Contractor’s holding of daily toolbox and HSE meeting.
• Contractor’s implementation of exercises and drills of
contingency plans with maintenance of an effective audit
trail.
• Monitoring of the contractor’s accident investigation and
follow-up.
• Performance of HSE inspections/audits of contractor
activities (including Contractor’s internal HSE control
system).
Demobilization and Close out – HSE Activities
Demobilization:
• Site restoration after project hand over.
• Removal of surplus materials and waste in line with waste
management plan, and its documentation.

Close out:
• Review the effectiveness of HSE plan.
• Identify those areas not covered in the plan, how they were
managed, and the future approach to be taken.
• Highlight successful positive aspects that should be used in the
future.
• Discuss analysis of company’s and contractor’s HSE performance
with contractor’s management for means of improvement.
• Identify lessons learned from incidents and recommend
improvements to contractor.
Submission of Continuous Assessment

• You are required to answer the continuous

assessment questions and submit by email to
assessment@marana-global.com

• If you have questions, send to

marana-training@maranaglobal.com

• For general information and complains, send to

info@maranaglobal.com
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Core values: Safety-Professionalism-Integrity-Improvement-Competence-Quality