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Contractor Safety Management. Gaurang Baxi Vice President-Corporate OH&S Ambuja Cements Limited. The Changing Environment. The global outsourcing trend-Risk Transfer ?? Relative safety standards Skill levels Education Lack of supervision

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contractor safety management

Contractor Safety Management


Vice President-Corporate OH&S

Ambuja Cements Limited

the changing environment
The Changing Environment

The global outsourcing trend-Risk Transfer ??

Relative safety standards

Skill levels


Lack of supervision

Capability and Capacity-Quality and Availability of equipments

Behavior and culture

Overseas Contractors

Corporate social responsibility


  • Contractor safety management has two parts
      • Management of Contractors
      • Contract Management
    • Management of Contractors requires
      • Prequalification Process
      • Training and communication processes for and with Contractors
      • Audit and improvement process for contractors
    • Contract Management Requires :
      • Define scope of works, identify hazards and award contracts
      • Appoint personnel to manage the contract from an OHS Perspective before works start
      • Manage OHS during works execution
      • Evaluate risks and accept completed works
      • Evaluate contractors OHS performance


management of contractors
Management of Contractors
  • Company must establish:
    • AFramework for the prequalification and approval of Contractors based on the type of work to be outsourced.
    • Provisions for consultation with, instructing and training Contractors in both general and specific OH&S requirements of the Group company.
    • Regular audits and review programs of each Contractor’s OH&S performance to ensure ongoing compliance and improvements in OHS.


  • As a minimum the prequalification process will identify, assess and record the following:
    • Type of workthe Contractor is approved to provide (electrical maintenance, fabrication, catering etc).
    • Company assigned category for contracted service i.e. 1, 2, 3 or 4.
    • Confirmation that the contactor holds appropriate licenses, registrations and insurances.
    • Verification that the Contractor has the technical competency and capabilityto perform the service safely.
    • The prequalification for each Contractor will be valid for a set period:


category of contractor
Category of Contractor


training communication
Training & Communication

REMEMBER: You may have to build the OHS capacity of your selected contractor

  • Establish appropriate methods for providing information and instruction:
    • Establishment and maintenance of a safety meeting forum for all Contractors involved in active contracts, as a minimum these meetings must be performed quarterly.
    • Provisions for specific instruction on the practices and procedures relevant to the type of work being performed.
    • Provide each Contractor employee an OH&S induction.


auditing improvement
Auditing & Improvement
  • Establish a formal auditing program to ensure each Pre-qualified Contractor company complies with the OH&S obligations detailed in the contract and the level of risk associated with the work.
    • Initial OH&S audits performed on Contractors within 3 months of award of the contract.
    • Approved Contractors in Category 2 must be audited every 2 years.
    • Approved Contractors in Categories 3&4 must be audited at least annually.
  • Where the audit finds deficiencies in the management of OH&S by the Contractor, an OHS improvement plan must be developed and implemented by the Contractor.


contractor safety management1
Contractor Safety Management


phase 1 contract definition award
Phase 1: Contract Definition & Award
  • A formal process must be established for each service being outsourced which requires, prior to tendering, that a formal analysis be conducted and documented on the type of work to be performed and the potential risks associated with that work.
    • Expected duration of the contract.
    • Risk assessment to be conducted on all activities associated with the scope of works.
    • The range of technical skills and equipment required.
    • Category of Contractor required i.e. 1, 2, 3 or 4.



Phase 1 OHS Requirements 1/2

  • As a minimum, the contract tender package must address the following OH&S requirements:
    • Only company approved Contractors can tender for a contract.
    • Detailed description of the scope of works and the site conditions in which the work will be performed.
    • Applicable OH&S laws and company OH&S requirements
    • A copy of the risk assessment and the specific OH&S requirements which will need to be applied to manage each identified risk.
    • The range of skills, licences, certification, expertise which will be required.
    • Specific requirements for the provision of equipment and materials with respect to OH&S



Phase 2: Pre Commencement

Prior to the commencement of any contract the company will ensure that appropriate arrangements are established to ensure the Contractor is fully prepared in complying with the OH&S requirements stipulated in the contract.

Contract Custodian – Designate personnel from company responsible for overseeing the application and compliance to OHS requirements.

Pre commencement – verify risk controls, this will require all tools and equipment to be checked prior to being mobilized and appropriate skills and experience of personnel required to perform the task.


phase 3 execution and control
Phase 3: Execution and Control

Ensuring appropriate supervision is available for the types of tasks being performed

Establishing the means for informing Contractor employees of the hazards, their risks and methods of control

Conducting regular safety observations and inspections

Provision of additional resources or specialist equipment for conducting hazardous tasks; this includes the application of the requirements set out in the permit to work system.

The reporting of hazards and incidents as and when they arise during the work.

Regular communication and reporting on OH&S performance.


phase 4 handover checking and acceptance
Phase 4: Handover Checking and Acceptance

Handover Checking and Acceptance

Inspections of the work area to ensure all redundant material and equipment have been removed and the area is safe for use.

All relevant documentation, records and information relating to OH&S have been received by the company.

The Contract Custodian and the Contractor must sign a record of acceptance that they are satisfied the area is safe, including equipment and materials, and that they approve the closure of the contract to commence.


phase 5 close out review
Phase 5: Close Out & Review

Formal review must be undertaken at the completion of each contract, to evaluate the overall OH&S performance of the Contractor.

OH&S incidents -Injury / illness experience.

Audit observations and corrective actions.

Quality and experience of the Contractor’s supervision.

Compliance of the Contractor’s equipment, tools and materials with the Group companies OH&S requirements.

Situations which required the work to be stopped based on OH&S concerns.

Based on the review of the above, the evaluation needs to record if the Contractor is to be retained.

Specific comments related to the overall performance of the Contractor’s OH&S performance.


risk focused
Risk Focused
  • Pre-qualification

Set standards which contractor must meet before being considered

  • Training & Communication

Defines requirements for training, competency and authorization to undertake work

Stipulates requirements for monitoring OHS compliance of contractor against set standards

  • Auditing & Improvement

Sets requirements for analysis of contractors capacity and capability to do work to set standard

  • Contract Definition and Award Phase
  • Pre-commencement Phase

Stipulates requirements validation and integration of contractor into operation

  • Contract Execution and Control Phase

Stipules requirements for monitoring performance of contractor against set standards

  • Handover and Acceptance Phase

Validates that acceptance standards have been met