Procedure No: 8.01-01
CRUX OF THE PROCEDURE:
Purpose:
Ensures that only competent contractors are employed by LCPL and that they operate according to acceptable HSE&S standards to prevent hazards to employees, the public, and the environment.
Scope:
Applies to all contractors working at LCPL, from service providers to major construction projects, ensuring proper assessment, selection, agreements, supervision, and HSE&S compliance.
Key Requirements:
- Contractor Selection & Approval:
- Contractors must be assessed based on competency, past HSE&S performance, and compliance with LCPL safety standards.
- A Contract Manager and Purchase Manager must oversee the selection and agreement process.
- Risk Assessment & Safety Compliance:
- Risk assessment methods include Hazard Analysis, Method Statements, Permit to Work, and Standard Operating Procedures.
- Contractors must identify risks from their work, and LCPL must specify hazards related to site activities.
- Contract Formation:
- Contracts must define HSE&S responsibilities, insurance requirements, and compliance monitoring.
- Subcontracting arrangements should be clearly documented.
- On-Site Contractor Management:
- Contractors must undergo site induction and training before starting work.
- Contract Managers must ensure supervision, compliance with equipment safety standards, and adherence to LCPL procedures.
- Monitoring & Compliance:
- Contractor activities must be regularly audited.
- Non-compliance must be documented and addressed immediately, with corrective actions enforced contractually.
- Equipment & Heavy Vehicles:
- Contractors must not use LCPL equipment unless pre-approved.
- Special approvals are required for cranes, heavy vehicles, and lifting equipment.
- Communication & Documentation:
- Regular reporting of HSE&S performance is required.
- Incidents, injuries, and non-conformities must be reported and investigated.
This procedure ensures that all contractor activities align with LCPL’s HSE&S standards, reducing risks and ensuring safe operations.
QUESTIONS & ANSWERS
Q1. What is the purpose of this procedure?
The procedure ensures that only competent contractors are engaged by Lotte Chemical Pakistan Limited (LCPL) and that they operate according to acceptable HSE&S (Health, Safety, Environment & Security) standards.
Q2. To whom does this procedure apply?
It applies to all contractors working at LCPL Site, including simple service providers and those involved in major chemical plant construction projects.
Q3. What are the key steps involved in contractor management?
The key steps include:
- Assessment and selection of contractors.
- Formation of contracts/agreements.
- Providing necessary information to contractors.
- Obtaining method statements from contractors.
- Managing subcontractors.
- Ensuring HSE&S compliance.
- Monitoring and reviewing contractor activities.
Q4. Who is responsible for ensuring contractor compliance with HSE&S requirements?
The Contract Manager is responsible for ensuring that all contract requirements, including HSE&S aspects, are fulfilled. The Location Managers must also have systems in place to monitor contractor compliance.
Q5. What is a method statement, and why is it important?
A method statement is a detailed written description of the work to be done, including key steps and safety, health, and environmental considerations. It helps in identifying risks and ensuring safe execution of tasks.
Q6. What risk assessment techniques are used for contractor activities?
Risk assessments can be done using:
- Formal Hazard Analysis & Risk Assessment
- Method Statements
- Permit to Work
- Standard Operating Procedures
- Mental Risk Assessment
Q7. What must be ensured before contractors start work on-site?
Before starting work, the Contract Manager must ensure that:
- Contractors receive site induction training.
- Contractors’ staff are competent and adequately trained.
- Equipment used is safe and meets relevant standards.
- A system for safe management of contractors is established and communicated.
Q8. What criteria are considered when selecting a contractor?
Contractors are evaluated based on:
- HSE&S performance
- Quality of work
- Past performance
- Cost-effectiveness
- Delivery timelines
Q9. What actions should be taken if a contractor fails to comply with HSE&S requirements?
The Contract Manager must:
- Identify non-conformities.
- Take immediate corrective actions.
- Ensure contractual obligations for rectification are enforced.
- Conduct regular audits to monitor compliance.
Q10. What additional approvals are required for using heavy equipment or vehicles?
- Lifting equipment requires approval from the Nominated Lifting Engineer.
- Cranes, heavy vehicles, and abnormal vehicles require approval from the Engineering Manager.