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CONTRACTOR SAFETY

HOW AN EFFECTIVE CONTRACTOR SAFETY PROGRAM CAN IMPACT YOUR BOTTOM LINE

INTRODUCTIONWelcome: In this workshop we will discuss:

• The value of having a contractor safety program in place, • How client and contractor performance (or the lack thereof) can

place both contractor and client employees at risk,• The importance of knowing when and why contractors are on site,• Contractor qualifications,• Tips on how to successfully partner with your contractors to

maximize performance

OBJECTIVEAfter completing this workshop you should:

• Understand how contractor performance can impact your bottom line,

• Understand how effective contractor interactions can keep OSHA from your door,

• Understand the potential liability of contractor management,• Understand how partnering with contractors can create a win-win

working environment while improving both client and contractor performance

CONTRACTOR SAFETY

A GENERAL OVERVIEW

CONTRACTOR SAFETY – WHO CARES?

The company has a need and does not have the necessary resources, so why not hire an outside contractor to fill that need – What could possibly go wrong?

• The client work environment and equipment can pose risks to contractors,

• Contractor actions can adversely impact client workers health and well being,

• Contractors who do not understand client requirements can pose risks to employees,

• Contractors who do no understand client EHS requirements can create potential regulatory problems (NOV’s etc.),

• Contractor performance (or lack thereof) can create business disruptions

CONTRACTOR LIABILITYISN vs. BLS1 2011 Nonfatal Total Recordable Incident Rate: Cost Analysis:

• ISN contractors have incident

rates 45% below their peers

• Each recordable workplace injury costs the employer approximately $37,0002

• Companies who use ISN contractors vs. their BLS peers are saving $52,5803 per contractor per year

• Contractors who are not in ISN will have to increase sales by $907,8494 to accommodate for injury costs

1 Bureau of Labor Statistics for 2011: http://www.bls.gov/iif/oshwc/osh/os/ostb3191.pdf2 Source: National Safety Council, Injury Facts 2012 Edition, Page 62. “Cost per Medically Consulted Injury includes estimates of wage losses, medical expenses, administrative expenses, and employer costs, and excludes property damage costs, except to motor vehicles.” 3 Based on 21,244 US contractors who reported valid NAICS Code in ISNetworld. Assume all contractors have full-time employees working 40 hours per week, 50 week per year.4 7% profit margin is used. Number based on 100 full-time employees.

North American Industry Classification System (NAICS) Name (# of contractors/suppliers)

CONTRACTOR SAFETY RESPONSIBILITIES

CLIENT AND CONTRACTOR RESPONSIBILITIES

CLIENT RESPONSIBILITIES

Employers (“the client”) are responsible for:

• Hiring trained and qualified contractors,• Ensuring that hired contractors are aware of all site specific

operational risks that could adversely impact their health and well being,

• Ensuring that contractors are aware of all site EHS rules and the penalties for non-compliance,

• Providing oversight/escort to contractors while on site,• Ensuring that contractors are only performing agreed upon work

and that employers are aware when a contractor is on site

CLIENT RESPONSIBILITIES

Documentation and Other RequirementsClient is responsible for:

• Requesting and maintaining copies of current COI’s, contractor safety declarations and any other required paperwork (training records, OSHA logs EMR’s etc.)

• Requesting and maintaining copies of contractor work hours, approved contractor list as required

• Providing site specific EHS requirements materials (pamphlet, video etc.) for contractors coming on site for contractor safety briefing/hazard assessments;

• NOTE: Materials for this briefing can be obtained from client site personnel. Briefing can be provided by client personnel.

Additional requirements can include for example membership in an organization that manages contractors like ISNetworld

CLIENT RESPONSIBILITIES

Audits and Pre-Work Documentation:Conducting periodic (based on job duration) contractor safety audits on contractors and their subs

• Sharing results of audits with contractors and discussing areas for improvement

Ensuring that pre-job JSA/JHA’s are completed prior to starting work,

Ensure that pre-job discussions with all stakeholders have taken place prior to starting work

• Following a Change Management process is critical

EXAMPLES OF CLIENT CONTRACTOR QUALIFICATION FORMS

HONEYWELL CONTRACTOR HSE MANUAL

◦ All Contractors receive Honeywell’s Contractor Manual

◦ Manual contains all site HSE requirements

◦ Contractors sign the last page of the manual acknowledging receipt

◦ Receipt is maintained by Honeywell HSE

SAMPLE CONTRACTOR QUALIFICATION CHECKLIST

CONTRACTOR RESPONSIBILITIESContractors are responsible for:

• Completion of all client required pre-qualification forms/checklist (insurance, H&S manual, questionnaires..),

• Sending trained and qualified workers to the job site, • Ensuring that all client rules and regulations are fully

communicated and understood by all workers,• Not disrupting client employees, • Briefing clients on the scope of work they will be performing and

potential impacts on site operations,• Checking in and out when arriving and leaving the site,• Bringing all required tools, PPE and supplies to perform the job

they were hired to perform

CONTRACTOR RESPONSIBILITIES

Contractor Safety Declaration’s / COI’s

Required to complete a contractor safety declaration

• Must be completed annually,• Site specific- one for each site,• Signed by an officer (senior management) of the company,• Submitted to client site contact

A current Certificate of Insurance (COI) must also be submitted by each company and must meet all client insurance requirements

Contractor Safety Declaration

 Company Name:      

 As a duly authorized and designated representative and agent of , hereafter called “Contractor”, I hereby certify and agree for myself and for and on behalf of Contractor that:

 I have willingly submitted all necessary information to _______and ________for their review to become an approved contractor via their Contractor Approval Process;

 All applicable employees of Contractor and Contractor’s agents (subcontractors) will attend client Contractor Safety Orientation, or review appropriate written or video safety orientation materials, prior to performing any work at a client campus;

 I have been advised and instructed by client concerning working conditions, including hazards involved in the job and/or job location in which Contractor and Contractor’s agents (subcontractors) will be working or are present;

 I have already instructed or will immediately instruct all employees and agents with respect to such conditions and/or hazards and the proper safety precautions to be observed while working at said job locations;

 All Contractor and Contractor’s agents (subcontractors) have the appropriate Health, Safety and Environmental (OSHA, EPA etc.) regulatory programs in place and that training on these programs is current. Contractors that do not meet the minimum training requirements will be asked to comply prior to performing work on site. Please refer to the attached minimum contractor training matrix.

NOTE: Verification of current training records (rosters, certifications etc.) is required to be included when this declaration is sent back to your contractor sponsor

 All necessary, adequate and operative protective clothing and equipment (PPE) has been or will be immediately issued by Contractor to all employees and agents (subcontractors), together with full instructions and training for their use;

 Adherence to all regulatory (OSHA, EPA etc.) and client health and safety rules and regulations will be strictly enforced. All employees and agents (subcontractors) will be properly supervised to insure compliance with said rules and regulations. Periodic contractor audits will be conducted.

 If during the course of the job, concerns arise pertaining to health, safety and environmental issues, immediate corrective action will be taken. Violation of any health, safety or environmental requirements, of which the contractor was made aware, will be grounds for termination of work and removal of contractor from the premises.

CONTRACTOR RESPONSIBILITIES

Contractor TrainingAll contractors are required to have appropriate and current training to perform all contracted tasks

• Client can at any time request proof of training (license, journeyman card, training completion certificate etc.) but does not evaluate contractor training materials for content (co-employment concerns)

• Contractors are responsible for ensuring that their sub-contractors also have the required training and pre-job briefings prior to starting work

CONTRACTOR AUDITS

Contractor Audits

Contractors are audited on a weekly basis at Honeywell Aerospace locations to ensure that they are meeting all client requirements

• Contractor audits are performed using client supplied audit forms;• Contractors are expected to audit their own personnel and sub-

contractors;• Copies of all audits are provided to client once completed;• All corrective actions resulting from an audit are documented and

tracked to completion

GENERAL CONTRACTOR AND PROJECT MANAGEMENT

ROLES AND RESPONSIBILITIES

PROJECT MGR. RESPONSIBILITIES

• For more complicated jobs where the client is or hires a Project Manager (PM) or General Contractor (GC) the following additional requirements would apply:◦Complete Change Management process;◦ Interface with client personnel on any contractor injuries, near

misses and incidents involving property damage or regulatory inspections or citations

◦Formal pre-job meetings to define scope of work for the project

ELEMENTS OF A GOOD CONTRACTOR SAFETY PROGRAM

MAJOR ELEMENTS OF A CONTRACTOR SAFETY PROGRAM

There are two major elements that make up a successful contractor safety program

• Programs put into place to protect and educate contractors when they come to a client site

• Programs that the contractor puts into place at their place of employment to assure the client that the work will be carried out safely with no adverse impacts to your personnel or facilities

The following slides will outline some key elements of a robust contractor safety program

CONTRACTOR SAFETY PROGRAM

Site rules and regulations• Smoking policies, • Traffic/parking rules• Access control – badges, escort privileges

Emergency Response• Evacuations routes• Emergency contact phone numbers

General Safety• Follow posted safety signage,• Report unsafe conditions, • Report all accidents, injuries and near misses

Housekeeping• Job site cleanliness• Control of slip, trip or fall hazards

CONTRACTOR SAFETY PROGRAMEquipment Safety

• Machine guarding, • Condition of equipment and tools,• Fire Life Safety impairment process,• Ladder safety,• Client tool and PPE loaning restrictions

Chemical Safety

• Management and disposal of waste,• Chemical handling, • MSDS’s

Training Requirements

• Contractors to be properly trained,• Certifications and licenses,• JLL contractors online training

CONTRACTOR SAFETY PROGRAMPermits and JSA/JHA’s

• Site permit requirements identified, • Permits completed prior to start of work,• JSA/JHA’s in place prior to start of work

Management of Waste Streams

• Recycling opportunities identified,• Regulated/non-regulated waste disposed of properly

CONTRACTOR MANAGEMENT PROGRAMS

ISNETWORLD

CONTRACTOR MANAGEMENT

There are many different ways that you can manage a successful contractor safety program

Jones Lang LaSalle (JLL) on the Honeywell account was initially responsible for managing over 700 contractor companies

JLL chose to hire ISNetworld (ISN) to assist in managing many aspects of the JLL/Honeywell contractor safety program

We would like to now turn the presentation over to ISN to discuss our partnership

QUESTIONS?

Thank you!

Contact information

Tim Wolfe – 480-327-8605

tim.wolfe@am.jlll.com

Melissa Miles - 602-365-4499

melissa.miles@honeywell.com