Increase of our H&S performance

by an effective contractor

managmentDr. Harald Wachsmuth, Uniper Technologies, 24.2.2016

Our Major Asset Projects construction (and decommissioning)

� Algeciras, Spain

� Gönyü, Hungary

� Malcenize, Slowakia

� Datteln 4, Germany

� Maasvlakte 3, The Netherlands

� Irsching 3, Germany

� Gardanne, France

� Ironbridge, UK

� Blackburn Meadows, UK

� Berezovskaya Gres 3, Russia

� TransAdriaticPipeline, Greece, Albania, Italy

� Several sites in Brasil

� Conventional & Nuclear Decommissioning

� (Tufanbeyli, Turkey)

2

Application of our Policy Statement to our sites

� Risk Control and Mitigation

� Continuous Improvement H&S

Plans

� Our people and contractors‘ staff

are treated equally

� Expectations to our contractors

� Lessons Learned by Reporting,

Investigation and Analysis

� Implementation on site

� Supervision and Audit

3

4

Felt and real challenges

5

VGB 2010 - safety @ ENT

The reality: Target setting and Expectations

Risk assessment

consequences vs.

expectations

Contractor Safety & Engagement

8 Standards

Std. 1 Evaluate Safety Risk

Po

licy S

tan

dard

s

Std. 2 Assess Contractor Capability

Std. 3 Demonstrate Safety Leadership

Define Requirements Secure Contract Manage Contract

Std. 4 Effective Roles & Responsibilities

Std. 5 Management of Safety Risk

Std. 6 Engagement & Communication

Std. 7 Controls & Measures

Std. 8 Sub-contractor Safety Engagement

Supply chain process

Challenges / Lessons Learned to work in an

international environment

� Cultural environment

� Local legal environment

� Different thinking / different approach to large projects

� Average ratio for fatalities: up to 1 fatal accident/50 MW

� Competence of local workforce

� General standard for health&safety

� Less acceptance for PPE

� Differences in hierarchy – impact on the workforce

7

� Text überschreiben

9

10

.

11

The Contract Preparation Phase

12

Front-End Loading (FEL)

13

Infl

uen

ce /

co

sts

Time

Influence

progress in design

Costs / commitment

RealisationFEL

2. Costs for changes are high

1. Costs for changes are low

1

2

1

2

First Step: Project Risk Assessment / Review

Proposal for risk mitigation

Tender process: Extend the tender process based on the CDM-regulation or ENT new build tender

requirements

Scaffolds: E.ON contracts one qualified scaffolder directly. This supplier has to be used by all

(sub-)contractors

Erection equipment: to be required in the tender process; permanent monitoring of appropriate

equipment during construction phase

Environmental contamination: environmental screening based on former use

of area

Work permits: An effective monitoring system and effective access control

managed by a qualified security manager

SHE skills: Nebosh “International Construction Certifcate” at least required

for project manager and site manager

Internationally experienced SHE staff: To be recruited from the oil & gas

industry or engagement of freelancer or ENT SHE manager (to be found).

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15

General Requirements – basis for the H&S plan1 Purpose

1.1 Promotion and improvement of SHE culture

2 Scope

3 Terminology, abbreviations

4 Responsibilities

5 Description

5.1 General requirements

5.1.1. Compliance with European and national regulations

5.1.2. SHE plan

5.1.3. SHE document for the subsequent operational phase

5.1.4. SHE construction site management......

5.1.5. Coordination

5.1.6. Requirements with respect to personnel

5.1.6.1. Working time...

5.1.6.2. Work permits

5.1.6.3. Proof of qualification

5.1.6.4. Occupational health examination

5.1.7. Site regulations

5.1.8. Consequences of deviations

5.1.8.1. Work stoppages due to dangerous situations

5.1.8.2. Removal of personnel from the construction site

5.1.9. Reporting

5.1.9.1. Monthly SHE report

5.1.9.2. Reporting of events

5.1.10. Auditing, monitoring by the Employer

5.2 SHE in the planning phase

5.2.1. Risk analyses / assessments

5.2.1.1. General

5.2.1.2. Area classification (ATEX) and fire and explosion analysis

5.2.1.3. Hazard and Operability Study (HAZOP)

5.2.2. SHE consideration in the design

5.2.2.1. Construction and design management

5.2.2.2. Consideration of the accessibility and ergonomics of the plant

5.2.2.3. Review of site conditions

5.3 SHE requirements in the construction phase

5.3.1. Work permit procedure

5.3.2. Risk assessment and method statements

5.3.3. Knowledge transfer, instruction and briefing, supervision of

works

5.3.3.1. Site induction

5.3.3.2. Legally required SHE instruction

5.3.3.3. Language/communication

5.3.3.4. Supervision

5.3.3.5. Coordination of work

5.3.4. Environmental protection

5.3.4.1. Noise, dust and emissions of hazardous substances

5.3.4.2. Waste

5.3.4.3. Water protection/handling of hazardous materials

5.3.4.4. Transport of hazardous goods

5.3.5. Work equipment

5.3.5.1. Construction machinery, tools and equipment

5.3.5.2. Requirements for cranes

5.3.5.3. Requirements for earth-moving machinery

5.3.5.4. Specification for equipment with diesel engines

5.3.5.5. Industrial trucks

5.3.5.6. Cherrypickers/MEWS

5.3.5.7. Vibrations

5.3.6. Electrical installations

5.3.6.1. Buried services

5.3.6.2. Conduct in the vicinity of and in electrical equipment

rooms or electrical installations

5.3.6.3. Protection against electrical contact voltage

5.3.6.4. Overhead lines and conductor lines

5.3.6.5. Electrical equipment and connecting cables

5.3.6.6. Work safety in the area of electrical equipment

5.3.7. Working at height (ladders and steps, scaffolding, etc)

5.3.7.1. Ladders and steps......

5.3.7.2. Working with a risk of falling/working at height

5.3.7.3. Scaffolds

5.3.7.4. Covers, working on gratings

5.3.8. Working with special hazards

5.3.8.1. Reporting dangerous situations and activities to the

authorities

5.3.8.2. Hot works

5.3.8.3. Lifting (load suspension equipment)

5.3.8.4. Working in confined spaces

5.3.8.5. Transport and traffic

5.3.8.6. Earth moving and excavation

5.3.8.7. Ionising radiation

5.3.8.8. Working nearby water.......

5.3.8.9. Explosives

5.3.8.10. Extreme weather conditions

5.3.8.11. Hazardous goods

5.3.9. Personal protective equipment (PPE)

5.3.10. Site installation

5.3.10.1. Welfare facilities

5.3.10.2. Storage of materials and packaging

5.3.10.3. Filling stations and LPG tanks

5.3.10.4. Medical care, first aid

5.3.11. Requirements for workplaces

5.3.11.1. Not fall-through-resistant surfaces

5.3.11.2. Smoking

5.3.11.3. Private phones, radios and audio equipment

5.3.11.4. Order, cleanliness and hygiene

5.3.11.5. Lighting

5.3.11.6. Fire safety

5.3.12. Ban on alcoholic drinks and narcotics

5.3.13. Accidents, incidents and emergencies

6 Annexes

1 Purpose

2 Abbreviations

3 General requirements

4 Work equipment/equipment

5 Personal protective equipment

6 Work procedures

HSE as inherent part of the procurement and

approval process

Tender

Offers

Negociations

Contract

SHE requirements are part of the tender document

SHE plan is a mandatory part of the offer

Evaluationof the offers / bidders incl. risk

assessments

Discussion of the SHE plans during the

negociations

Optionalal visit of an existing ETG construction site

Evalution of the HsE plans

SHE plan is part of the contract. Hence, it applies to

subcontractors

Contractor Safety & Engagement

8 Standards

Std. 1 Evaluate Safety Risk

Po

licy S

tan

dard

s

Std. 2 Assess Contractor Capability

Std. 3 Demonstrate Safety Leadership

Define Requirements Secure Contract Manage Contract

Std. 4 Effective Roles & Responsibilities

Std. 5 Management of Safety Risk

Std. 6 Engagement & Communication

Std. 7 Controls & Measures

Std. 8 Sub-contractor Safety Engagement

Supply chain process

Result of the SHE evaluation of the bidders

Consequences for the owner / employer

� Training / HSE certificates

� Visit of a comparable construction site

� Take over of critical SHE tasks by the employer

� At least an increasing number of employers HSE advisors on site during

construction / (de)commissioning

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“As stated previously about this company, this leads the negotiating team to

believe that although agreements were reached very little understanding of the

requirements was noted.

If � are to be the preferred supply companies, the site team should be of a

suitable size inline with the level of risk that this supplier presents. “

Contractor Safety & Engagement

8 Standards

Std. 1 Evaluate Safety Risk

Po

licy S

tan

dard

s

Std. 2 Assess Contractor Capability

Std. 3 Demonstrate Safety Leadership

Define Requirements Secure Contract Manage Contract

Std. 4 Effective Roles & Responsibilities

Std. 5 Management of Safety Risk

Std. 6 Engagement & Communication

Std. 7 Controls & Measures

Std. 8 Sub-contractor Safety Engagement

Supply chain process

Competence is key

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Show your contractors what you require

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NEBOSH

The National Education Body in Occupational

Safety & Health

Is existing as non-profit Organisation since 1979 and set a

standard on health&safety education.

The courses are conducted by accredited training bodies

Worldwide more than 65000 participants each year

SCC – „SHE Checklist Contractors”

� greater safety awareness and reduce the number of accidents.

� is a versatile and comprehensive programme for testing the SHE

management systems of service companies.

� Principals increasingly impose SCC certification as a mandatory requirement.

For whom?

� for contracting companies that carry out work with or subject to increased risk

in a high-risk environment.

� construction or maintenance work carried out at building sites, in factories and

workplaces, and on installations. Sectors:

� Mechanical engineering

� Electrical engineering and process control

� Construction engineering

� Civil engineering

� Other engineering services such as: insulation, scaffold erection, industrial

cleaning, grit-blasting/conservation/painting, transport, inspection, etc.

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The Implementation Phase

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Working at height

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The permit system

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� Despite of the legal environment, the employer is accountable (at least in case

of interfer and morally)

� Allow your suppliers only that you would allow your own staff (or family

members) to do

� Allowance in a written manor incl.

� Nomination of counterparts

� Detailed description of the task

� Basic risk assessment (incl. interfaces)

� Method statement

� Mitigation measures (be as concrete as possible)

� Last Minute Risk Assessment

� Inductions

“If you can’t measure it, you can’t manage it”

The Safety Score Card

27

Detailed inspection check lists

(related to task, location, supplier)

Consequences from the score card system

� Specific actions at working areas (boiler, turbine, M)

� Specific actions related to risks (e.g. working at height, scaffolds, M)

� Reward of good performer (workers, companies)

� Sanctions against low performer (workers, companies)

� Steering / supervision

� Incentive for the project management team

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Motivation (1): Rewards and sanctions

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Motivation (2): Make deviations visible

The results

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Our Completed Sites

32

Our H&S Performance

LTIF/TRIF development at ETG ETG in comparison to other E.ON units

33

3,8

1,60,9 0,7

1,2 1,3

0,3

7,3

3,33,9

2,72,4

1,9

0,7

0

1

2

3

4

5

6

7

8

2009 2010 2011 2012 2013 2014 2015

LTIF TRIF

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

Jan 15 Feb 15 Mrz 15 Apr 15 Mai 15 Jun 15 Jul 15 Aug 15 Sep 15 Okt 15 Nov 15 Dez 15

TRIF Combined Rolling one Year

ETG

Target ETG

BGRES DASH/FHU

Datteln 4

Maasvlakte SER

ETG Offices

Provence 4 Biomass

Anlagenservice/PES

Grain