Contractor Management Procedure

HSEQ Management System Procedure

What this Procedure Describes
This procedure describes how EVICCO establishes, evaluates and manages our Contractors
engaged via a tender process.

Why it is Required
EVICCO has obligations and expectations in safety law, environmental law, Energy Networks
Australia standards, Industry and Australian
Standards to ensure Health Safety and
Environment (HSE) Risk is being managed The two key clauses that relate to contractor
between us, our Contractors and their management in the Work Health and Safety Act 2012
subcontractors. EVICCO has duties to need us to manage the duties we share with our
consult, co-operate and co-ordinate to share Contractors (section 16) and to consult, co-operate
and co-ordinate with businesses we share duties with
the management of our health, safety and
(section 46). EVICCO also has duties as the owner of
environmental Risks with the businesses we our assets, plant and equipment and as designers,
engage. constructors or when we engage others to make
plant or structures (sections 20-26). These duties
Effective contract management results in: cannot be transferred to our Contractors (sections
tasks being planned better because duties 14).
are clear and understood; fewer incidents
While environmental laws don’t provide general
and delays; better safety performance. This duties for working with Contractors, we need to work
creates better relationships with our with other businesses to manage our impact on the
Contractors and subcontractors whilst environment to protect the environment, and our
continually improving EVICCO reputation. reputation.

Who it Applies to and When

This procedure applies to EVICCO team members when they establish, evaluate and/or
manage contractors via a tender process. Anyone in EVICCO interacting with our Contractors
has an important role to play in providing feedback for performance discussions with our
Contractors. This includes service providers and suppliers of products. This procedure must
be applied to the tender engagement process, even if a HSE Representative is not a
participate on the tender evaluation panel.

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UnControlled once printed. Please verify the current version on the EVICCO intranet site – The Zone
Procedure Authorisation and Revision History
Authorisation
Issue date 30/07/2018
Authorised by MANAGEMENT
Review Cycle 2 years
Revision History
Date Revision Details
30/07/2018 Original Issue – replaces/supersedes Transend Contractor Risk Management
Standard (TNM-DS-809-0113); AE-OHS-SYS-PRO-005 Standard Managing
Contractor Workplace Health and Safety; EVICCO Contractor Risk Management
Standard.
19/12/2018 Amendment of the procedure to cater to the Contract Operations Team and the
Sourcing and Procurement Teams function and sharing of responsibility.

Reference documents
The following documents were reviewed as part of developing this procedure:
Key Legislation
 Work Health and Safety Act 2012
 Work Health and Safety Regulations 2012
 Environment Protection and Biodiversity Conservation Act 1999
 Environmental Management and Pollution Control Act 1994

Codes of Practice, Industry Codes, etc.

The standards in this document have been based on the requirements in:
 Standards to manage contracts: The guides cover general conditions of contracts for a
range of contractual agreements, including design and construct, minor works, major
works and supply of equipment.
 Standards to manage HSE: standards to develop, maintain and improve systems to
manage safety and environment matters: AS 4801, AS 4804, Australian/New Zealand
Standard ISO 14001.

Records arising from this procedure

Record Storage Location
Stored Documents and associated ZONE- Intranet site and the Internet.
correspondence and approvals etc.
Changes to this procedure and it’s
attachments must be mirrored on Internet
versions via the Corp. Social Responsibility
team.
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Contents
What this Procedure Describes...........................................................................................1

Glossary - Abbreviations.....................................................................................................4

Glossary - Responsibilities...................................................................................................5

The Contracts Management Process...................................................................................8

Getting Started: Establish Tender and Contract...................................................................8

Evaluate:...........................................................................................................................11

Manage:............................................................................................................................12

Plan Works........................................................................................................................13

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Glossary - Abbreviations
Authorised Service Provider (ASP) – EVICCO Authorised Service Provider (ASP) scheme is
designed to assure any Contractors performing high Risk work on behalf of EVICCO has
strong and reliable systems in place and the technical competencies to perform that high
Risk work. The scheme contains criteria that an independent auditor must use to assess and
verify their systems and competencies before we engage the Contractor.
The scheme applies to any Contractors and their subcontractors:
 performing electrical work on behalf of EVICCO (excluding general electrical
maintenance activities at offices and depots), and
 Performing work within the vicinity of EVICCO electrical infrastructure. For instance,
excavation, asset maintenance or vegetation clearance.

Contractor – in context to the Work Health and Safety Act 2012, is a worker. Contractors
work at various locations and for varied lengths of time. For instance, a Contractor could
work at a EVICCO office or site every day for months or may never have visited Tasmania and
be engaged for an hour of work.

Control – means taking action to eliminate health and safety Risks so far as is reasonably
practicable, and if that is not possible, minimising the Risks so far as is reasonably
practicable.

Electricity Supply Industry (ESI)

Hazard – means a situation or thing that has the potential to harm a person. Hazards at work
may include: noisy machinery, a moving forklift, chemicals, electricity, working at heights, a
repetitive job, bullying and violence at the workplace.

Health Safety Environment (HSE) Management Plan – is a written plan that sets out the
arrangements for managing site safety and environment matters for construction work. It
should be easily understood and available to workers (including Contractors and
subcontractors).

Risk – is the possibility that harm (death, injury or illness) might occur when exposed to a
Hazard.

Safe Work Method Statement (SWMS) – a SWMS is a written document that sets out step
by step detail on the Hazards, Risks, and Controls for high Risk construction work activities.
The document helps supervisors and workers to Control the Risks for a particular task.

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Glossary - Responsibilities
Category Managers / Contract Owners
The Category Manager / Contract Owner is the team member engaging a Contractor by a
tender process who actively incorporates and reviews Health, Safety and Environment (HSE)
requirements at each stage of the contract management process.
Is responsible for undertaking the following during the tender process:
 Ensure the level of HSE Risk associated with the work is identified and the contract is
classified;
 Review HSE documents provided by the Contractor;
 Ensure HSE requirements have been met. This includes checking mandatory licenses,
permits or accreditations are held or are capable of being obtained in time;
 Provide HSE management plans (where they are required for high risk or unusual work)
to the HSE Representative for review;
 Share documents provided by the Contractor with the people involved in the works;
Is responsible for the following for the duration of the contract:
 Monitor the Contractors HSE performance
 Facilitate reporting and recording of incidents notified by the Contractor as a EVICCO
event and ensure the Contractor’s incident investigations are effective and completed on
time;
 Collate the audit, inspection and incident data for performance management. Use the
information to identify areas for improvement in HSE, consult with the Contractor and
agree on HSE improvements and share the data with the HSE Representative;
 Facilitate the liaise with the Contractor regarding the outcomes of audits, inspections
and incident investigations;
 Seek support and advice from the HSE Representative and people involved with the
contracted work at any stage of this process.

Contractors and their subcontractors

Need to meet or exceed the standards within this procedure.

Employees
 Are any EVICCO employees interacting with our Contractors or observing their
performance.
 They are encouraged to provide feedback to the Contractor, Category Manager /
Contract Owner and the EVICCO Job Manager with observations of how our Contractors
align with our values, behaviours and management of HSE.

Heath, Safety, Environment (HSE) Representative

 Provide advice and support to EVICCO Employees on how to manage HSE Risk.
 Where required, review HSE documentation and provide feedback to stakeholders in a
timely manner.
 Audit Contractor compliance to environmental and safety management requirements in
accordance with the HSE audit schedule and report the findings to the Contractor and/or
the Category Manager / Contract Owner in a timely manner.
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 Be an active participant, when required, in the tender evaluation process for contracts
classified with a high level HSE risk.
 Provide advice and support to the Category Manager / Contract Owner on the evaluation
of the HSE tender submission documentation.

Job Manager (Is the Team Member Supervising the Work/Services, incl Works Delivery
Team Leaders/Project & Site Managers)
Is responsible for the following prior to works commencing:
 Consult, co-operate and co-ordinate activities with other Contractors involved with
planned work to agree and document on how the responsibility for HSE will be shared
between them;
 Ensure HSE requirements have been meet. This includes checking mandatory licenses,
permits or accreditations are held or are capable of being obtained in time;
 Provide HSE management plans (where they are required for construction work) to the
HSE Representative for review;
 If an Employee requires the Contractor to be engaged for new types of work, discuss the
requirement with the Category Manager / Contract Owner to ensure the Contractor is
accredited to carry out the work;
 If an Employee requires the Contractor to be engaged for new scopes of work reassess
the Contractor’s arrangements, including any new procedures/SWMS or training
required for the new work.

Officers (Board Members and Senior Leaders)

Part of due diligence involves ensuring that EVICCO has and uses appropriate resources and
processes to eliminate or minimise Risks.
This can involve:
 Ensuring a procedure/system for managing Contractor HSE is in place and seeking
verification of its use by Category Managers / Contract Owners, Team Members Planning
the Work and other EVICCO Employees.
 Ensuring EVICCO continues to maintain records of current training and licensing for
Contractors and subcontractors performing high Risk work in field operations.
 Ensuring the effectiveness of the system is audited regularly.
 Monitoring the timely completion and effectiveness of Controls to address corrective
actions from Contractor and subcontractor audits and incident investigations.
Further information about Officers is provided in the Responsibilities Procedure.
Sourcing & Procurement Team:
Is responsible to undertake the following during the tender process:
 Facilitate the entire tender process in conjunction with the Category Manager /
Contract Owner.
 Ensure all HSR documents are issued and returned in line with the tender process.
 Ensure probity is maintained.
 Ensure all completed HSE documents are saved in The Zone and notify the HSE
Representative via email of their location.

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 Your Responsibility in The Process

Responsibility Getting started – Establish Tender & Contract Evaluate Manage

Answer questions
and provide
Contractor information to Support
support those
answers

Support Support
Sourcing & Support Provide and Management of Management of
Management of receive the Tender the Tender
Procurement
the Tender correspondence Process Process
Team Process to Contractor

Identify Risk, Facilitate the

classify contract, evaluation Monitor
ask questions & performance
process
provide
information
Category
Manager /
Contract Owner
Review and
endorse
evaluation
recommendation

Work with
Contractor/s to
Job Manager Support
manage HSE Risk
Support for each
job/project

HSE Support Support Support

Representative

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The Contracts Management Process
Getting Started: Establish Tender and Contract
‘Getting started’ is the most important step of the contracts management process. It sets our
expectations of the Contractors upfront and establishes a benchmark for
performance/monitoring discussions.
The ‘getting started’ process steps Category Managers / Contract Owners through the
process of including HSE when establishing tenders and contracts.
The ‘Getting Started’ Process:

Identify any safety and environmental Risk

Identify

Classify the contract HSE Risk

Classify

Specify Zero Harm requirements

Specify

Ask about safety and environmental

Ask performance

Identify any Safety and Environmental Risk

Completion of the HSE Risk Checklist:
The HSE Risk Checklist identifies what HSE Risks a Contractor is likely to experience when
they perform work for EVICCO.
The link to the HSE Risk document is provided below.
The completed HSE Risk Checklist is to be provided to the:
 Contractor as part of the tender package, to be signed and returned as part of the
Contractors tender submission. And
 EVICCO Job Manager prior to commencement of the work to assist with HSE
management during construction.
The HSE Representative should be considered as an active participant in the tender
evaluation process for contracts classified with a high level HSE risk.

Classify the Contract HSE Risk

After identification of the HSE Risks, we can determine what level of contractor management
EVICCO will require to manage the contract. This classification is needed for the ‘evaluation’
and ‘manage’ phases of the Contractor Management Procedure.
The link to the HSE Risk document is provided below.

Specify Zero Harm Requirements

This section determines how we expect our Contractors to manage HSE Risk when they
perform work for EVICCO.

UnControlled once printed. Please verify the current version on the EVICCO intranet site – The Zone
This document is to be completed by the Category Manager / Contract Owner and supplied
to each Contractor through the Sourcing & Procurement Team as part of the Contractors’
tender documentation.
The Category Manager / Contract Owner is to facilitate completion of the following:
 Cover page – fill in the date, company name and tender / project name at the top of
the document
 Section 1: (HSE) Risk Checklist – review all HSE Risk Activities listed and move / add
activities as required depending on the risk posed to the project. Is inherent that the
Technical Competence Group, Works Standards Officer is consulted to ensure all
appropriate work procedures for the works are identified.
 Section 1: (HSE) Risk Checklist – check the box for the relevant activities that will be
undertaken by the Contractor, note NA or strike through those activities not being
undertaken by the Contractor.
 Section 2: (HSE Contract Classification & Evaluation) – Level of Risk - identify the level
of risk by working through each ‘Topic’ and circling one ‘risk level’ as applicable for
each of the topics.
 Section 2: (HSE Contract Classification & Evaluation) – Contract Classification - from
the information provided in the completed ‘Level of Risk’ table select the applicable
‘Classification Level’ Write the ‘Classification Level’ in the area provided at the
bottom of the page.
 Section 3: Specific Zero Harm Requirements for Contractors – Fill in the green
highlighted areas of the Contract Classification Level document. Specifically state the
minimum requirements the contactor is required to meet for the work under the
contract.
 Section 4: General Zero Harm Requirements that Apply to all EVICCO Contracts –
generally changes would not be required to this section of the document.
At the end of the document space is provided for the Contractor to sign and returned the
document to EVICCO, along with any required supporting documentation. This document
forms part of the Contractors tender submission.

Ask about Safety & Environmental Performance

This section asks questions of the Contractor to supply evidence to allow EVICCO to make an
assessment on their ability to meet the HSE requirements.
It also allows for the evaluation scoring to be carried out against the criteria.
The Link to the document is provided below.
HSE Questions For Contractors:
The Category Manager/Contract Owner is responsible for facilitating the updating of the
‘HSE Questions for Contractors’ document. The document is to be completed as below:
 Fill in the date, company name and tender / project name at the top of the document
 Read each question and eliminate questions that are not relevant
 Ensure the evaluation scoring is correct and is not included when the document is
sent to the Contractor
  Where a Management Plan is required, clearly identify if a site specific or generic
plan is required.
The Sourcing & Procurement Team is responsible for issuing the ‘HSE Questions for
Contractors’ document to the Contractor as part of the tender process.
The Contractor is responsible to complete the ‘HSE Questions for Contractors’ and return as
part of their tender submission, along with any supporting documentation identified in the
Zero Harm requirements for Contractors.

Refer to the: Contractor Management Procedure – Questions for Contractors

document.
Evaluate:
Check HSE Submissions for HSE Risk Management
This step is facilitated by the Category Manager / Contract Owner with input from the HSE
Representative and tender evaluation team.
It involves reviewing and evaluating the documents and statements the Contractor has
provided to EVICCO during the tender process.
The ‘Evaluate’ Process involves:
 Checking how HSE will be Managed; and
 EVICCO Progress check and Endorsement.

Check how HSE will be Managed

The Category Manager / Contract Owner will facilitate the tender evaluation with support
from the Sourcing & Procurement Team.
The tender evaluation team and HSE Representative will individually assess the Contractor
to:
 Verify they have effective HSE arrangements in place;
 Assess their previous HSE performance, and
 Assess their level for managing safety and environment matters.
The HSE Representative must (as required) actively participate in the evaluation for
high/medium contract risk classification.
Where the HSE Representative does not form part of the tender evaluation team, advise the
HSE Representative of the location of the documents for review, compliance and record
keeping.
The Job Manager and effected Employees can form part of the tender evaluation team.
The evaluation is carried out on the ‘HSE Questions for Contractors Including Evaluation’
form provided above as part of the ‘Getting Started’ process.
The evaluation documentation is to be forwarded to the Sourcing & Procurement Team for
inclusion as part of the tender process documentation.

EVICCO Progress Check and Endorsement

It is the joint responsibility of the Category Manager / Contract Owner and the Sourcing &
Procurement Team to complete this form as part of the tender process.
This form is used to check that the ‘getting started’ and ‘evaluation’ processes are complete.

Refer to the: Contractor Management Procedure – Progress Check and

Endorsement document.
Manage:
The Job Manager is responsible for planning construction work with our Contractors and
their subcontractors to manage HSE collectively. The Job Manager may attend Contractor
performance discussions (facilitated by the Category Manager / Contract Owner) to manage
the Risks associated with the construction works. This may involve:
 Monitoring performance and verifying performance by considering inspection and audit
results
 Having discussions to review and improve performance.
The ‘Manage’ process steps involve:
 Check HSE is being Managed
 Plan works

Check HSE is being Managed

Checking HSE is being managed is the responsibility of the Category Manager / Contract
Owner.
During EVICCO and Contractor meetings, reference should be made to:
 Evidence of carrying out specific Zero Harm requirements and applying the general Zero
Harm requirements
 Outcomes of audits and inspections performed by EVICCO team members and by the
Contractor (self-audits)
 The causes and corrective actions from any incidents or near misses, and
 The monthly HSE performance data provided by the Contractor.
The EVICCO Category Managers / Contract Owners and the Contractor should:
Decide on the actions required – this involves consulting Contractors and sharing your
findings to agree on HSE areas to improve. Agreed actions should be SMART (specific,
measurable, achievable, relevant and time-bound) and involve consulting the workers
affected by the corrective actions. This allows workers to have input into how the actions
should be implemented to create ownership and accept any change. The actions agreed
between all parties need to be documented.
Monitor and review improvements – actions should be monitored and reviewed to ensure
they are accepted and are being implemented. Regular consultation allows issues to be
raised early for management. When the contract is complete, a review may assist to identify
what was done well throughout the project in relation to Contractor management and what
improvements could be put in place for the next contract.
HSE performance may be reviewed when evaluating the success of a project or work
undertaken by a contractor. Successes and areas for improvement should be discussed with
contractors, for instance, at ‘close out’ meetings.
Plan Works
EVICCO needs to consult, co-operate and co-ordinate activities with Contractors and
subcontractors. It involves finding out who is doing what, and working together in a co-
operative and co-ordinated way so that Risks are being managed.
Aside from being a requirement under WHS laws, it means work is better planned and
incidents, delays and cancellations are less likely to happen.
The EVICCO Job Manager should use a HSE Works Planning Checklist to consult, co-operate
and co-ordinate with Contractors before works commence.

Refer to the: Contractor Management Procedure – Works Planning

document.