Retention Code:

CONTRACTOR HSE MANAGEMENT CG01 - CA

ALL-HSE-PGM-113
Revised: January 2016

Owner: Approved By: Review Frequency:

HSE Performance Assurance Manager, Regulatory & HSE Performance Assurance Five years or less

This document contains proprietary information belonging to ConocoPhillips Canada. It is intended to govern activities of ConocoPhillips
Canada employees and contractors who perform work at ConocoPhillips Canada worksites. Its most current version may only be relied upon
by those parties who receive a copy provided by ConocoPhillips Canada directly.

Table of Contents
Page
Purpose.......................................................................................................................................................2
1.1. Scope ............................................................................................................................................................ 2
Program-Specific Roles and Responsibilities .................................................................................................3
2.1. Senior CPC Leadership .................................................................................................................................. 3
2.2. Supply Chain ................................................................................................................................................. 3
2.3. HSE Performance Assurance ........................................................................................................................ 3
2.4. HSE Operations – Field Operations .............................................................................................................. 3
2.5. Contract Owner ............................................................................................................................................ 3
2.6. Contractor..................................................................................................................................................... 4
Program Requirements ................................................................................................................................4
3.1. Contractor Prequalification HSE Analysis ..................................................................................................... 4
Contractor HSE Variances ............................................................................................................................5
4.1. Contractor HSE Defenses .............................................................................................................................. 5
Restricted Status .........................................................................................................................................5
Bridging.......................................................................................................................................................6
Contractor HSE Execution Plan .....................................................................................................................6
Contractor Performance ..............................................................................................................................6
8.1. Contractor Verifications ............................................................................................................................... 6
8.2. Contractor Engagement ............................................................................................................................... 7
References ..................................................................................................................................................7
Document Retention ...................................................................................................................................8
Appendix A – Contractor HSE Management Process RACI ......................................................................................9
Appendix B – Definitions .................................................................................................................................... 11
Appendix C – Revision Record ............................................................................................................................ 12
 CONTRACTOR HSE MANAGEMENT
Canada

Purpose
This program is intended to build partnerships between ConocoPhillips Canada (CPC) and its contractors as
well as provide clear expectations from CPC, specific to our HSE programs, procedures and corporate HSE
requirements. This program is designed to:
• Assess the risk associated with the contracted scope of work and contractor execution.
• Assist contractors in administering programs that are consistent with CPC’s expectations, minimum
requirements and applicable regulations.
• Protect both CPC and our contractor’s personnel from workplace injuries and illness as well as from
losses associated with the incidents, while preserving the independent contractor relationship.
1.1. Scope
• This program applies to all contractor activities, except:
Off-site contractors (e.g. fabrication shops, well site trailer/camp manufacturers, electrical
generator suppliers) who do not provide service or support at CPC office or field sites.

Independent contractors who go to site under CPC supervision and escort, and do not
Contractors
provide sub-contractors.
Direct hire, single person contract supervisors/operators working directly for
ConocoPhillips Canada (CPC) as “staff contractors” and who do not provide subcontractors
or have employees.

Off-site service providers (e.g. deliveries to town offices, automobile contractors, rental
companies).

“Office only” engineering, staffing, and consulting (e.g. project scoping, economic analysis,
legal services, accounting and “staff contractors”) who do not provide ongoing services at
Service Providers CPC office or field sites.

Fixed wing air charter carriers on CPC’s approved air carrier list providing air transport
services only.
Commercial carriers (e.g. WestJet, Air Canada).
Helicopter carriers NOT performing field based services (e.g. air transport services).

Tagged equipment suppliers and fabricators (e.g. pumps, compressors, tanks, other
pressure vessels), who do not provide onsite installation, service or support.

Equipment Bulk materials vendors (e.g. line pipe, OCTG, pipe, valves and fittings and distributors,
Contractors cement plant), who do not provide onsite installation, service or support.

Fabrication contractors working at their own modular yards and shipping product to CPC
sites, who do not provide onsite installation, service or support.

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Program-Specific Roles and Responsibilities

2.1. Senior CPC Leadership
• Review and sign off on contractor variance requests and requests for extensions to existing
variances.
• Review and approve defenses in place to manage contractors for which a variance is requested.
2.2. Supply Chain
• Assure the existence of a signed and effective contract document, developed under current
procurement policies and procedures.
• Verify an accurate scope of work is in place.
• Ensure a contract owner for each contractor or group of contracts is assigned.
• Determine if the vendor is required to subscribe to ISNetworld.
• Provide required contract documents and HSE Exhibit to all new and renewed vendors.
• Follow the HSE sourcing process to request an HSE analysis.
• Facilitate contract award process and communicate preferred vendor.
• Request contractor connection to CPC ISNetworld account (if applicable).
2.3. HSE Performance Assurance
• Complete HSE analysis.
• Provide a summary and communicate the results of the analysis to Supply Chain, contract
owner(s) and HSE field operations.
• Provide recommendation for improvement areas.
• Support contractor verification process.
2.4. HSE Operations – Field Operations
• Provide HSE oversight and feedback to the contract owner specific to HSE risk mitigation as
required; but not limited to:
o Contractor risk classification.
o HSE execution plan reviews.
o HSE Contractor Critical Alignment (ALL-HSE-FRM 2138) document reviews.
o Pre-mobilization HSE kick-off meetings.
o Contractor verifications.
2.5. Contract Owner
• Provide a clear scope of work (SOW) of the service(s) requested.
• Conduct and document the determination of the contractor’s risk assignment(s): high,
significant, medium or low risk based on the SOW.
• Ensure contractor provides HSE and Supply Chain information as requested.

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• Obtain, review and approve the contractor’s HSE execution plan and Critical Alignment
Document (All-HSE-FRM-2138) as required by the contractor’s risk assignment.
• Initiate variance when needed; developing appropriate defenses to manage the work under the
HSE variance (ConocoPhillips Canada Contractor HSE Variance Form – ALL-HSE-FRM-2118).
• Communicate CPC HSE policy, goals and expectations to the contractor.
• Execute contractor kick-off meeting as required by the contractor’s risk assignment.
• Participate in periodic engagement activities and follow up to influence contractor HSE
performance.
2.6. Contractor
• Provide requested HSE and Supply Chain information as requested prior to commencing work.
• Follow and communicate to its employees and sub-contractors CPC’s applicable policies,
programs and procedures and the potential hazards associated with the work, including any and
all applicable government regulations.
• Adhere to requirements of CPC’s HSE Exhibit.
• Complete the critical alignment of HSE documents between contractor and CPC HSE documents,
when requested by CPC (ALL-HSE-FRM-2138).
• Submit an HSE Execution Plan specific to the contractor’s contracted activity/scope of work
(SOW) upon request.

Program Requirements
• The contract owner must determine the risk associated with the SOW utilizing the ConocoPhillips Risk
Matrix.
• Risk rank of activity should be documented in the scope of work or other contracting documents.
• For additional guidance on the Contractor Management Process, please refer to Appendix A –
Contractor HSE Management Process RACI.
3.1. Contractor Prequalification HSE Analysis
• Contractor prequalification HSE analysis must be conducted for all contractors except those
listed in Section 1.1.
o At minimum, the contract owner must review the contractor risk profile (dashboard status)
in ISNetworld.
• The HSE Performance Assurance Team must conduct a contractor safety analysis of relevant HSE
information for all new contractors being considered for significant and high risk activities and
may use the following additional sources:
o IMPACT.
o Commercial transportation carrier profile, provided by the contractor.
o Applicable or related HSE certifications.
o Additional HSE documents for those contractors not in ISNetworld including applicable HSE
programs, procedures and performance statistics.

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Contractor HSE Variances

• Variances must be obtained for all contractors that are not in ISNetworld or do not meet the following
prequalification HSE analysis requirements:
o Have an ISNetworld dashboard score of red.
o Received a “fail” grade as a result of contractor safety analysis.
• Variances should be limited to emergency situations, one-off contracts/jobs or when logistical
constraints limit CPC’s ability to use a green/yellow/approved (passed) contractor.
• Variances must not be written to bypass any due diligence requirements of the contractor management
program.
• Contract owners must complete the Contractor HSE Variance form (ALL-HSE-FRM-2118) and submit it
for approval to the appropriate business unit or functional unit VP or SLT member.
• Duration of variances may vary based on the terms of the contractual agreement; however should not
exceed 90 days.
• Contract owner must put HSE defenses in place to reduce the HSE risk and document these as part of
the variance.
• Approved variances must be submitted to [email protected].
4.1. Contractor HSE Defenses
• HSE defenses must be identified and implemented for contractors working for CPC under a
variance.
o Note: This is in addition to general HSE management system documents submitted to
ISNetworld.
• Defenses must be reviewed by the HSE field operations team and the contract owner for
completeness, validity and accuracy, etc.
• Contractors must communicate approved defenses to their workers and sub-contractors as
applicable.

Restricted Status
• In rare instances, a contractor may be placed in a Restricted status due to:
o Continued and persistent disregard for safety protocols.
o On-site significant safety incident.
• Restricted status must only be used in cases where there intent is to reinstate the contractor for use
within CPC’s operations through the approval of an action plan which addresses identified concerns.
• If determined by the Contractor Owner and Supply Chain to terminate the contract; the contractor will
be removed from CPC’s ISNetworld vendor list.
• The use of a Contractor in a Restricted Status is strictly PROHIBITED.
• Note: A contractor in a restricted status will no longer have a letter grade associated with their
ISNetworld account, instead, they will be allotted -201 points and their grade will show as Restricted.

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• In order to place a contractor on Restricted Status, the Restricted Status Request Form (ALL-HSE-FRM-
2147) must be completed and signed off by the appropriate level of management. This form includes
the requirement for an action plan to determine what requirements the contractor must meet to be
reinstated.
• Should CPC reinstate the contractor, the restricted ‘grade’ will remain in the Grade Archive.

Bridging
• Where contractors conducting significant or high risk activities will be required to follow both CPC
procedures and their own procedures, a bridging exercise should be completed utilizing the Contractor
Critical Alignment of HSE Documents form (ALL-HSE-FRM-2138), focusing on the applicable critical HSE
processes/procedures.
• Completed forms must be retained by the contract owner.
• Contractors must communicate applicable CPC procedures to their workers and sub-contractors as
identified during the bridging process.

Contractor HSE Execution Plan

As determined by the contractor’s risk assignment, all contractors performing significant or high risk
activities may be requested to provide a contractor HSE execution plan. The contractor HSE Execution Plan
should address all activities required to safely and efficiently execute their scope of work. The HSE Execution
Plan should include at a minimum:
• JHAs for each aspect of the work.
• A detailed risk registry (including proposed mitigation plans specifically tailored to address such risks).
• Training records and certifications of contractor group personnel.
• The portions of contractor’s HSE MS which will govern performance of the work as specified in any
Critical Alignment Document(s).
• Any required PPE.
• Completed forms must be retained by the contract owner.

Contractor Performance
8.1. Contractor Verifications
• Contractor compliance with agreed HSE programs and procedures must be periodically verified
by the contract owner for contractors conducting significant and high risk activities.
• Validation activities may include but not limited to:
o Audits, based upon the risk of the contracted activity, prior experience with the contractor,
project complexity, and changes that may impact contractor performance (in accordance
with the HSE Audit Program).
o Contractor inspections.
o Life Saving Rules Verifications.
• CPC may provide a list of identified deficiencies and non-conformances to the contractor on
completion of the validation.

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• When requested, the contractor must develop and track corrective actions to closure in a timely
manner.
o The documented action plan should include actions to be completed, responsibilities for
completing actions and dates for planned completion of action items.
• Once all corrective action items are completed, acceptance of validation actions must be
communicated to the contractor from relevant personnel within HSE operations.
8.2. Contractor Engagement
• Meetings specific to contractor engagement must be held for contractors engaging in significant
and high risk work and should be conducted prior to starting work, periodically during the
duration of the contract and upon contract completion.
• Engagement activities should include contract owners, Supply Chain Management (SCM) and
HSE and must consider the following:
o Company’s and/or site-specific or project-specific HSE policy and goals.
o Company’s SPIRIT values.
o Company’s HSE requirements and expectations for the work.
o Review of major hazards.
o Presentation of the HSE Management System or program, Bridging Agreement, emergency
plans, etc. or, if not complete, plans for completion.
o Plans for briefing of sub-contractors who are not able to attend the meetings.
o Incident reporting and investigation requirements.
o Review of contractor HSE performance statistics.

References
• ConocoPhillips Contractor HSE Standard
• Contractor HSE Exhibit
• Risk Management Program (ALL-HSE-PGM-127)
• Contractor Variance Form (ALL-HSE-FRM-2118)
• Contractor Critical Alignment of HSE Documents form (ALL-HSE-FRM-2138)
• Restricted Status Request Form (ALL-HSE-FRM-2147)
• HSE Audit Program (ALL-HSE-PGM-435)
• Life Saving Rules Program (ALL-HSE-PGM-131)
• Risk Matrix Card (ALL-HSE-FRM-2022)

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Document Retention
Records must be retained in accordance with ConocoPhillips’ Document Retention Schedule.
Record Owner Classification Retention
Contractor HSE Analysis Contractor HSE Management LGL01 Expiration of Contractual
Team Obligations + 10 Years and
ATA
Contractor HSE Analysis Contractor HSE Management AD01 No Longer than 5 Years
Tracking Sheet Team
Contractor Variances and Contract Owner LGL01 Expiration of Contractual
Defenses Obligations + 10 Years and
ATA
Contractor Critical Alignment Contract Owner LGL01 Expiration of Contractual
of HSE Documents Obligations + 10 Years and
ATA
HSE Audit Reports HSE Performance Assurance CG01-CA Completion + 10 Years
HSE Inspections Reports Contract Owner CG01-CA Completion + 10 Years

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Appendix A – Contractor HSE Management Process RACI

HSEMS - Contractor

CPC Senior Leaders

Contractor HSE Management Process RACI:

Management Rep.
Owner/Requestor
HSE Operations –
Field Operations

Representative
Contractor HSE
Management
Supply Chain

Contractor's
R: Responsible

Contract
Support
A: Accountable
C: Consulted
I: Informed

*Indicates requirement for high and significant risk work, or where the contractor is working under an approved HSE variance.
Pre-Contract Planning Phase (Applies to all Contractors)
Develop contract scope of work ensuring key HSE risks
I C C R/A
and requirements are identified and included.
Request new or renewed vendor submitted to Supply
Chain; complete initial contract classification (i.e.,
A I I R
MSA); determine if ISNetworld is required as per the
ISNetworld exemption criteria.
Identify HSE risk for the SOW (high, significant, medium,
low) utilizing the COP 5x5 risk matrix, documenting I C C R/A
classification.
Review and verify HSE risk ranking/contract
categorization (ensuring alignment of the risk to the I R A I
specific nature and content of the assignment).
Define additional HSE requirements and
responsibilities; include in RFP as required (i.e., HSE I C/I C/I R/A
execution plan for high and significant risk work).
Ensure all relevant HSE information and requirements
R/A I C C
are included in the RFP or single source contract.
Complete the HSE Analysis for pre-qualification
purposes. Evaluate minimum HSE requirements and
capability of potential contractor; assigning a risk I R/A C C
profile. Recommend HSE defenses to be applied where
necessary.
Develop RFP scoring criteria. R/A C/I C/I R
Complete bid (award) evaluation or single source
justification (SSJ). Issue recommendation for award/SSJ R/A C/I C/I R
concurrence.
Obtain variance and required approvals when
I C/I C/I R/A I
necessary.
Sign off approved variance. I I I R/A I I R
Contracting Phase
*Preparation of contract documents and award
R/A I I I I I
contract.
*Determine any additional HSE requirements (i.e., site
access) or bridging documents to complete prior to C/I C/I R/A
mobilization.
*Pre-mobilization HSE readiness review (identify any
gaps; discuss any additional site requirements and I C C R/A C C
expectations with contractor).
Contractor formalizes HSE Management Plan (site
safety & health plan); completes critical HSE document I I I R/A I
alignment.

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 CONTRACTOR HSE MANAGEMENT
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HSEMS - Contractor

CPC Senior Leaders

Contractor HSE Management Process RACI:

Management Rep.
Owner/Requestor
HSE Operations –
Field Operations

Representative
Contractor HSE
Management
Supply Chain

Contractor's
R: Responsible

Contract
Support
A: Accountable
C: Consulted
I: Informed

Contractor HSE readiness review – field/site audits to

verify gaps identified during review of HSE I I C R/A C C
management plan addressed (as required).
Contract Execution & Performance Phase
*Pre-commencement/pre-job kick-off meeting. I C R/A C C
Schedule contractor HSE site inspections and audits (as
I R/C R/A C C
needed).
Conduct interim contractor HSE performance
I I C R/A C C
evaluation.
Conduct contractor HSE meetings. I I C R/A C C
*Conduct contractor performance meetings (including
R/A I C C C C
HSE performance).
*Develop contractor HSE continuous improvement
I I C R/A A C
plans (CIP) as required.
Contract Completion and Evaluation Phase
*Develop and communicate any additional HSE
C R/A C I
requirements for demobilization.
*Assess contractor HSE performance. I I C R/A I I
Document contractor performance and lessons learned. A I C R I I
Measuring, Monitoring and Review
Conduct verifications based on the requirements of the
C C R/A C C
HSE Contractor Management Program.
Review program in accordance with the CPC document
control program (every 5 years) to assess and adjust as R/A C I
needed.

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Appendix B – Definitions
Critical The document used to align Contractor’s and Company’s “Safe Work” documents, standards, policies,
Alignment procedures, and practices, which must be agreed upon between the Parties after execution of the Agreement,
Document but prior to the commencement of any work at a site.
Contract CPC field representative or assigned designate that engages and manages the work being performed by the
Owner contractor for CPC.
Contractor An individual or organization performing work for CPC, following verbal or written agreement, whether under
contract with CPC or another contractor.
Contractor Results of HSE information compiled and scored in ISNetworld and presented in a dashboard score of red,
Risk Profile yellow or green.
RACI A responsibility assignment matrix which describes the participation by various roles in completing tasks or
deliverables for a specific business process, clarifying roles and responsibilities in cross-functional/
departmental processes.
• Responsible (R): Those who do the work to achieve the task (although others can be delegated to
assist in the work required to complete).
• Accountable (A): The one ultimately answerable for the correct and thorough completion of the
deliverable or task, and/or the one who delegates the work to those responsible. There must be only
one accountable specified for each task or deliverable
• Consulted (C): Those whose opinions are sought, typically subject matter experts; and with whom
there is two-way communication
• Informed (I): Those who are kept up-to-date on progress, often only on completion of the task or
deliverable; and with whom there is just one-way communication

Source: Wikipedia.org

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Appendix C – Revision Record

Section December 9, 2015 Previous Information Change Assessment
Reformatted and simplified/streamlined
All Low
verbiage
Removal of redundancy between the
All Low
Corporate standard and Canadian Program
Appendix
RACI General work type risk rating Medium
A

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