Oil and gas contractors are responsible for ensuring that all work under contract meets or exceeds the OSHA standards in addition to complying with the company’s safety and health standards.
Oil and gas contractors provide a variety of oil and gas services, including:
All of these work activities must be performed safely and in accordance with the applicable safety codes, standards and regulations.
It’s important that the employer involve communications about safety in all phases of the oil and gas project. From the time the project is conceived until it is finished, safety must be a part of the process.
During the Pre-Award phase, requirements are developed, solicitations are sought, contractors are selected and contracts are awarded. Key safety-related efforts during this phase include consideration of a contractor’s past performance during the contractor selection process, establishment of appropriate safety and health requirements in contract specifications and ensuring the inclusion of applicable safety and health clauses.
In the Pre-Bid meeting, contract safety requirements should be discussed, including:
During the pre-mobilization meeting, the following should be discussed:
The roles, responsibilities, accountability and authority of the owner, general contractor and all contractor personnel should be discussed.
It’s traditional to select oil and gas contractors based on three criteria:
However, in a world-class oil and gas company that understands the importance of safety, they will not make a decision based solely on cost.
Those companies will use the following criteria:
Experience Modification Rate (EMR) has strong impact upon a business. It is a number used by insurance companies to gauge both past cost of injuries and future chances of risk. The lower the EMR of your business, the lower your worker compensation insurance premiums will be. An EMR of 1.0 is considered the industry average. (Source: Safety Management Group).
According to the Michigan Oil and gas Users Council (MCUC), the following EMR chart indicates the relative effectiveness of a contractor’s SMS.
0.30 - 0.71 = Superior – Distinguished results
0.72 - 0.81 = Effective – Impressive results – Obvious commitment
0.82 – 1.04 = Average – Within industry norm
1.05 – 1.29 = Inadequate – Conspicuous past problems
1.30 – 2.05 = Poor – Lack of safety involvement
As you can see, safety is a serious consideration when choosing contractors to work on the oil and gas project. Using these criteria will not only result in selecting a higher level of contractor safety, it will also result in selecting a contractor that will be more professional in all aspects of the contracted work that will be performed.
The Total Case Incident Rate, or “TCIR” is a common method used to report workplace injuries. It is defined as the average number of work-related injuries incurred by 100 workers during a one-year period. Use of the TCIR to report workplace injuries allow comparison of accident and injury statistics across industries, among industry segments, and from one year to the next. .
The TCIR is typically calculated as follows:
For example, if an employer with 500 workers reported 10 injuries in 2013, and workers in that company worked 1,000,000 hours that year, then the 2013 TCIR for that employer would be:
The contractor, the owner, general contractor, project manager, site superintendent, and safety manager, should all have:
All managers on the oil and gas site should be competent in safety management. Workers should be competent in the work they are performing. Heavy equipment operators should all be able to show written documentation providing proof of competency. Also, a trained on-site healthcare provider or nurse should be present on large projects (more than $75 million).
Project designers that are involved in the oil and gas phase should do the following:
The general or head contractor on site should do the following:
Each subcontractor on site should do the following:
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