Strive for Safety Excellence on Contractor Management · • Uneven work volume / distribution of work activities over the year ... role of internal ... Main Contractor. Project Engineers

Copyright © 2010 CLP Power Hong Kong Limited.

Strive for Safety Excellence in Contractor Management

CLP Power experience

Strive for Safety Excellence in Contractor Management

CLP Power experience

16 April 201016 April 2010

2 16 April 2010Copyright © 2010 CLP Power Hong Kong Limited.

ContentsContents1.1. Contracting Works in CLPPContracting Works in CLPP2.2. Our Beliefs, Values and Objectives in Our Beliefs, Values and Objectives in

Contractor SafetyContractor Safety3.3. Safety OrganizationSafety Organization4.4. Our StrategiesOur Strategies5.5. Key ProcessesKey Processes6.6. Achievements & RecognitionsAchievements & Recognitions7.7. Conclusions & Way AheadConclusions & Way Ahead


1.1. Contracting Works in CLPPContracting Works in CLPP


Major Contracting WorksMajor Contracting Works

Overhead line installation and maintenance

Substation construction

Cable trenching, laying and jointingSwitchgear and plant installation and maintenance

Minor civil construction Cable tunnel construction

Our contractors are providing services in a wide variety of works including new projects, routine operations and maintenance, and other servicing activities


• Total contract sum in contracting works in 2009> HK$ 7 billion (new projects, O&M, servicing/minor works)

• Total contractor manpower in 2009 > 5,000 (average no. of workers on site per day)> 300 work sites per day

0100020003000400050006000

'06 '07 '08 '09Contractor Manpower

(average no. of workers on site per day)

Contracting Works in CLPPContracting Works in CLPP

0

2

4

6

8

10

'06 '07 '08 '09Total Contract Sum (in billions of HK$)

Managing our contractors to work safely is therefore an integral part of CLPP’s established Safety Management System


Contracting Works in CLPPContracting Works in CLPP

• Large varieties of construction activities in CLPP projects

• Large quantities of relatively small and medium size contracting works – insufficient motivation to contractors to invest themselves in safety

• Uneven work volume / distribution of work activities over the year

• Fluctuated work volumes driven by project / budget plan and system outage constraints

• Demand for specialized skills / craftsmanship

• Relatively low safety standard in construction safety due to industry norm and new / inexperienced workers

• Multiple working contractors working in congested work sites that could impose risks to site safety


2.2. Our Beliefs, Values and Our Beliefs, Values and Objectives in Contractor SafetyObjectives in Contractor Safety


Mr. Richard Lancaster,Managing Director – CLP Power

One of our important commitments is our commitment to care for people, which is also one of the core values of our Company, and we have a public commitment that says we are aiming for “Zero Incidents”.

Contractors’ CEO ForumDecember 2009

Management MessageManagement Message


Why Contractor Safety are important?Why Contractor Safety are important?

Increase productivity and savings

Minimize operational interruptions

Minimize legal impacts

Minimize financial losses

Enhance corporate image

Take accountability for “safe operations”

Most important of all…

We CARE for people

Most important of all…

We CARE for peopleOur employees and

contractors’ staff are equally important to

us!

Our employees and contractors’ staff are equally important to

us!


Our Policy

Foster long term relationship with contractors who demonstrate SHEQ competencies and compliance with other performance requirements

Requiring all contractors to achieve the same level of SHEQ standard when conducting business with CLP Power

– Addressing our vision and expectation for all contractors

Our Beliefs, Values and Objectives in Contractor SafetyOur Beliefs, Values and Objectives in Contractor Safety


Working safely is a condition of employment

We care about the safety of our contractors and the public

Our Safety Principles


– Stating our beliefs on safety which shall be applied at all times and in all places


• Same safety standards

• Same measurement KPI on Safety Performance

• Same goals – Zero injuries, Nobody gets hurt

Our Objectives

We provide “real” support to our contractors in achieving these objectives



3.3. Safety OrganizationSafety Organization


Safety OrganizationSafety OrganizationManaging Director

Chief Operating Officer

Business Group

Directors

Corporate SHEQ Steering

Committee

BG Level SHEQ Steering

Committee

Department Level SHEQ Committees

Central Safety Team

Departmental Management

Clear Definition of Accountabilities andResponsibilities on Safety• Line managers / location

managers are accountable for the overall safety performance of their employees and contractors

• Safety personnel perform the role of internal advisors who shall provide specialized safety supports to line managers and to bring in advanced safety management concepts and skill into the organization

Driving from the Top to Enhance Safety


Safety OrganizationSafety Organization

Co-operation & Empowerment of Key Personnel in Contractor Safety

Department Management

Supervisors &Frontliners

ProcurementSpecialists

SafetyAdvisors

Main Contractor

Project Engineers

Nominated Sub-Contractors

Sub- Contractors

Contractor Responsible Officer (CRO)

Trade-based

SHEQ Committees(CLPP + Contractors)

Department

SHEQ Committee

(CLPP)


4.4. Our StrategiesOur Strategies


Our StrategiesOur Strategies

Monitoring of Performance

Needs for Contractor Services

Contractor Management• Policies, Principles & Requirements• Commitment & Leadership• Training & Development• Implementation, Promotion &

Enhancement

Selection of Contractors(Partners with Shared Vision)

• Selecting partners with near vision & values

• Alignment of tenderers on safety expectations

• Setting clear vision & objectives• Alignment of leadership & common beliefs• Sharing of knowledge & practices• Same application of systems• Alignment of roles & enhancement of skills• Sharing the pain & glory• Knowing the specifics & sharing our

experiences• Knowing our partners

• Sharing the responsibilities in safety monitoring

Contractor Management ModelContractor Management Model

Presenter�

Presentation Notes�

Establishment of the contractor management process model has taken into account: Soliciting the contractors’ management commitment and leadership Training and influencing on the essentials of safety responsibilities and skills Exploiting, implementing and promoting on the opportunities to improve Monitoring the actual site performance for evaluating the effectiveness in realization of the safety efforts being placed �


Our StrategiesOur StrategiesSetting clear vision & objectives Sharing the pain

& glory

Alignment of leadership & common beliefs

Sharing of knowledge & practices

Same application of systems

Alignment of roles & enhancement of skills

Sharing the responsibilities in safety monitoring

Knowing our partners

Knowing the specifics & sharing our experiences

Presenter�


Sharing of vision and objectives on safety Raising of leadership competency and belief Sharing of knowledge and successful practices Adopting same standards and risk management tools Enhancing roles and responsibilities and skill sets of site staff Sharing the pain and glory Building the knowledge on specific trades Knowing the strengths and weaknesses of our contractors Encouraging continual improvement through constant monitoring Obvious supports to contractors via resources allocation�


Partner is a “chain” which includes CLP, contractors, sub-contractors, and workers.


Contractors’ CEO ForumDecember 2009



1. We aim for a truly cooperative relationship (on management of projects, construction and services/minor works) based on mutual trust and benefits

• Eliminate disputes• Reduce contract administrative

efforts• Sharing the same business value

on “Care for People”• Encourage self motivation and

commitments on safety• Synergy effect on individual’s

management strength and expertise



2. Consolidate numerous works into bulk contracts or outline agreements

3. Incentives and regular two-way feedback communications on partners’ performance (Contractor Performance Management System, Supplier Assessment System, partnering forums etc.)


5.5. Key ProcessesKey Processes


Project planning include critical consideration on:• Realistic timing and duration, set aside buffer for critical process such as public

consultation, acquisition of lands and wayleave, statutory approvals• Resources availability• Contingency on cost fluctuation• Shortage of labour force on specialized skills are supplemented by imported

labour e.g. cable jointers, linesmen, high pressure welders

Risk assessment / mitigation is conducted for every project including:• Specific site environment and condition• Neighboring / surrounding hazards• Site access• Construction Management Plan / specific site program in addressing the

known risks

Key Process Key Process –– Project PlanningProject Planning


Key Process Key Process –– Selection of ContractorsSelection of Contractors

Contractor selection is the key in the tendering process for each and every project:• Select only capable contractors for contracting works in CLPP• Establish long term contracts with good performers• Pre-tender qualification and evaluations, including pre-tender site checks,

job references, interviews etc.• Tender evaluation does not necessarily rely on the lowest tendered price,

but instead very strong emphasis is placed on safety


Key Process Key Process –– Design for SafetyDesign for Safety

Standard Design Protocol in place forincorporating Safety consideration:• Partnering workgroups are in place with

consultants/contractors for discussing and resolving safety issues through joint efforts e.g. Technical Development Working Committee

• Additional risk assessments are required for specific projects with site constraints e.g. construction works in operating plants and facilities

• Constructability studies and risk avoidance/mitigation workshops with design consultants/contractors are organized e.g. slope/foundation stabilization and super typhoon projects for OHL towers

• Construction & Design Management (CDM) are currently adopted for design of new civil projects and gradually extending to other projects


Safety tools are derived with training provided for implementation by all contractors:• Safe Systems of Work

• Job Safety Analysis

• Written Safe Work Procedures

• Pre-work Risk Assessment

• Behavioural-based Safety

Key Process Key Process –– Safety ToolsSafety Tools


Contractors’ CEO Forums• Contractors’ senior executives meet

periodically to exchange safety commitments and strategies for excellence in safety management

• Contractors are encouraged to implement the same high safety standards consistently in projects with their other clients

Key Process Key Process –– Alignment of Safety ValuesAlignment of Safety Values

Safety Leadership Training for Contractor Management• Offered to contractor management to strengthen

and align their safety beliefs, values and accountability (ownership) as a leader for driving safety in their organizations

• Similar trainings are provided for new contractors


Management Visits• CLPP senior management pay periodic caring visits

to contractors’ worksites

• Objective of reinforcing management commitment to safety and CLPP’s expectations for a safe work environment

• Take every opportunity in coaching contractors’ management for stronger commitment in safety

Key Process Key Process –– Alignment of Safety ValuesAlignment of Safety Values


Regular briefing and communication workshops organized for Clerks of Works / Independent Safety Inspectors

Refresher training for registered contractor site supervisors

Contract Responsible Officers’ Forums• Sharing of experiences and best practices on contractor management for CROs• Alignment in roles and responsibilities for effective contractor management

Key Process Key Process –– Enhancing Responsibilities and Enhancing Responsibilities and CompetencyCompetency


Frontline employees and site supervisors are delegated with clear responsibilities for monitoring contractors’ safety

Site personnel are empowered to issue instruction for rectifying safety irregularities and non-compliance

Stop work instructions shall be issued to contractors whenever necessary for the sake of their safety

Key Process Key Process –– Enhancing Responsibilities and Enhancing Responsibilities and EmpowermentEmpowerment


Key Process Key Process –– Knowledge SharingKnowledge SharingSharing of safety knowledge and best practices amongst contractors and CLPP through• Trade-based contractor forums• Sharing notes and alerts• Safety documents and handbooks• Contractors’ seminars• Induction training / Competent Person

and Authorized Person trainings

Safety Resources Centre• Provision of additional learning resources and

technical support to our contractors• Safety resources include educational materials

(booklets, videos), training, talks, and forums etc.• Provision of specific themes talks and displays


CLP Power introduced a number of enhancement initiatives for raisingthe safety standards on site• Contractor Site Supervisors Registration Scheme

• Safety Leaders / Champions

• Taskforce on Participation Model

• Safety Climate Survey

Key Process Key Process –– Safety Enhancement InitiativesSafety Enhancement Initiatives

Presenter�


PSBG realizes that site safety would be further enhanced through co-operation between the Company and the contractors. In 2006, PSBG took the lead to establish the “Participation Model” with the key concept of involving the contractors to jointly develop safety improvement initiatives together with CLP Power in order to gain their support and buy-in for effective implementation. The launching of the Participation Model has engaged 5 major partnering contractors in the construction fields of renovation and maintenance, tunneling, civil and building engineering, joining the taskforce to contribute and collaborate safety improvement initiatives throughout the design and construction stages. Safety improvement initiatives being developed would be shared and implemented among the contractors for cross-learning purpose and synergy effect. �


Key Process Key Process –– Motivation and PromotionMotivation and Promotion

Contractors Safety

Management Efforts

Contractors Safety

Management Process

Contractors Safety

Performance

Recognition on Contractor’s safety efforts

Incentive payment on contractors’ safety performance

Input Output

Presenter�


Safety Incentive Scheme for Contractors Major contractors participated in the scheme by encouraging contractor worker to take active actions in safety process Pay for Safety CLPP has strong belief that safety is a core part of all contracting works and should not be segregated – CLPP only adopt Pay for Safety on exceptional cases Safety Incentive Payment Initiative in place for major contracts e.g. minor civil works and trenching works Safety incentive payments are paid to main contractors with the specific proportion of the sum of money cascaded to the sub-contractors and frontline workers�


Key Process Key Process –– Motivation and PromotionMotivation and Promotion

Awards for Good Performers• Best sub-contractors• Best site supervisors

Contractor SHE Quiz• Organize Contractor SHE Quiz and provide

IT platform to encourage contractors’ active participation

• 20 companies participated in 2009

5S Good Housekeeping• Encourage contractors to adopt 5S good

housekeeping practice on site• Adopt Construction Management Plan for planning

and implementation of good housekeeping arrangements for major construction projects


CROs accountable for ensuring contracting works implemented in accordance with pre-agreed specifications by means of auditing and regular site checks

Key Process Key Process –– Performance MonitoringPerformance Monitoring

Contractor Performance Management System (CPMS) – Contract-based• Structured assessment on contractors’ performance based on line users’ feedback• Safety implementation being a key element in the periodic assessment• Significant influence on contractors’ credibility for assignment of current jobs and bidding

for future contracts

Suppliers Assessment System (SAS) – Contractor-based• Built upon the existing CPMS, the SAS is implemented for consolidation and evaluation

of the overall safety performance by individual contractors under different contracts• Serves as a platform for ranking the overall performance status of the individual

contractors in determining their qualification for future tendering opportunities

Relationship Meetings• Regular meetings between CLP Directors and Contractor Executives


Safety Audits• Regular safety audits conducted by internal audit

teams for monitoring of actual site compliance and practices

• Opportunity taken during visits to communicate and coach on safety requirements on site



Predictive (Leading) Indicators in addition to Lagging Indicators• Leading indicators are used to measure safety efforts inputted by contractors

• Supplement to reactive indicators such as accident rates

• Boosting employees’ participation and management’s involvement in safety


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0.8

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1.2

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Quality of Toolbox Talks

Quality of PWRA

Housekeeping Standard

No. of Observations per ExposedEmployee

No. of Management Involvement perExposed Employee

No. of PWRA per Exposed Employees

Provisional Targets

Performance in Aug '09

Performance in Sep '09

Housekeeping Standard

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May-07

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7Ju

l-07

Aug-07

Sep-07

Oct-07

Nov-07

Dec-07

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8Fe

b-08

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Apr-08

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of I

ncid

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No. of Incidents Housekeeping Standard Acceptable Level


6.6. Achievements & RecognitionsAchievements & Recognitions


ContractorsContractors’’ Safety PerformanceSafety Performance

• CLPP measures contractors’ safety performance for assessing the effectiveness of current control programs

• CLPP’s performance compares favourably with those in the construction industry

CLPP Contractor DIIRin 2009 = 1.7i.e. < 2 injury per 1,000 workers involved in the loss of > 1 working day in 2009 (CLPP employees = 0.2)

51.7

44.6

37.4

31.3 31.5 30.6 31.529.3

27.2

1.0

11.2

6.5 6.6 5.2 4.52.0

55.1

0.52.9 0.71.31.82.43.43.14.43.9

1.72.30.5

3.32.7

0

10

20

30

40

50

60

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09

Acci

dent

Rat

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HK Industrial Accident RateCLPP Contractor Accident RateCLPP Contractor DIIR

CLPP Accident Rate - per 1,000 workers（Each accident involved in the loss of more than 3 working days ）

Hong Kong Industrial Accident Rate - per 1,000 workers（Each accident involved in the loss of more than 3 working days ）

Notes:

CLPP DIIR (Disabling Injury Incidence Rate) - per 1,000 workers（Each accident involved in the loss of more than 1 working day or any bone fracture）


External Achievements/RecognitionsExternal Achievements/Recognitions

External Awards• CLPP encourages contractors to share their

experiences with the industry• 23 honours attained by our contractors in

2008/09 external awards for CLPP projects:−

Construction Industry Safety Award Scheme−

Considerate Contractors Site Award Scheme−

Hong Kong Occupational Safety & Health Award


Recognition from Our ContractorsRecognition from Our Contractors

Mr. Gary Ko, Chief Operating Officer,Kum Shing (K.F.) Construction Co. Ltd.

CLP is our major client. We have common values, and we both take safety seriously.

July 2007



Mr. C.K. Wong, Senior Construction Manager,Hip Hing Construction Co. Ltd.

Hip Hing and CLP have a common objective to achieve “Zero incidents” as our goal.



Mr. Patrick Lo, Contracts Manager,Shui On Building Contractors Ltd.

Throughout these years, CLP, Shui On and our sub-contractors have established a partnering relationship.



Mr. Humphrey Ling, Vice President,Siemens Ltd.

“Care for People” is CLP’s value in promoting safety culture, which is also Siemens’ core value.


7.7. The Way Ahead & The Way Ahead & ConclusionConclusion


The Way AheadThe Way Ahead

• Strengthen existing systems on contractor management to strive for world class standard and continuous improvement

• Take every efforts and opportunities to educate and motivate our contractors for achieving safety excellence in safety

• Evaluate foreseeable shrinking labour force in specific job trades in local market and evaluate possible solutions in addressing the issues

• Joint hands with key contractors and other organizations in steering and influencing the industry for higher safety standard


ConclusionsConclusions

• We see contractors as part of our CLP family

• We move away from “Master and Slave” to partnership arrangement for safety enhancement

• We foster long-term relationship with the good performers

• We believe that all injuries can be prevented – we adopt zero tolerance for any unsafe practices and place continuous efforts on incident prevention

• We encourage our contractors to adopt the same safety standard for all their clients

• Our ultimate goal – “Zero Injuries”


Thank youThank you

Documents

Strive for Safety Excellence on Contractor Management · • Uneven work volume / distribution of work activities over the year ... role of internal ... Main Contractor. Project Engineers