<p>This report describes a process by which clients can:</p> <ul> <li>select suitable contrctors </li><li>set out expectations and requirements </li><li>award contracts </li><li>manage all phases of the contracting process </li></ul> <p>with a view to improving client and contractor management of HSE risks for contracted activities.</p> <p>This report is primarily aimed at those responsible for contracting out activities, the personnel responsible for the planning of operations involving contractors, and those responsible for the operational oversight of contractors and their employees.</p> <p>This report is applicable to both the client oil and gas companies in their contractual relationships with their contractors, and is also applicable to contractor companies in their contractual relationships with their contractors (i.e. subcontractors to the oil and gas companies).</p> <p>It establishes a structured approach to control HSE risk in a contract environment, enabling improved HSE Risk management and overall performance by:</p> <ul> <li>providing clients and contractors with an effective and common risk-based process for the management of HSE risks in a contract environment, so that both the client and contractor can dedicate appropriate resources to controlling risk and delivering high HSE performance </li><li>ensuring the contractor’s Operating Management System (OMS) is suitable for the scope of work and the type and level of risk inherent to their services </li><li>addressing and agreeing upon the limits of applicability of client, contractor’s and other supplier’s OMSs, thus facilitating the bridging of the contractor’s management system with those of the client, other contractors and suppliers </li><li>ensuring incorporation of specific health, safety, security, environmental and social responsibility criteria applicable to the contract defining assurance mechanisms that facilitate effective management of risk controls and barriers and that ensure client and contractor requirements are met. </li></ul> <p>This report describes objectives, key activities and risk mitigating actions for eight phases of the contracting process, and the associated HSE tasks and responsibilities of client and contractors. It begins with Phase One: Planning and ends in Phase Eight: Final evaluation &amp; close-out, with the transfer of learnings (a key aspect of continuous improvement) in the final phase.</p> <p>Tools that support this process are available as supplements to this report:</p> <ul> <li>Report 423-01, <i>Contractor HSE capability assessment and scoring system - Supplement to Report 423</i> </li><li>Report 423-02, <i>Guide to preparing HSE plans and Bridging documents - Supplement to Report 423.</i> </li></ul>