SAFETY CASE · 2017. 7. 13. · Townsville Regional Group Geoff Hurst 0426 881 322 ... • Does not...

SAFETY CASE -

The Role of Contractual Due Diligence

Specifications for an Engineering Project.

Townsville Regional Group

Geoff Hurst 0426 881 322

[email protected]

Risk Management in the construction,

building, infrastructure, service, and

manufacturing industries is applied

with varying interpretation across

businesses and sites within an

enterprise.

Background – Need for a new approach

Risk Management is understanding

the past to predict the future


This is often and largely a cost

contingency approach.




We often are very good at predicting

the numbers.




We often are very good at predicting

the numbers.


ETTOEfficiency – Thoroughness Trade Off

The opportunity however is to identify

all the risks and deal with them as

opportunities.


2006

Procurement

• Does not mean that cheapest is best.

• Comparative analysis of all relevant costs & benefits

• Consider the whole procurement cycle

• Include costs associated with WHS

Commonwealth Procurement Guidelines

The future – Value for money

Requires

•‘looking forward’ in order to consider hazards through the

life of the item, as well as

•‘looking back’ to reveal past experiences that might

inform current decision making.


The future – Safe Design

What are we Really Trying to do?

Hold your Breath and Bury your head

Miss out on the benefits

OR Bury your project

Miss out on the benefits

It is an often held view that

Risk management costs time

and money.

We do it because we have to

Good Risk Management is Gold

MANAGEMENT &

LEADERSHIP

Geoff Hurst after Bently

Management & Leadership

Creating a Risk Management Culture

MANAGEMENT &

LEADERSHIP

PARTICIPATION

INVOLVEMENT &

CONSULTATIONGeoff Hurst after Bently

Participation and Involvement


SYSTEMS &

PROCEDURES

MANAGEMENT &

LEADERSHIP

PARTICIPATION

INVOLVEMENT &


Systems and procedures


SYSTEMS &

PROCEDURES

MANAGEMENT &

LEADERSHIP

PARTICIPATION

INVOLVEMENT &


Management working with employees


SYSTEMS &

PROCEDURES

MANAGEMENT &

LEADERSHIP

PARTICIPATION

INVOLVEMENT &


Developing the system


SYSTEMS &

PROCEDURES

MANAGEMENT &

LEADERSHIP

PARTICIPATION

INVOLVEMENT &

CONSULTATION

COMMITMENT


Commitment


SYSTEMS &

PROCEDURES

MANAGEMENT &

LEADERSHIP

PARTICIPATION

INVOLVEMENT &

CONSULTATION

COMMITMENT

AWARENESS


Awareness


SYSTEMS &

PROCEDURES

MANAGEMENT &

LEADERSHIP

PARTICIPATION

INVOLVEMENT &

CONSULTATION

COMMITMENT

CULTURE

AWARENESS


Culture


SYSTEMS &

PROCEDURES

MANAGEMENT &

LEADERSHIP

PARTICIPATION

INVOLVEMENT &

CONSULTATION

METHOD

COMMITMENT

CULTURE

AWARENESS


Method


SYSTEMS &

PROCEDURES

MANAGEMENT &

LEADERSHIP

PARTICIPATION

INVOLVEMENT &

CONSULTATION

METHOD

COMMITMENT

RESOURCES

CULTURE

AWARENESS


Resources


SYSTEMS &

PROCEDURES

MANAGEMENT &

LEADERSHIP

PARTICIPATION

INVOLVEMENT &

CONSULTATION

METHOD

COMMITMENT

RESOURCES

CULTURE

AWARENESS

CONTINUOUS

IMPROVEMENT


Continuous Improvement


SYSTEMS &

PROCEDURES

MANAGEMENT &

LEADERSHIP

PARTICIPATION

INVOLVEMENT &

CONSULTATION

METHOD

COMMITMENT

RESOURCES

CULTURE

AWARENESS

CONTINUOUS

IMPROVEMENT


Continuous Improvement

Risk Management is a Socio-technical System

Management Model

Reason’s framework

Creating a Risk Culture

• Informed culture

• Reporting culture

• Just culture

• Flexible culture

• Learning culture

Framework for engineering a safe culture - Reason (1998)

Culture steps


1. VULNERABLE

2. REACTIVE

3. COMPLIANT

4. PROACTIVE

5. GENERATIVE

ORGANISATIONAL CULTURE STEPS

Culture Framework


Learning Reporting JustInforme

d

Trust Flexible Flexible

Vulnerable:

Why do anything?

Reactive:

Have to do something

Compliant:

Important to follow rules

Proactive:

Belief and serious responsibility

Reduces risk

The Steps to a Risk Culture

Vulnerable:

Why do anything?

Reactive:


Compliant:


Proactive:


Generative:

Everyone is involved

Reduces risk


Vulnerable:

Why do anything?

Reactive:


Compliant:


Proactive:


Generative:


Reduces risk

Geoff HurstORGANISATIONAL CULTURE STEPS


Vulnerable:

Why do anything?

Reactive:


Compliant:


Proactive:


Generative:


Reduces risk

How is simple


Vulnerable:

Why do anything?

Reactive:


Compliant:


Proactive:


Generative:


Reduces risk


How is simple

Organisational Culture Maturity 1

Understanding Risk Culture


VULNERABLE



VULNERABLE REACTIVE



VULNERABLE REACTIVE COMPLIANT



VULNERABLE REACTIVE COMPLIANT PROACTIVE



VULNERABLE REACTIVE COMPLIANT PROACTIVE GENERATIVE


Legal - Company Policy & Procedure

Statutes - Acts

Regulations

Common Law

Codes

Formal Standards

Industry Standards

Body of Knowledge

Guidance notes

Operating manuals

Maintenance manuals

Procedure manuals

Custom and practice

Practices and rules

WHS Law

The Project Life cycle

Deloitte

EA Safer Construction Guideline

CLIENT


CLIENTDesigner


CLIENTDesigner


Constructor

CLIENTDesigner


Constructor

TRADITIONAL PROJECT

CLIENT

Constructor

Designer


CLIENT

Constructor

Designer

3rd Party Design Review


Occupier

Operator

CLIENT

Constructor

Designer

3rd Party Design Review



Deloitte

The Project Life cycle – 4 Stages:

1. Planning

After Deloitte


1. Planning 3. Construction

After Deloitte


1. Planning 3. Construction 4. Post Construction

After Deloitte


1. Planning

2. Design

3. Construction 4. Post Construction

After Deloitte

Office of the Federal Safety Commissioner

8 PRINCIPLES

1.Commitment to a Safety Culture

2.Demonstrate Safety Leadership

3.Develop cooperative relationships

4.Promote Design for Safety

5.Communicate Safety Information

6.Manage Safety Risks

7.Continuously Improve Safety Performance

8.Entrench Safety Practices


Planning

Design

Construction Post ConstructionConstruction

Principle 1. Commitment to a Safety Culture .

Principle 2. Demonstrate Safety Leadership .

Principle 3. Develop cooperative relationships .

Principle 4. Promote Design for Safety .

Principle 5. Communicate Safety Information .

Principle 6. Manage Safety Risks .

Principle 7. Continuously Improve Safety Performance

Principle 8. Entrench Safety Practices .

After Deloitte

2000

The Law

2000 2004

The Law

2000 2004 2010

The Law

2000 2004 2010 2012

The Law

Background – Safe Design

PERSONS CONDUCTING A BUSINESS OR UNDERTAKING

Must:

• Provide appropriate signage

• Provide the WHS management plan

• Ensure compliance with regulations

• Manage risks re: materials, plant, traffic, essential services.

• Ensure provision, compliance, revision, maintenance of the SWMS

• Manage risks to health and safety during excavation work

• Comply with WHS Regulations regarding the excavation of trenches

• Provide general construction induction training

2006

STEP 1: Planning

STEP 2: Preparing to approach the market

STEP 3: Evaluating submissions

STEP 4: Contract negotiation and award

STEP 5: Contract management

STEP 6: Termination/transition

STEP 7: Contract evaluation

Procurement

Contractor Management Phases

This framework for Contractor Management

simplified into 4 stages.

2

Selection3

Implementation4

Review1

Pre-selection

Contractor Management Framework

2

Selection3

Implementation4

Review1

Pre-selection

Project/contract

design/definition and

specification of

compliance

requirements


2

Selection3

Implementation4

Review1

Pre-selection

Project/contract


specification of

compliance

requirements Review of contractor

proposals, standards

and references.


2

Selection3

Implementation4

Review1

Pre-selection

Project/contract


specification of

compliance

requirements Review of contractor


and references. Monitoring/Supervising

& recording of

contractor on the job

compliance and

performance.


1

Pre-selection

Project/contract


specification of

compliance

requirements

2

Selection

Review of contractor


and references.

3

Implementation

Monitoring/Supervising

& recording of


compliance and

performance.

4

Review


overall compliance

and performance.

Contractor Management POLICY BASICS

Typical

2

Selection

3

Implementation

1

Pre-selection

4

Review

Minor Contract

PhaseOUTCOMES

Major ContractOR

STANDARD of COMPLIANCE

Induction Supervision Inspection

Consider OHS Outcomes and

safety issues for consideration

in future contract work. Verify

satisfaction and record.

Contractor Management Flow Chart

Major Contract

Minor Contract

Value > $100k OR

Duration > 12 months OR

Risk – High Risk Work OR

Complexity – Sub-contract

YES

No

Pre-design –

Facts and contract

Schematic design –

Hazard identification

Design Development –

Hazard Assessment and control

1

Pre-selection

Project/contract


specification of

compliance

requirements

In Consultation with users

Contractor Management - Project Risk

1

Pre-selection

Project/contract


specification of

compliance

requirements

Contractor Management – Evaluating Submissions

1

Pre-selection

Project/contract


specification of

compliance

requirements

• Examine the Safety Management System

• Verify the operation of the Safety Management System:

Third party certification and examination

• Evaluate safety performance:

Infringements, fines or improvement notices

• Conduct meetings with the contractor to confirm their

understanding of contract WHS requirements and

their ability to comply/respond

Contractor Management Decision Tree

NoAccredited

OHSMS

Yes

No OHS

Coordination

plan

Acceptable

NoOHSMS

Questionnaire

Acceptable

No Project Risk

Assessment

Acceptable

2

Selection



and references.

Major Contract

Site Access

Permitted

Contractor not

acceptable

NoAccredited

OHSMS

Yes

Optional OHS

Coordination

plan

Acceptable

No

OHSMS

Questionnaire

Evaluation

Acceptable

NoProject Risk

Assessment

Acceptable

Site Access

Permitted

Minor Contract

Resubmit

Checklist


2

Selection



and references.

It is up to the Project

managers discretion as to

the level of information they

require from the contractor



3

Implementation


& recording of


compliance and

performance.

High Risk Work

Construction Work

YES

No

Type of contract &

Contractor

High Risk Work

Construction Work

YES

No

Type of contract &

Contractor

High Risk Work

Construction Work

YES

No

Type of contract &

Contractor

INDUCTION, TRAINING & SUPERVISION


Induction

High Risk Work

Construction Work

YES

No

Type of contract &

Contractor

•Contractors shall complete an OHS induction.

The extent of induction shall be determined for each contract and

may include:

• Outline of the Business OH&S program, including relevant policies

and procedures;

• Provision of Contractor OH&S guidelines;

• Confirmation of risk assessment control measures; and

• Recorded on the Contractor Induction Form

For construction contracts covered by regulations provide

construction induction training

•Contractors shall complete an OHS induction.

The extent of induction shall be determined for each contract and

may include:

• Outline of the Business OH&S program, including relevant policies

and procedures;

• Provision of Contractor OH&S guidelines;

• Confirmation of risk assessment control measures; and

• Recorded on the Contractor Induction Form

AND

Provide construction induction training

INDUCTION, TRAINING & SUPERVISION

Adequate supervision must be provided, taking into

account where workers are unfamiliar with the site or

the nature of the work.

Workers in a supervisory role (e.g. leading hand or

foreman) should be trained and authorised to ensure

the work is carried out in accordance with relevant

policies, procedures and the SWMS.


Supervision

High Risk Work

Construction Work

YES

No

Type of contract &

Contractor

To ensure:

• Compliance with OH&S policies and procedures;

• Conformance with the project risk assessment and OH&S plans;

• Compliance with OH&S legislation.

The extent of supervision will depend on a number of

factors associated with the works including:

• Nature of hazards/risks;

• Level of interaction with other parties;

• Duration of contract; and

• High risk tasks.

For OHS breaches Project Manager shall notify the contractor. Where an

issue is considered to be significant in terms of serious injury or loss of life,

the General or Project Manager may suspend the work until the issue is

adequately resolved.

Non Conformances shall be recorded by the Project Manager and issued to

the Contractor to rectify. Upon correction, the Project Manager shall sign the

form to verify completion.


Supervision

High Risk Work

Construction Work

YES

No

Type of contract &

Contractor

The Project Manager shall ensure that the contractor:

• Complete a project risk assessment prior to commencing (for specific

works that may pose a risk to OH&S);

• Holds a current licence(s) and/or qualifications (if required);

• Performs work on site safely;

• Maintains equipment to an appropriate standard; and

• Performs works in accordance with appropriate legislation and

standards;

Project OH&S Coordination Plan Principal contractors shall be required

to prepare, communicate and maintain a OH&S coordination plan

(Coordination Plan) including:

• Specific OHS responsibilities

• OHS Coordination including any arrangements for the management of

OHS incidents

• Site safety rules and communication

• Coordination Plan available for inspection. and

• Everyone on site is aware of the Coordination Plan

• Project Signage to be displayed for contracts > $250k


Inspection

High Risk Work

Construction Work

YES

No

Type of contract &

Contractor

Auditing shall be conducted on a scheduled and random

basis.

To ensure:

• Compliance with OH&S policies and procedures;

• Conformance with the project risk assessment and OH&S plans;

• Compliance with OH&S legislation.



3

Implementation


& recording of


compliance and

performance.

High Risk Work

Construction Work

YES

No

Type of contract &

Contractor

High Risk Work

Construction Work

YES

No

Type of contract &

Contractor

High Risk Work

Construction Work

YES

No

Type of contract &

Contractor


4

Review


overall compliance

and performance.

Persons responsible for receiving goods or services

shall have available to them the particular standard or

specification referred to in the order or supply request.

Verification:

The person receiving the goods or services shall

complete the Purchased Goods Evaluation Checklist.

The local health and safety representatives may need

to be involved.

Keep records: Forms, purchase orders, risk

assessments, and any information provided by the

supplier on goods purchased.

All identified risks need to be entered on the Risk

Register.

An OHS Purchased Goods Evaluation Checklist shall

be completed upon receiving purchased goods.

Villa Maria 116

Project Design Stage Risk Management Worksheet

117

Contractor OHSMS Worksheet

118


119


Contractor Selection Criteria


Villa Maria 122

Implementation Risk Management Worksheet

123

Project Review Risk Management Worksheet

124

Contractor – Consultant Register

Example Risk Matrix

Example Risk Matrix

Supplemented with Risk Scores

Assessment of Tenders

Blank Risk Summary Table

Assessment of Tenders

Example of populated Risk Summary Table

Tender is for $27,000 over 5 days with a risk rating of 18.

Mobile Crane Collapse

131


133


135


136


137


138


139


140


141


Safety Case Guideline, 3rd Edition

– How to engineer safety due diligence under the provisions of the Model WHS Act,


[email protected]

Legal - Company Policy & Procedure

Statutes - Acts

Regulations

Common Law

Codes

Formal Standards

Industry Standards

Body of Knowledge

Guidance notes

Operating manuals

Maintenance manuals

Procedure manuals

Custom and practice

Practices and rules

WHS Law and the Safety Case

The Law and Risk

Management of Risks

17 Management of risks

A duty imposed on a person to ensure health and safety requires

the person:

(a) to eliminate risks to health and safety, so far as is

reasonably practicable; and

(b) if it is not reasonably practicable to eliminate risks to health

and safety, to minimise those risks so far as is reasonably

practicable.

Due Diligence

Legal Implications

• Penalties

• Negligence

• Causation

• Foreseeability

• Preventability

• Reasonableness

• Due Diligence

Due diligence –

The effort made by an

ordinarily prudent or

reasonable party to

avoid harm to another

party.

Duties of designer 1

Duties of Designer

22 Duties of persons that design plant, substances or structures

The designer must ensure, so far as is reasonably practicable, that

the plant, substance or structure is designed to be without risks to the health

and safety of persons:

(a) who, at a workplace, use the plant, substance or structure for

a purpose for which it was designed; or

(b) who handle the substance at a workplace; or

(c) who store the plant or substance at a workplace; or

(d) who construct the structure at a workplace; or

(e) who carry out any reasonably foreseeable activity at a

workplace in relation to:

(i) the manufacture, assembly or use of the plant for a

purpose for which it was designed, or the proper storage, decommissioning,

dismantling or disposal of the plant; or

(ii) the manufacture or use of the substance for a purpose for

which it was designed or the proper handling, storage or disposal of the

substance; or

(iii) the manufacture, assembly or use of the structure for a

purpose for which it was designed or the proper demolition or disposal of the

structure;

Duties of Manufacturer

Duties of manufacturer

22 Duties of persons that manufacture plant, substances or structures

The manufacturer must ensure, so far as is reasonably practicable, that

the plant, substance or structure is manufactured to be without risks to the health

and safety of persons:

(a) who, at a workplace, use the plant, substance or structure for a

purpose for which it was designed; or

(b) who handle the substance at a workplace; or

(c) who store the plant or substance at a workplace; or

(d) who construct the structure at a workplace; or

(e) who carry out any reasonably foreseeable activity at a workplace

in relation to:

(i) the manufacture, assembly or use of the plant for a purpose for

which it was designed or manufactured, or the proper storage, decommissioning,

dismantling or disposal of the plant; or

(ii) the manufacture or use of the substance for a purpose for

which it was designed or manufactured or the proper handling, storage or disposal

of the substance; or

(iii) the manufacture, assembly or use of the structure for a purpose

for which it was designed or manufactured or the proper demolition or disposal

of the structure;

Purpose

Purpose of Safety Case

The Safety Case has been utilised in the high hazard

process industries for over 3 decades.

Its use is being more widely accepted and provides an

ideal way to collate and present the Safety Case argument

for any design or installation, project or task.

Constructing a viable Safety Case can draw upon Risk

Management and Risk Engineering tools.

Maintain Currency

Purpose of Safety Case

The Safety Case document goes

someway toward recording the

Organisation and Workplace climate at

the time decisions are made.

It then provides a process for

maintaining the currency of this

document.

Safety

Why We Need a Safety Case

The aim of all engineering tasks or

projects is always to achieve

optimum safety or level of risk.

When safety is improved we have a

productive and efficient workplace.

The process used to prepare a

Safety Case ensures that superior

safety remains the focus.

Legal requirements


1. Legal Requirement:

In a growing number of jurisdictions,

it is a legal requirement to prepare a

Safety Case, (Safety Plan or a

Safety Report).

The Safety Case clarifies how and if

the level of risk is tolerable or

acceptable to the particular

legislated requirements.

Process


2. To provide a systematic process:

for the review of safety requirements

throughout the life of a project, facility

or enterprise.

This can assist with identifying and

then focusing on areas of higher risk

to improve safety performance of the

system, process, plant or

enterprise/organisation.

Record


3. To record: (or log)

all decisions made so that WHS due

diligence, residual risk and risk

controls (engineering practice) are

recorded for future scrutiny and

update.

Defence


4. Legal Defence:

To ensure that records of due

diligence (engineering practice) are

available should the need arise to

demonstrate that decisions were

made throughout the life of the

project or facility with diligence.

The Safety Case forms an audit trail

throughout the life of a project or

facility/process.

Purpose


4. Legal Defence:

If decisions have been made with

diligence then it becomes much

more problematic for prosecuting

authorities to prove negligence.

Change management


5. Change Management:

To provide for a rational basis for

making improvements to equipment,

plant items, people processes,

systems or their components.

It helps document change when and

as it happens throughout the

lifecycle. The Safety Case can also

assist with the communication of

change.

Communication


6. Communication & marketing:

Safety is often publically scrutinised.

This can be before a project is

implemented or after an event.

The Safety Case can assist with

communication to the public and

help manage outrage.

Marketing


6. Communication & marketing:

Safety also sells and is utilised by

many manufacturers to provide a

sales edge over competitors.

A Safety Case can provide a

resource to support such

representations.

Project file


It can also be said, that for a

project to be handled with

diligence, then all these factors

are covered in any case.

The project file will contain all the

necessary information and can

be collated to meet the needs of

the Safety Case over time.

Safety and compliance


The Safety Case is to both

ensure safety and to record

compliance with the law.

Safety Case Content

Communication

The Safety Case is about communication: communicating

well about the safety of the

plant/equipment/facility/enterprise being engineered.

Safety Case Content – 3 areas

Safety Case Content

3 Areas:

1. Description:

2. Safety Management System:

3. Assessment:

6 Step approach

Level of Detail

Due diligence Approach:

Step 1. Hazard Identification – Identify all Credible Critical Issues

Step 2. Criticality – Establish Critical Hazards.

Step 3. Preventability – Identify all Practicable Precautions

Step 4. Reasonableness – Determine which Practicable Precautions

are Reasonable

Step 5. Implementation – Precaution Implementation

Step 6. Monitoring and Review – Quality Assurance

Structure/layout

Structure/Layout

Executive Summary

Description:

Introduction or Summary of engineered plant/equipment/facility

Assumptions and boundaries

Progress (Where applicable)

Safety Management System (SMS)

Assessment:

Safety Case Steps 1 – 6

Emergency/Contingency preparedness

Any independent reports or audits/scrutiny/review/legal opinion

Conclusions/recommendations/outstanding issues/concerns

References

Appendices

Level of Detail

SAFETY CASE -

The Role of Contractual Due Diligence

Specifications for an Engineering Project.

Townsville Regional Group


[email protected]

Threat and Vulnerability Assessment 1

Top-down

THREATS OPPORTUNITIES

EXTERNAL

/INTERNAL

FACTORS

Threat and Vulnerability Assessment 2

Top-down - SWOT

THREATS OPPORTUNITIES

EXTERNAL

/INTERNAL

FACTORS

VULNERABILITIES

ORGANISATION

STRENGTHS

VALUE

ADDS

WEAKNESSES

STRATEGY

Chair 1

CHAIR

Construction and Demolition

Maintenance and Repair

Chair 2

CHAIR

Chair 3

CHAIR

Chair 4

CHAIR

Chair 5

CHAIR

Managing Construction Safety RiskGeoff Hurst 0426 881 322

[email protected]

SFAIRP - ALARP

Due Diligence vs Risk Assessment/Target

Precaution based due diligence

(WHS Act)

≠ Hazard based risk assessment

(ISO 31000)

SFAIRP ALARP

Precaution focused by testing all

practicable precautions for

reasonableness, that is, on the

balance of the significance of the risk

is disproportionate when considering

the effort required to reduce it.

Hazard focused by comparison to

acceptable or tolerable target levels

of risk.

From the definition in AS/NZS ISO 31000: 2.24

risk evaluation process of comparing the results

of risk analysis (2.21) with risk criteria (2.22) to

determine whether the risk (2.1) and/or its

magnitude is acceptable or tolerable.”

Establish the context

Risk assessment (precaution based):

Identify credible, critical issues

Identify precautionary options

Risk-effort balance evaluation

Risk action (treatment)

Establish the context

Risk assessment (hazard based):

(Hazard) risk identification

(Hazard) risk analysis

(Hazard) risk evaluation

Risk treatment

Criticality driven

Usual interpretation of WHS Act &

common law.

Risk (likelihood and consequence)

driven

Usual interpretation of AS/NZS ISO

31000

After Robinson 2013

SAFETY CASE · 2017. 7. 13. · Townsville Regional Group Geoff Hurst 0426 881 322 ... • Does not...

Documents

Transcript of SAFETY CASE · 2017. 7. 13. · Townsville Regional Group Geoff Hurst 0426 881 322 ... • Does not...