General Department Document No.

Revision NEW
Contractor Management Issue Date 04 April 2019
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1. PURPOSE:

1.1. The purpose of this procedure is to detail the measures needed to manage the
occupational health and safety and environment aspects of contractor work on
Auric flavours factory.

2. SCOPE:

2.1. It covers selection, accreditation, monitoring/supervision and performance

assessment of contractor.

3. Definition

Contractor Companies on either fixed or open term contracts (typically

providing maintenance, construction, gardening services, security
services, catering/concessionaire, trucking services, etc.)

Contractor Employees Employees that work for the contractor and are not on the Auric
salary/ wage payroll and are not directly supervised by Auric.

Auric flavours`s Contact An appropriate person who in-charge or responsible for the
area/project. This person may from any level of auric employee and
may appoint other site contacts with specific knowledge/expertise
especially during building operation and Works of Engineering
Construction.

4. Reference
4.1. Factories & Machinery Act 1967
4.2. Occupational Safety & Health Act 1994
4.3. CIDB

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5. Roles & RESPONSIBILITY:

Contractor o Ensure all their employees, subcontractors, suppliers, and

other project related contacts/visitors under their control
have been inducted and comply with Auric`s and legal
safety, health and environmental requirements, as well with
the specific requirements stipulated in the Project HS&ES
(Health ,Safety, & Environmental Sustainability) plan.

Contractor o Team composed of representatives from Engineering,

Management Board Quality, Procurement, Human Resources, and Safety, Health
& Environment to ensure all projects/contracts are designed
and implemented in compliance with regulatory and Auric
requirements.

o Regularly reviews level of implementation and effectiveness

of this Standard Procedure.

Auric`s Contact o Ensure that all contractors working on Auric flavours

factory comply with all Auric requirements and provide
support and active participation in the implementation of
this procedure.
o Coordinates with the HSE Committee, HSE exect, and
contractor(s) in all stages of the project to ensure
implementation of this procedure
o At factory sites, he/she is the project/ initiator or credit
owner.

6. PROCEDURE
6.1. Contractor Selection and Accreditation

o All potential accredited contractors must be assessed by CMB to ensure they are
capable and competent of carrying out the work that they have engaged to do by
using Contractor Pre-Qualification Form. The contractors according to their nature,
complexity, size and value of works done with Auric, will be graded into 3 Contractor
Classes; Class A, B and C using the ‘ Contractor Pre-Qualification Grading Guide’
form as the grading tool.

o CMB shall verify the documents submitted by the contractor and request an audit to
contractor place if necessary.

o Once contractor have been assessed and found satisfactory for the compliance of
Auric HSE and legal requirements by CMB, they are accredited.

o The accredited contractor shall undergo a period of monitoring to ensure their

performance fully comply with Auric HSE and legal requirements. If competence has
not been established or is found to be lacking, then appropriate action must be
taken. This may be in the form of restricted working, supervised working or
prohibition form working.

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o The accredited contractor shall renew their accreditation every year before the
validity expired and CMB will evaluate the performance of the contractor by referred
to Contractor Performance Evaluation result (section 6.4).

6.2. Contract Commencement

o Contractors who are accredited to work on Auric flavours factory shall send their
employees and sub-contractors to attend Contractor HSE training course which are
conducted by Auric safety executive. The refresher training period is every year.

o Before the contractors begin the work on Auric Flavours factory, all contractors’
employees and sub-contractors shall attend site SHE induction. The induction
program will include, as a minimum, as below:
o Auric Environment, quality and safety Policy
o Site-Specific Hazards and Control Measures
o Emergency Response Procedures
o Permit-to-Work Procedures
o Incident Reporting Procedures
o Waste Disposal Procedures
o Submit insurance policies comprising of Workers Compensation, Erection all
Risks and Third Party Liability of the appropriate coverage as specified in the
purchase order.

o Record of induction shall be kept. Refresher program for induction shall be

carried out every six months for all contractor employees unless there is major
change which will post major hazard.

6.3. Contractor Monitoring/Supervision

o Auric`s contact shall conduct a pre-project commencement meeting with

accredited contractors to discuss the detailed hazards and risk assessment and
corresponding SH&ES management programs to ensure all hazards are bring down
to acceptable level.

o Contractor shall ensure that their employees and sub-contractors are competent
and qualified to do the job. The contractor shall able to produce such document(s)
e.g. valid license; certificate of competency; membership of trade associations;
training records or a curriculum vitae showing previous experience in similar work,
etc to CMB during the contractor selection process. The details of the qualification
as per Table 1 below:

Table 1: Certificate or Licenses Required for Specific Jobs for Contractor

Position Training Certificate/License
Contractor in construction work Green card training CIDB green card
Gas pipeline Welder Welding Training NIOSH or equivalent
certificate,
General welder Welding training
N/A
Crane and rigging Operator Crane Operation training DOSH certificate
Scaffold Erector Scaffold Training Training certificate or
equivalent
Confined Space Entrant Authorized entrant and Training certificate or
standby person equivalent

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Confined Space Stand-by Person Authorized entrant and Training certificate or

standby person equivalent
Confined space Gas Tester and Supervisor Authorized gas tester Training certificate or
and entry supervisor. equivalent
Chargeman Chargeman EC certificate
Safety and Health Officer SHO DOSH Green Book
Site Safety Supervisor SSS Yellow Book or training
equivalent
First Aid First aid and CPR Training certificate or
equivalent
Fire Watch Fire Fighting Training certificate or
equivalent

o Contractor shall carry out a hazard identification and risk assessment with Auric
Contact assistance and prepare control measures and submits to Auric`s contact
before he commence of the work.

o Contractor shall also provide a full time Site Safety Supervisor or Safety & Health
Officer to overlook Safety and Health at the site (for contracts falling under Class B
and A respectively).

o The Auric`s contact or CMB representatives shall conduct reasonable check or site
inspections to check the contractor employee or sub-contractor understanding about
HS&E requirements and monitor their working practices. If there is any non-
conformity which will threat human life or Environment, must stop the work until the
situation has been corrected to become safe.

o All contractors shall follow all requirements for different high risk jobs such as
working in confined space, working at height, Electrical work, Heavy lifting work, hot
work & excavation.

o Contractor must inform any Auric`s staff if there is an incident happened on site and
proper investigation must be carried out and come out corrective and preventive
action plan. The status of Corrective and Prevention Action Plan must be provided to
Auric`s Contact on regular basis.

o Toolbox meeting shall be conducted by contractor on daily basis to share the HS&E
information to contractor’s employees and attendance must be recorded.

o Auric`s Contact shall organize regular meetings with all main contractors and sub-
contractor to review on-going health, safety and Environment issues.

o In case of urgency, ad-hoc contractor is allowed to Auric premises provided:

o The contractor are competent and qualified to do the jobs (with evidence);
o Site induction is provided to the contractor;
o Portable tools are inspected (if any);
o Only for low risk jobs;
 Work permit is approved, etc

o The ad-hoc contractor will be issued a temporary pass by Auric`s Contact which will
only valid for 90 days. If they want to work after 90 days, they need to go through the
Contractor Accreditation Process as stated in 6.1-6.3.

o Any contractor employee or sub-contractor who found violates any significant safety
and health issues shall be blacklisted and prohibited to enter Auric factory.

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o If any major accidents as below occurred, stop work is required until the further
notification from Auric Contact.

o On-site fatalities and sudden irreversible injuries;

o Explosion, collapse of structure or building, scaffolding or lifting equipment;

o Any fire or toxic gas release requiring work area evacuation; or

o Incidents resulting in media coverage.

6.4. Contractor Performance Evaluation

o As part of the arrangements for reviewing the performance of contractors, a final

evaluation of performance should be carried out by Auric Contact and CMB by
using Contractor Performance Assessment Form. It shall be properly documented
and as a reference for contractor accreditation renewal.

o CMB shall recommend either the contractor will be continue accredited or shall be
removed from the accreditation list based on the result of the evaluation. This
information should be communicated to other site.

o Generally, the performance evaluation shall be conducted after every project. For
longer-term contractor such as security, gardener, cleaner, etc, should be
conducted on quarterly basis.

o For contractor that fall under Grade C for the performance evaluation, the
contractor needs to submit their action plan to improve their safety performance
before the next project.

o Contractor will be removed and blacklisted from the vendor list if his employees
or sub-contractor involved in:

o fatality; or

o any permanent disability;

7. INTERNAL REFERENCE DOCUMENTS:

This Document
Form
Related Documents
Appendix

Confidential – For Internal Use Only

 General Department Document No.
Revision NEW
Contractor Management Issue Date 04 April 2019
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8. SUMMARY OF CHANGES:

Revision Date Revised by Changes

9. SIGNATURES:

_________________________________________________ Date: _______________________

Issued by:

_________________________________________________ Date: _______________________

Reviewed by:

_________________________________________________ Date: _______________________

Approved by: SUBASH BASKARAN

Confidential – For Internal Use Only