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To Manage,or Not to Manage?Guidelines for Hiring and Maintaining Effective Relationships with Your Contractors

Presented By:Stephen Findlay, OLGSteve Taylor, GLP

+Outline

Key Terms

PART I: HIRING CONTRACTORS OHSA and Ontario Regulations WSIA & WSIB Considerations Contract Language & Tender Documents Selection & Hiring Contractors

PART II: MANAGING & MONITORING CONTRACTORS Managing Contractors Monitoring Contractors

+Key Terms & Workplace Parties

Due Diligence

Owner

Constructor

Employer

Contractor

Supervisors

Workers

Construction

Non-Construction

Project

Duty

CAD-7

NEER

MAP

+PART I: HIRING CONTRACTORSPRESENTED BY: STEPHEN FINDLAYONTARIO LOTTERY & GAMING CORPORATION

+Due Diligence

Owners, employers, managers, and supervisors have a general duty to take all precautions reasonable to prevent injuries and accidents in the workplace. OHSA Sec. 25(2)(h)

Employers shall develop a plan to recognize, assess, and control potential workplace hazards that may increase risk of incident or injury to a worker.

+Due Diligence

Due Diligence may be a legal defense for a person or company charged under Occupational Health & Safety Legislation Must be able to provide objective evidence, which is factual data based on

a history of documented actions taken The defendant may be found not guilty if he/she can prove that all

reasonable precautions were taken to protect the worker(s) from incidents and injuries

+What is Due Diligence?

Some examples of effective due diligence includes, but is not limited to: Written H&S Policy and Program Appropriate Training to Tasks Performed Competent Supervision Inspections and Enforcement of Policies & Procedures Evaluation and Continual Improvement Easily Accessible Documentation (Audits)

+Who is the “Owner” ?

According to Section 1 definitions of the OHSA, the definition of “owner” includes a: “trustee, receiver, mortgagee in possession, tenant, lessee, or occupier of

any lands or premises used or to be used as a workplace, and a person who acts for or on behalf of an owner as an agent or delegate”

+Who is the “Constructor” ?

Also, under the Section 1 definitions of the OHSA, “constructor” means a: “person who undertakes a project for an owner and includes an owner

who undertakes (is responsible for) all or part of a project by himself or by more than one employer”

To simplify, as the OHSA intended, it is the person who has overall accountability for health and safety matters on a project

+Duty

Obligations imposed on a employer or supervisor by law (provincial/federal)

Legislative or regulatory duties cannot be assigned or delegated to another party by anyone

May also be known as a General Duty Clause

+Duties of a Constructor

Ensure that the measures and procedures prescribed by the OHSA and applicable Regulation(s) are carried out on the project

Ensure that every employer and worker performing work on the project complies with the OHSA and applicable Regulation(s)

Ensures the health and safety of workers is protected

+Duties of Owners

For a workplace that is NOT a project: Ensure facilities provided are maintained Ensure the workplace complies with the OHSA and applicable regulations Ensure no construction projects are undertaken UNLESS they comply with

the OHS and applicable regulations

+Construction Activities

Construction activities may include, but are not limited to Erection of a structure Alteration or Repair Dismantling or Demolition Structural Maintenance Painting Drilling or Boring Concreting Installation of Machinery

+Construction vs. Non-Construction Construction

Alteration or dismantling of a building

Installation of a piece of equipment or machine

Maintenance on structural components

Non-Construction Maintenance or repair of a

building

Maintenance or repair of a piece of equipment or machine

Routine plant maintenance

+Project

According to the Act, “project” means a construction project, whether public or private, including, the construction of a building, bridge, structure, industrial

establishment…..or any combination thereof, the moving of a building or structure, and any work or undertaking, or any lands or appurtenances used in

connection with construction;

+Project

All projects must have a constructor and an owner

Clearly defining, in writing, the responsibilities of each party is as critical as the activities of the parties themselves

+Project

To clarify, on all projects, either the owner or someone hired by the owner is the constructor

Owners may also be constructors in instances on a project or contract, When they are directing the work of employees of another

company or contractor; or, When they are employer and uses his or her own workers to

carry out that project

Owners must relinquish control over the project to a General Contractor/Construction Manager to avoid becoming the constructor under the Act

+Who is Responsible for H&S?

If the work is considered construction: The constructor will bear responsibility for the health and safety of all workers

under the Construction Regulations This does not mean that the Owner can “delegate” its health and safety obligations;

there needs to be ongoing communication, monitoring and coordination of work. In instances where there is imminent danger to any worker, the Constructor AND

the Owner may stop the work until the hazard has been addressed

If the work is considered non-construction: The owner or employer is responsible for the health and safety of all workers under

the Industrial Regulations The owner has a duty to manage the worksite as they would with their own

employees

+Regulations

Industrial Regulations (Reg. 851) Apply to any workplace except a mine or construction site

Construction Regulations (Reg. 213/91) Apply to a construction project Building, bridge, structure, shaft, tunnel, trench, sewer, watermain, service

connection, etc.

+Stages of Contracts or Projects

Pre-Contract Planning

Scope of Work

Bid-Package Assembly, Contract Language

Prequalification of Potential Contractors

Invitation to Bid

Pre-Bid Meeting

Hazard Assessment

Bid Review, Evaluation, and Contractor Selection

Contract Award

Safety Program/Job Analysis Review for Specific Job

Pre-Construction Meeting

Work/Project Phase

Project Kick-Off Meeting Defining Roles & Responsibilities Hazard Assessment Review General Orientation Job/Site-Specific Orientation Development of JHSC & WTC

Contractor Monitoring

Progress/QC Meetings

Tailgate Meetings

Handover to Owner

Contract Closeout

Post-Contract Evaluation

+Steps in Hiring Outside Contractors

+Pre-Contract Planning

Scope of Work Developed by Owner identifying specific work and details Required when requesting bids from contractors May include preparation and clean up tasks; or whether work is

subject to additional regulations (i.e., Environmental)

Bid Package & Invitation to Bid Potential contractors review scope Are they able to meet the technical and safety criteria to complete

the project on time and budget?

+Pre-Contract Planning

RFP Review & Pre-Bid Meetings Prospective contractors should be invited to the proposed worksite

to review the bid package requirements, ask questions, and obtain clarification

Physical tour of the worksite RFP’s with a clear and concise definition of safety requirements is an

important element in effective contractor management

Hazard Identification The Contractor must submit a hazard assessment to Owner Identifies hazards affecting contract workers and Owner/Employer’s

workers

+Pre-Contract Planning

RFP Review & Pre-Bid Meetings To ensure that contractors have the information

they require to develop estimates to address job site hazards, the bid documentation should address at least the following items: Scope of Work Identified Hazards and Work Restrictions Work Permits and License Requirements Special Job Site Safety Program Requirements Contract Management Arrangements Orientation and Training Requirements Monitoring/Auditing of Contractor Safety Performance Onsite Control of Work

+Pre-Contract Planning

Bid Evaluation & Contractor Selection Bids will be reviewed against two types of criteria:

Technical Safety Criteria (Focus for the purposes of this session)

Price and Price Related Criteria Effective Contractor Safety Programs should ensure

that only the contractors that successfully meet the Technical Safety and Price Criteria will be considered

Contractors may be “short-listed” prior to this selection process

+Pre-Contract Planning

Bid Evaluation & Contractor Selection Short-Listed Contractors that have not already been prequalified

may need to take part in a prequalification process, which may include: Past Projects with Dollar Value Human Resource Contacts (re: Safety) Health & Safety Policy & Program WSIB and Liability Insurance Job-Specific Hazard Assessments Training Records Health & Safety Incident History (Summary Reports) A signed declaration demonstrating contractor’s commitment to

their H&S Program and validating information in prequalification package

+WSIB Considerations

WSIB (eClearance) Certificates Now available online by Owners/Principals hiring Contractors 90 day validity period (up from 60 days) Clearance with WSIB demonstrates proof that the Contractor is paying

WSIB insurance premiums for its workers Owners may be held liable for a contractor’s unpaid premiums in

connection with the work or services performed

No Clearance Certificate Available? No Contract, OR Contractor could be an Independent Operator (IO) Contractor could be part of a By-Application Industry

+Pre-Contract Planning

Contract Award & Pre-Job Meeting The contractor that meets the technical, safety, and price criteria has

been selected and a pending contract offer, now what? Contract Award with Required Signatures Pre-Project Meeting (As Required)

Introductions to Key Personnel Scheduling of Project Kick-Off Meeting

+PART II: MANAGING CONTRACTORSPRESENTED BY: STEPHEN TAYLORGREAT LAKES POWER

+Work/Project Phase

Project Kick-Off Meeting Critical meeting between Owner and Contractor (or

Constructor, if applicable) Defining Roles & Responsibilities of Workplace Parties Contractor Safety Rules/Orientation Legal Notices and Reporting Requirements (MOL) JHSC, WTC, and Tailgate meeting dates/frequency Contractor Monitoring and/or Enforcing Site Access & Restrictions Accident Reporting Emergency Response Procedures

+Work/Project Phase

Contractor Orientation The hiring company (owner and/or constructor) may choose to

conduct all or part of the orientation for contract workers Some parts of the orientation may require the contractor to conduct

some job or site-specific elements It is important that there is a clear understanding between the

Owner and the Contractor as to who is to complete and document the orientation training

+Work/Project Phase

Contractor/Constructor Monitoring Frequency may be based on risk of activities Findings from the inspections are documented for corrective action

within a specific period of time When using a Constructor, Owners may document constructor

performance but cannot correct items (“hands-off”) Must bring findings to constructor for correction; otherwise,

owner may be implicated as constructor if an incident were to occur

+Work/Project Phase

Contract or Project Progress Meetings Held at prescribed intervals to follow up on any concerns with the

contractor(s), sub-contractor(s), or constructors Meetings may include findings from monitoring, workplace

inspections, JHSC/WTC meetings, or complaints Progress meetings are essential for due diligence, and serves as a

Quality Control Function (especially when retaining the services of a constructor)

+Work/Project Phase

Contract/Project Completion & Handover to Owner In the case of construction projects, the Constructor would hand

over the site to the owner, including all warranties, shop drawings, etc.

The wrap up of the project generally ends with a post contract meeting, with evaluation of the contractor/constructor performance

Post Contract Evaluation A review of the contractor/constructor’s performance (namely

health & safety) Review of contractor’s attention and commitment to health and

safety over the course of the project Cooperation of contractor Allows Owner to determine whether services will be used on

future projects

+Questions? Comments?

THANK YOU!

STEPHEN FINDLAY Contractor Safety Coordinator Ontario Lottery & Gaming Corporation

STEVE TAYLOR Health, Safety, and Environmental Specialist Great Lakes Power Transmission, LP

+Further Learning

WSPS (IAPA) Offers two Half-Day Courses Hiring Outside Contractors Managing Outside Contractors

+References

The Queen's Printer for Ontario, Occupational Health & Safety Branch, Ministry of Labour (2010). The Occupational Health & Safety Act, R.S.O. 1990, Chapter O.1.

The Queen's Printer for Ontario, Occupational Health & Safety Branch, Ministry of Labour (2008). Constructor Guideline.

Industrial Accident Prevention Association (2006, 2010). Contractor Safety Training Participants Guide