Element 18 · EI PSM

Contractor and supplier, selection and management

Third parties doing work on the organisation's behalf may impact its operations and its reputation.

"Management must ensure that third parties perform in a manner that is consistent and compatible with the organisation's HS&E and process safety requirements."

Covers the whole supply chain, not only contractor HSE pre-qualification. Vendor set-up, material master data, import, freight, stock and goods receipt, and contingent and off-payroll labour are all ways a supplier or a worker enters the business. Assurance starts at that point of entry.

Brings in
Vendor and material master set-upImport, freight, stock and goods receiptContingent and off-payroll workers
Placed here by this reading (4)
  • 18.1There is a process to ensure that third-party services are evaluated and selected against criteria that include an assessment of capabilities to perform work in a robust manner and meet the organisation's HS&E and process safety performance expectations.
  • 18.2HS&E and process safety performance evaluation criteria are defined for third parties. Contractor and supplier compliance with legislation is a minimum requirement. The evaluation criteria are aligned with the EI PSM framework expectations.
  • 18.3All contractors are inducted and appropriately informed/trained on relevant organisation procedures and practices, and the specific hazards associated with any work they undertake. Impacted organisation personnel are briefed on, and understand, the risks arising from the contractors' activities and the necessary support or control measures. Specific focus is given to emergency procedures.
  • 18.4Effective organisational, communication and control arrangements are in place between organisation personnel and contractor personnel to manage the risks effectively.
  • 18.5Third-party performance (in particular against required performance criteria) is routinely monitored and assessed, feedback is provided, and non-conformities are corrected.
  • 18.6Adequate numbers of competent personnel are available to carry out the required contractor and supplier, selection and management arrangements.
  • 18.7Arrangements for contractor and supplier, selection and management are understood and followed; understanding of arrangements, and compliance with them, are regularly tested.
  • 18.8Compliance and performance trends are reviewed by specified levels of management.