SUBCONTRACTOR and SUPPLIER MANAGEMENT

SUBCONTRACTOR and SUPPLIER MANAGEMENT PROGRAM The Company may assume different roles, depending on the specific project or contract they are working under. Generally the Company is retained to provide services by an Owner Company, who will remain as the Prime Contractor. In this situation the Company and any subcontractors work for the Prime, who retains responsibility for HSE matters at the worksite. You, the subcontractor, will not be considered the Prime Contractor for the purpose of this evaluation or services. In the event that the company is assigned and formally takes on the role of Prime Contractor, the Company is responsible for HSE matters at the worksite and will use Hodgso ns HSE Management System as the guiding documents. Prime Contractors (the Prime) are committed to hiring competent contractors and working together with those contractors to achieve the goal of an injury and accident free workplace. Effective communication is of utmost importance and is the equal responsibility of the contractor and Owner/Prime representatives. Contractors performing work for Owners who retain Prime Contractor responsibility are expected to perform activities in a safe and environmentally responsible manner, in accordance with industry and specific craftsman trade rules, regulations and operating procedures. CONTRACTOR AND SUPPLIER SELECTION It is important to give serious consideration to safety performance when selecting contractors or subcontractors. Generally the contractor/subcontractor with a better safety record, or one taking significant measures to improve its record should be awarded contract work. All bid documents and contracts should contain a section on safety, detailing the companys contractors and subcontractors safety specifications, requirements, and guidelines. Where contractors or subcontractors have met the requirements of IRP 9, Basic Program and/or have already received a Certificate of Recognition, the information required is reduced and the Simplified Safety Program Analysis can be used. For situations where a more comprehensive assessment of contractor safety is required, the questionnaire in this program can be utilized. Contractors are required to complete the selected questionnaire and submit it along with their other bid documents. In most cases the Company hiring contractors/subcontractors/suppliers will require them to sign an agreement which includes provision related to HSE Performance expectations.

Pipeworx Ltd. WHERE SAFETY & QUALITY ARE #1

SUBCONTRACTOR and SUPPLIER MANAGEMENT

CONTRACTOR ORIENTATIONS AND CONTROLS In the case where the Company is the designated Prime Contractor, they are responsible for providing leadership, ensuring that all parties involved are knowledgeable of potential hazards, and enforcing the Companys safety standards. This requires that adequate communication be established between Company and contractor/subcontractor personnel. All contractors/subcontractors must be provided an orientation, appropriate to the work, before they commence work at the worksite. The purpose of the orientation is to ensure that all contractors are familiar with the Companys requirements. On completion of the orientation, the contractor/subcontractor supervisor will sign the acknowledgement at the bottom of the form and turn it into the Company supervisor. The signed acknowledgement forms are maintained on site and returned to the Prime Contractors offices upon project completion. MONITORING AND FOLLOW-UP The Company worksite supervisor must periodically inspect the contractor/subcontractor work practices in order to verify that they are in compliance with the Companys HSE Management program and OH&S regulations. The supervisor with note any deficiencies and ensure that they are appropriately addressed. The Prime Contractor will perform all site inspections and audits as necessary to satisfy itself that health and safety requirements are being adhered. As a result of the inspections completed, the Company may request the immediate removal or repair of unsafe or defective equipment or the removal any personnel on site who do not comply with the worksite health and safety requirements. Upon the completion of a contract, safety considerations should be taken into account in the evaluation of the contractors overall performance. ASSIGNING PRIME CONTRACTOR RESPONSIBILITIES In accordance with applicable legislation, where two or more employers operate at the same site, a Prime Contractor must be designated, Where Prime Contractor responsibilities are being assigned to a contractor, a written agreement is required to transfer this responsibility. A Letter Agreement for formally assigning Prime Contractor is provided for reference. GUIDELINES FOR ASSIGNING PRIME CONTRACTOR Where Prime Contractor Responsibilities are being assigned to a contractor, a formal agreement transferring this responsibility is required. This checklist highlights the steps to be taken whenever Prime Contractor responsibilities are assigned.

Pipeworx Ltd. WHERE SAFETY & QUALITY ARE #1

SUBCONTRACTOR and SUPPLIER MANAGEMENT

1. Obtain and review the contractors safety program, answering the following questions: Does the contractor have an audited program, for example, a Partnership Program Certificate of Recognition? If an external audit has not been completed, an in-depth review should be considered. What standard(s) does the contractor set for the use of PPE, hazard identification, control and reporting, incident investigation, emergency response and general work practices? What type of standard is set for work site orientations to the contractors safety program for workers, contractors, sub-contractors and visitors? Is there a requirement to complete an orientation of all people entering the work site? How does the contractor identify and communicate the responsibilities of its workers on the work site and how are they responsible for their fellow workers, Company contractors, Company sub-contractors and Company visitors? How does the contractor communicate to work site personnel that they are the prime contractor on location and what their respective responsibilities associated with being the prime contractor? Do the standards overall as set out in the contractors safety program, meet IRP 9 Basic Safety Program elements and the Companys expectations? 2. Review the qualifications of at least the contractors supervisory staff that will be on the worksite: Has the Company shown due diligence in learning the qualifications of the personnel on location completing the contracted services Do you know if the workers are competent to perform the task(s)? 3. Review the contractors procedures for the task to be performed: Do they have a system in place to ensure any procedures developed are reviewed prior to the start of each job/shift? Do they have a system within their program to complete internal work site inspections? Do they have a system in place to correct any deficiencies noted in the inspections, including disciplinary actions? 4. Hold a meeting with senior personnel from the contractor to reinforce: The Companys expectations of the contractor in relation to prime contractor responsibilities. That the contractor is in control of the work site and that they are being hired, at least in part because of the quality of their safety program. They have to manage the worksite, at least for health and safety, to their standards, not Company standards. Even though they have been designated the prime contractor for that work site, the work clearance system is still in effect. Also reinforce how the work clearance is to be used and managed and that ALL people entering the work site have to abide by the policies and procedures.

Pipeworx Ltd. WHERE SAFETY & QUALITY ARE #1

SUBCONTRACTOR and SUPPLIER MANAGEMENT

5. Hold a Project / Agreement kick-off meeting with key players from the Company and contractor. 6. Review the scope of work as outlined in the Prime Contractor Agreement. 7. Sign the Prime Contractor Agreement 8. Develop a program / schedule to review contractor/subcontractor performance at the work site as it related to prime contractor responsibilities. The program should focus on ensuring the management of health and safety at the work sites. COMPANY CONTRACTOR QUALITY HEALTH, SAFETY AND ENVIROMENT (QHSE) SELECTION CRITERIA The Company will ensure that HSE is a priority when conducting work. Stringent HSE requirements are in place for conducting work and contractor/subcontractor selection will include verification and possible review of the contractor/subcontractor HSE Systems and/or Programs. Contractors/subcontractors hired by the Company will have, at a minimum, a basic HSE Program, including a drug and alcohol policy and program, Implemented throughout the company workforce for workers to have a full understanding of the contractor HSE requirements. HSE Systems and/or Programs will meet the intent of the Companys HSE Standards. The status and effectiveness of each contractors HSE system and /or Program will be evaluat ed. The following checklist must be completed and returned to the Company and will be utilized in the contractor selection process. Equipment or product suppliers are also required to fill out the Quality Systems portion of this checklist.

Pipeworx Ltd. WHERE SAFETY & QUALITY ARE #1

SUBCONTRACTOR and SUPPLIER MANAGEMENT

CONTRACTOR QHSE CHECKLIST

Please respond to the following questions. References to, or copies of, relevant documentation in support of your responses should be attached. Company Name/Site: Type of Services Offered:

Contractors WCB #: *Attach Clearance Letter

Account Number _____________________ Industry Code ___Click here to enter text.____________________

Contractor Insurance Agent: *Attach Proof of Insurance

(Minimum 2 Million Liability)

Name:_______________________ Number:__________________

1.0 POLICY STATEMENT Do you have a written statement of your HSE policy? (Please 1.1 provide a copy if "Yes") 1.2 Is the HSE policy communicated to all your personnel? 1.3 Do you enforce all aspects of your policy on all sub-contractors? Do you agree that all sub-contractors will adhere to our Company 1.4 policy? 2.0 HSE MANAGEMENT MANUAL 2.1 Does your Company have an HSE Management System? 2.2 Does your Company have an HSE Manual or Program? 2.3 Do all your sub-contractors have an HSE Management System or HSE Program, or do they use your HSE Systems and/or programs? 3.0 RISK MANAGEMENT 3.1 Do you have a method/process to identify risks to personnel, the environment or assets to mitigate or avoid these risks? Does your company use a behavior based safety observation 3.2 system?

YES NO N/A

YES NO N/A

YES NO N/A

Pipeworx Ltd. WHERE SAFETY & QUALITY ARE #1

SUBCONTRACTOR and SUPPLIER MANAGEMENT

4.0 BASIC SAFETY RULES Do you communicate work practices, safety instructions and 4.1 emergency response procedures to your personnel? Is the HSE Management System Manual or Program and 4.2 emergency response plan available to all your personnel? 4.3 Do you have a safety awareness program for your employee's? 5.0 EMERGENCY RESPONSE PLAN Does your Company have an emergency Response plan or 5.1 Program? 5.2 Are your managers trained and experienced in the use of ERP? 6.0 INCIDENT INVESTIGATION & REPORTING Does your company have an incident/accident reporting program for incidents that occur to company personnel or 6.1 property? Do incidents and near misses get reported to your Company's 6.2 management? Do you have a procedure for the investigation, reporting and follow-up of accidents, dangerous occurrences or occupational 6.3 illness? Do you communicate the results of accident investigations to 6.4 your personnel? Provide details of your annual safety record for the previous three years for all recordable incidents (including motor vehicle accidents, fatalities, lost time injuries, medical treatment cases, 6.5 first aid cases) 7.0 EMPLOYEE HSE ORIENTATION PROGRAM 7.1 Do you have a written HSE orientation program? Does your company conduct HSE orientation's of you sub7.2 contractor's personnel? 8.0 HSE MEETING PROGRAM 8.1 Do you hold regular in-house HSE meetings? Do you have an established system for communicating with 8.2 personnel on HSE matters? YES NO N/A

YES NO N/A

YES NO N/A

YES NO N/A

YES NO N/A

Pipeworx Ltd. WHERE SAFETY & QUALITY ARE #1

SUBCONTRACTOR and SUPPLIER MANAGEMENT

9.0 HSE TRAINING PROGRAM Have your personnel who will undertake the work for the Company received formal training in safe working practices and in the use of protective equipment relating to the potential hazards of 9.2 that work? Do you have a competency training scheme for your employees 9.3 and subcontractors? Does your Company conduct driver training for employees who 9.4 drive company vehicles? 10.0 OCCUPATIONAL HEALTH Does your company perform any employee pre-employment 10.1 medical evaluations? Does your Company perform any employee pre-employment Drug 10.2 Testing? Does your company have an Employee Assistance Program 10.3 (EAP)? 10.4 What is covered within the EAP? YES NO N/A

YES NO N/A

11.0 QUALITY SYSTEMS Does your Company have a quality management system (QMS) or 11.1 program in place for company goods or materials? 11.2 Does the QMS meet ISO 9001 Requirements? 11.3 Is your Company ISO 9001 certified or registered? 12.0 HSE INSPECTION/AUDIT PROGRAM 12.1 Does your Company have a planned inspection or audit Program? Has your Company conducted an audit of its HSE Program in the 12.2 last 3 years? 13.0 PROGESSIONAL SAFETY SUPPORT Does your Company have dedicated office and/or field HSE 13.1 supervisors?
Name: Click here to enter text. Signed: Click here to enter text. Position : Click here to enter text. Date : Click here to enter text.

YES NO N/A

YES NO N/A

YES NO N/A

Pipeworx Ltd. WHERE SAFETY & QUALITY ARE #1