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I. Purpose

To establish a guideline that will provide information to Contractors and

their Sub-Contractors on the minimum Health and Safety requirements that
should be complied with prior to commencement of any work activities
within Petron’s facilities/premises.

II. Scope

This program applies to all qualified Contractors and Sub-Contractors who

are to engage in general construction, maintenance and engineering works
located at Petron’s owned or controlled properties.

III. Contractors Accreditation Procedure

During the Contractor selection stage, when Contractors suitability for a

specific type of work is assessed, the safety and health competence of the
Contractor shall be reviewed as a prime consideration and a pre-requisite to
the technical evaluation. The selection criteria are as follows:

a. Contractor’s safety performance for the last 3 years.

b. Management commitment and attitude towards safety.
c. Safety programs for the employees including, but not limited to,
trainings, audits, inspections, etc.

Contractor(s) who have been assessed as meeting the safety and health
competency requirements shall be considered for further evaluation. This
further assessment includes the review of preliminary information provided
by the Contractor on the Contractor Checklist (Attachment 1), document
presentation, interview or an audit, depending on the size and/or
complexity of the contract.

Once a contractor has been selected, the details shall be recorded on the
Company’s register of Accredited Contractors. Any contractors that fails to
meet/maintain Petron’s HSE requirements shall be removed from the list
and will not receive further contracts until they demonstrate compliance
with the policy.
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Petron Corporation reserves the right to use other contractors should it see
fit and does not guarantee work to those contractors on the accredited list.

IV. Contractor General Safety Responsibilities

A. Contractor is to assure that all its personnel are qualified and trained to
perform contracted services.

B. Contractor is to provide its personnel with proper and well maintained

equipment and tools necessary for the specific job being performed.

C. Contractor is to adhere to all applicable standards, codes and local

regulations pertaining to a particular operation for which its services are
contracted.

D. Contractor is to instruct its personnel to report any known or suspected

hazards or unsafe conditions to their immediate supervisor. Contractor
shall immediately notify the concerned Company Representative of
known or suspected hazards or unsafe conditions involving Petron’s
equipment/personnel.

E. The Contractor shall comply with the company work permit system
requirements prior to start of any activities.

F. Contractor is to assure the work area is maintained in a clean and

orderly fashion.

G. Contractor is responsible for providing (at their own expense) its

personnel with all necessary personal protective equipment and other
safety equipment, as required.

H. Contractor is responsible for enforcing Petron’s safe work policies,

practices, and procedures as specified in this document, in order to
provide a safe working environment.

I. Contractor personnel violating any Petron’s safety policy, practice,

procedure or applicable governmental regulation shall not be allowed to
work in any company owned or operated facility.
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J. The contractor shall not obstruct, hinder or interrupt the routine

operation or manufacturing process in the facilities.

K. The Contractor shall not use without permission from the concerned
area supervisor the plant utilities such as electricity, steam, water or
fire lines.

V. Contractor Safety Program Requirement

All Contractors’ Health and Safety plans shall be based on the specific
hazards and exposures inherent to their operations, and shall include, as a
minimum the following components:
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A. Purpose

Contractor shall establish and maintain an effective Health & Safety

program and implement a structured safety management system in
order to achieve a consistently high standard of safety performance.

B. Management’s Statement of Safety Policy

Contractor management shall state its commitment to Health, Safety

and welfare of their employee and other people who may be affected
by their operations. Adhering to Petron’s safety policies and
procedures, and all relevant government legislation.

C. Assignment of Safety Responsibility

Contractor shall ensure that heath, safety and environmental

requirements are successfully managed within the organization through
proper designation of safety responsibilities.

D. Safety Personnel

For contracts involving 50 or more contract workers onsite, Contractor

shall designate or provide a full-time "Site Safety Representative" to
enforce Petron’s Contractor Safety Requirements. For contracts
involving less than 50 workers onsite, a “part time” Safety Officer may
be permitted/considered, provided that he is available at site during
working hours.

E. Safety Rules and Regulations

Contractors shall establish safety rules and regulations in accordance

with Petron’s safety policies.

F. Accident Reporting

It is the responsibility of the Contractor's designated person-in-charge to

ensure that all personnel injury or illness, fire and/or explosions, near
misses, property damage, hazardous material spills are reported as per
Petron’s reporting procedure.
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G. Safety Orientation and Training

Contractor shall conduct and document safety trainings such as safety

orientation, respiratory protection, confined space entry, hazard
communication and other specialized courses relative to their
operation.

The following skills shall have certificates of competency from

government, i.e. TESDA, or private agencies:

a. Crane and Heavy Equipment Operators

b. Riggers
c. Welders
d. Scaffolders
e. Radiographers/NDT Technicians

H. Emergency Preparedness

Contractor emergency program shall be in line with Petron’s emergency

procedures.

I. Medical Treatment and First Aid

Contractor having less than 50 workers shall provide first aid cabinet at
site containing bandages, medicines, disinfectants, and other required
emergency supplies and equipment. Those persons who are in charge of
the first aid supplies should be trained in first aid procedures.

If work is scattered in different locations, which are more than 300

meters apart, a separate first aid kit shall be provided for each group
consisting of more than ten workers.

Contractor having more than 50 workers shall provide first room run by
a nurse familiar with CPR and shall be exclusively assigned to medical
duties only. The first aid room shall meet the following requirements:

a. It shall meet all sanitary specifications.

b. It shall be conveniently located and readily accessible to injured
persons and stretcher-bearers.
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c. Where quick means of transporting for the injured are not

available, the said room shall not be more than 300 meters away
from the farthest work site.
d. An adequate number of stretchers shall be available for moving
the injured to the first aid room.
e. First aid materials and supplies shall be regularly replenished.

J. Ladder and Scaffold Safety

Scaffolding shall meet the requirements of OSHA 1910.28 (Safety

Requirements for Scaffolding) and OSHA 1926.451 Subpart L (General
Requirements for Scaffolds), and shall be inspected/approved by a
person familiar with OSHA's scaffolding requirements before its use.
K. Confined Space Entry

All Contractors performing work involving "Confined Space Entry" shall

comply with Petron’s confined space entry permit procedures.

L. Hazard Communication Program

Contractor shall be familiar with and comply with Petron’s Hazard

Communication Program requirements and procedures. (Please refer to
HSE Manual Section 1, Subject No. 2).

Contractor shall instruct its personnel to observe and respect warning

and caution signs posted within Petron’s facilities.

Contractor shall maintain onsite an appropriate MSDS for any hazardous

material or chemical which Contractor may bring to the worksite. Such
hazardous materials or chemicals will be properly stored and marked in
accordance with Petron’s Hazard Communication Program. (Please Refer
to HSE Manual Section 2, Subject No. 2, Personal Protective Equipment).

M. Personal Protective Equipment Program

This section lists general personal protective equipment requirements

for Contractors working at Petron’s facilities/premises. Additional
personal protective equipment shall be required depending on the
nature and extent of hazards that Contractor’s personnel maybe
exposed with.
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Head Protection

A non-conductive hard hat that meets the requirements of ANSI

Z89.1(Standard for Head Protection) shall be worn in all work
areas where a hazard to the head exists or can be anticipated.
Hard hat alterations/modifications such as painting and drilling
of holes, which will affect its integrity is not allowed.

Foot Protection

Safety shoes or boots in good condition, with slip-resistant soles,

that meet the requirements of ANSI Z41.1 (Standard for Foot
Protection), shall be worn in all work areas when a hazard to
feet exists or can be anticipated.

Eye/Face Protection

Eye protection shall be worn in all work areas when known or

potential hazards to the eyes or face exist or can be anticipated,
or when required. Minimum protective eyewear shall be clear
safety glasses with side shields. All eye/face protection shall
meet the requirements of ANSI Z87.1 (Standard for Eye & Face
Protection).

Hearing Protection

Hearing protection devices shall be NIOSH certified and shall be

worn in all posted high noise areas. (Hearing protection is
required in all known or suspected areas where noise levels
exceed 85 dbA.)

Protective Clothing

Protective clothing shall be worn when handling hazardous

materials or chemicals, when such is specified by the applicable
Material Safety Data Sheet (MSDS). Protective clothing that
becomes contaminated with hazardous materials or chemicals
must be decontaminated at the end of the work shift, and/or
disposed of properly.
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Hand Protection

Protective gloves shall be worn where there is risk of exposure to

high temperatures, sharp edges, chemicals, or any other
conditions or materials which may cause injury to the hands.
Hand protection s shall comply with OSHA Regulation 29 CFR
1910.138 (Hand Protection).

Fall Protection

All work performed on unguarded places 6 ft. above ground

level, or where a fall hazard of 6 ft. exists, shall conform with
the applicable requirements of OSHA 1926 Subpart M (Fall
Protection) .

N. Fire Protection and Prevention Plan

Contractor shall establish a Fire Protection and Prevention Plan base on

the following basic fire prevention policies:

a. Smoking is permitted only in designated smoking areas approved

by Petron management.

b. Welding and cutting is prohibited outside of designated safe

welding areas unless controlled by an approved hot work permit.
A fire watch is required for all hot work conducted at plant
facilities unless the work takes place inside a designated safe
welding area.

c. Approved fire extinguishers, at least 20 lbs. capacity, must be

available at all jobsites involving hot work, open flames, or use
of flammable gas/liquids which presents a risk of fire. If hot
work is scattered in different locations and are more than 50 ft.
apart, a separate fire extinguisher is required per work group.
Personnel designated to utilize fire extinguishers should be
familiar with their proper use and limitations.
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d. Fire extinguishers must be maintained in good working order,

and inspected in accordance with manufacturer’s
recommendation.

e. Good housekeeping is an important part of fire prevention, and

must be strictly enforced. Oily rags, debris, trash, and other
unnecessary material must be picked up and disposed of
regularly. Trash receptacles must be available in the area and
emptied on a regular basis.

f. Minor spills or leaks of flammable/combustible liquids must be

cleaned up promptly, and the source of spill/leak repaired.

g. Bulk transporters or tank trucks loading or unloading flammable

liquids must utilize grounding/bonding equipment to prevent
ignition of flammable vapors due to static electrical discharge.

h. The potential for static electrical discharge should be considered

for other flammable liquid transfers, such as filling drums,
buckets, or other small containers. Use of bonding equipment
and other precautions to prevent ignition of flammable vapors
should be utilized whenever appropriate.

Moreover, workers shall wear clothing only made of 100% pure

cotton materials as polyester and synthetic fibers produce static
electricity.

i. Gasoline is a fuel, and should not be used as a cleaning agent.

Gasoline and other flammable liquids should not be stored in
glass or plastic containers. U.L./F.M. approved metal safety
cans are recommended. Portable tanks and drums for flammable
liquid storage should be:

• Constructed of metal unless the liquid is corrosive to metal.

• Adequately vented, with flame arresting capability whenever

possible.

• Equipped with self-closing spouts to prevent spillage.

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• Located as far as feasibly possible from equipment, both

electrical and mechanical.

O. Heavy Equipment and Crane Operations

Contractor shall ensure that all heavy equipment and cranes to be

utilized within Petron’s worksites are maintained in good condition.
Moreover, cranes shall have a valid Third Party certificate of inspection.

A competent person shall conduct regular inspection on these

equipment in accordance with the Contractor’s preventive maintenance
program.

P. Respiratory Protection Program

Respiratory protection equipment shall be utilized whenever work

activities involve potential exposure to atmospheres that are oxygen-
deficient or contain air contaminants that may be harmful to health.

Contractor's respiratory protection equipment shall be selected,

inspected, maintained, and used in accordance with OSHA 1910.134
(Respiratory Protection), and Petron’s safety requirements.

Breathing air used in supplied-air or self-contained respiratory

protection equipment must meet or exceed the standards of Grade "D"
air, as specified in OSHA 1910.134.

Compressors used to provide breathing air must be equipped with a high

temperature alarm, carbon monoxide (CO) monitor/alarm, and air
cleaning/filtering devices as needed to produce Grade "D" quality
breathing air. A third party laboratory analysis verifying Grade "D"
output air for breathing should be available for inspection for inspection
upon request.

Q. Electrical Safety

All electrical tools and equipment including temporary electrical

installations shall comply with the National Electrical Code (NEC)
requirement.
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R. Lockout/Tagout Procedure

All Contractors are required to be familiar with and comply with

Petron’s lockout-tagout procedures while working on powered
equipment, when performing confined space entry operations, or when
engaged in other work activities where the control of hazardous energy
is necessary to assure personnel safety.

S. Welding and Cutting

All welding and cutting equipment shall be of a Petron approved type

and properly maintained.

T. Hazardous Materials Handling

When a Contractor, in the course of performing his obligations under the

Contract, handles hazardous materials, the Contractor shall ensure that
the handling of such materials is in accordance with the currently
accepted industry practices.

U. Excavation and Trenching

All excavation related work must be conducted in accordance with OSHA

1926 Subpart P ( Excavations), and Petron requirements.

V. Radiation Safety

Contractor shall ensure that radioactive sources shall be used in

compliance with the government regulatory agency.

All applicable standards and specific requirements pertaining to the above

program elements are defined in Petron’s HSE Corporate Safety Manual and
Construction Safety Manual.

VI. Contractor Performance Evaluation

During the course of the project, the safety performance of the contractors
shall be evaluated by the concerned Division Safety Coordinators, in
coordination with Contracts Dept., through regular safety inspection and/or
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periodic audit. The result of these evaluations shall be considered as a vital

factor in selecting contractors for future contracts.

VII. Attachment

Attachment 1 : Contractor Pre-Qualification/Evaluation Checklist

Rev. No. Date Description Prepared/Reviewed/Approved

by :
0 9/1/03 Original Document NSE/CVT
1 7/05 Change font to Trebuchet EMT/CVT
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Attachment 1 : Contractor Pre-Qualification/Evaluation Checklist

Contractor Pre-Qualification/Evaluation Checklist

General Information:

Company Name :

Business Address :

Telephone No. :

Fax No. :

E-mail Address :

Field of Expertise :

Note: Contractor must accomplish this form conscientiously and accurately to enable
Petron to effectively evaluate the participating contractors. In case, your answer is
“No” on some of the questions below, please provide a brief explanation at the
comment portion (Section IX) of this checklist.

Safety Statistics/Record for the Last Three (3) Years 2000 2001 2002
Average Number of Employees
Accumulated Safe Man-Hour
No. of Lost Time Accidents
Incidence Rate

I. Management Commitment Yes No N/A

1. Does your organization have a written Safety &
Health Policy?
3. Does your organization set annual safety & health
goals?
4. Are management and supervisors actively involved
in your Safety and Health program;
a. Does the organization conduct workforce
safety meetings? At what frequency?
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b. Does management and/or supervision

periodically participate in safety meetings
with employees?
5. Does your management hold periodic meetings
with the client’s management, specifically to
discuss safety, health and job performance?
6. Does your organization have a program in place
for recognition of excellent safety performance by
individuals?
7. Does your organization have a program in place
for progressive discipline for unacceptable safety
performance?
8. Does your safety representative have sufficient
authority to correct hazards?
9. Do you use sub-contractors?
a. Is there a program in place for evaluating the
safety performance of sub-contractors prior to
hire?
b. Are pre-job safety conferences conducted
with your sub-contractors?

II. Safety Responsibility

1. Do job descriptions for your supervisors and
management personnel include Safety & Health
responsibilities?
2. Are individuals with Safety and Health
responsibilities clearly identified within your
organization?
3. Does it include individuals dedicated full time to
safety? If so, are they professionally certified?
4. Does it include individuals dedicated full time to
health? If so, are they professionally certified?

III. Safety Programs & Work Practices

1. Does the organization have a written program for:
a. Hazardous Communication (HAZCOM)
b. Lockout/Tagout
c. Emergency Action Plan
d. Personal Protective Equipment (e.g. hard
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hats, safety glasses, respirators, etc.)

e. Fall Protection including Scaffolding
f. Confined Space Entry
g. Hearing Conservation
h. Electrical Safety
i. Respiratory Protection
j. Asbestos/Man Made Mineral Fibers
k. Abrasive Blasting
l. Excavation/Shoring
m. Lifting/Mobile Equipment
2. Does the contractor conduct audits to verify that
all work permit systems are followed and its
disciplinary action implemented in the event of
noncompliance?

IV. Health & Safety Training

1. Does your employees attend the General Safety and
Health Orientation prior to site deployment?
2. Are employees instructed in the known potential
fire or toxic release hazards related to their jobs
and applicable provisions of the emergency action
plan?
3. Do you have additional Safety & Health training for
foreman, supervision and managers?
4. On which of the following subjects do you provide
training and ensure verification of understanding as
required by their job task or by the applicable
government regulation:
a. Use and Care of Respirators
b. Use and Care of Hearing Protection
c. Confined Space Entry
d. Fall Protection including Scaffolding Competent
Person and Users, ladders & stairways, walking
& working surfaces, and aerial lifts.
e. Industrial Trucks (Fork lifts, aerial lifts, etc.)
f. Heavy equipment operators, riggers and signal
persons (Crane, excavators, etc.)
g. Material safety data sheets and hazard
communication program
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h. Fire watch
i. Electrical safe work practices (Qualified &
Unqualified persons)
j. Abrasive blasting and Hydro-blasting
k. Use of Fire Extinguisher
l. Lockout/Tagout
m. Transportation of Hazardous Materials
n. Line/Equipment Opening
o. Use and Care of Personal Protective Equipment
(Personal owned and employer provided)
p. Excavating shoring & trenches (competent
person training)
q. Emergency Response Plan
r. Other training:

V. Job Training & Qualification

1. Are employees trained in the appropriate job skills
and work practices necessary to perform their job
safely?
2. Is there documentation in place that each
employee has received and understands the
required training?
3. Do you have a process to assess the skills of your
workers to assure they are qualified?
4. Are employees enrolled in skill upgrade training
based on results of craft skill assessment?
5. Is there a program in place for certifying or
qualifying crane operators and riggers?

VI. Incident Reporting & Investigation

1. Does your organization have a process in place for
immediate reporting and investigation of accidents
and near misses?
2. Does the process include immediate notification of
the client of all incidents including first aid cases?
3. Does the process include root cause analysis?
4. Do supervisors or managers ensure that, as a result
of the investigation, corrective action is taken,
tracked, and completed?
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5. Communication process to all employees on results

of investigation and corrective action taken?

VII. Inspections & Hazard Identification

1. Are pre-task safety assessments conducted (JSA’s
etc.) by the crew performing the task?
2. Do supervisors and managers periodically perform
Safety and Health inspections of the work-site? At
what frequency?
3. Do inspections include at least the following
topics?
a. Housekeeping
b. Proper Use of Personal Protective Equipment
c. Compliance with company and client &
procedures and government regulations
d. Condition of and correct use of tools and
equipment
5. Are safety inspections records kept on file and are
they available for review by the client?

6. Have the Safety & Health hazards associated with

the type of work and services you provide been
identified?
a. Has a risk assessment been performed on these
hazards?
b. Has the client been informed of these hazards?
7. Does the program include a follow-up system to
ensure that all reported incidents and conditions
are corrected in a timely manner?

VIII. Medical
1. Do you have a process in place to provide
emergency medical/first aid?
2. Is first aid provided on site?
3. Are First Aid providers trained in CPR and
Bloodborne Pathogens?
4. Are adequate first aid supplies available on site?
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IX. Comments

I understand that this questioner is furnished to us for the sole purpose of providing
information relevant to the contractor’s pre-qualification evaluation.

Furthermore, I certify that the data I provided above are true and correct.

Contractor Representative’s Signature : __________________

Date: _____________

Note: Petron reserves the right to request for an audit or review of the above
document to verify the accuracy of information provided therein.