Client and Contractor: Effective Collaboration in Safety

From Balance to Results: Why Safety is Not Just the Contractor's Business

The interaction between the client and the contractor in matters of occupational safety is a topic that never loses its relevance. Traditionally, the focus is on controlling the contracting organizations themselves, but Rustam Azizov, Head of the Contractor Relations Department at OTEKO JSC, suggests shifting the emphasis. In his presentation, he details the role of the client, specifically the project manager, in ensuring safety on the construction site.

The speaker emphasizes that without the active participation and motivation of the project office, the development of the contractor is practically impossible. If the site is handed over under an act of admission, and the client shows no interest in occupational safety issues, the contractor rarely engages in safety on their own. This leads to lower ratings, concealment of incidents, and, as a result, an increased probability of severe incidents.

The Target Model of a Project Manager: From Control to Mentoring

The primary tasks of a project manager are deadlines, budget, and quality. However, the speaker shows by example that ignoring aspects of occupational health and safety (HSE) during project implementation can lead to serious financial and reputational losses in the future. Rework due to non-compliance with noise, lighting, or emission standards is much more expensive than preventive control.

To create a balance between production indicators and safety, a target model for the project manager is proposed. It includes:

• Mastery of safety management system elements: consciously conducting audits and demonstrating leadership.
• Reporting incidents without consequences: creating an environment where the contractor is not afraid to report micro-injuries and incidents.
• Analyzing and projecting experience: studying incidents at similar sites to prevent similar cases at their own.
• Prioritizing safety in procurement and project changes: preventing deviations from the terms of reference that reduce the level of safety.
• Mentoring: conducting mini-seminars and training sessions for the working group and contractors.

Steps to Implement Motivation: How to Make KPIs Work

For a project manager to become actively involved in safety issues, a well-designed motivation system is required. The presentation details the algorithm for its implementation:

• Developing balanced indicators: abandoning exclusively reactive metrics (such as LTIFR), which provoke the concealment of incidents, in favor of proactive ones.
• Monitoring period: testing indicators without affecting the bonus. This allows assessing how realistically the manager can influence the selected metrics and demonstrating the dynamics at meetings.
• Inclusion in KPIs: after confirming effectiveness, the indicators are integrated into the bonus system.
• Synchronization with supervisors: aligning the KPIs of the client and controlling persons (supervisors) to create a single team working towards a common result.

Reactive and Proactive Indicators: What Are We Evaluating?

The speaker breaks down specific metrics used to evaluate the work of the project office. At the first stage, basic reactive indicators are implemented:

• Absence of incidents with severe consequences.
• Number of audits per work permit (control of high-risk work).
• Compliance of installed equipment with the terms of reference and safety requirements upon acceptance.

As the system develops, proactive indicators aimed at engaging the contractor are added:

• Number of audits conducted by the contractor themselves and their manager.
• Timeliness of implementing corrective actions.
• Safety assessment of the construction site (grading by zones: red, yellow, green).
• Contractor participation in corporate safety events.

An important nuance: in the event of an emergency (e.g., a fire), the indicator should not be completely reset to zero, so as not to demotivate the project manager. Proactive metrics allow retaining part of the bonus and stimulate continued work to improve the situation.

What You Will Learn from This Webinar:

• How to shift the focus of responsibility for safety from the contractor to the project manager?
• What steps are necessary for the painless implementation of safety KPIs for the project office?
• How to balance reactive and proactive indicators to avoid hiding incidents?
• How to synchronize the goals of the client and supervisors on the construction site?
• How to involve the management of the contracting organization in regular audits and safety control?