Contractors are increasingly selected to provide technology or services, and many oilfield companies require contractor to undertake the activities in a special way before starting to work. They raise any issue that may become a Health, Safety, Environment (HSE) concern. When selecting the contractors they should be required to have the prequalification, training, experience and competence, and environmental knowledge, so that they can work in a safe and healthy manner and comply with appropriate standards.

The keys to successful contractor management are mutual understanding of the contract and a good business relationship, and the contractor should demonstrate a complete understanding of the performance standards. However, how effectively the contractor is achieving the contractual objectives, therefore, periodic communication and coordination with the contractor should be established to ensure contractor adherence to standards and compliance with project processes and schedules, and relative environmental regulations and act.

The purpose of this article is to provide for the effective management of occupational health and safety issues during the selection and engagement of a contractor by Company and to outline the process and procedure for control and supervision during contractor activities on site or on behalf of the company in accordance with the requirements of the HSE Management Systems. Some risk assessment and post contract assessment will be summarized and strengthened in this article.


Contractor management is the ongoing monitoring and management of the provision of services in line with agreed upon terms and conditions. A contract is an agreement between two or more parties expressing legally enforceable rights and obligations [1].

In their drive for efficiency, companies are increasingly making use of contractors, outsourcing and temporary employees. A major challenge associated with this trend is how to ensure contractors comply with the companies' safety and environmental standards when contractor personnel are managed by others. Effective contractor management requires a rigorous selection process, clear definition of responsibilities, competence checks, adequate supervision and careful monitoring of performance. Excellent communication is required to ensure effective coordination with company personnel and processes.

The contractor management process tests the prequalification, tendering and acceptance system for different contractor types. It tests the robustness of operational control of contractors, the frequency and quality of the meetings between client and contractor, the training of contractor employees as well as their performance [2].

After a contractor has been selected to provide commodities, technology or services, the project manager is responsible for managing contractor performance, either directly or through a team leader. The project manager must ensure that responsibility is established for contractor oversight, and that the contractor receives clear direction regarding all contractual matters.

Wherever possible, the project management processes should be required of all contractors. The performance standards for the contractor must be articulated in the contract, and show that a process has been established for meeting each of these standards. There are benefits to both the contractor and the state agency if a positive relationship can be established and maintained in which risks and benefits are shared.

This content is only available via PDF.
You can access this article if you purchase or spend a download.