According to Terrance Sookdeo, director of Process Safety and Contractor Management for Baker Hughes, a GE Company, capable, reliable contractors must be able to adapt their processes and "be truly agile" to the specific demands of the company they have contracted with.
"Whether they're working for BP, Exxon, Shell or Dow, the requirements are going to vary," Sookdeo said. "And sometimes those requirements are going to vary significantly as expectations change."
"We expect contractors to be subject matter experts (SMEs) when we conduct our risk ID workshops."
— Hugo Ashkar, BP
"Small" expectations are not really small, in terms of their unique application to any one organization, Sookdeo continued.
"[Contractors] are forced to become very skillful and very adaptable," he said. "Yes, they're good, but they're forced to be good because there's no other [alternative] for them. They have to be good because of the climate they are functioning in."
Sookdeo, a panelist discussing how to reduce contractor safety risk by promoting transparency, clear communication and safe operations, noted that in the oil and gas market, contractors tend to have better performance safety records than most operators "even though they conduct a massive amount of the high-risk operations added to hundreds of thousands of its well operations each year."
During the Operational Excellence in Oil and Gas Summit in Houston, co-panelist Hugo Ashkar, global risk manager for BP, shared that BP uses a "specific risk matrix" to assess potential contractors.
"We expect contractors to be subject matter experts (SMEs) when we conduct our risk ID workshops, especially for those activities where they have the expertise," Ashkar said.
According to Ashkar, risk ownership is retained through the BP leadership team of the project.
"That buck doesn't get transferred," he said. "The buck stops there with the leader of that work scope. But the contractor has the experience to perform the activity, so when we conduct our risk ID workshops, we expect them to contribute from their expert point of view."
The importance of language
Sookdeo stressed the utmost importance of transparent communication between contractors and companies.
"Language makes a difference. Language does matter," he said. "If you look at the language around contractor matters, how do we include them? How do we get them here? Why don't they just do the right thing? How do we get them to do the right thing?"
Sookdeo said he believes companies should consider "changing the industry language" of commercial transactions in which they engage with partners or contractors.
"I think that relationship would be more vital," he said. "[Contractors] are owners of the risk, and they have to be because they are the SMEs in the delivery of that product or service. They know much better than those of us who have contracted them, so they have that ownership, but I think that sometimes we miss that in the language."
Sookdeo added it is incumbent for companies to fully convey messages to contractors because they are considered best at providing that product or service, and they are more than "an external appendage that shows up that you want to get rid of as quickly as you can."
"That's why I'm acquiring your service, because I can't do it cheaper or I can't do it better or faster or more effectively," Sookdeo said. "I need your help. I need you to come in and do this service quickly and cheaply and then leave. That's the message."
Julie Thyne, North America continuous improvement leader for The Dow Chemical Company, moderated the session.
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