BECHTEL SUPPLIER AND CONTRACTOR PORTAL

Environmental, Safety and Health Requirements Overview Bechtel has a strong commitment to providing a safe and healthy workplace and protecting the environment, natural resources, and local communities that could be affected by project development. This philosophy is inherent in Bechtel's approach to planning, designing, and constructing projects worldwide. To facilitate this, Bechtel has established minimum Environmental, Safety, and Health (ES&H) requirements that apply to all projects regardless of geographic location. Contractors selected to perform work on a Bechtel project are expected to fully comply with all applicable laws, regulatory requirements, and Bechtel's ES&H requirements including the key requirements listed below: All employees working onsite will attend the ES&H new-hire orientation and daily pre-task meetings; All employees should demonstrate a commitment to Bechtel's "Zero Accident" philosophy; Managers and supervisors will participate in ES&H self assessments, audits, and incident investigations; additionally, supervisors are responsible for conducting weekly "tool box" meetings to emphasize important ES&H issues associated with their work activities including any deficiencies and corrective actions; Pre-job planning, injury/illness cases, and hours worked will be documented; All employees are expected to participate in Bechtel's Behavior Based Safety program, zero accident team, and ES&H assessments; All employees will be supplied with appropriate personal protective equipment (e.g., hard hat, safety glasses) and tools to allow them to perform their work safely, maintain equipment in good working condition, and operate equipment in accordance with the manufacturers' recommendations; Good "house keeping" will be maintained to promote fire prevention and sanitary conditions; and An emergency response plan will be established and supported with all necessary equipment and training; Bechtel has other ES&H requirements that may apply depending on the Contractor's scope of work, site-specific conditions, or when specialized equipment is used. For example, Contractors may be required to submit specific plans to Bechtel for approval prior to starting certain work activities, such as: Fall protection plan when working where a fall hazard may exist from a height greater than six feet; Standard operating procedures (e.g., performing service or maintenance on equipment or machinery where an unexpected release of hazardous energy may occur, conducting work in a confined space, excavation, or trench); and Health protection procedures where workers health may be jeopardized (e.g., exposure to noise above 85 decibels, working in a contaminated environment, handling blood or other bodily fluids). If selected to bid for work, Contractors will be provided with more detailed information on Bechtel's ES&H requirements. Contractors are expected to demonstrate in their bid proposal that they have applied Bechtel's ES&H requirements to the hazards associated with their scope of work. Bechtel will evaluate Contractor responses and the results will be a factor in determining if the Contractor is awarded the work. Contractors are responsible for selecting and managing their suppliers and lower-tier subcontractors to the same standards and requirements that apply to their scope of work as set forth in their contract with Bechtel. In the event that Bechtel's ES&H requirements exceed a governmental law, regulation, or requirement, the more stringent requirement will apply. Contractors will be responsible for conducting and documenting regular inspections and periodic evaluations of their work activities to ensure compliance with the project's ES&H requirements. Contractor's inspection and audit results will be made available to Bechtel for review. The following sections provide additional information on important elements of Bechtel's ES&H program. Zero Accident Philosophy Bechtel has adopted a "Zero Accident" philosophy that all work related accidents, incidents, injuries, and illnesses are preventable. This philosophy promotes: Constant awareness of each individual's responsibility to identify and eliminate unsafe practices and conditions in the work place; Building a safety team mentality where all workers contribute to the effort and each supervisor is fully aware of their team's capabilities and limitations and is held accountable for the team's actions; and
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BECHTEL SUPPLIER AND CONTRACTOR PORTAL

Building a culture where everyone accepts responsibility and accountability for their own safety and health, as well as the safety and health of their co-workers. Environmental Contractors are responsible for complying with all governing environmental laws, regulations, permits, and project plans [e.g., Bechtel's Construction Environmental Control Plan (CECP)] and are expected to employ effective field control measures, such as: Storm water management; Spill prevention and response; Erosion and sediment control; Air emissions and dust control; Hazardous materials management; Waste management; Stop work procedures in the event of an unanticipated discovery (e.g., human remains, artifacts); and Cleanup and restoration of disturbed areas. Contractors, sub-tier contractors, and suppliers will be required to comply with all access restrictions, including prohibitions on access to sensitive resources (e.g., wetlands, archaeological sites, special wildlife habitats) or areas adjacent to the worksite. Depending on the contract amount and/or the scope of work, Contractors may be required to develop an Environmental Compliance Plan that conforms to all environmental permits governing the project and the requirements of the projectspecific CECP. Safety and Health Contractors are responsible for complying with all applicable safety and health (S&H) laws, regulations, codes, the project's S&H Plan, and the Contractor's own S&H requirements as they apply to their scope of work. Contractors may be required to provide a written S&H Plan that specifically addresses the hazards and corresponding mitigation measures associated with their scope of work. Bechtel receipt, review, and approval of this plan is a condition precedent for mobilization payment. Unless specified otherwise, Contractors will be responsible for obtaining all necessary safety certifications and permits applicable to their scope of work. Prior to starting work, Contractors will demonstrate to Bechtel that all applicable certifications and permits have been obtained. Work crews are expected to perform daily pre-task planning to identify potential hazards and the corresponding mitigation measure(s) to eliminate or minimize the risk associated with performance of the work. Bechtel's Job Hazard Analysis (JHA) system and its employee pre-task planning process known as Safety Task Analysis and Risk Reduction Talks (STARRT) are the preferred pre-task planning methods; however, the Contractor may use its own equivalent process, subject to Bechtel review and acceptance. Contractors will maintain up-to-date medical records and provide weekly and monthly injury/illness reports, including hours worked, on a form provided by Bechtel. Additionally, Contractors will be required to track the status of injuries and produce weekly S&H performance reports that will be discussed with supervisory personnel in order to correct unsatisfactory trends. Contractors will be responsible for promptly reporting all injuries and near misses to Bechtel's onsite management and conducting an incident investigation in a timely manner. The incident investigation should focus on identifying and documenting the root cause(s), finding(s), and corrective action(s) to prevent a reoccurrence of the incident. Contractors are required to provide an employee who is currently certified in first aid to render adequate treatment for their employees working onsite. On projects where Bechtel provides a first aid facility, Contractors may elect to sign a hold harmless agreement and use the Bechtel provided services. Suppliers shall ensure the safety of any Bechtel or customer representative while present at or in suppliers plants and the plants of suppliers sub-tier providers, including provision of appropriate personal protective equipment as appropriate. If,
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BECHTEL SUPPLIER AND CONTRACTOR PORTAL

at any time, a Bechtel or customer representative deems that the conditions at the suppliers, or sub -tiers, facilities are unsafe and promptly notifies supplier accordingly, Bechtel or its customer representative shall be entitled to suspend their activities at such plants until such time as the unsafe conditions are resolved to Bechtels reasonable satisfaction.

Copyright 2008 Bechtel Corporation