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The views expressed in this paper are those of the author. They are not necessarily the views of Granherne and Halliburton.
Abstract This paper presents the writer's experience of a risk and reward scheme used on a recent gas exploration, design, fabrication and installation project performed by an international Alliance Project Team in the Republic of South Africa where a large element of the scheme included HSE qualifiers.
The Project, like many today, was performed against a tight budget and schedule and presented a number of challenges with respect to the management of HSE. These were complicated by the structure of the Alliance which employed seventeen member companies and many sub contractors from within South Africa, France, Portugal and United Arab Emirates, all with different HSE cultures and practices.
This paper discusses the following:Details of the risk and reward scheme;
The reasons the Client required HSE to be included in the scheme;
How this affected the Project approach to HSE management;
Pros and Cons of the scheme;
Did it work?;
Would we do anything different next time?
Introduction With 25 years' experience in risk and safety engineering the author was intrigued by the prospect of performing the role of Quality, Health, Safety and Environmental Manager on a project in South Africa. The author had learned from his previous experience of how risks were managed during the design of facilities. Now he faced the prospect of managing not only those familiar risks but also those associated with gas exploration, the drilling of wells, the construction and installation of topside and sub sea facilities.
At the contract development stage when the Project Risk and Reward Scheme was being developed it was surprising to find that 30% of any gain share (reward) was dependent on HSE performance throughout the execution of the Project.
The author's previous experience of HSE incentive schemes was limited to early 1970s programmes which included the award of Green Shield Stamps to employees for good safety performances. Now he was faced with a scheme that had the potential for a project to make millions of $US on the basis of its HSE performance. To say HSE management became a focus for all those engaged on the Project was an understatement.
The principle of the scheme itself was quite simple, meet your targets and collect your money (reward) or miss and lose (risk). It provided the motivation for many companies involved in the Project to challenge their approach to HSE management resulting in a number of exceptional HSE performances. However, the potential of the scheme was not fully realised.
This paper addresses the scheme; the results and how future schemes should be structured to further improve HSE performance and company profits.
The author accepts that throughout the world there have been many other schemes all with subtle differences. His experience, disregarding the Green Shield Stamp episode, is limited to the one which is the subject of this paper but by sharing his experience of the structure and execution of the scheme he hopes it will motivate others to seek further advances in future schemes.
Introduction With 25 years' experience in risk and safety engineering the author was intrigued by the prospect of performing the role of Quality, Health, Safety and Environmental Manager on a project in South Africa. The author had learned from his previous experience of how risks were managed during the design of facilities. Now he faced the prospect of managing not only those familiar risks but also those associated with gas exploration, the drilling of wells, the construction and installation of topside and sub sea facilities.
At the contract development stage when the Project Risk and Reward Scheme was being developed it was surprising to find that 30% of any gain share (reward) was dependent on HSE performance throughout the execution of the Project.
The author's previous experience of HSE incentive schemes was limited to early 1970s programmes which included the award of Green Shield Stamps to employees for good safety performances. Now he was faced with a scheme that had the potential for a project to make millions of $US on the basis of its HSE performance. To say HSE management became a focus for all those engaged on the Project was an understatement.
The principle of the scheme itself was quite simple, meet your targets and collect your money (reward) or miss and lose (risk). It provided the motivation for many companies involved in the Project to challenge their approach to HSE management resulting in a number of exceptional HSE performances. However, the potential of the scheme was not fully realised.
This paper addresses the scheme; the results and how future schemes should be structured to further improve HSE performance and company profits.
The author accepts that throughout the world there have been many other schemes all with subtle differences. His experience, disregarding the Green Shield Stamp episode, is limited to the one which is the subject of this paper but by sharing his experience of the structure and execution of the scheme he hopes it will motivate others to seek further advances in future schemes.
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