Purpose

The purpose of this document is to establish the uniform standard requirements for organisation of the safe work of contracting organisations on the territory of Continental Kaluga, LLC, hereinafter referred to as the Company.

Scope of application

This procedure shall be applied in all subdivisions and departments of the Company, as well as by all contracting organizations executing works on the territory of the Company. This document shall constitute a part of the contract entered into between the Company and contracting organization, hereinafter referred to as the Contractor. The procedure herein doesn’t apply to companies and employees hired to execute scheduled operations at the plant in the capacity of temporary personnel.

Terms, definitions and abbreviations

Customer – an employee of the Company, who is create the technical specification.

TS – Technical specification (description) given in regards to work assignment or services rendering

Purchaser – a specialist of the purchasing department of the Company, who carries out work relating to the preparation and conclusion of the agreement with the Contractor.

Work Coordinator on the part of the Company (the Coordinator) – company’s employee, executing operating control over works performed by the Contractor.

Rersponsibility

The Customer is responsible for the development of TS, which must contain the full description of the work; for control of preparation for works Contractor. Purchaser is responsible for reading the Contractor with the safety requirements, Contractor receipt of all documents confirming the possibility of work.

ESH Department e is responsible for conducting induction training for managers of the Contractor and the workers, as well as for checking the completeness of the package of documents Contractor for the protection of labour.

Coordinator is responsible for the admission of the Contractor to any territory for control of compliance with requirements to the conduct of work by contractors, carrying out periodic monitoring of the performance of work by the Contractor.

Contractor's employees are responsible for the implementation of the provisions of this Procedure, as well as other corporate and legal requirements to ensure safe work.

Procedure

1. Supplier selection and conclusion of the agreement

1.1. When there arises the necessity to perform works by means of contracting organizations, the technical specification for a tender defining the scope and location of works, personnel required proficiency level and quality of the equipment, risks related to work assigned, boundaries of responsibilities of the Customer and the Contractor, as well as other information needed in order to hold the tender, shall be developed by the Internal Customer. Responsibility for TS development rests with the Internal Customer.

1.2. The Purchaser holds tender based on TS in accordance with the internal procedure of the purchasing department. The verification of the Contractor’s permitting documents entitling it to perform types of works thereof and availability of qualified personnel is a compulsory requirement for the tender holding. In advance Contractor must be familiar with Work safety requirements for contractors and subcontractors (Appendix 1). All documents and records are to be provided to the Purchaser by the Contractor before the tender. The Purchaser undertakes to communicate information related to the conditions of work execution to the Contractor. Subsequent to the results of the tender an agreement for a work assignment is to be concluded.

2. Commencement of works

2.1. Prior to the commencement of works (2-3 days before the planned date of1 commencement of works) an initial meeting is to be held on the territory of the plant where the Customer of works, representatives from LS and E, the head of the contracting organization and the Contractor’s employee appointed to supervise the works are to be present. In the course of the meeting the following documents should be transferred to the Customer:

- order detailing the appointment of the person responsible for work execution and labor safety on the territory of the plant;

- order detailing the appointment of the person responsible for safe equipment operation, subordinated to Rostekhnadzor (the Federal Service for Ecological, Technological and Nuclear Supervision) (if applicable);

- documents (an original and a copy), confirming the qualification of the personnel (validation protocols, knowledge assessment certificates, etc.);

- documents (an original and a copy), confirming the operability and inspection frequency of the equipment planned to be used for works execution.

- list of Contractor’s employees who will be assigned to work on the territory of the Plant with indication of surname, name, patronymic, reference number of identity confirming document.

- copies of labor permits issued to foreign citizens granting them with the right to work on the territory of the Russian Federation.

2.2. A representative of ESH department shall carry out the introduction briefing for the heads and specialists of a contracting organization, which includes information about the rules and corporate safety regulations, fire safety and environmental safety regulations, established procedure of actions in case of emergencies.

2.4. Subsequent to the results of work sheet analysis and risk assessment carried out by the Customer, the Contractor’s Work entitlement certificate for the work assignment shall be drawn (see Appendix 2) and the Coordinator of works shall be appointed on the part of the Company.

2.5. At the initial meeting the boundaries for the work zone, locations of placement and storage of Contractor’s equipment and materials, locations for utility premises, parking sites for engineering equipment and the procedure of communication between the parties to the agreement shall be defined.

3. Work entitlement.

3.1. On the day of the commencement of works the Contractor’s personnel, who have arrived to execute works, shall undergo the introduction briefing defining safety rules on the territory of the Plant. The workers must attend the briefing accompanied by the Contractor’s specialist appointed as a responsible person for works at the Plant, fully equipped in compliance with the requirements set forth by the Customer and carrying all necessary documents confirming their qualification..

3.2. All tools and appliances brought onto the territory of the Plant manually or by transport, shall be labeled with visible markings indicating their ownership by the Contractor and data in regards to inspections frequency.

3.3. Immediately prior to the commencement of works the Customer together with the Contractor’s supervisor at the site carry out a last minute risk assessment of works assigned in current conditions and develop any additional lists of corrective actions in order to reduce the risks.

3.4. In case the works fall under the category of hazardous works the Contractor issues a work permit for hazardous works assignments in accordance with the Procedure of hazardous works registration.

3.5. Control over the preparation for work rests with the Contractor’s supervisor at the site and Coordinator.

3.6. Permission for the commencement of works is issued by the Coordinator after the inspection of accomplishment of activities, specified in Work entitlement certificate, or in the case where the work permit is issued – inspection of the additional actions specified therein.

3.7. If the works assigned to the contracting organization are performed using equipment or at a site which is already transferred to another contracting organization on the basis of the Work entitlement certificate, the responsibility for Work entitlement certificate execution and for control over observance of safety regulations in the course of work rests with the organization which first received Customer’s Work entitlement certificate. The Schedule for work to be carried out by the contracting and subcontracting organizations agreed by all parties concerned and approved by the plant engineer shall be drawn for the purpose of ensuring control over works and organisation of works.

4. Control over works assignments

4.1. Control over safe works assignments rests with the Contractor’s Supervisor at the site. The inspections should be carried out not less than 3 times every 24 hours (once before work commencement, and twice in the course of the working operations).

4.2. The Customer shall carry out control over safe work performed by the Contractor not less than once per day. The inspection results and information about the violations detected shall be discussed at standing meetings with contracting organizations.

4.3. In case of long-term work of the Contractor on the territory of the Plant the walk-through audit of Contractor’s work organization shall be carried out at least once every month by EHS service.

4.4. In case the violations of safety regulations and standards are detected the works shall be terminated until such violations are eliminated. Information about the violation and surname of the violator are to be entered into the control list and communicated to the Contractor’s supervisor at the site.

4.5. The Contractor’s supervisor at the site shall carry out a refresher briefing with the worker who committed the violation; the information thereabout shall be communicated in writing (or via email) to the Customer and to the Company’s EHS service.

4.6. In the case of a repeated violation the Contractor’s worker is to be removed from the territory of the plant. In the case of necessity and on the resolution of the Customer the employees of the plant security service can be involved into this matter.

4.7. All Contractor’s employees shall undergo repeated safety regulation instructions adopted at the plant at least once a year. The responsibility for the organization of training rests with the Customer.

4.8. ЕHS service keeps a record of all violations and incidents occurred in regards to all Contractors working on the territory of the Plant and submits a monthly observation report to the Plant director. In the event of a negative trend in the Contractor’s work the Director shall instruct the purchasing department about the termination of the agreement with the Contractor.

5. Completion of works

5.1. After works completion the site where the works were performed is subject to Customer’s inspection. All equipment, tools and appliances of the Contractor, as well as waste generated in the course of works shall be removed from the site where the works were performed by Contractor’s own means. The work place shall be transferred to the Customer in a condition complying with the requirements for labor and environmental safety.

5.2. All Contractor’s equipment, materials, which were not used in the course of works and not transferred to the Customer in the framework of the Agreement, as well as wastes generated in the course of works are to be removed from the territory of the Plant by Contractor’s own means not later than 3 days after the work completion. The permit execution for the removal of property rests with the Customer.

6. Actions in crisis situations

6.1. All Contractor’s workers should be inducted about their actions in crisis situations. The record of the briefing completion is transferred by the Customer to EHS service.

6.2. In case a crisis situation which may influence the Contractor’s personnel occurs, the obligation to inform rests with the Customer.

6.3. After receipt of the information about an emergency situation or in case such occurs at the site where the works are performed the Contractor’s employees should act in accordance with the Customer’s crisis procedures.

6.4. The Contractor undertakes to inform the Customer about any crisis situations at the work place, as well as to take all necessary measures to prevent the development of the crisis situation