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Debate heats up on safety standards and registries

Posted 21-Apr-2009 by brian.nodwell  and filed under: Policy Acknowledgement, Safety Management System

The Oil & Gas Inquirer recently had an excellent arcticle (Service Firms Plead for a Coordinated Safety Registry System) that highlights the controversy surrounding contractor registries, with a particular focus on ISNetworld.


  


Some of the more unflattering comments were:

    "...we're not really sure if there is a positive impact on the industry's safety performance."
    "It's an ongoing irritant to the contracting community."
          -  Wally Baer, President and CEO of Enform

    "You just don't need it here."
    "There is no value-added.  I don't think it assists the operator a whit in determining what is a safe rig."

          -  Don Herring, President of CAODC

    "ISNetworld is driving a proprietary standard that does not seem to support openness or data sharing..."
          -  Cal Fairbanks, President and CEO of Canadian HSE Registry

Personally, I feel that ISNetworld is being judged on its ability to deliver improved safety performance, which isn't entirely justified.  Contractor registries really only do one thing well: manage risk for prime contractors.  I mean really... how can a registry improve safety when the workers play absolutely no part in getting a company green-lighted in ISNetworld?  All the work is being done by each company's safety department (or increasingly by consultants) to write new policies that satisfy RAVS protocols.

By forcing contracting companies to write and submit more comprehensive safety policies, the prime contractors have satisfied their due diligence requirement.  What service companies may not realize is that the process exposes their companies to increased risk.  The sub-contracting firms must now adhere to the standard levels they've set for themselves in the policies.  This means service companies must properly communicate policies to employees, provide comprehensive awareness training, and so on.  If (and only if) the service companies do their part, and implement better safety management systems, will safety performance actually improve.

This is where Enform and their Certificate of Recognition can come in.  They actually send auditors to the service companies to review records and interview employees.  The COR process could either point out that the policy binders are simply collecting dust, or they could collect reports from a Safety Management System that demonstrates compliance.  This transformation is likely coming soon, so its probably best to invest in a Safety Management System like SAFETYSYNC and be prepared.

Comments

Comment by Stephanie Dexter on 05-May-2009

Hear Hear! I totally agree. However, Primes are forgetting that they do in fact, have to ensure that their contractors are fulfilling all these RAVS protocols - the next step to actually meet their "due diligence" requirements.

Contractor registries only manage part of the risk for the primes...and this one is proving to strangle small companies in a recessionary environment.

What have we done?

Comment by Frederick Roeder on 17-Feb-2010

ISN is no different the the top three credit reporting agencies the data collected can be flawed, this rogue outfit is attempting to establish standards which can prevent small contractors from competing in rapidly shrinking market there are enough data collection regulatory reporting agencies and Bureaus. I donot see any added value here, We already submit our documentation to our customers annually, now small contractors are having to pay to continue to do buisness, subscribe or we won't use your services, Coercion in it's purest form robbery, strong arm tactics, used by the MOB
Frederick Roeder
Dirctor of Safety Compliance and Training

Comment by Arc Flash PPE Guy on 11-Aug-2010

While I see the benefits of such a scheme, I somewhat wonder how this can be factored in as a reasonable cost for a lot of smaller companies though.

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