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Safety Analysis between two businesses Units

1 July 2011

Internal information Skanska Unlimited

Objective of this presentation


The main objective of these slides is to present and compare both environments and safety conditions surrounding the projects I have been involved in Skanska LA and Skanska Poland, as part of my assignment in Skanska Unlimited 2011.

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Common objective across Skanska


Worldwide Five Zeros

Zero Accidents: whereby the safety of our personnel as well as subcontractors, suppliers and general public is ensured at and around our projects .

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What is the goal of Skanska?

It is clearly stated in Skanska Code of Conduct:

The key responsibility of all Skanska Group companies, hereinafter referred to as Skanska, is to develop and maintain an economically sound and prosperous business.

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It is also clearly stated in Skanska Code of Conduct:

We provide a safe and healthy working environment and are committed to continual improvement.

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Good project
Satisfaction of people realizing the project

Clients satisfaction
Margin Safety

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A project is not a good project, when margin rises a few percent in comparison to the one stated in the offer, but the project is not safe.

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Introduction
To proceed with a comparison regarding safety within and around construction sites in LA and Poland, we must first highlight the differences between the environments and working conditions in both of them. In not doing so, wrong conclusions might be obtained, leading to corrective/preventive actions which dont take into account that different environments require different measures.

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Skanska Poland
Mainly a civil construction company, dedicated to erect buildings, bridges and roads. Most of these projects are government investments. Construction sites are often surrounded by third parties, who are either living or commuting. Regarding safety, only national or regional regulations must be complied. Clients do not have specific standards on this matter.

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Skanska LA
Construction company dedicated mainly to develop and construct projects related with oil/gas refining or transportation, mining and in a minor scale, roads. Most of these projects are investments from private firms. Construction sites are often located far from settlements. Regarding safety, national, regional and standards from clients must be complied.

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Working Environments
According to what was mentioned before, then the working environments in Skanska LA are more dangerous than those from Skanska Poland, even though LA has an important advantage: no third parties in the surrounding areas, hence, no special actions must be carried out to avoid people getting hurt because of our operations.

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Clients and their standards


Clients in LA have their own library of standards and procedures, which have the same force as laws within the scope of project. This, along with the set of laws of the country which the project is being developed, creates a very rigorous environment, where incidents/accidents occur quite seldom.

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Differences spotted
CSMA personnel
Safety equipment Prizes/Punishments

Mindset blue collars/white collars


Vehicles on the site Clients

Third parties
Safety @ ONESkanska Charts
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Differences spotted
CSMA personnel
The first remarkable difference is the number of personnel assigned to HSE in the projects.

In LA, the amount of people assigned to HSE depends mainly on the size of the project, and the client. The number (ball park) could go from 5 to 30 people, who are in every workplace considered dangerous. On the contrary, in Poland, this number is significantly less (for instance, in ZOP there is only one person).

About which one of the criteria is the correct, as it has been said, all depends on the kind of project and clients we are working for. Having several people working for HSE has the advantage that they can focus only in the safety within and around the working place, as well as having a different perspective of what is going on the site, something that workers generally do not have.

Nevertheless, what has been written hereinabove does not release workers, in any way, their responsibility to obey, and make others obey all the procedures of the company, it only provides them another point of view, in order to detect in a proactive way, situations that could lead to incidents/ accidents.

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Differences spotted
PPE
Another difference spotted on the construction site is the use of PPE on behalf of the workers. Comparing both business units, PPEs used are mainly the same, comparing only civil projects. But if we analyze oil/gas projects, for example, clothing used in Poland would be strictly forbidden to use within the refinery, due to its electrostatic properties. Although PPEs are quite similar, its use within the project is not. Employment of all the PPE necessary on the site is not usual, and in some cases, is minimum. A temporary solution to this problem might be using a large number of HSE personnel , who periodically check that all PPEs are being used. But the real solution to this issue lies in a major change on the mindset of workers, which represents a medium/long term project, because a question arises within them if I am working this way since a long time , and nothing ever happened , why should happen now?. PPE use is mandatory within Skanska LA, due to the policy adopted by the company, as well as the strict safety policy of its clients. It is important to take into account this last, because it had a major role in changing the mindset of workers and Skanska LA, as well as other construction companies.

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Differences spotted
Prizes/Punishments
In Skanska LA, either the executive bonus program or incentive programs, which include almost all professionals in the business unit, have as one of their targets the analysis and fulfillment of the HSE conditions which are developed under the supervision of these professionals. Unsafe practices lead to a fall in the money received by the employee. This assigns a economical value to safety, and even though is not the most proper mechanism, it has been proved effective in several places around the world. No data has been registered of having this kind of program in Skanska Poland.

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Differences spotted
Mindset blue collars/white collars
Another measure adopted by Skanska LA was the implementation of cards which allowed all employees, without any involvement of HSE personnel, collaborate with safety. This program is also known as the Safety Watching Operative Card (TODOS). TODOS allows employees who detect unsafe conditions, to notify the HSE personnel, to prevent the occurrence of incident/accidents. Proactivity is considered now as a key factor in the prevention of accidents (as we can the in the chart hereunder), since is one of the drivers which change the mindset of workers, achieving with this that they start recognizing activities that are unsafe, in order to prevent accidents. Another program still in force in Skanska is the ESSV cards (Executive Site Safety Visit), which although is not a major scale program, and it is not considered a proactive program, it allows to the personnel on the site, to see which are the weaknesses in the project regarding safety, according to visits to the construction site, and if those shortcomings require any corrective action, take all necessary measures.

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The Bradley Curve; a safety maturity model


Injury rate

A persons position on the curve is defined by his/hers behaviors

A units position on the curve is a summing up of all the employees behaviors

Maturity
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We focus on safety
Injury rate
No Action Accidents Happen!

Reactive Managers respond to major incidents

Compliance Managers focus on being legal

Systems Managers respond to information about the organizations safety performance


Proactive Managers use risk assessments to improve safety performance Proactive Behaviors' Managers take personal responsibility for safety performance

Maturity
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Management Meeting Skanska 2009


Injury rate
No Action Accidents Happen!

0%
14% 47%

Reactive Managers respond to major incidents

Compliance Managers focus on being legal

Systems Managers respond to information about the organizations safety performance


Proactive Managers use risk assessments to improve safety performance Proactive Behaviors' Managers take personal responsibility for safety performance

27% 12%
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Maturity

Domino theory
root causes Intermediate causes basic causes immediate causes

Risk management Lack of control

Job factors

Unsafe acts

Accident

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Differences spotted
Vehicles on the site
Regarding the use of cars on construction sites, we just only establish a partial comparison between both business units, since the area occupied by projects varies significantly between Skanska LA and Skanska Poland. However, in the cases where cars are being used, these are equipped with systems that control and register the speed. When the speed goes up from a pre-established value on the device, an alarm starts to ring, and it lasts as long as the speed is above the limit. If the client requests these records, or if detects that some employee is driving unsafely within the limits of the project, could ban the driving permit of the employee involved.

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Differences spotted
Clients
The clients for which Skanska LA works, check and approve periodically works to be developed during the project by means of working permits, on which are detailed the operations to be executed, being segregated in cold operations and hot operations. Clients evaluate and detect all possible dangerous conditions that could come up during these works, and set the safety conditions to be met during those works. Works can be executed only after this permit is signed by the client, and during the working period, the client reserves his right to check and control that everything is being done according to this permit. If not, the client could command the immediate stop of all workings, until these conditions are met. In doing this, both client and Skanska have clearly established the scope and procedures of works to be executed during the day, and all possible dangers. Skanska LA has a similar procedure within its library of standards: this is the AST (Working Safe Assignment), where besides all the dangers that could arise during tasks, all PPEs required for the task are listed.

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Differences spotted
Third parties
Regarding this issue it is not possible to establish any kind of comparison because of what have been stated previously. But it is noteworthy that during the observation period, several times third parties have been spotted on the construction site in ZOP, in the main road and the service roads as well, even though it is clearly signaled that entrance is strictly forbidden. This brings up a dangerous environment on the site, since workers should also watch over these persons health as well, on who the company is responsible in case of any accident.

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Differences spotted
Safety @ ONESkanska
A remarkable feature of HSE in Skanska Poland, is the access to the safety website in ONESkanska, as well as a swift and easy access to the information related with accidents which happens in all construction sites, all around Poland. This constitutes a very positive point in the HSE policy, that could be applied in Skanska LA, since it is really important that no only onsite personnel be aware of incidents/accidents, but also office personnel should be aware, and be aware of the dangerous conditions, since learning could be extracted from them, both for onsite and offsite.

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Differences spotted
Charts
One minor difference spotted during this reconnaissance was the lack of charts, as it is shown below, alongside the whole project. In LA, these kind of charts are mandatory alongside the whole area of the project, to keep workers and visitors aware of the safety conditions which must be met, in order to go into the working area.

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Charts in job sites

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Communication of H&S Board activities

Skanskas goal is to run business with the highest respect of the most important value human life. We aspire to achieve a corporate culture and mechanisms, which would make safety an ultimate priority. Creating a safe business culture is an important goal for management people, who should in their human relations and actions always promote safety. Skanska wants to promote safety culture among its business partners as well as in communities in which we operate.
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Changing the mindset


Change Skanska Bosses expectations profit and safety oriented business.

Change the image and perception of HSE specialist, strengthen their role and positive influence.
Encourage Skanska employees and our business partners to take responsibility for own safety and their colleagues. Build Health & Safety culture within organization, make HSE trendy. Creating awareness that our approach to safety in professional life affects personal life.
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Safety is related to competence


13 TCIR
100

%
12
90

80

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Number of people 70 being trained


60

10

9
50

40 Accidents rate 30

7 2001 2002 2003 2004 2005 2006 2007 2008

* Construction Skills Certification Scheme British certificates of trade skills and H&S
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Safety is our responsibility


TCIR Number of accidents

Registering of potentially accidental situations

Accidents rate

37

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Development plan Safe Production


Change attitude Change behavior
Take no chances when dangerous Detect risks before its too late

Vision 2013: safe & efficient Production bringing job satisfaction

Spinal reflex

Understand
need for change

Present condition
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We take chances even though we know it is dangerous We don`t detect risk before it is too late
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To change behaviour
*Take no chances *Detect risks before its too late

Competence
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Sub-contractors

Selection + cooperation

Planning & Risk management

Committed management

Involvement

40

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