Client contributions to contractors’ H&S: A general contractor’s perspective . 21 August 2013

1. Client contributions to contractors’ H&S: A general contractor’s perspective . 21 August 2013

2. Content Overview • The reputation we have created for ourselves as an industry • Do clients have an influence on H&S?-Focus Private clients • Clients create / influence the market conditions • The client's Representative (agent) • 'Cost of buildings' • Other examples of Contributions to Contractors’ H&S • In Summary (Future Client contributions to Contractors’ H&S)

3. Construction industry reputation • Unprofessional • Non delivery • Aggressive non- conformist • Uneducated • Lack of trust • Short-cut • Unsafe

4. Do clients have an influence on H&S? • Definitely! • Return vs. Greed, The business world-The Rabbit Hole—Alice in Wonderland-tried and tested rules of past-don’t work so well any more • Strange distracting characters pop up randomly and disappear again • The norm is continually being challenged. Rules are continually changing(subbies,consultants,employees,public,shareholders,weather etc.) • Most successful change efforts begin when some individuals start to look hard at a companies competitive situation, market position,tech trends and financial performance-----what about OHS? • Clients create / influence market conditions, influence contractors

5. Do clients have an influence on H&S? • When will the entry requirements for a developer be more than a bag full of cash. • Worst of all are clients/leaders who refuse to change and who make demands that are inconsistent with the overall effort.(many consultants-tender process)-procurement policy • Health and Safety generally does not form a core ideology-tree feller • And yet—AP Sloane said "Take my assets-but leave me my organisation and in five years I will have it back”—people build the building, construct the road and build the business.

6. Clients create / influence the market conditions • Is EHS a competitive advantage or disadvantage when tendering ---of course it is---if you can cut it out totally your chances of winning the tender are pretty good. The exception actually evaluates on EHS • Should H&S be a competitive advantage,diffentiator or a minimum req? • An example of where the H&S safety playing field could be levelled is the ‘two envelope’ tendering system. Contractors only compete on price once requirement for H&S, Environment, Quality, etc. in the first envelope are met. • As a contractor—we have to be Chameleons—we have to identify client requirements and adapt accordingly---but still stick to our own value system and standards

7. The Client’s H&S Representative (Agent) • Most of the significant contributions to the contractors’ H&S are made by the Client’s H&S Representative (Agent), not the consultants, mostly positive, but sometimes also problematic; • Positive: Knowledge sharing, add value to the construction team by actively participating in accident prevention, best practice sharing and training.(common goal, team awareness, team buy in, proactive involvement, team celebration and saves lives) • Problematic: Unrealistic request resulting in delays, not focused on risk management but rather “to the letter” compliance. • disconnect between the client and his/her agent (cost,conflictual,ego driven,admin and record keeping driven and does not save lives)

8. ‘Cost of Buildings’ • How many land mark buildings do you know of that had a fatality during its construction phase? • The “moral cost” of buildings is often forgotten once buildings are handed over to clients. Fragmented industry-so much legislation-how do we change the value system which changes behaviour towards-”protection vs. abuse "of our people • The contractor is scarred for life – the client remembers the cost, the architecture and prominence and future income stream

9. Other examples of Client contributions to Contractors’ H&S • Good ideas, easy to implement and it makes a lot of sense. • The positive impact of Mining Industry , SOE’s • Transfer of knowledge and skill,zero LTA/ETC celebrations • Best Practise concepts like DSTI’s (Daily Safety Task Instructions); Hazard Alerts, Display areas and site signage etc. • Client must lead and influence the behaviour of his/her team as a continual process –not as a once of event • Incentivise construction team/budget and allow for proper EHS performance at procurement / tender stage

10. In Summary (future Client contributions to contractors’ H&S • Clients have naturally had a big influence on the construction industry performance and have contributed significantly to the improvement in H&S on construction sites.(oil and gas companies, mining companies vs. private developers/clients and rural government projects—geographical areas • Future contributions by clients should be to make H&S non-negotiable / the norm. (two envelope tendering system). • We have to change behaviour and not just the law • H&S Star Rating system for buildings (similar to the Green Star Rating system. • How many private clients do you know of that had a fatality in the past few years?

11. Thank you