1.0 Purpose

To evaluate implementation of and compliance with the HSE management system and to ensure its continued effectiveness and efficiency.

2.0 Scope

All business locations under HAESUNG CONSTRUCTION, INC. control.

3.0 Responsibilities

3.1 Operational Managers

Ensure that HSE inspections are planned and performed.

Ensure adequate numbers of qualified HSE inspectors are available.

3.2 Site HSE Representative

Planning, performance, coordination and reporting of all site-specific HSE inspections.

Performance of site inspections and safety tours.

3.3 Inspectors

Planning and preparation of the inspection

Performance of the inspection

Compilation of the inspection report

Expediting corrective actions to close-out

4.0 Process

4.1. Records of Inspections

The performance of all inspections, checks, assessments, site tours etc must be documented.

As a minimum, the following information must be recorded:

Type of inspection performed

Inspector name

Date of inspection

Areas inspected

Findings of the deviations found.

4.2 Observance of activities or occurrences requiring immediate action

During site inspections potential hazards/ unsafe practices etc. may be observed which are considered to be of a serious nature. In such cases work must cease immediately until corrective action has been taken. The Inspector must also notify the HAESUNG CONSTRUCTION, INC. Site Manager at the earliest opportunity, who will monitor, advise and assist with any outstanding action.

4.3 Senior Manager’s HSE Observation Tours

4.3.1 HSE observation tours are to be undertaken by all Senior Managers when visiting a site. The aim is to observe behaviors or conditions on the site and to provide feedback on what has been observed to enable improvement.

4.4 Site Manager Weekly HSE Tour

The Site Manager must perform a site HSE tour on a weekly basis. The inspection consists of a walk around the site (typically not exceeding 1 hour). The Site Manager must be accompanied by the Site HSE Representative who will note any observations. Hazards must be dealt with quickly and on the spot, wherever practical.

4.5 General Planned Inspections

4.5.1 General Planned Inspections (GPI) should be conducted:

Monthly in offices

Weekly at site / manufacturing facilities.

4.5.2 The responsible manager for each area of work must conduct an HSE Inspection of the work area. Opportunity should be given for worker representatives to be involved. These inspections must as a minimum, address the topics on the GPI standard inspection checklists, however, it is preferred that the site should create a checklist specific for their own needs.

4.5.3 Details of the inspection must be recorded on a Site HSE Inspection Report. The extent of the inspections may vary from site to site depending on the complexity.

4.5.4 The Site HSE Representative will support the area supervisors/workers representatives in this task. The Site EHS Representative must collate all the inspection reports after the inspection and review them.

4.6 Detailed HSE Assessment

The HSE Audit Protocol has been developed by HSC to evaluate the performance of HSE for all its sites. (Annexure A attached at the end of the Manual).

The Audit Protocol is broken down into 3 Chapters:

HSE management

Health & Safety

Environment which are broken down into several procedures.

The management level for each theme is evaluated by a score from 1 to 4.

The general design approach of the HSE Audit Protocol is the following:

Level 1: The unit failed to take action as per the requirement of the theme. The level is called “Lack of awareness”.

Level 2: Standards are established, the situation in relation with the theme is known. Corrective action developed. The level is called “Awareness” and the level is called as “Managed below HAESUNG CONSTRUCTION, INC. Standard”.

Level 3: Implementation done as per the corrective actions developed as per requirement of the theme, this level is called “maintained at per “HSC Standard”

Level 4: Continuous improvement (proactive) is proved, HSE is included in the management, and practices in place are optimized and are subject to benchmarking which situates them above good engineering practice and standard practices in the theme. The level is called “Excellence/Best Practice”.

Scoring basis

Assessor should have reasonable confidence that required processes are in place.

It is the auditor’s role to recognize if missing information is not highly significant or if a criterion is missing due to a gap in the system.

Themes which are NOT ASSESSED shall be scored as N/A.

The score given for each chapter is the average of the theme’s scores.

Utilization & Frequency of Audit

The HSE audit protocol has been developed with the objective that it will become a tool for self-assessment as well as formal Assessments and a management tool for the improvement of the HSE, performance.

Each Unit will be assessed by an external evaluator at least once a year. Each unit should also make a its own assessment at least once a year as per Annexure A attached at the end of this manual.

Significance of the HSE audit score:

The score obtained by the unit/establishment will have a direct link to the overall performance of the unit & PROJECT.

5.0 Records:

Internal assessment records.

External assessment records.

GPI records.