AcuSafe -> June 2000 Newsletter
  

Who is a "Contractor" Under the PSM Standard?

 
Are you a PSM contractor or not? Yes? No? Is that your final answer? This issue is common to ammonia refrigeration industry clients and is a potential program deficiency for many of them. The observations of this article, though based mainly on AcuTech's long-standing involvement with food industry clients, may also implicate other Process Safety Management (PSM) covered facilities. PSM covered facilities may generally benefit from some of the PSM program enhancements suggested here. 

Faced with small compliance staffs and even smaller available budgets, some ammonia refrigeration facilities are forced to develop a PSM program without sufficient time for implementation and associated training. This leads to gaps in implementation even if the written program documentation is complete. One of these gaps pertains to contractors.

Most every facility has used a contractor in some capacity. For the most part, these same facilities have at least the proper compliance intention the PSM standard is stressing when it comes to selecting and supervising the contractors. The problem however, lies in the gray area of the regulation's applicability determination. It is subjective as to what is considered "near" a PSM covered process. While the regulation exempts contractors not working directly on the PSM covered process, it requires some initial project scope review to truly determine whether or not a contractor is subject to the PSM standard's requirements for contractors. By not properly determining if a contractor is subject to the PSM standard, many facilities may be subjecting themselves to program violations by having PSM covered contractors work onsite without satisfying all program requirements. There seems to be two main reasons contributing to this issue.


Why Has This Become a Compliance Issue?
One reason is the person hiring the contractor has no knowledge of the PSM regulation requirements and therefore the PSM screening process was never addressed. Without any awareness of the PSM regulation and how it might apply, many facility representatives hiring contractors have no idea they may be creating a potential compliance issue. The common issue comes from the fact that at any given facility, several people in different departments each have the authority to hire contractors. Unless that facility's representative has responsibility for the ammonia refrigeration system, chances are they may not be aware of the potential for the contractor to impact the ammonia refrigeration system.

Another reason leading to potential compliance concerns is an incomplete initial evaluation of the contractor's work scope. The facility representative hiring the contractor may have direct knowledge of the PSM regulation, however simply glosses over the "...near the covered process" applicability clause for contractors not working directly on the ammonia refrigeration system.


Examples of Contractors Who May Be "Near" A Covered Process
Regardless of the reason, a few real life examples have demonstrated how easily this can occur. A common example pertains to contractors hired to do roofing work for a facility. Are roofers considered PSM contractors? Does your facility have any ammonia containing equipment located on the roof such as condensers and piping, where the contractors are roofing and that could be stepped on or otherwise impacted by their equipment and activities? In many cases the answer could be yes! Many times it is a building maintenance person hiring the roofing contractor. While the building maintenance person may indirectly satisfy some of the PSM related contractor issues, such as considering the contractor's qualifications and safety records, chances are not all requirements are met. Ultimately, the roofing contractor may work on site and be subject to the PSM regulation, but never satisfy all the requirements.

Other real life examples are related to construction contractors. These contractors often use large equipment and may have been selected by corporate staff members. Has a contractor ever used a large crane to move materials over outdoor ammonia containing equipment, such as high-pressure receivers, piping, and condensers? Depending on the equipment the contractor plans to use and where, these contractors may be subject to the PSM contractor rules.


Compliance Issues Are Also Present for General Safe Work Practices
An extension of contractor related issues that are also worth mentioning pertains to safe work practices (lockout/tagout, confined space entry, etc.) and related general OSHA safety programs (hearing protection, fall protection, etc.). Quite often it seems there is some uncertainty surrounding contractors and safe work practices. While the regulation requires the contractor to follow all applicable requirements, it is sometimes unclear how to determine which safe work practices and OSHA safety programs are to be followed: the facility's or the contractors. Determining this is a requirement within the PSM standard. Returning to the example of the roofing contractor, what about fall protection? Where are the safe tie-off points if applicable? 


Suggestions for Improving Compliance
How can this be fixed? The answer lies in refresher training and a close review of the facility's organization chart. The first step is to identify every employee that has the authority to hire any contractor. Once completed, all of those people should be provided with a copy of the "Contractors" PSM program element. In addition, each of those employees should receive training on the program element and how to properly determine whether the contractor is subject to the PSM program requirements.

Another suggestion for improvement is to review your contractors PSM program element for contractor applicability determination. Does it provide sufficient review guidance to accurately determine whether the contractor is a "PSM" contractor? Consider enhancing the determination process by collecting information such as a list of all equipment required for the job, proposed staging areas, planned access paths, etc. This information may provide insight and prompt further discussions to help make the final determination.

In conclusion, be sure to carefully review how contractors are designated, since their actions ultimately reflect on you and can directly affect your facility. When in doubt, you might want to treat all contractors as PSM contractors. It's better to be safe than sorry.

 

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