Health, Safety and Environmental Policy s4

June Origination Date: October 7, 2011 Revision Date: 2012 Release Authorized by: Danny Trahan, Safety Director Manual Rev 4

INCENTIVE & AWARDS PROGRAM

TABLE OF CONTENTS [Alt + Right/Left = Page Forward/Back] INCENTIVE & AWARDS PROGRAM...... 1 PURPOSE...... 2 SCOPE...... 2 APPLICATION...... 2 DEFINITIONS...... 2 1.0 INCENTIVE PROGRAMS...... 2 1.1 General...... 2 1.2 Approved Programs...... 2 1.3 Program Audit...... 3 2.0 OUTSTANDING INCIDENT PREVENTION ACHIEVEMENTS...... 3 2.1 General...... 3 2.2 ZERO ACCIDENTSSM Program...... 4 3.0 AWARDS OF EXCELLENCE AND MERIT...... 5 3.1 Awards of Excellence...... 5 3.2 Awards of Merit...... 5 4.0 SAFETY CROSS AWARDS (SILVER AND BRONZE)...... 6 4.1 General...... 6 4.2 Eligibility for the Silver Cross Award...... 6 4.3 Award Components and Cost...... 6 4.4 Eligibility for the Bronze Safety Cross Award...... 6 4.5 Award Components and Cost...... 6 4.6 Application Process...... 6 4.7 Corporate Approval...... 7 5.0 APPLICATION PROCESS...... 7 5.1 Application Process for ZERO ACCIDENTS Awards...... 7 5.2 Application Submission Process for Safety Excellence Awards and Awards of Merit...... 8 6.0 REFERENCES...... 8

Copyright © 2012, P2S. All Rights Reserved. P2S Health, Safety & Environmental Page 1 of 8 June Origination Date: October 7, 2011 Revision Date: 2012 Release Authorized by: Danny Trahan, Safety Director Manual Rev 4

PURPOSE This practice defines the requirements for P2S’s health, safety, and environmental (HSE) incentive and award programs.

SCOPE This practice includes following major sections:  Incentive Programs  Outstanding Incident Prevention Achievements  Award of Excellence and Merit  Safety Cross Awards (Silver and Bronze)  Application Process

APPLICATION This practice applies to work activities and employees under the control of P2S and its contractors.

DEFINITIONS None.

1.0 INCENTIVE PROGRAMS

1.1 General

P2S believes that successful HSE programs are accompanied by periodic recognition of employees’ accomplishments. One way of accomplishing recognition is through incentive programs that recognize employees, work crews, or the total workforce. P2S supports the use of HSE incentive programs that are designed to promote and enhance safety performance. HSE incentive programs should be easy to understand and administer, fair and nondiscriminatory, and provide recognition and rewards worthy of the specified safety accomplishment – and they should have well-defined program rules with clear starting and ending periods.

1.2 Approved Programs

P2S HSE endorses the following 2 HSE incentive programs:  Recognition — rewards employees for outstanding HSE performance with tokens, mementos, or gifts.  Monetary — rewards employees with cash payments.

A. Recognition Program

The recognition incentive programs (nonmonetary) are the primary programs used by P2S. They are varied and versatile, and promote ease of use and flexibility in implementation. Project/Site Managers and other P2S Operations Managers may implement recognition incentive programs at their discretion. Approval by Corporate HSE is not needed. B. Monetary Programs

Monetary incentive programs provide for bonus cash payments to employees and require certain approvals before implementation and a mechanism for auditing the program while it is in place. The Project/Site Manager, Department Manager, and Project/Site HSE Representative have the following responsibilities:  Determine which incentive program to implement at the project/site.  Implement and administer the program.  Manage the program in the best interest of P2S and the client.  Implement an auditing system of the program.

Variable aspects of the programs will be administered in accordance with a process that is mutually acceptable to P2S, the client, and the contractor/subcontractor (if applicable). Proposed monetary incentive programs must be described in detail using Form 000.653.F0139, Monetary HSE Incentive Program. The form should be completed and submitted to the following for their review and approval:  Project/Site Manager  Regional Safety Manager  Craft Compensation Director/Manager  Business Unit President

Once final approval has been received, copies of the approved form should be distributed to those on the approval list and the HSE Board.

1.3 Program Audit

Monetary incentive programs reward employees on the achievement of an agreed upon level of HSE performance. Statistical information, in the form of total recordable incidence rates and Days Away, Restricted, or Transferred – Lost (DART-L) incidence rates are commonly used as performance indicators. Auditing this statistical data is an important part of the monetary incentive program that demands program integrity. Monetary incentive programs will be audited jointly by the responsible Regional Safety Manager and the P2S Internal Auditing Department. Incentive program audits will be conducted as a part of normal HSE audits .

2.0 OUTSTANDING INCIDENT PREVENTION ACHIEVEMENTS

2.1 General

P2S believes that all incidents are predictable and preventable. By training our employees to anticipate potential hazards and equipping them with safe work practices to alleviate or prevent those hazards, we reaffirm P2S’s status as the safest contractor in the world. While this keeps us competitive in the global marketplace, above all it protects our most valuable asset – our employees. Based on the priority placed on safe work practices, P2S has developed a program to recognize projects and offices on a global scale that successfully implement safe work practices by setting and achieving safe work-hour goals. The awards for which a project/site or office may become eligible, as well as the criteria for each, are provided below.

2.2 ZERO ACCIDENTSSM Program

The ZERO ACCIDENTS Star awards are reserved for the very best performers. The ZERO ACCIDENTS Program has established a new standard of expectation and recognition in the industry. The criteria are outlined below.  No injury or illness resulting in a DART-L case  No environmental citations or other regulatory agency citations  No fatalities on the project/site or office for the 6-month period immediately proceeding the accomplishment period.  The project/site’s or office’s application of the following High-Impact ZERO Incident Techniques:  Subcontractor Management  Pre-Project HSE  HSE Education and Orientation  New Employee Development  HSE Awareness Program  Substance Abuse Program  Recognition and Rewards  Incident Investigation and Reporting  Pre-Task Planning  Management in Action  Audits/Assessments  Use of Networking and Resources  Successful completion of the verification audit completed by the appropriate Regional Safety Manager (or designee) demonstrating use of High-Impact ZERO Incident Techniques.

Projects and offices are eligible for ZERO ACCIDENTS awards of One-, Two-, Three-, Four-, and Five-Star awards based on criteria established by the corporate yearly performance goals. Project/site eligibility for ZERO ACCIDENTS awards is reached upon completion of any of the following milestones:

 100,000 safe work hours  250,000 safe work hours  500,000 safe work hours  750,000 safe work hours  One million safe work hours  500,000 safe work-hour increments thereafter

Offices are eligible for Five-Star awards after the completion of 5 million safe work hours or 3 years without a recordable incident. Small projects/sites that do not meet the safe hour criteria established by Corporate HSE may be evaluated for recognition in the ZERO ACCIDENTS Program at the discretion of the business unit, project, and HSE management.

3.0 AWARDS OF EXCELLENCE AND MERIT

3.1 Awards of Excellence

The P2S Safety Excellence Awards are reserved for Million Plus safe work-hour achievements. The criteria are outlined below.  No injury or illness resulting in a DART-L case.  One million or more safe work hours achieved initially (projects/sites and offices) – 500,000 safe work-hour increments thereafter.

3.2 Awards of Merit

P2S Awards of Merit are reserved for safe work-hour achievements that are less than one million safe work hours. The criteria are outlined below.  No injury or illness resulting in a DART-L case.

Awards of Merit are awarded upon completion of any of the following safe work-hour milestones:  100,000 safe work hours  Award of Merit  250,000 safe work hours  Bronze Award of Merit  500,000 safe work hours  Silver Award of Merit  750,000 safe work hours  Gold Award of Merit

A project/site or office may also qualify for an Award of Merit upon completion of a safe work year (or years) without an injury or illness resulting in a DART-L case. Smaller offices and sites may apply for awards outside normal program guidelines for approval on an individual basis. Other significant, unique accomplishments may qualify for an Award of Merit upon special application to the HSE Board. Awards are based on total project/site or office performance, including subcontractor personnel. The project may be self-perform, construction management, or operations and maintenance.

4.0 SAFETY CROSS AWARDS (SILVER AND BRONZE)

4.1 General

The Safety Cross Award Program was established to encourage safety awareness among P2S employees and contractors – an awareness that is essential to the continuous performance improvement for which we strive. By recognizing employees who assume responsibility for the safety of themselves, their coworkers, and those in the communities in which they work, we reinforce the vital role that safety plays in maintaining P2S’s status as a leader in the construction industry. Most importantly, this program recognizes employees for protecting our most valuable asset – our employees.

4.2 Eligibility for the Silver Cross Award

The Silver Safety Cross Award recognizes those employees who have acted in a life-saving manner and assisted others in distress either on or off the job. Note: The Silver Safety Cross Award is not presented to those who are performing duties within the scope of their work such as fire fighters and rescue workers. However, these employees will be recognized in a letter of commendation.

4.3 Award Components and Cost

Recipients of the Silver Safety Cross Award are presented with a medallion and a letter of commendation from Corporate HSE. Corporate HSE furnishes the Silver Safety Cross Award at no cost to the project/site or office at which the employee works.

4.4 Eligibility for the Bronze Safety Cross Award

The Bronze Safety Cross Award is awarded to employees who have been involved in an accident or incident where serious injury was avoided through the use of proper personal protective equipment.

4.5 Award Components and Cost

Recipients of the Bronze Safety Cross Award are presented with a medallion and a letter of commendation from Corporate HSE. The Bronze Safety Cross Awards are project-reimbursable. Contact the Regional Safety Manager or the HSE Awards Program Coordinator for pricing information.

4.6 Application Process

To nominate an individual for a Safety Cross Award, the project/site or office must complete Form 000.653.F0144, Safety Cross Award Application. The application is submitted to the following for review and approval:  Project/Site Manager  Site HSE Representative  Business Unit Lead

 HSE Board Chairman

4.7 Corporate Approval

The Regional Safety Manager forwards the request to the HSE Awards Program Coordinator. The Regional Safety Manager (or designee) will notify the HSE Awards Program Coordinator that a completed request is forthcoming.

5.0 APPLICATION PROCESS

5.1 Application Process for ZERO ACCIDENTS Awards

A. Submittal of Nomination Form

To apply for ZERO ACCIDENTS Star awards, a project/site or office must complete Form 000.653.F0140, ZERO ACCIDENTSSM Program Award Application. The application is submitted, together with Form 000.653.F0141, ZERO ACCIDENTSSM Program Award Verification Audit, discussed below, to the appropriate Regional Safety Manager. B. Verification Audit

The project/site or office must undergo a verification audit to be completed by the appropriate Regional Safety Manager (or designee). The ZERO ACCIDENTS Program Award Verification Audit will be used to document the audit and must be submitted together with the ZERO ACCIDENTS Program Award Application, in order to complete the application for a ZERO ACCIDENTS award. This audit process protects the integrity of the ZERO ACCIDENTS Program by confirming that High-Impact ZERO Incident Techniques have been implemented on the project/site. The Regional Safety Manager (or designee) must verify that the safe work hours reported in the Global Information Management System (GIMS) submitted by the project/site/office qualify the project/site/office for the milestone for which it has applied. Should a discrepancy exist, written justification signed by the Regional Safety Manager will be submitted to Corporate HSE, along with the ZERO ACCIDENTS Program Award forms.

C. Corporate Approval

The Regional Safety Manager forwards the ZERO ACCIDENTS Program Award Application, the ZERO ACCIDENTS Program Award Verification Audit, and any supporting documentation to the HSE Awards Program Coordinator in Corporate HSE. The Regional Safety Manager (or designee) will notify the HSE Awards Program Coordinator that a completed application is forthcoming. Note:Incomplete applications, applications submitted with discrepancies, and applications submitted before achieving the accomplishment will be delayed in processing. In order to plan celebrations effectively, a minimum of 3 weeks should be allowed for delivery of awards following completion of the application.

5.2 Application Submission Process for Safety Excellence Awards and Awards of Merit

A. Submittal of Nomination Form

To apply for a Safety Excellence Award, a project/site or office must complete Form 000.653.F0142, Million Plus Safety Excellence Award Application. The application is submitted to the following for review and approval:  Project/Site Manager  Site HSE Representative  Regional Safety Manager  HSE Board Chairman

To apply for an Award of Merit, a project/site or office must complete Form 000.653.F0143, Safety Certificate Plaque Application. The application is submitted to the following for review and approval:  Project/Site Manager  Site HSE Representative  Regional Safety Manager  HSE Board Chairman

B. Corporate Approval

The Regional Safety Manager forwards each request to the HSE Awards Program Coordinator. The Regional Safety Manager (or designee) will notify the HSE Awards Program Coordinator that a completed request is forthcoming. Note: Incomplete applications, applications submitted with discrepancies, and applications submitted before achieving the accomplishment will be delayed in processing. In order to plan celebrations effectively, a minimum of 3 weeks should be allowed for delivery of awards following completion of the application.

6.0 REFERENCES

Document ID Document Title Forms: 000.653.F0139 Monetary HSE Incentive Program 000.653.F0142 Million Plus Safety Excellence Award Application 000.653.F0143 Safety Certificate Plaque Application 000.653.F0144 Safety Cross Award Application