Effect Of Procurement Systems On Construction Project Performance Construction Essay

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

ARL is a member of Attock Group of Companies, a fully integrated group covering all segments of oil and gas industry from exploration to production, and refining to marketing of a wide range of petroleum products in Pakistan. Besides being also engaged in power generation, manufacturing and trading of cement and other entrepreneurial activities in Pakistan










Since its commissioning in 1922, ARL has passed through various stages of transformation and stood the test of time through war and peace.

• From batch distillation stills of 2,500 barrels per day (BPD), today it has

Grown into a modern state-of-the-art refinery with a capacity of 43,000


• It was subsequently converted into a Public Limited Company in June

1979 and is listed on the three Stock Exchanges of the country.


Safety, security, health and environment law is the body of law concerned with the regulation of health safety security and environmental risks arising from business undertakings. The law is the mixture of state and federal statutes and case law dealing with occupational safety, occupational security occupational health and environmental regulation of business undertakings. Safety security health and environment act as a combined discipline since all three areas are developed disciplines in their own right.

ARL is committed to provide the best quality products in the market, endeavors to protect the environment and to ensure health and safety of its employees, contractors, and customers and work for continual improvements in Health, safety environment and quality systems. ARL is committed to comply with all applicable health, safety, environment and quality laws and regulations

The policy shall be used to demonstrate this commitment through:

HEALTH: ARL seeks to conduct its activities in such a way as to promote the health of, and avoid harm to its employees, contactors, visitors and the community.

SAFETY: ARL ensures that every employee or contractor works under the safest possible conditions. It is our firm belief that every effort must be made to avoid accidents, injury to people. Damage to property and the environment, ARL believes that practically all accidents are preventable by carrying out risk assessments, and reducing risks identified, by appropriate controls.

ENVIRONMENT: ARL is committed to prevent pollution by the efficient use of energy through out its operations, recycle and re use of the effluent wherever possible, and use of cost effective cleaner production techniques that lead to preventive approach for sustainable development.

QUALITY: ARL recognizes employees input towards quality by emphasizing skills development and professionalism. ARL must be customer driven, cost effective and continuously improving services, works and products to meet requirements of the market.




Financial security is a goal everyone works toward. In this confusing and complicated world, sound financial education and advice can be a valuable benefit. Employers tend to provide financial-planning benefits to employees nearing retirement. But studies show that financial-planning seminars actually may help younger employees more. Employees who are near retirement have fewer options and may actually be "out of luck and time," if they haven't already planned for retirement. The younger employees have many options open to them. If they begin planning now, their financial future can be brighter.


Social security is primarily a social insurance program providing social protection, or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. Social security may refer to:


DISABILITY BENEFITS: after a 6 month waiting period, disable workers can collect social security checks to qualify, the disability must prevent the individual from working and be expected to last 12 months or result in death.

DEATH BENEFITS: The surviving spouse or other family member may receive a lump sum payment upon death of a worker .this nominal amount is designed to assist with burial expenses.

SURVIVORS BENEFITS: dependence of a retired, disabled, deceased worker may also receive monthly social security checks. Such payments generally are limited to dependant children, parents or spouses.

HEALTH INSURANCE BENEFITS: Medicare is the portion of social security that helps those over 65(or fewer than 65 if disabled) meets the costs of health care. Medicare coverage includes hospital insurance (to pay hospital costs), medical insurance (to pay physicians and other non hospital costs), and payment for kidney transplant or dialysis.


The purpose of unemployment insurance is to provide workers, who are unemployed through no fault of their own, with monetary payments for a specific period of time or until the worker finds a new job. Unemployment benefits are provided by state unemployment insurance programs within guidelines established by Federal law. Eligibility for unemployment insurance, benefit amounts and the length of time benefits are available are determined by state law.

Unemployment Eligibility: In order to receive unemployment compensation, workers must meet the unemployment eligibility requirements for wages earned or time worked during an established (one year) period of time. In addition, workers must be determined to be unemployed through no fault of their own.


The acronym "COBRA" was brought about by a tax law change that required employers with more than 25 employees to offer temporary health insurance in the event of lay-offs and other circumstances that interrupt coverage under employee benefit plans. It simply means that an ex-employee pays the former employer in order to continue to stay on the company's medical insurance plan. You must make this election within 30 days of your job termination by delivering the appropriate payment for your insurance to the employer. COBRA ensures that you will have access to continued coverage, but usually at a higher price than other types of medical insurance.


Physical security describes both measures that prevent or deter attackers from accessing a facility, resource, or information stored on physical media and guidance on how to design structures to resist various hostile acts. It can be as simple as a locked door or as elaborate as multiple layers of armed Security guards and Guardhouse placement. Physical security is not a modern phenomenon. Physical security exists in order to deter persons from entering a physical facility. Historical examples of physical security include city walls, moats, etc.


In passing OSHA congress declared that its purpose was to assure so far as possible every working man and woman in the nation safe and healthful working conditions and to preserve our human resources. Congress imposed on covered employers a general duty to provide a safe and healthy workplace. Congress sought improved attention to safety and health by employers and employees. It also sought to enforce safety standards and uncover causes of accidents. OSHA has been one of the far reaching efforts by government to control the work environment. Since OSHA affects employees the HR department typically is responsible for compliance.


OSHA covers all workers except those who are self employed, those who are protected under other federal agencies or statutes, and those who work on family owned and operated farms. It is administrated and enforced by the secretary of labor through the occupational, safety and health administration. This organization conducts safety and health inspections according to its targeting systems besides cases involving serious accidents fatalities or complaint, the agency inspectors focus their efforts on high hazards industry. Within these industries OSHA inspectors concentrate on firms with injury rates above the national. Employers want to reduce safety and health hazards through effective programs. However, many line managers and HR professionals have found some aspects of OSHA burdensome, such as the reporting requirements, the own site inspections, and the fines for violations. To meet these objections OSHA has eliminated some of the more trivial safety requirements, exempted some low hazard industries from routine inspections, allowed some industries to drastically reduce their reporting requirements and even exempted some employers from routine safety inspections and allowed them to begin their own self policing of worksite safety and health .


A variety of situations can lead to an OSHA inspection, although only 2 percent of these countries million workplaces are inspected in a given year. When an inspection occurs, an employer and an employee representative normally accompany the OSHA compliance officer. Situations of interest to OSHA that lead to inspections are summarized below:

Imminent danger

This refers to a condition likely to cause death or a serious injury if it is allowed to continue. Included are situations that could cause severe bodily damage, disability, or a life-shortening illness. Improperly shored ditches, machines with open gears and toxic fumes and dust are examples. Compliance officers must seek an immediate voluntary solution or obtain a court order to correct any imminent danger. Cases of imminent danger receive OSHA's highest priority for inspection.

Catastrophes and fatal accidents

Catastrophes, deaths or accidents resulting in hospitalization of five or a more employees merit a high priority from compliance officers. The compliance officers determine if any OSHA's standards have been violated and how similar events can be avoided in the future.

Employee complaints

Employees can complain to OSHA about safety violations or unsafe or unhealthy conditions; these allegations receive OSHA's attention and lead to an inspection. Employees have the right under OSHA to request an inspection when they believe improper safety and health conditions exist. When complains of imminent danger are made, the employees name is with held from the employer if the employee wishes.

Programmed high-hazards inspections

Occupations, industries, or substances that lead to high levels of accidents or illnesses receive special attention and extra inspections under OSHA. Sheet metal working, logging and their associated companies are examples of target occupations and the industries. Asbestos and led are examples of hazardous health substances. To encourage all employers to comply with the act, inspections are conducted randomly among firms in hazardous industries, with an emphasis on employers whose safety records are worse than industry norms.

Follow-up inspections

Employers who have been cited for violations of OSHA are re inspected to reinsure than hazards have been corrected and compliances maintained.



FINANCIAL SECURITY: In attock refinery limited, there are two types of employees. The management and non- management staff. All employees are insured i-e both management and non-management. But the management employees have an edge over the non management employee's i-e, they receive pensions. Hence, ARL is the only private organizations that provide pensions to its management staff.


DISABILITY BENEFITS: In Attock refinery limited, there are two types of disability. Permanent and temporary. Temporary is further divided into partial temporary and partial permanent. Compensation is paid according to the incident/ accident happened. ARL has no standardized compensation chart through which it could compensate the workers or employees.

DEATH BENEFITS: In ARL, employees are provided with death benefits. In case of any accidents, employees are provided with the nominal amount.

SURVIVORS BENEFITS: In ARL, incase of accidents or deaths initial nominal amount is paid but the dependants of disabled and deceased workers do not get any monthly benefits.

HEALTH INSURANCE BENEFITS: In ARL, health insurance benefits are only received by management staff in terms of OPD or minor operations

UNEMPLOYMENT COMPENSATION: In Pakistan including companies like ARL, no such benefits explained above are provided.


COBRA is not implemented in Attock Refinery.


In ARL, there are two types of illness i-e, individual and hazards at workplace known as occupational health. The employees who are injured or any illness incurred within the working environment is compensated. ARL is not responsible for the individual illness or ill due to any personal reason. Before recruitment they go for complete medical evaluation to ensure their medical fitness. In case of any illness, the organizational identifies the hazard occurring from routine and non-routine activities within the plant area and then take action accordingly


ARL is committed to comply with all applicable health, safety, environment and quality laws and regulations. Health is divided into two major components individual and occupational. The first and foremost important factor is to identify the hazards whether routine or non-routine activities inside the plant area and take action accordingly. The hazards include working at heights, chemical exposure, working in noise area (hearing impairment), slip and trip hazards due to the network of pipelines etc are most commonly found.

Other hazards could include Material Handling i.e., loading weight from one place to the other. Ergonomics training is given to people who carry weight. Other factors also considered like a maintain an 8 hour working limit where they are more exposed to hazards, a proper comfortable chair for people working continuously in management side etc.

These hazards are managed in two ways:



PROTECTION: Any hazardous area, one example of hazard could be NOISE. Different measures are taken to eliminate the hazards. But most of the time managing a hazard could be difficult i.e. could not be eliminated completely so they isolate the area and remain confined to a specific area, so that the noise doesn't effect the overall environment. Engineering control could also be done, i.e. they could modify the equipment so that is does not produce much noise and affect the overall environment. Administrative controls are also taken (STANDARD OPERATING PROCEDURE) they guide employees for e-g, if at the noise area an employee is to be exposed for only 8hours, if more work hours are required in the specific area the work load is divided so that each individual's exposure time is reduced. Personal Protective Equipments are also used for this purpose for e.g. ear muffs are used in areas where is noise, special suits are worn where there is chemical exposure, full face masks are worn where there is exposure

to different gases etc. People are required to wear safety harnesses so that working at height is not a risk.

PROMOTION: For the better safety, health of people there are different campaigns in the company including no smoking signals, they highlight and create awareness in the employees of the company about the advantages and disadvantages of the particular issue. Medical tests and screening tests are also done. Different events and activities are organized to encourage their employee's i.e. sports events to refresh their health and mind. Sick leaves are availed e-g cough they check the workplace and try to find out if they are not exposed to different diseases etc. They keep a check on their employee's health.


In ARL, safety is divided into sub categories:

Process safety

operational safety

emergency response team (ERT)

Process safety

ARL deals with crude materials out of which different products are extracted for which high tech equipment is involved. Oil itself is hazardous flammable so their are chances of equipment leakage. So maintenance department is called for and the equipments are maintained so that there are fewer chances of major accidents.

Operational safety

Routine activities are ensured as per safety requirements. No work is done with in the pant area without a work permit e.g. cutting, welding, equipment dismantle, whitewash, to sum up everything that is done within the plant area requires for the worker to have a work permit. Work permits are also required by the employees working within the confined spaces e.g. inside any machine no work can be done without it to ensure security.

Emergency Response Team

In ARL major accidents occur due to fire so there is 24 hours fire fighting squads in which employees are working in shifts. Further more, there are smoke detectors, hydrocarbon detectors in every place with in the refinery. Fire monitors are also placed at different places through which water can be thrown to a distance of 150 to 200 yards.

Safety is also ensured with in the environment by ARL under Pakistan environment protection agency. Waste is disposed off produced by any activity, process, and product in a very efficient manner. Less hazardous materials are disposed off in the main stream. Solid waste, sludge is disposed off as well for which the department inspects the environmental aspects and manages them.

According to the 1997 Environmental Act, this has defined certain parameters. In accordance with the Act, ARL manages not to exceed the limit of its gas emissions for example CO2, H2S etc.


At ARL, the contractor ensures that all employees (including sub-contractors) are adequately trained to carry out their particular duties or tasks including driving plant and operating equipment.

Risk Assessment

At ARL, before any work commences on site the contractor nominates a competent person to be responsible for coordinating risk assessments of all operations where risk is foreseeable and ensuring that appropriate control measures are established and incorporated into safe systems of work. The objective of risk assessment is to highlight project related hazards and to develop methods to deal with those hazards. These assessments are in writing and include but not restricted to the following activities:

Major Construction Elements

General public and third party safety

Location of site access/egress

Vehicle movements on and off site

Vehicle, Machinery and equipment hazards within the site

Vehicle/Pedestrian segregation

Temporary services distribution

Sitting of static plant and equipment


Trench/Ground works

Hazardous Chemicals

Services Clearances

Construction Materials

Storage, use and disposal of substances hazardous to health


Working at heights

Excavation and underground services

Manual Handling

Use of portable hand tools

Emergency procedures including evacuation routes


Materials storage

Site hoarding

Contaminated ground

Lifting new elements of structure


In ARL, housekeeping is of paramount importance. Contractors set down and make available to the management team their system for maintaining a clean, tidy and safe site. Contractors ensure the site is continuously monitored to ensure standards are maintained. The use of skips and disposal arrangements are agreed with ARL.

Permits to Work

The contractor ensures that when working within, "Permits to Work" or authorizations have been obtained from the Project Manager for the type of work covered in the following clauses of this document.

Hot work permit

Confined spaces

Electrical equipment

Excavations and openings

Working at Height

Where the assessment conducted identify high risk activities which demand the strict application of an approved safe system of work, the contractor devise and operate appropriate control measures which may include a "permit to work" system under the direct supervision of an appointed competent person.

Working on or in the vicinity of high temperature Hot Water (HTHW) Systems: The contractor conforms to the requirements of engineering instruction when engaged in working on or near or where works affect the HTHW or steam installations under the control of ARL. All work must be carried out by competent persons.

Working in the vicinity of Sprinkler system

The contractor complies with the requirements of the contract Engineers instruction when working on or near or where works may affect any sprinkler system.

Protection against Noise

Sources of noise are eliminated where practicable. Contractors are responsible for providing and ensuring the use of suitable hearing protection by their employees and their sub-contractors.

Protection against fire: Contractors conform to the requirements of Fire Safety Standards. The fire risk assessment and emergency procedures are discussed with the Project Manager and fire precautions are agreed prior to commencement of works.

Access for Emergency Services: Areas are set aside for the access of fire fighting equipment or other like appliances including ambulances and are maintained; kept clear of obstructions at all times and marked/signed accordingly.

Hazardous Substances and Materials

The Security Officer must be informed in writing of all substances intended for use on site which are classified as toxic, very toxic, corrosive, flammable, highly flammable or explosive.

Design and Planning

Where hazardous substances have been specified the designer evaluates to see if:

A. They are strictly necessary for the process.

B. They can be substituted for a safer alternative substance.

C. An alternative method or process can be used to eliminate or reduce the hazard.

If it is not possible to adequately eliminate or control exposure to a hazardous substance then the contractor needs to ensure that suitable and sufficient personal protective equipment is provided to all affected employees and that they are adequately instructed on how, why and when it is to be used.

Hazardous Material Assessments

A material assessment is carried out for every substance brought onto site, copies of assessment and material data sheets shall be readily available for the Safety Manager to examine. A suitable and sufficient risk assessment is made.

When necessary, an operating procedure is produced for the safe handling, storage and use of a particular substance. A copy is given to the Safety Manager.

All personnel is informed of any potential health hazards associated with any substance they may use or handle. The contractor ensures that correct use is made of the appropriate safety equipment provided by him.

All personnel have sight of the assessment which shall be available in the event of an incident that requires first aid medical treatment or fire fighting.

Community Effects

The contractor's materials risk assessment, selection procedure and exposure control measures must adequately consider the possible effects of products such as fumes, sprays or dust etc. both on and off the site. Examples would be the use of solvent based paints and adhesives.


After handling hazardous substances personnel wash their hands prior to eating, drinking and smoking.

Personnel should not eat, drink or smoke in the proximity of stored hazardous substances.


The bringing of explosives on to site is strictly forbidden.

Waste Arising

The contractor is responsible for the safe disposal of waste arising from construction activities under his management and for ensuring that disposal are carried out in accordance with the legislation relevant to the waste category involved. A waste material likely to present a hazard to site personnel is disposed of as soon as practicable.


Different situation within the company lead to INSPECTION. The situations are discussed below:

Imminent danger

Cases of imminent danger are of highest priority to the ARL. It identifies the hazards and analyzes the services and safety incidents.

Catastrophe and fatal accidents

To ARL it is of major importance to see if any standards and been violated and what can be done to avoid it in the future.

Employee complaints

Employees are given the liberty to raise any safety security issue which the department analyzes which may result in an inspection, ARL analyzes the problem and many of their problems get resolved.

Programmed high-hazard inspection

In ARL, different substances that are hazardous are released which in case of any

problem receive special attention. The refinery is inspected for the hazardous


Follow-up inspections

In ARL, if employers are cited for any violation is re-inspected and ensures that the hazard gets corrected.


As ARL is spending huge amount in health, safety, and security department we as a group did not find any flaw or irregularities particularly in this department. We observed different kinds of signboards related to safety, security and health within the premises. Smoke detectors are installed in every place; different precautionary measures are given for specific areas e.g., slipping and tripping. Fire extinguishers are installed in different places. The emergency response team is very active. They are well trained and can handle any situation effectively. In case of any accident the injured personnel are escorted to the hospital where they have professional doctor's committed to their job, takes care of the patients in a caring manner. In ARL, physical security is prioritized in a manner that no individual can enter the premises without permission and precautionary measures. No individual/ employee are allowed to work in the premises without a work permit and they cannot go to any department other than their concerned department. We as a group were amazed at the standards being practiced by the organization although being a private firm.




Human resources and personnel management 5th edition

by William. B. Werther, JR. Keith Davis

Source of Information about the Company

Liaquat Shah

Atif Hameed Chugtai (Officer HR )

Naseer Haneef ( Officer SE department)