Ethics, Experience and Local Communities 

All of Shell Australia’s potential contractors will be subject to an Ethical Conduct Due Diligence process. The due diligence process includes investigating the company’s activities around corruption, bribery, work practices, conflicts of interest, etc. All contractors will also need to demonstrate a commitment to social performance – including around local content (employment and procurement), Indigenous participation and community engagement.

Contractors will be asked to provide examples of projects completed in the last five year period – this includes details around the scope of work, project value, and appropriate reference contacts.

The above will be rolled out in a manner that is proportionate and appropriate to the nature and scale of the contract and based on the outcome of a risk assessment.

We encourage prospective contractors to identify below which tier of our supply chain they will fit into – and understand our specific expectations at each level. Contractors may also find a copy of our standard Terms and Conditions.

Tier 1

Typically engineering, procurement and construction (EPC or EPCM) firm. World class entity focused on major projects. Proficient in customer focus, technical capabilities, capacity, innovation, technology and responsiveness. Strong performance record.

Usually contracts above $50 million in value.

Health & Safety

A mature, integrated and wellmaintained management system that complies with (and is ideally accredited to) AS/NZS4801 or BS OHSAS 18001. A strong safety culture that is actively demonstrated and visible at all levels of the organisation. An organisational focus on industry leadership, innovation and driving best practice in health and safety management. 

Quality

Compliant to ISO 9001. Mature quality system in place. Requires a Quality Manager. Comply with Australian Standards, Shell standards and project specifications. Comply with Contract Section on Quality. Full traceability records required. 

Finance

Full audited financials to include: 

  • Profit-loss account 
  • Balance sheet 
  • Cash flow statement Confirmation of no outstanding litigations or judgements. 

Environment

Mature environmental management system certified or equivalent to ISO 14001. Strong environmental policy confirming commitment to management of the environment. Dedicated environmental resources to manage environmental compliance and risk. Environmental technical support for specific aspects of scope (e.g. rehabilitation, soils, waste) as required. Demonstrated record of environmental performance on highly regulated developments (scope dependant). 

Tier 2

Suppliers to Tier 1 firms. Typically engineering design / civil construction. Systems for health and safety, environmental, risk , people management in place. Have financial capability, technology and expertise required by major (Tier 1) contractors.

Usually contracts $5 – 50 million in value. 

Health & Safety

An integrated and well-maintained management system that complies with (and is ideally accredited to) AS/NZS4801 or BS OHSAS 18001. A strong safety culture that is actively demonstrated and visible at all levels of the organisation. An organisational commitment to striving for continuous improvement and best practice in health and safety management.

Quality

Compliant to ISO 9001. Mature quality system in place. Requires a Quality Manager. Comply with Australian Standards, Shell standards and project specifications. Comply with Contract Section on Quality. Full traceability records.

Finance

Full audited financials to include: 

  • Profit-loss account
  • Balance sheet 
  • Cash flow statement Confirmation of no outstanding litigations or judgements.

Shell determination that contract does not pose an overtrading risk to the contractor.  

Environment

Documented environmental management system or equivalent to ISO 14001. Environmentally focussed resources to manage environmental compliance and risk. Environmental technical support for specific aspects of scope (e.g. rehabilitation, soils, waste) as required. Clear environmental policies and procedures confirming commitment to management of the environment and minimising risk. Demonstrated record of environmental performance on highly regulated developments (scope dependant).

Tier 3

Suppliers to Tier 1 or 2 firms. Supply large work packages in key areas and/or are specialist providers of equipment or services. Experience on major projects, strong customer focus, good innovation. Capacity to form bidding teams for larger work packages. Usually contracts $500,000 - $5 million in value

Health & Safety

A documented health and safety management system with good document control processes; ideally one that is compliant with AS/NZS4801 or BS OHSAS 18001. A strong safety culture that is actively demonstrated and visible at both the management/director level and amongst workers. An organisational willingness to invest resources in order to improve health and safety performance.

Quality

Compliant to ISO 9001. Quality system in place. Requires a Quality Representative. Must comply with Australian Standards, Shell standards and project specifications. Comply with Contract Section on Quality. Full traceability records for fabrication and manufacturing. 

Finance

Full audited financials to include at least:

  • Profit-loss account 
  • Balance sheet Confirmation of no outstanding litigations or judgements.

 Shell determination that contract does not pose an overtrading risk to the contractor. 

Environment

Company-specific environmental management plan and policy detailing interaction and management of specific activities associated with business scopes (e.g. waste management, pollution prevention). Environmental management plan/procedures developed to manage activities that pose risk to environment and require mitigation for the scope of services. Environmental technical support for specific aspects of scope (e.g. rehabilitation, soils, waste) as required. HSSE resource provides support for environmental management. 

Tier 4

Suppliers to Tier 2 or 3 firms. Capable sub-contractors – but with no experience on major projects or winning major bids. Suppliers of niche products, but lack some systems (e.g. safety, risk, environmental).

Usually contracts $150,000 – 500,000 in value

Health & Safety

Documented procedures for planning and conducting work safely and evidence to demonstrate compliance with those procedures. Good record-keeping; particularly in the areas of training/competency, risk assessment, maintenance of equipment, incidents and corrective actions. A clear commitment to working safely, demonstrated by both management and workers. A clearly demonstrated willingness to embrace opportunities to improve health and safety performance. 

Quality

Quality procedures for scope of work. Appointed person responsible for quality. Must comply with Australian Standards, Shell standards and project specifications. Traceability records for scope of work (fabrication and manufacturing). 

Finance

Full audited financials to include at least:

  • Profit-loss account 
  • Balance sheet Confirmation of no outstanding litigations or judgements.

 Shell determination that contract does not pose an overtrading risk to the contractor. 

Environment

Company-specific environmental management plan and policy detailing interaction and management of specific activities associated with business scopes (e.g. waste management, pollution prevention). Environmental management plan/procedures developed to manage activities that pose risk to environment and require mitigation for the scope of services. Plans/procedures may be integrated within health and safety framework (e.g. incident response, corrective action tracking, training). 

Tier 5

Suppliers to Tier 4 firms. Smaller capacity firms – often suppliers of materials / services. Lack financial ability to tender on larger packages – must form bidding teams. Lack some systems (e.g. safety, risk).

Usually contracts less than $150,000 in value

Health & Safety

Documented procedures for planning and conducting work safely and evidence to demonstrate compliance with those procedures. Good record-keeping; particularly in the areas of training/competency, risk assessment, maintenance of equipment, incidents and corrective actions. A clear commitment to working safely, demonstrated by both management and workers. A clearly demonstrated willingness to embrace opportunities to improve health and safety performance.  

Quality

Quality procedures for scope of work. Appointed person responsible for quality. Must comply with Australian Standards, Shell standards and project specifications. Traceability records for scope of work (fabrication and manufacturing). 

Finance

Shell’s Contracts and Procurement representative will review financial risk and financial accounts may be requested.

Environment

Environmental policy confirming commitment to the management of activities and services (e.g. waste management, pollution prevention). Environmental procedures that support the scope of services. Procedures may be integrated within health and safety framework (e.g. incident response, corrective action tracking, training).

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Supply Principles and Commitments

Shell looks for its suppliers to have integrity, be safe and perform activities in an economical, environmentally and socially responsible manner.