Red Banded Contractors
Contractors receiving a Red Banding have failed to demonstrate an acceptable HSE MS and should be considered incapable of managing the HSE Risk identified in the contract without significant Shell oversight. Prior to assigning a Red Banding it is recommended that a meeting with the Contract Holder occurs to ensure alignment exists on the banding, proper communication with the contractor occur and impacts to other Shell businesses that utilize the contractor are understood and communicated. The contractor shall be disqualified from consideration to work for Shell unless the business has determined that the contractor provides unique services that cannot be provided by another qualified vendor and the associated risk regarding the contractor are mitigated. The business must accept responsibility and approve additional resources to manage the contractor. A Red Contractor Variance must be completed and approved by the business to justify use of the contractor and document how the risk will be managed. Also, a Red Banded Contractor should have a HSE IP to improve their processes. An additional banding review should occur between 6-12 months of the use of the contactor. It is expected that the HSE MS will improve so that the contractor does not remain Red Banded more than 12 months (i.e. move to Amber or Green banded). A Performance Penalty should occur for contractors not demonstrating improvement.

Amber Banded Contractors
Contractors receiving an Amber banding have demonstrated an “acceptable with improvements” HSE MS and can manage the HSE risks identified in the contract. Once all corrective actions have been deemed implemented, and verified by the Contract Holder, the contractor is expected to submit a CSM Gap Closure Plan. An Amber banded contractor should undergo a banding review between 3-6 months. It is expected that the HSE MS will improve so that the contractor does not remain Amber banded more than 12 months (i.e. move to Green Banded).

Green Banded Contractors
Contractors receiving a Green banding have demonstrated an “equivalent to Shell” HSE MS and are fully capable of managing the HSE risks identified in the contract. The contractor will be expected to submit an Annual HSE Improvement Plan (HSE IP) utilizing a SMART template (Specific, Measurable, Attainable, Realistic, Timely). Banding Reviews should occur upon significant change in (1) Contractor ownership, (2) HSE MS, or (3) unacceptable HSE performance.
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