HSE MANAGEMENT ACCOUNTING & VALUE SYSTEM

HSE-MAVS™ – HSE Management Accounting & Micro-Delay Cost Impact System

Oil & Gas EPC Construction Edition

Turn hidden HSE delays, safety interventions, standby time, non-compliance and risk exposure into visible USD management impact.

In major oil & gas construction and EPC projects, a 10-minute delay may appear insignificant. A permit issuer is unavailable. A scaffold is waiting for inspection. A lifting plan is delayed. A competent person has not arrived. A crane remains on standby. A gas test is repeated. A workfront is suspended for safety clearance.

Individually, these events often look small.

But when they affect hundreds of workers, expensive equipment, multiple contractors and repeated project activities, their cumulative financial impact can become substantial.

HSE-MAVS™ has been developed to help HSE, construction, project controls and management teams convert these often-hidden micro-delays and HSE-related events into an approximate financial impact in US Dollars ($).

What This Product Helps You Measure

The system can be used to estimate the financial impact associated with:

• Permit-to-Work delays
• Safety clearance waiting time
• Scaffold inspection and release delays
• Work-at-height restrictions
• Crane and lifting delays
• Equipment certification problems
• Stop-work interventions
• Safety stand-downs
• JSA/JHA and risk-assessment delays
• Competency and training deficiencies
• Confined-space entry delays
• Gas testing and atmospheric monitoring
• Isolation and LOTO delays
• Hot-work restrictions
• SIMOPS conflicts
• Excavation and utility clearance
• Radiography exclusion zones
• Pressure testing
• Mechanical completion
• Pre-commissioning
• Commissioning and first-energy activities
• H2S and toxic-gas controls
• Chemical handling
• Occupational-health restrictions
• Weather and heat-stress controls
• Emergency-response activities
• Incident investigation
• HSE-driven rework
• Contractor non-compliance
• Repeated HSE deficiencies
• Critical-path exposure
• Risk-reduction value
• Management decision impact

700+ Oil & Gas Construction HSE Scenarios

The system includes a large library of 700+ HSE economic scenarios covering major oil & gas EPC construction activities from mobilization through commissioning and start-up.

The scenario database allows users to select relevant events rather than building calculations from scratch.

Interactive Excel Cost Calculator

The included Excel tool allows the user to select an HSE scenario and apply actual or estimated project parameters.

Editable inputs include:

• Number of workers affected
• Delay/exposure minutes
• Loaded worker hourly rate
• Equipment units affected
• Equipment standby cost per hour
• Supervisors and support personnel affected
• Supervisor hourly rate
• Number of occurrences per month
• Recoverable percentage
• Critical-path probability
• Schedule cost per hour
• Direct event cost
• Rework cost
• Contractual/claim cost
• Remaining project duration
• Gross risk exposure
• Residual risk exposure

The system then automatically calculates an approximate financial impact.

Automatic Management Outputs

Depending on the selected scenario and project data, the calculator estimates:

Labour Idle Cost

Supervision Cost

Equipment Standby Cost

Direct HSE/Event Cost

Rework Cost

Contractual Cost

Recoverable Cost

Net Immediate Event Cost

Critical-Path Exposure

Cost Per Event

Monthly Cumulative Cost

Remaining Project Exposure

Risk Reduction Value

Net HSE Economic Value

See the Cost of Small Delays

One of the main purposes of HSE-MAVS™ is to demonstrate the cumulative impact of repeated small delays.

For example:

A 20-minute delay affecting a workforce may appear insignificant when viewed as one isolated event.

However:

Workers affected × Loaded hourly rate × Delay duration × Frequency

plus

Equipment standby

plus

Supervision cost

plus

Schedule exposure

can result in a significant monthly or project-level financial impact.

This enables management to identify recurring losses that may otherwise remain hidden inside ordinary construction productivity reports.

Management Decision Support

HSE-MAVS™ is not designed merely to show that “safety costs money.”

The framework helps distinguish between:

• Planned HSE investment
• Necessary safety-control cost
• HSE process inefficiency
• Operational non-compliance
• Contractor failure
• Engineering/design failure
• Protective HSE intervention
• Incident/failure cost
• Risk-reduction value
• Strategic HSE value

This is important because a work stoppage identified by an HSE professional should not automatically be classified as an “HSE cost.”

For example, if a crane operation is stopped because its certification has expired, the system can distinguish:

Detected by: HSE

Cost caused by: Equipment/Plant Management Failure

Management impact: Labour + equipment + schedule exposure

HSE intervention: Justified

This gives management a more accurate understanding of cost causation.

Included in the Product

You receive:

1. HSE-MAVS™ USD Micro-Delay & Management Impact Calculator – Excel

Interactive calculation tool with scenario selection, editable inputs, formulas, batch analysis and management dashboard.

2. HSE-MAVS™ Oil & Gas EPC Micro-Delay Cost & Impact Register

Comprehensive scenario register covering major HSE-related construction and commissioning activities.

3. Scenario Database

More than 700 coded HSE cost-trigger and value scenarios for oil & gas EPC projects.

Designed For

This product can be useful for:

• HSE Managers
• Project Directors
• Construction Managers
• Project Managers
• HSE Engineers
• Safety Professionals
• Project Controls Engineers
• Planning Engineers
• Cost Engineers
• Commercial Managers
• Contract Managers
• EPC Contractors
• Oil & Gas Operators
• Consultants
• Subcontractors
• Commissioning Teams
• Corporate HSE Functions

Why HSE-MAVS™ Is Different

Traditional HSE reporting commonly focuses on:

• TRIR
• LTIFR
• Lost-time injuries
• Near misses
• Inspection numbers
• Audit findings
• Training hours

These indicators remain important, but they do not always answer the question senior management wants answered:

“What is the financial impact of what is happening?”

HSE-MAVS™ adds an economic dimension.

It helps management understand:

How much are repeated HSE-related delays costing the project?

Which activities are creating the largest cumulative losses?

Which small recurring problems should management prioritize?

How much equipment and labour time is being lost?

Which costs are avoidable?

Which controls are necessary and value-adding?

What is the approximate financial exposure if the problem continues?

What potential risk value has an HSE intervention protected?

USD-Based System

All financial calculations are standardized in:

US Dollars – USD ($)

This makes the system suitable for international EPC and oil & gas project environments.

Important Note

HSE-MAVS™ is a management-accounting and decision-support tool.

The financial outputs are approximate estimates based on the parameters entered by the user. They are intended to support management analysis, prioritization and discussion.

Project-specific rates, contract conditions, productivity assumptions, schedule impacts and risk valuations should always be validated by the relevant project, finance, commercial, project-controls and HSE teams before being used for formal financial reporting or contractual decisions.

A Simple Question Can Reveal a Major Project Issue

What if a 15-minute HSE-related delay happens 20 times every day across a major EPC project?

HSE-MAVS™ helps you put a dollar value against that question.

Measure the micro-delay.

Understand the cumulative impact.

Identify the cause.

Support the management decision.