The Business of Small Business Forum - Part V:

2. The Business of Small Business Forum - Part V: Safety and Health IssuesIn Small Construction Firms Occupational Safety and Health Administration Directorate of Cooperative and State Programs Office of Small Business Assistance May 30, 2007

3. Business of Small Business Safety and Health Issues in Small Construction Firms Carmen Shafer, CSP Corporate Safety Manager

4. Overview • Who We Are • Our Safety Program and Goals • Statistics • Change • Benefits • Safety Mindset • Challenges We Still Face

5. Who We Are • Founded in 1998 • $50MM+ Annual Volume • 50-60 Employees • Company Focus • Federal Projects • Heavy Industrial • Transit • Public Facilities • Design-Build/New Construction

6. Our Primary Goal • Protecting our employees, our subcontractors and members of the public from harm

7. New Program • As the nature G-W’s work changed a new safety plan was developed using ANSI A10.38 and OSHA guidelines as templates • G-W’s new program includes the use of many OSHA Resources

8. Grunley-Walsh Man-Hours

9. How We Do It • Employee Involvement • Planning and Follow-Through • Individual Development • Continual Improvement

10. OSHA Resources Utilized • Training using Susan Harwood Grant Materials • Fall Protection • Steel Erection • Free safety training through MOSH • “Quick Cards” for on-site training • OSHA Website • Boilerplate safety plans – BBP and EAP, checklists, etc.

11. OSHA Resources Utilized • Participation in DFWP through AGC as an alliance member • Attendance at ACCSH to learn of forthcoming regulations

12. Grunley-Walsh Statistics 2008 Projected EMR is 1.03

13. What Changed?

14. Benefits – Cost Reduction • Reduced 2006 Insurance Premiums by $40K within 6 months of implementing the new program • Reduced 2007 Insurance Premiums by $30K

15. Benefits - Industry Recognition • First Place Award in the 100K-300K Man-Hours category at the National AGC Construction Safety Excellence Awards Program in 2006 • Two Quarterly Project Safety Awards (MWAA) in 2006 and 2007

16. It’s All in the Mindset Don’t think of yourselves as “Small Businesses”, when it comes to safety, this mindset can hinder development of your safety program.

17. Myth • OSHA Fines and Medical Bills are part of the cost of doing business

18. G-W’s Mindset • OSHA Fines and Medical Bills are costs that reduce our profit • These costs are indicators that we are doing something wrong

19. Myth • Insurance Rates always go up, there’s nothing we can do about that

20. G-W Mindset • We can control our insurance rates through minimizing and managing our risk. • Reduce Accidents and incidents • Reduce Injuries & Manage Cases • Implement effective programs

21. Myth • If I did everything OSHA says I have to do, I will go out of business

22. G-W Mindset • OSHA is the Law and are the minimum requirements • Doing what OSHA and our contracts require is the cost of doing business. • There is Help • OSHA/DOL Provides Free Resources to help the small business meet many of its requirements at minimal cost

23. Myth • Construction is Dangerous Work, Accidents Happen

24. G-W Mindset • Construction is Dangerous Work. • However, these hazards are known and can be minimized • Planning • Training • Follow-Through

25. Challenges We Face • Locating Resources • Need for quality safety personnel to staff projects • Educating our Trades People • Need for Bilingual personnel to assist with training • Time • Getting personnel away from the project to participate in training, committees, etc. • Convincing Employees & Subs to take the time to plan, train, and do it right the first time…

26. Challenges We Face • OSHA’s Construction Challenge Program and VPP for Mobile Worksites • Currently working on application process

27. Aim High Our program is founded on the concept and commitment to create a pre-eminent, world-class safety culture

29. The Business of Small BusinessinT. A. Loving Company and AGC Presenter Linwood Smith, T.A. Loving Associated General Contractors of America

30. Discussion Items • T. A. Loving involvement in safety and health • AGC involvement in safety and health • How the two are compatible • How OSHA’s cooperative programs assist the small contractor • Cooperative programs help the companies bottom line

31. T.A. Loving • 80 years of building experience, Establish in 1925 • One of the nation's consistently top-ranked 400 contractors • Three operating divisions – Building, Utilities, Bridge/Heavy • Safety and health is a value to the company • How Safety and health effects our bottom line

32. Associated General Contractors of America • Oldest and the largest of nationwide trade associations in the construction industry. • Founded in 1918 at the request of President Woodrow Wilson • AGC represents more than 32,000 firms in the construction industry in 98 chapters throughout the United States. • 7,000 of the nation’s leading general contractors • More than 12,00 specialty contractors, • 13,000 material suppliers, engaged in the following construction – buildings, shopping centers, factories, industrial centers, warehouses, bridges, highways, tunnels, airports, water works facilities, multi-family housing, dams, water conservation projects, defense facilities, and municipal utilities. • Of these firms, 90% are small businesses and most of them are family owned and operated.

33. T. A. Loving Involvement with AGC • T. A. Loving President is Past President of AGC National • Recent Past-Chairman of AGC Safety and Health Committee • Assisted in the growth of cooperative programs participation during chairmanship • Challenge Administrator with participants and 3 graduates • Member of Roadway Work Zone Alliance and the Drug-Free Workplace Alliance • Several AGC members are VPP Star • CHASE Partnership • Current AGC representative on ACCSH and current committee Chairman

34. AGC Role in Cooperative Programs • AGC is a charter Challenge Administrator • AGC currently has 13 participants • Three GCs have graduated from Challenge • C.R. Myer and Sons are the first to have graduated from Challenge and obtain VPP Star • BSI Constructors graduated and is submitting an application for VPP

35. Strategic Partnerships • CHASE Partnership (Construction Health and Safety Excellence ) • 1998 partnership charter and was agreed upon on January 9, 2001 • had three award levels, Red (lowest), White (intermediate) and Blue (most stringent) • decreased serious injuries, illnesses, and fatalities for participating contractors • improvement of existing safety and health programs • 2003 – 81 participants and 9,967 employees involved in CHASE • CHASE expired in October 2004 • AGC now focused on Challenge and VPP-C

36. Alliances • July 10, 2006 joined the Drug-Free Workplace Alliance • Encourage training and education on the benefits of drug-free workplace programs and to raise awareness. • January 25, 2007 joined the Roadway Work Zone Safety and Health Alliance with ARBTA, NAPA, LIUNA, IUOE, NIOSH and OSHA. • This alliance was formed to develop hazard awareness training and education programs for highway work zones • AGC is pleased to be part of these alliances.

37. North Carolina Cooperative Programs • Partnership Agreements • Carolina Building Star • N. C. Dep. Of Labor Safety Awards Program • Consultative Services

38. T. A. Loving Support of Cooperative Programs • Original Purpose and intent of OSHA • 1991 Hamlet Chicken Processing Plant Fire • Cooperative Programs Vs. Enforcement

40. The Business of Small Business Forum – Part V Presented by: John Masarick May 30, 2007

41. Independent Electrical Contractors • A National Association of Electrical and System Contractors • 73 Chapters Nationwide • 3500 Members • 100,000 Electricians • Providing Training for 10,000 Apprentices

43. Construction Stats Fatalities (Construction Fourth) • Agriculture, forestry, fishing and hunting (32.5) • Mining (25.6) • Transportation and Warehousing (17.6) • Construction (11.0) Injuries and Illnesses (Construction First) • Construction (1,186) • Transportation and Warehousing(881) • Agriculture, forestry, fishing and hunting (714) • Government (514)

44. Electrical Contractors NAICS 23821 Injuries and Illnesses (Electrocutions Fourth) • Overextension • Falls • Contact with Objects • Electrocution • Transportation Fatalities (Electrocutions First) • Electrocutions • Transportation • Falls • Contact with objects

47. Safety on the Jobsite • If less than 50 workers, employer or supervisor oversees jobsite safety • If greater than 50 workers, company hires a safety director to oversee safety. • Smaller Contractors need to access safety material quickly.

48. How Does Safety Impact your Business • Cost of Insurance • Lost Time • Lost Productivity • Workers are a Valuable Asset • Contractors Compete for Workers • Shrinking Workforce • Retention • Other Costs

49. What Made OSHA’s Cooperative Program Attractive to IEC • Many safety committee members also participated in the development of other regulations. • Information about OSHA’s new alliance was found on their web site. • Other associations in construction had partnered with OSHA. • Alliance appeared have advantages. • Safety regulations and other information could be obtained directly from the source.

50. Alliance with OSHA OSHA & IEC Form an Alliance August 30, 2002 Renew: April 5, 2004 Renew: Oct. 30,2006