Construction Safety Expectations and Vision for NSLS-II Project

1. Construction Safety W. R. Casey NSLS-II ESH Manager CFAC 5/8/08

2. Construction Safety • DOE & BNL have high expectations for construction safety • Construction injuries and incidents can pose significant risk to project - delay in construction activities can seriously impact project schedule • Construction safety requires high priority and visibility to minimize risks to workers and the project • This is a very important issue to the project

3. Preparation for Construction Safety • Major topic in conventional facility workshop in Feb. • Much effort to apply lessons learned from SNS and LCLS • Construction Project ESH Plan has been prepared • Safety expectations was a major topic at pre-bid conference for potential GC bidders • New ESH manager has significant experience in construction safety and DOE construction projects • Positions for two construction safety engineers have been approved

4. ESH Vision –“Best in Class” Our message to all personnel involved in the construction program • We believe all accidents and injuries are preventable • We seek an injury and incident free work environment • Safety will never be compromised as the result of schedule or cost pressures • If we can not do it safely; we will not do it

5. Keys to Achieving the Vision • Clearly defined expectations that are communicated effectively to the contractor and sub-contractors • A GC who: • Understands the expectations and is committed to achieving them. • Has demonstrated on previous jobs that they can manage a construction site safely. • Recognition and reward for successful performance • Financial incentives

6. Clearly Defined Expectations • NSLS-II has defined ESH program expectations in the Construction Project ESH Plan • This plan will be finalized shortly. • Draft 2 completed – utilizes the best from Liro-Gilbane, SNS and LCLS • Considerable effort to make it consistent with the RFP • Key elements of this plan were communicated to prospective bidders during the pre-qualification process to make sure that they understand the nature of the ESH expectations. • The plan will be distributed to potential bidders as part of the bid solicitation process

7. Key Features of Construction ESH Plan • The GC must submit a written Health & Safety Plan (HASP) for review and approval before work begins • Their plan must be consistent with the requirements established in the NSLS-II Construction Project ESH Plan • Plan must identify hazards and controls for all construction work (phase hazard analyses) and discuss training and qualification requirements for workers • Plan must include daily pre-job briefings • Sub-contractors must comply with general contractor’s HASP

8. Contractors Health and Safety Plan (Cont.) • Must include frequent documented communication regarding safety (e.g. daily work planning sessions and weekly toolbox on important topics) • Daily safety inspections will be performed, documented - issues promptly corrected • Must include a well defined disciplinary policy for safety infractions • All incidents and accidents will be promptly reported and investigated • find out how the accident could have been avoided and communicate • build an open atmosphere where personnel feel encouraged to report

9. Pre-Qualification Process • Contractors must demonstrate a commitment to safety and an effective construction safety program • We will want to review: • Prior 3 years DART rates • Prior 3 years OSHA 300 logs • Prior 3 years history of OSHA or EPA citations • Prior 3 years EMR • ESH Program documents • Experience and qualification requirements for ESH personnel • Training requirements for key personnel and all workers

10. Important Bid Evaluation Factors • Adequacy of corporate health and safety plan • Superior Performance – we desire • EMR < 0.81 • DART rate < 0.6 (average for DOE Construction) • Contractor Controlled Insurance Program (CCIP) • Drug–testing program • Occupational Medical program, including on-site nurse

11. Important Bid Evaluation Factors (cont.) • Experience of key project personnel – Project manager, Site Superintendent, Site ESH Lead • Feed-back from previous customers • Conditions at a current job-site as determined by unscheduled walk-through • Provisions for flow-down of safety incentive program to key personnel and workers, including sub-contractors

12. Contract Provisions • Safety incentive award for GC and sub-contractors will be performance based - non-compliance with HASP provisions and other poor safety performance will result in reductions or complete loss of incentive. • Sub-contractor EMR, DART rates, and OSHA logs must be submitted to NSLS-II for review. • CCIP must cover sub-contractors

13. Key ESH Responsibilities for Safety during Construction • GC/sub-contractors are directly responsible to provide safe working environment and to comply with all provisions of HASP • GC/Sub-contractors will be responsible for fines and penalties issued by DOE • GC/sub-contractors will receive financial incentives based on ESH performance • NSLS-II has ultimate responsibility - establishes performance expectations and monitors performance • Holds GC accountable for safety performance. • Poor performance can result in withholding of incentives, removal of personnel, or termination of contract.

14. Safety Incentives • Plan to offer $2,000,000 in incentives • $500,000 annually (to be awarded 3X), and end of project award of $500,000 • Award based on superior performance compared to normal industry injury rates – must be < than DOE Construction average for ½ maximum • $5,000 reduction in award for significant OSHA violations or for repeated failure to comply with less significant requirements • no annual award regardless of rates if there is a fatality, loss of limb or an injury to the head resulting in permanent disability at the work site.

15. DOE Construction Ave. is Starting Point for Incentive Injuries/100 FTEs-yr DOE & Industry data for FY 06

16. $5000 Reduction in Award for the Following Violations • Fall Protection. Any worker not properly using appropriate fall protection systems. • Confined Space. Entry into a confined space without a required confined space permit or violation of permit requirements. • Lock-out Tag-out (LOTO). Failure to use when required, the LOTO procedures as approved in the GC’s Safety Plan. • Electrical. Any work on or near energized parts that violates BSA Specification 00800 1.10 F, or the GC’s Safety Plan. • Failure to report injuries. Failure to report a recordable work related injury or illness as defined in 29CFR1904. • Fire Protection. Any fire caused by insufficient or inadequate fire protection measures. i.e., failure to obtain a Burn Permit, required for welding or other hot work, or work performed without a fire watch and appropriate extinguisher. • Hidden Hazards. Excavation without a required Dig/Penetration Permit or violation of the requirements of a Dig Penetration Permit. • Shoring Hazards. Al excavation shall be protected from cave-ins by adequate protection systems designed in accordance with 29 CFR 1926.652.

17. $5000 Reduction of the Annual Award for Lack of Responsiveness to Less Significant Issues • Personnel Protective Equipment. Repeated violations of any worker not wearing personal protective equipment as required in the contact documentation or in the Prime Contractors Safety Plan. • Housekeeping. Repeated housekeeping issues at the job site. • Tools. Repeated use of defective hand tools, power tools, extension cords etc. • Smoking in violation of the no-smoking policy. • Repeated traffic violations issued on the BNL site.

18. The Message to our Potential Bidders • Excellence in safety and excellence in construction performance are inherently linked • World class performance in either area requires • excellent work planning, • understanding interfaces • attention to detail • involving the work force • Address these issues – safety is not added on, but woven into the fabric of the job