Subcontractor Management Ron Prichard PE, PhD

1. Subcontractor ManagementRon PrichardPE, PhD Arcanum Professional Services, Inc Plainfield, IN

2. Session Outline Fundamental Concepts Approach- from both perspectives Responsibilities defined Summary

3. Construction Liability Statutory and Regulatory: specific activity rules, with enforcement by government [level varies with jurisdiction of rule] Building Codes OSHA Environmental Criminal Contractual: method or outcome, with enforcement by parties to the contract Civil (Tort): method benchmark only � standard of care, with enforcement by plaintiff

4. Specific OSHA Hazards Requirements related to specific OSHA regulations 29 CFR 1926 Construction 20 CFR 1910 General Industry General Duty Clause For specific RECOGNIZED hazards not otherwise covered Compliance is tied to: The employer � employee relationship Control of the workplace Opportunity to comply with the regulation

5. Safety Duties are Non-Delegable Thus, both the General Contractor and it�s Subcontractors have concurrent safety duties Joint and Several Liability Independent and overlapping responsibilities Presumes an inability to apportion responsibility Redundancy is a key factor in promoting site safety If there is knowledge of a site safety problem, then action to correct it is required Responsibility for an entire site This is assigned under 29CFR 1926.16 to the GC Doctrine of Control Whoever retains control for outcome must exercise reasonable care.

6. OSHA Field Inspection Reference Manual Multi-Employer Citation Policy Compliance Directive CPL 2-0.124[10 December 1999] More than one employer may be citable for a hazardous condition that violates any OSHA standard. A two-step process is employed when determining the employer(s) to be cited. Burden of proof of violation � establishing a prima facie case - rests with OSHA

7. Strategic Elements Set Expectations Establish a Safety Culture Monitor Safety Performance

8. Expectations Safety is a core value Safety must be integrated into work processes Operational discipline should be practices at all levels Owner expectations will be understood and met Safety is a Business Deliverable

9. ANSI A10.38 Key Elements of a Safety and Health Program The Construction Employer shall: Train its workers Implement a program Authorize people to stop work and correct unsafe conditions Implement a disciplinary program Evaluate the effectiveness of the program and take appropriate action to correct program deficiencies

10. Establishing a Safety Culture Crafting the contract Staffing the project Bidding the work Preparing for construction Overseeing construction

11. The Business of Business[from John Stuart Mill] Business is all about �transactions� Transactions involve relationships Relationships entail duties for each party Duties generate legal obligations Legal obligations lead to liability

12. The Importance of a Contract Creates the �ground rules� for work performance Defines the roles, responsibilities and �deliverables� for the parties to the agreement A combination of plans, documents and specifications, describing: What: Results Desired How: Means and Methods of Performance

13. Monitoring Safety Performance Elevate safety over other project demands Ensure contract compliance Audit to enforce safety standards

14. General Contractor Obligations Job Coordination Good Site Appropriate safety culture Adequate access and control Acceptable site conditions Appropriate Oversight Follow-thru and Consequences Management

15. Factors Relating to Reasonable CareFactors that affect how frequently and closely a controlling employer must inspect to meet its standard of reasonable care include: Scale of the project; The nature and pace of work Controlling employers knowledge of the safety history and safety practices of the employer it controls; More frequent inspection required if controlling employer knows that the other employer has a history of non-compliance; Less frequent inspections may be appropriate where the controlling employer knows other employer has implemented effective safety and health efforts and maintains a high level of compliance.

16. Evaluating Reasonable CareIn evaluating whether a controlling employer has exercised reasonable care in preventing and discovering violations, consider whether the controlling employer: Conducted periodic inspections of appropriate frequency (based on previous factors); Implemented an effective system for promptly correcting hazards; Enforces the other employer�s compliance with safety and health requirements with an effective, graduated system of enforcement and follow up inspections.

17. Defense for Multi-Employer Citations Prove that, even with due diligence, you were unaware of the hazard Show that you have informed the offending employer of the hazard, when you expected it to be corrected, and that you followed up on your request Show that you protected your employees [and those of other employers] until the hazard was corrected

18. Overseeing the Work See and be seen Set a good example Stay current with project issues Communicate Anticipate and plan Incident System Evaluate, enforce and provide feedback Reinforce, reinforce, reinforce

19. Tactical Elements Policy and Leadership Risk Management Legal Requirements and Standards of Operation Project Planning Structure and Responsibility Programs and Procedures Emergency Preparedness Awareness, Training and Competency Investigation and Corrective actions Communications Document Control and Records Measuring and Monitoring Audits Review

20. Subcontractor�s Bill of Rights (Suggested) Clear expectations Good direction Safe access to work area Adequate site control Respectful treatment: no threats, no abuse Appropriate Communication All Directives in writing

21. General Contractor�s Bill of Rights(Suggested) All subcontractors working under the direction of the General Contractor will Cooperate Properly supervise and man the job Provide professional methods and workmanship Protect their employees and the work of others Properly train and equip their employees Provide timely notice of concerns and make all required reports Comply with all codes, regulations, standard and contractual obligations

22. Key Success Factors Effective Project Management Effective Job Coordination Managerial Emphasis on Safety Good Interpersonal Skills of Supervisors Safe Work Environment

23. Conclusion General Contractors can, and do, make a difference in safety outcomes This can be accomplished without increasing liability General Contractors who do not are courting disaster and unwanted additional liability The project, and all parties participating, will benefit

24. ron_prichard@msn.com 317-838-9953