Michigan Legislature Sets Stage for Policy Battle

/in , /by
By Scott McClallen | Originally posted on tennesseestar.com

Michigan Democrats filed bills aiming to fulfill a 40-year pending wishlist, which include restoring the prevailing wage and repealing right to work.

Other bills filed include repealing the retirement tax, boosting the earned income tax credit, and repealing the 1931 abortion ban despite a constitutional amendment voiding the law.

“House Democrats are committed to supporting Michigan families, guaranteeing the rights of all Michiganders are protected and respected, ensuring workers know they are valued, protecting and investing in our future, and promoting safe and strong communities,” House Speaker Joe Tate, D-Detroit, said in a statement. “Our commitment to make good on our promise to advance the priorities of the people is made clear with the introduction of these first bills of the session.”

In 2018, Michigan’s GOP-majority Legislature repealed the prevailing wage measure that required contractors to pay union wages on state construction projects. However, in 2021, Democratic Gov. Gretchen Whitmer ordered the Department of Technology, Management and Budget to require contractors be paid the prevailing wage on jobs worth more than $50,000.

The announcements were met with pushback from the private sector, which would pay higher costs for construction, along with the government.

The trade association Associated Builders and Contractors of Michigan opposes restoring the prevailing wage. ABC Michigan CEO and President Jimmy Greene said that if the prevailing wage was restored, it would set 100,000 different wage mandates for Michigan construction.

“Usurping local control by forcing this mandate on local governments, schools, community colleges, and universities is not defendable,” Green said in a statement. “Regardless of where someone stands on the economic debate over prevailing wage requirements, nobody is seriously of the opinion that navigating 100,000 wage mandates every year makes sense. If this issue is going to be debated let’s have the thoughtful conversation that needs to take place and agree there is surely a more common-sense way to address public construction wage and benefit requirements than attacking workers and builders with 100,000 new requirements.”

Whitmer tweeted on Thursday that the bills would help Michiganders hit hard by inflation.

Her tweet read, “Michiganders are feeling the pinch with the high cost of essential goods like gas and groceries. We’re introducing new legislation that will cut costs for working families and support our seniors. We’re putting Michiganders first and getting things done!”

Michigan Freedom Fund Executive Director Sarah Anderson said the group plans to defend the right-to-work law. Enacted in 2012, the rule says nobody can be required to pay dues or fees to a union to hold a job.

“Politicians in Lansing have barely been on the job a week and they’re already declaring war on more than 150,000 Michigan workers who’ve exercised their constitutional rights over the last 10 years,” Anderson said in a statement. “Repealing right-to-work would strip working families of their rights, stifle wage growth, kill jobs, and make Michigan dramatically less attractive to new employers.”

How Technology Bridges the Construction Trade and Talent Gap

/in , /by

By Doron Klein | Originally posted on forconstructionpros.com 

The construction industry is experiencing an ongoing hiring drought, and the challenge of hiring has led to a loss of business for many general contractors. A recent report from the U.S. Chamber of Commerce Commercial Construction Index indicated that 92 percent of contractors reported difficulty finding construction workers. Of those, 42 percent said that this has caused them to turn down work.

According to the Associated Builders and Contractors, the second half of 2022 will expand the construction hiring issue due to inflation, federal spending, an aging workforce, and persistent shortages. As we combat these obstacles, it becomes necessary to prioritize recruitment, retention, employee training, and workplace safety. Investing in technology solutions is key to the construction industry’s success.

Technology Positively Impacts Worker Retention

Construction is known to be a physical profession, which creates real workforce problems as individuals age out of the work. According to the Bureau of Labor Statistics, the average age of a construction worker is about 42 years old, and 36 percent are between the ages of 45 and 64. Advanced technology solutions help to elongate the careers of construction workers and retain this crucial segment of aging talent.

The stress of making decisions on the fly that impact quality, schedule, and cost is alleviated when technology provides certainty via real-time data. For example, before pouring the concrete, digitally verifying installation progress, quality, and dimensional layouts would enable the identification of errors and omissions in the slab relative to the plans and shop drawings. Subcontractors can then use that data to make relevant corrections before concrete is poured and utilize it as a source of truth for the future. This precision eliminates decisions based on second-guessing inherent in today’s manual quality control processes, leading to increased productivity and schedule acceleration.

Technology that increases construction accuracy and reduces mistakes will unlock the potential for a higher degree of communication, certainty, schedule, and cost. Accurate, real-time data equips teams to identify errors, gain heightened accountability, and collaborate better because the insights show where attention is needed now, rather than having to tell a team member that mistakes were made after the fact. This eliminates finger-pointing when an error is identified and creates a more positive environment that boosts morale and employee retention.

The Key to Unlocking the Future Workforce’s Potential

The early adoption of technology, such as plan verification software that provides real-time actionable insights on a project, will improve the construction work environment and potentially attract more professionals in the near future. A new superintendent typically needs up to six years of field management work to become fully trained in how to forecast errors. With technology-enabled data, contractors can cut that process down to as little as two years. The checks and balances provided by data-informed reports identify a variety of issues and alert field mistakes as they happen, equipping the superintendent to know what to look for and getting them up to speed in the field quicker.

Trade schools were once seen as a “fallback” option in the 1980s and ‘90s but are now more attractive for those who graduated high school mid-pandemic. According to ECMC Group, a teen’s likelihood of pursuing a four-year degree decreased 23 percentage points between May 2020 and September 2021, down to 48 percent from 71 percent. Given the tools to succeed, construction can become a more attractive job option for recent graduates.

When we equip trades with cutting-edge tools, the construction industry becomes a more attractive career path, especially for younger individuals who have an easier time adopting new technology. While we train the future workforce to use data effectively on the jobsite, we’re teaching them how to adapt to new technologies and better prepare them for their future.

Accurate data-based technology allows management to accelerate lessons learned for employees before it’s too late, showing them solutions rather than just problems. If a worker is repeatedly improperly spacing panels or installing crooked components, real-time documentation allows the project manager to identify where retraining is needed. Documenting errors along the way equips the team to improve work processes and instruct workers on how to succeed moving forward when reporting mistakes.

Leveraging Technology to Improve Worker Safety

Over 40 percent of American workers report experiencing increased mental distress due to the pandemic, and over 85 percent say that work impacts their mental health, according to the National Safety Council. Prolonged workplace distress causes fatigue and impacts worker safety. The risk this presents extends to construction trades. According to the U.S. Occupational Health and Safety Administration (OSHA), decreased alertness from worker fatigue has factored into industrial disasters, prime examples being the 2005 Texas City BP oil refinery explosion, the 2009 Colgan Air Crash, the explosion of the space shuttle Challenger, and the nuclear accidents at Chernobyl and Three Mile Island.

The most significant contributor to construction workplace safety incidents is unplanned work, with an estimated 70 percent of safety incidents happening during rework. When workers aren’t in a planned workflow, like during the rework process, they are contending with heightened risk and stress. The uncertainty leaves them more vulnerable to making mistakes that can cause financial losses within the project or, even worse: increase the likelihood of injury. With the proper tools and actionable data insights that catch problems before they happen, general contractors avoid rework and improve the well-being of trades.

Technology Improves Productivity and Accuracy

Contractors orchestrate a project according to a schedule, and when a schedule slides, it affects costs and penalties and limits their teams from moving on to the next project. By leveraging technology and data, industry professionals will streamline the construction process by speeding up tasks, ensuring better quality, and protecting budgets.

For example, façade installation is complicated to inspect and ensure quality control. Any unseeded gasket and missing coupling bar will cause structural issues and warranty concerns if unattended. Digital verification platforms enable confirmation of every square inch of the exterior without superintendents having to do it from the ground level and balconies manually. By shifting the weight of this obstacle to data-informed technology, general contractors can reduce risk and eliminate errors, saving time and resources through greater efficiency. This process allows general contractors to more precisely understand how to budget for contingency time, which should be reserved for unavoidable circumstances like weather delays. Through this heightened efficiency, industry leaders maximize the productive time of workers, freeing them from endless hours of manually checking every detail and allowing them to focus on more significant parts of the work.

Data-driven processes better equip construction decision-makers to combat the prevalent labor shortage through tools that improve worker retention, training, and worksite safety. Whether improving workplace morale by providing certainty and eliminating errors or streamlining the construction process by freeing up the team to complete more meaningful tasks, technology is the key to bridging the construction trade and talent gap and accelerating the industry forward.

ABC: Construction Employment Up By 28,000 in December

/in , /by

Originally posted on constructionbusinessowner.com 

The construction industry added 28,000 jobs on net in December, according to an Associated Builders and Contractors (ABC) analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has risen by 231,000 jobs or 3.1%.

Nonresidential construction employment increased by 17,900 positions on net, with growth in all three subcategories. Nonresidential specialty trade contractors added 10,200 net new jobs, while nonresidential building and heavy and civil engineering added 5,800 and 1,900 jobs, respectively.

The construction unemployment rate rose to 4.4% in December. Unemployment across all industries declined from 3.6% in November to 3.5% last month.

“This employment report indicates that contractors collectively remain in expansion mode despite rising costs of capital and fears of recession,” said ABC Chief Economist Anirban Basu. “Consistent with upbeat assessments of construction activity late last year, nonresidential contractors continue to ramp up staffing in the context of elevated backlog. In ABC’s Construction Confidence Index, contractors indicated that both sales and employment would continue to rise over the next six months.

“There was additional good news emerging from the overall U.S. economy,” said Basu. “Though the labor market remains strong and job creation persists, there are indications that wage pressures are easing. Nonetheless, the Federal Reserve will continue to raise interest rates to restore inflation to its 2% target, with the implication that a recession remains a real possibility in 2023. Based on historical precedent, that could produce more challenging times for contractors in 2024 and/or 2025.”

ABC 1

 

ABC 2

Construction

Construction forecasters remain cautiously optimistic about this year, with growing concerns about 2024

/in , /by

By Kermit Baker, Hon. AIA | Originally posted on aia.org 

CCF Jan 23

Spending on nonresidential buildings picked up momentum toward the end of 2022, with gains approaching 10% on an annual basis. Much of the increase was the result of materials and labor costs, but still, the results were encouraging given macroeconomic headwinds such as inflation, rising interest rates, and weak consumer sentiment scores.

This year is expected to produce further growth in construction spending, but at a more moderate pace. Overall gains in spending are projected at just under 6%, with almost 3% for the commercial sector, 15% for industrial facilities, and 4% for institutional buildings. Next year, growth in spending is forecast to slow to under 1%, with a decline of 1.4% for commercial, a modest 0.4% increase for industrial, and a 3.8% increase for institutional facilities.

An unbalanced year for construction in 2022

While the spending gains this past year were impressive, they also were uneven by sector. The commercial/industrial sector increased by over 15%, as did retail and other facilities (which includes distribution), spurred on by strong gains in manufacturing, Manufacturing gains have resulted in large part due to reshoring efforts by U.S. companies. The Reshoring Institute estimates that reshoring and other foreign direct investment in the U.S. produced 350,000 manufacturing positions in 2022, almost three times the average of the prior decade.

The distribution component of the retail category has seen the strongest growth of any major building sector over the past decade. Due to explosive growth in e-commerce, the construction of distribution facilities has increased by nine-fold over this period, compared to just over 50% in overall gains in spending on buildings.

The other two major commercial building categories – offices and lodging – essentially saw no gains last year as both sectors were still adjusting to the reduction in demand during the pandemic. The institutional categories saw only very modest spending growth last year, with healthcare and amusement/recreation being the only major sectors with increases of 5% or more.

Even though the pace of growth is slowing, there continues to be dramatic increases in input costs for construction projects. The most recent figures from the US Department of Labor estimate that input costs increased almost 10% over the past year. While very high by historical standards, this growth rate is only about half of its growth pace in late 2021.

It is difficult to separate real gains in construction activity from mere inflation in labor and material prices. However, one method for disentangling the two is to look at construction employment levels, since increases in employment would strongly suggest an increase in output. Over the past year, nonresidential construction employment increased almost 4%, suggesting that a significant share of the increased spending resulted in increased construction output.

The slowdown unfolds…

Entering 2023, the construction industry will be confronted with mounting challenges. In addition to high levels of inflation, rising interest rates, and continued supply change issues, many economic forecasters expect a recession this year, likely in the first half. While that will certainly impact the construction outlook, it will do so with a considerable lag. Most projects already underway as the slowdown hits are likely to continue to completion, and the Associated Builders and Contractors reported that backlogs at contractors were averaging nine months in late 2022.

Still, signs of a construction slowdown are emerging. The American Institute of Architects’ Architecture Billings Index fell below the significant 50 threshold in the fourth quarter of last year, indicating a decline in billings nationally. Research conducted by the AIA determined that the lead time between design activity and construction activity runs in the 9–12-month range, suggesting a slowdown in construction spending some time around the third or fourth quarter next year.

Like construction companies, architecture firms are sitting on elevated backlogs of around seven months. However, unlike construction companies, architecture firms have seen that backlogs can evaporate when business conditions weaken as clients may decide to delay or even cancel projects if they no longer make economic sense.

Despite strong revenue growth last year, architecture firms have modest expectations as to how much revenue will increase this coming year. After reporting average revenue growth of almost 7% last year, projections for this year were lowered to below 1%, with 30% of firms expecting a revenue decline of 5% or more. Multifamily residential firms are expecting the steepest revenue declines, while institutional firms are anticipating growth about twice the overall average for the profession.

The members of the AIA Consensus Construction Forecast panel have a similar outlook in terms of the performance of key sectors this year. While overall growth is expected to be almost 6%, the commercial sector is expected to see the weakest gains at 2.6%. Spending on institutional structures is projected to increase over 4%, and a whopping 15% for industrial facilities.

… as the market softens in 2024

The construction slowdown that is expected to begin in the latter half of this year is projected to continue into 2024. With overall growth of less than 1% next year, spending on commercial facilities is projected to decline by over 1%, and industrial construction should eke out a very modest gain of less than one-half of 1%.

However, the institutional sector is projected to keep the overall nonresidential building market in the growth category. The 4% expected growth for 2023 is projected to fall only modestly to just below 4% for 2024. The two key pillars of the institutional market – health care and education – are both projected to have relatively healthy years with growth in health care spending slowing modestly to 3.2%, and education accelerating to 4.6%.

Reconstruction work on the rise

Over the past few decades, there has been a steady increase in the share of revenue at architecture firms coming from reconstruction projects – renovations, retrofits, building additions, and historic preservation. Part of this derives from an expanding interest in sustainability – fixing up an older building is more environmentally sensitive than tearing that building down and constructing a new one. However, fundamental economics and demographics likely play an equal or greater role. Slower population growth in recent years and the resulting slower growth in the economy means that we don’t need to expand our building stock at the pace we did a decade or two ago.

We’re seeing this increased growth in the reconstruction share across all major building categories. Architecture firms reported that in 2021, 62% of their revenue from commercial and industrial facilities came from reconstruction projects, up from 38% 15 years ago. Institutional work has seen a similar trend, with revenue from reconstruction projects rising to 61% from 38% 15 years ago. The residential sector is starting from a lower base, with remodeling work accounting for 40% of billings in 2021 from a level of 26% 15 years ago. This does not imply that that homes are not remodeled as much as buildings, but rather that much of the redesign work in this sector doesn’t occur at architecture firms.

It’s likely that the pandemic has provided a boost to reconstruction activity. Many building uses have changed  substantially with the pandemic as consumer spending behavior has evolved. An AIA survey last spring found that adaptive reuse and conversion was the single most important goal of reconstruction projects at that time, accounting for over a quarter of all reconstruction work. Basic interior modernization and tenant fit outs were the next most popular goals, accounting for just under 25% and just under 18% respectively. If a soft economy, high inflation, and high interest rates make more construction projects less feasible in the coming quarters, we can expect continued growth in the share of work coming from reconstruction projects, and a buffer against a more serious setback for the profession.

$52B CHIPS Act a boon for construction, but challenges remain

/in , /by

By Sebastian Obando | Originally posted on constructiondive.com

The White House announced Wednesday President Joe Biden will sign the $52 billion CHIPS Act, which subsidizes the semiconductor industry and provides a 25% tax credit for companies that build facilities in the U.S., on August 9.

Platitudes from construction pros started piling in as soon as Congress passed the bill last week.

Richard Branch, chief economist for Dodge Data & Analytics, said the CHIPS Act will “keep the construction sector on sure footing as the economy slows over the next year.” He added Dodge is currently tracking nearly $33 billion in semiconductor fabrication plants still in the planning stages.

James Christianson, vice president of government relations at the Associated General Contractors of America, said the act will “spur broader economic development and new, long-term construction jobs,” in a letter praising the passage of the CHIPS Act.

Despite those accolades, challenges remain.

Labor shortage

For example, there are a limited number of specialty contractors with the skill and experience in the semiconductor space, said Jeffrey Gilmore, chair of Akerman’s construction practice, a law firm based in Miami.

“The current demand and shortage of skilled labor will present a substantial challenge for the teams selected to perform such projects,” said Gilmore. “Ultimately, successful project delivery will demand a nimble team prepared to perform very specialized design and construction services suited to the clean building environment necessary for a precision industrial chip facility.”

The pace and complexity of such projects will present additional challenges. These jobs typically require progressive design-build and engineering, procurement and construction approaches, Gilmore said, as well as heightened security.

“Access to a workforce with security clearances will likely provide a further complication that may limit the pool of qualified candidates,” said Gilmore. “Access to federal funds will also likely entail a unique set of compliance issues to address relevant requirements that will be mandated as a condition of the funding.”

Davis-Bacon questions

Peter Comstock, senior director of legislative affairs at Associated Builders and Contractors, also raised concerns about how Davis-Bacon regulations, which set prevailing wages on federal projects, will be included on private construction jobs.

ABC hits out at US Inflation Act

/in , /by

By Liam McLoughlin | Originally posted on aggbusiness.com

The ABC has sent a letter to Congress highlighting its concerns about the bill

The measures planned in the legislation include raising US$739bn and authorising US$370bn in spending on energy and climate change, and US$300bn in deficit reduction.

Kristen Swearingen, the ABC’s vice president of legislative & political affairs, said: “While the Democrats’ reconciliation proposal has undergone changes over the recent days, the package unfortunately would still impose anti-growth tax policies that fail to address the rate of inflation, supply chain snarls and workforce shortages disrupting the economy and construction industry.”

“Most critically, this bill penalises employers that believe in fair and open competition and pay wages based on experience, quality and market rates, and also limits opportunities for the millions of construction workers who choose not to join a union,” said Swearingen.

The bill provides US$250bn in incentives for clean energy projects, but Swearingen said 83% of the value of these credits lies in projects ABC members will be largely prevented or discouraged from participating in due to these labour restrictions.

The ABC has sent a letter to Congress highlighting concerns in the bill, urging lawmakers to “reject the harmful policies included in the budget reconciliation package and work together to address the ongoing needs of our economy and hardworking Americans.”

The ABC is a national construction industry trade association established in 1950 that represents more than 21,000 members.

More Than a Century of Safety: The Legacy of Edward W. Bullard

/in , /by

By Carrie Williams | Originally posted on constructionexec.com 

Promoting both awareness and action in support of occupational safety and healthy workplace culture, World Day for Safety and Health at Work was established by the International Labour Organization (ILO) in 2003. Observed each year on April 28, there is perhaps no better day to reflect on the importance of those whose work has made us safer.

The National Inventors Hall of Fame® (NIHF), honors some of the world’s greatest inventors, many of whom have contributed significantly to the health and safety of workers. Among these inventors is Inductee Edward W. Bullard, creator of one of the most essential pieces of protective equipment for any construction site: the hard hat.

A SOLDIER BRINGS SAFETY HOME

Edward W. Bullard was born in 1893 in Las Vegas. A graduate of Lowell High School in San Francisco and the University of California, Berkeley, he served in the cavalry of the U.S. Army and was stationed in France during World War I. Bullard served for nine months and achieved the rank of lieutenant.

When he returned home, he joined E.D. Bullard Co. in San Francisco, which had been founded in 1898 by his father, Edward Dickinson Bullard, to sell carbide lamps and mining equipment.

Bullard soon noticed a common hardship for miners: they had no head protection from life-threatening falling debris. Thinking back to the “doughboy” helmets he and fellow soldiers had worn in France, he was inspired to develop a safety helmet for miners and others engaged in dangerous work.

In 1918, Bullard began turning his idea into a reality.

To create this new helmet, Bullard used overlapping layers of sturdy canvas, which were steamed for temporary pliability before being secured together with glue. He then covered the inside and outside shell with water-resistant shellac for added strength and durability. Finally, he added leather to the front and rear brims.

Bullard had created the world’s first commercially available industrial protective head gear. He called it the Hard Boiled Hat®, referring to the steam used in its manufacturing process. It was patented and entered production in 1919.

AN INVENTION BECOMES AN INDUSTRY STANDARD

The Hard Boiled Hat’s recognition among work zones soared during the major construction projects of the 1930s.

The construction of San Francisco’s Golden Gate Bridge was a defining industrial project of the Great Depression era, and those who built it faced significant risk. Golden Gate Bridge engineer Joseph B. Strauss, who had committed to implementing new safety standards, contacted Bullard Co. to request that the company adapt its protective helmets for bridge workers. Bullard modified his original mining helmet to create a durable industrial hard hat that would mitigate the danger of falling rivets on the bridge.

The Golden Gate Bridge project was designated as America’s first “Hard Hat Area” in 1933.

Also in 1933, Bullard Co. offered its first aluminum hard hat, as well as its first fire helmet, which was based on the Hard Boiled Hat design.

The significance of the hard hat has been reinforced over the decades. In the 1940s, Bullard Co. introduced the well-known three-rib hard hat design and the first fiberglass fire helmet. In the 1950s, the company created the first thermoplastic hard hat and opened a molding department to manufacture plastic helmets.

Since the early 1970s, when the Occupational Safety and Health Administration (OSHA) began requiring workers to wear hard hats on job sites, the number of worker deaths has significantly decreased, underscoring the immense importance of Bullard’s invention.

A LIFESAVING LEGACY CONTINUES

Of course, hard hat safety advances have not been confined to the previous century. In the past two decades, Bullard Co. has created TrakLite®, the first integrated lighting system for fire helmets, the lightest blast helmet on the market, and the AboveView Hard Hat, which features a transparent visor.

In 2019, Bullard Co. celebrated “100 years of head protection,” commemorating the invention of the hard hat.

Approximately 6 million hard hats are now sold annually. Bullard Co., which is in its fifth generation of family ownership, continues to produce hard hats and other essential protective gear for workers.

Both a symbolic and physical representation of workplace safety standards, the hard hat is an invaluable piece of protective equipment at worksites worldwide—and it all started with a veteran’s commitment to making workers safer.

MEET MORE INSPIRING INVENTORS

For more stories of Hall of Famers whose innovations have set standards and shaped industries, we invite you to visit the NIHF blog.

ABC 2022 Safety Performance Report: Top-Performing STEP Members Are Six Times Safer Than Industry Average

/in , /by

By ABC | Originally posted on constructionexec.com 

Associated Builders and Contractors has unveiled its 2022 Safety Performance Report, an annual, comprehensive study of the impact of the STEP Safety Management System and guide to safety best practices on construction jobsites. STEP is a proven system, more than 30 years old, that enables top-performing members to achieve incident rates 645% safer than the U.S. Bureau of Labor Statistics construction industry average. The annual study is published to coincide with Construction Safety Week, May 2-6.

“World-class safety and total human health are integral parts of the culture of ABC STEP members companies—and it shows,” says Greg Sizemore, ABC vice president of health, safety, environment and workforce development. “STEP is a crucial ‘step’ any company can take to be safer. STEP Diamond members are more than six times safer than the industry average, achieving an 84% reduction in Total Recordable Incident Rates. ABC annually researches what truly makes a contractor safer than others—and this report quantifies those best practices and results. Our people are our greatest asset and ABC will continue to advance world-class safety for our people, through valuable resources like the Safety Performance Report.”

ABC’s research on more than a billion hours of work completed by participants in the construction, heavy construction, civil engineering and specialty trades in 2021 identified the following proactive injury and hazard elimination best practices:

  • New hire safety orientation: Companies that conduct an in-depth indoctrination of new employees into their safety culture, systems and processes based on a documented orientation process experience reduce TRIR by 70% and their Days Away Restricted or Transferred rate by 72% compared to companies that limit their orientations to basic safety and health compliance topics.
  • Substance abuse prevention programs: Robust substance abuse prevention programs/policies with provisions for drug and alcohol testing where permitted lead to a 70% reduction in TRIR and a 73% reduction in DART rates.
  • Toolbox talks: Companies that conduct daily toolbox talks reduce TRIR by 76% and DART rates by 79% compared to companies that hold them monthly.
  • Top management engagement: Employer involvement in safety programs at the highest level of company management produces a 71% reduction in TRIR and DART rates.

ABC has studied how to improve construction jobsite safety through STEP since 1989. Participating ABC member firms measure their safety processes and policies on key components and the criteria for best practices through a detailed questionnaire with the goal of implementing or enhancing safety programs that reduce jobsite incident rates.

The 2022 ABC Safety Performance Report is based on submissions of unique company data gathered from members that deployed STEP in 2021. ABC collects each company’s trailing indicator data as reported on its annual Occupational Safety and Health Administration Form 300A (“Summary of Work-Related Injuries and Illnesses”) and its self-assessment of leading indicator practices from its STEP application. Each data point collected is sorted using statistically valid methodology developed by the U.S. Bureau of Labor Statistics for its annual Occupational Injuries and Illnesses Survey and then combined to produce analyses of STEP member performance against BLS industry average incident rates. The report demonstrates that applying world-class processes dramatically improves safety performance among participants regardless of company size or type of work.

The ABC 2022 Safety Performance Report is brought to you by ABC Tech Alliance member KPA, which provides safety management software, training and consulting to the construction industry. 

Four Tips for Drafting Contractual Safety Provisions

/in , /by

By Jeanne M. Harrison and Stephen M. Reams | Originally posted on constructionexec.com 

Construction accidents can delay a project and increase costs. More importantly, they can lead to serious significant injury or even death. Hence, it is imperative that owners and contractors make safety their top priority. To do this, they must create a culture of safety and continuously monitor and manage potential safety concerns on construction jobsites with the goal of zero accidents.

To foster a culture of safety, owners and contractors should address these concerns on the front end of the project through carefully written contract language. The construction contract establishes the rights, obligations and expectations regarding virtually every consideration of the parties on a project. If safety is to be job one, then the language should also address the contractor’s safety policies, procedures, preparedness and performance. Below are best practices for the inclusion of safety-related language into contracts.

1. ENSURE COMPLIANCE WITH THE EXISTING FEDERAL, STATE AND LOCAL REGULATIONS THAT APPLY TO ALL PROJECTS

At a minimum, written contracts should require all contractors, subcontractors and others performing work on the project site follow all applicable federal, state and local requirements. The contract does not need to specifically detail every law or regulation that the parties must follow. The burden is on the parties to know the applicable federal, state or local requirements and ensure their compliance. The contract may specifically reference or quote those regulations the contracting party wants to highlight. Following any highlighted provisions, the contract should also include language requiring compliance with all laws and regulations related to safety or otherwise governing the project. The contract may also set forth procedures for auditing compliance and the reporting of violations, especially any violation leading to an accident.

2. REQUIRE EVIDENCE OF A WRITTEN SAFETY PLAN

A number of OSHA regulations require contractors to maintain a written safety plan. Even where the governing authorities do not require a written safety plan, it is still good practice to require all lower-tier employers to maintain an updated written safety plan. The existence of such plans, establish a safety culture and help employees remember safety best practices and specific trainings as they work. Additionally, a written safety plan may help reduce costs related to workers’ compensation premiums. If the project has unique concerns, such as working around hazardous materials, dangerous surface conditions or infectious disease risks, the property owner should have a professionally developed video training on hand with required viewing before workers access the site.

3. REQUIRE EVIDENCE OF WORKERS’ COMPENSATION INSURANCE

Workers’ compensation insurance serves two purposes:

  1. it ensures that injured workers get medical care and compensation for workplace injuries; and
  2. it protects a businesses’ bottom line following the occurrence of a workplace injury or illness.

While Workers’ compensation insurance requirements differ by state, it is important to understand that most states do require it. A few states, including North Dakota, Ohio, Washington and Wyoming require that businesses obtain workers’ compensation insurance through state-funded operations. It is the responsibility of the contracting parties to ensure their compliance with the pertinent state laws. Additionally, The contract may mandate specific safety ratings (such as CPAR or workers’ compensation) and require that lower-tier parties be vetted on their safety ratings.

4. IDENTIFY AREAS THAT ARE SUBJECT TO CONTRACTOR’S CONTROL

It is common for multiple contractors/employers to perform different scopes of work at the same time on the project site. These contractors work in close quarters, and it is possible for one contractor’s work to create potential safety hazards for other trades. For this reason, it is important for contractors to understand and clearly communicate the specific areas of the project site that are subject to their control and oversight.

A safe workplace will protect employees from injury and lower a company’s expenditures. It will also increase productivity and quality of performance. In other words, safety is good for business and must be taken seriously from the very beginning—at the contracting stage. Identify the safety risks and manage them by contractually assigning the duties of responsibilities, documentation and compliance.

Promote a Culture of Safety With a Connected Workforce

/in , /by

By Rachel E. O’Connell | Originally posted on constructionexec.com 

Construction Safety Week 2022 runs from May 2-6. With that in mind, Construction Executive has conducted an exclusive interview with Gary Clevenger, vice president-risk control at CNA to discuss how to build a well-trained, connected workforce in order to promote a culture of safety and reduce the risk of injury.

Construction Executive: How is a connected workforce safer than an unconnected one?

Gary Clevenger: Connected workforces allow communication to flow up and downstream. Technology helps communication and messaging to be delivered to the workforce, as well as offers a space for critical messages and feedback loops for management. Companies that embrace connectivity can deliver and receive consistent messaging, feedback in real time and make corrective actions that enhance safety and productivity.

CE: How do training and connectivity promote safety?

GC: Digital collaboration and innovative use of technology can deliver consistent, consumable information to the workforce. Digital training platforms allow management to deliver clear messages on safety and hazard mitigation. Examples include: in line translation that delivers content to the worker in a preferred language, and increasing comprehension and understanding demonstrates the importance placed on the safety and well-being for all workers.

CE: What kind of training should contractors implement to improve safety?

GC: The construction industry continues to face shortages of skilled labor. Workers new to the industry should be provided with new employee orientations that prepares this new workforce for the hazards found in construction. Onboarding, prequalification and project- or task-specific training are components of an effective EHS strategy. Communicating safety expectations and addressing critical hazards by through technology platforms can effectively provide new employee orientations that track performance and comprehension—all valuable insight for employers.

CE: How does technology influence training and vice versa?

GC: The avenue for communication that fosters additional engagement with the workforce. Digital learning serves as tool for conveying awareness, hazard recognition and transfer of knowledge across a large population of the workforce in an efficient and consumable fashion. It has been found that because social media has changed the way society consumes content, digital training and awareness are effective ways to connect with employees.

CE: What is a “culture of safety”?

GC: The culture of safety allows everyone to be part of the conversation and solution. Safety is built into conversations, programs, work process and decisions with equal weight. It becomes a core value for a company, not just in words but also actions that demonstrate the commitment to worker safety and health.

CE: What can the industry do to ensure a culture of safety?

GC: A culture of safety is a core value that empowers workers to put their safety and health first over other competing priorities. Allowing workers to make safer choices and not be penalized when they make a decision that impacts safety and health is a strong first step.

CE: What technology solutions best encourage safety and reduce injury?

GC: Technology can be a factor and improve workplace safety when deployed thoughtfully with clear expectations and training. Wearables, proximity sensors, virtual training, autonomous equipment, telematics, biomechanics and AI can all play a role in improving worker safety and reduce exposures to injury. However, without a thoughtful and planned approach to innovative technology, there is a danger of over reliance and missed expectations. New technology does not eliminate the need for training, hazard identification and mitigation. A strategic approach should be part of the evaluation and implementation of innovations.

CE: What is the No. 1 way a leader can promote safety within their teams?

GC: To promote safety within their teams, leaders should deliver on safety promises and empower workers to put their safety as a priority. This can promote the value and commitment it takes to succeed.

CE: How do a culture of safety and low risk of injury impact the industry/the perception of the industry?

GC: Skilled trades women and men are the construction industries most valuable asset. With the tight labor market, workers have a choice. Safety and personal risk are a key component when choosing a career. A positive safety culture can change the perception and speak to the values of a company that many employees look for. A career that values the workforce and promotes safe work practices is often valued by its employees.