Making Zero Accidents A Reality Project Team John Mathis Bechtel Corporation CII Annual Conference 2001

Making Zero Accidents A Reality Project Team John J. Mathis Bechtel Corporation, Chair Bill Alfera FPL Energy Alan R. Burton Cianbro Corporation Mike Cain Lockwood Greene Dennis Cobb DuPont Paul DeForge Ontario Power Generation P. D. Frey Austin Industries John A. Gambatese Oregon State University Tom Hardesty Celanese Acetate Jimmie W. Hinze University of Florida Scott Johnson Tyco/Grinnell Fire Protection Randy Marconnet Watkins Engineering & Constructors Bill W. Poppell Florida Power & Light Company Michael F. Schwimmer Chevron Gary L. Wilson NCCER

Plenary Session Take a safety journey. Review the project team mission. Review the research methodology. Reveal best practices identified. Provide examples of key findings. Provide overview of our Implementation Session.

Construction Industry Facts 636,000 construction companies >7,000,000 persons employed in construction Construction industry (risk) 18% of work-related deaths 15% of all workers’ compensation cases Approximately 1,000 construction workers killed each year

Zero Accidents Study Findings – 1993 High-impact zero accident techniques Pre-project/pre-task planning for safety Safety orientation and training Written safety incentive programs Alcohol and substance abuse programs Accident/incident investigations

CII OSHA Recordable Performance 1993-1999 14 12.20 11.80 12 10.60 9.90 9.50 10 Est. 8.21 8.80 Recordable Incidence Rate Industry 8 6 3.44 3.00 4 2.66 2.30 1.60 1.59 1.67 2 CII 1993 1994 1995 1996 1997 1998 1999 527 613 644 770 518 765 995 Year and Work-hours (MM) Note: Industry based on OSHA SIC 15

CII Lost Workday Case Performance 1993-1999 8 7 6 5.50 5.50 4.90 Lost Workday Case Incidence Rate 5 4.50 4.40 Est. 3.67 4.00 4 Industry 3 2 1 0.63 0.81 0.55 0.45 0.31 0.41 0.27 CII 1993 1994 1995 1996 1997 1998 1999 527 613 644 888 591 763 1,122 Year and Work-hours (MM) Note: Industry based on OSHA SIC 15

Zero Accidents – Revisited 5,148,000,000 work-hours worked by CII Member Companies 51% reduction in recordable injuries What safety best practices have supported this improvement and are at the forefront of safety management today? Making Zero Accidents A Reality CII Project Team 160 Formed 1999

Project Team Mission Statement Make zero accidents a reality through research and identification of current Zero Accidents best practices that have provided proven results across a broad spectrum of the construction industry.

Expanded Project Team Mission Statement Develop a communication and education component to assist in understanding and implementation of best practices that support a Zero Accidents culture.

CII Zero Accidents Study 2000–2001 Methodology – two studies Large construction firms Large construction projects Surveyed largest U.S. construction firms Based on 1999 ENR 400 400 surveys sent; 102 responses

CII Zero Accidents Study 2000–2001 Detailed interviews on 38 North American construction projects ($50-$600 million): Petrochemical Industrial Public works Transportation Hotel-casino Commercial buildings

Nine Industry Best Practices Demonstrated management commitment Staffing for safety Safety planning Safety training and education Worker participation and involvement Recognition and rewards Subcontractor management Accident/incident reporting and investigations Drug and alcohol testing

Best Practice Results Over 30 key findings revealed that companies utilizing these best practices have significantly lower recordable injury rates.

Zero Accidents Study 2000-2001 Of the 38 construction projects interviewed, four projects have achieved zero accidents. (pdeforge first slide) John: Paul, management commitment has been around since the time of the pyramids, what exactly are these slides telling us? Paul: John, you are correct and it’s a very good question. I will review only 3 of the findings that have a significant impact on improving RIR. I’m sure that if you were to ask any SVP/VP/Director or manager if they were committed to their safety program , the answer would be an emphatic “YES” However, John, the key word here is “DEMONSTRATED” The data here shows that there is a significant improvement in the recordable injury rate in top performing companies that use “top management participation in the investigation of ALL recordable injuries. Their RIR is 1.2 The data further validates the finding where top management participationin in recordable injury investigations is 50% or less. Their RIR 6.9 The importance here is the delta of 5,2

Demonstrated Management Commitment Top management participated in investigation of recordable injuries 1.2 6.89

Demonstrated Management Commitment Company president/senior management reviews safety performance report 0.97 6.89

Worker Involvement and Participation Management and supervisory personnel receive behavior overview training 1.38 2.82

Safety Training and Education Workers receive formal safety orientation 1.51 3.80

Safety Training and Education Every worker on site receives orientation 1.76 5.72

Safety Training and Education Workers receive formal/standardized safety orientation 1.51 3.80

Subcontractor Management Subcontractors submit site-specific safety plans 1.37 3.83

Recognition and Rewards Your incentive program is based on zero accident objective 1.33 3.29

Making Zero Accidents A Reality Implementation Session Demonstrated management commitment Staffing for safety Safety planning Safety training and education Worker participation and involvement Recognition and rewards Subcontractor management Accident/incident reporting and investigations Drug and alcohol testing

Implementation Session Panel presentation and discussion Review and discuss nine best practices that support Zero Accidents culture. Distribute “Making Zero Accidents A Reality” pocket card. Describe education module and best practice data sheets.

Project Safety Performance Results of implementing best practices 38 workers per 1000 3.84 0.00 1.00 2.00 3.00 4.00 Recordable Incident Rate Jobs that Implement a Few 2.00 Sample Mean 2 workers per 1000 0.17 Jobs that Implement Most

Our workers are our key core competency. Even if you’re on the right track, you’ll get run over if you just sit there. Will Rogers Accident reduction has improved significantly since 1993, but we won’t just sit there. Our workers are our key core competency. We will continue to strive for Zero Accidents.