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Contractors on Campus Tony Rey, Senior Vice President Marsh

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Presentation on theme: "Contractors on Campus Tony Rey, Senior Vice President Marsh"— Presentation transcript:

1 Contractors on Campus Tony Rey, Senior Vice President Marsh
Cindy Smail, Loss Control Consultant Marsh Risk Consulting

2 SERIOUS EVENTS IN HIGHER EDUCATION – 2016 Marsh Risk Consulting
Region Incident Result South Contractor employee fell from roof Fatality Midwest Crane collapsed on university building Property damage Man lift tipped over Northeast Contractor employee fell after being struck during demolition for a stadium renovation Trial award of $53K, 25% - demolition contractor, 75% general contractor Scaffold collapse 6 injured, 1 employee filed claim, jury award $2 million

3 Contractors are on campus often!
Why Contractor Safety? Contractors are on campus often! Outside contractors pose serious risks to your workers, property, and the facility operations Some laws require contractor safety practices Safety performance is an indicator of work quality It’s a good business practice

4 3. Safety Pre-qualification 4. Contractor Safety Orientation
Today’s Focus 1. Safety Planning 2. OSHA 3. Safety Pre-qualification 4. Contractor Safety Orientation 5. Work Area Controls 6. Hazardous Work Permits 7. Supervision 8. Insurance

5 Contractor Safety Planning
Predict hazards for work to be done Identify controls Contractors write site safety plan – address hazards & controls Set safety goals Review safety criteria in pre-bid meetings

6 OSHA Construction Safety Standards
The Occupational Safety and Health Administration (OSHA) requires contractors to have a safety program available at the work site covering the following: Designation of qualified safety person Safety instructions for employees regarding the tools and equipment they will use Self-inspection program Hazard recognition instructions Chemical safety details Confined space procedures The program will be available at the work site.

7 Avoid Multi-Employer Duty Issues
More than one employer can be cited by OSHA on construction sites. As the owner you need to be sure you did not: Create the hazard Expose your employees to the hazard Assume responsibility for correcting the hazard Control employees on the site

8 OSHA’s Stance on “Host Employers” and Contractors
When employees of an outside contractor come into your workplace, both your organization (what the OSHA calls the “host” employer) and the contractor share responsibility for the safety of the contractor’s employees. The dividing line between areas of responsibility is not always clear, but consider the following “rule of thumb” as a starting point: The contractor is responsible for making sure that its employees know how to do their jobs safety. The host employer is responsible for informing the contractor of any hazardous conditions that are specific to the host’s workplace and stipulating any special controls or work practices that the contractor must follow to protect all workers.

9 Safety Pre-qualification of Contractors
Criteria Loss History Reference Checks Prior History on Your Campus Contractor’s Safety Program OSHA Compliance History

10 Safety Pre-qualification - Loss History
Loss History Sources: Injury/illness rates compared to others in industry (OSHA logs) Claims experience (workers’ compensation, auto liability, general liability, etc.) Workers’ compensation experience MOD Look for trends and key indicators Establish minimum safety performance standards Workers’ Compensation MOD less than 1.0 OSHA incident/severity rate less below average for Standard Industry Classification (SIC)

11 Safety Pre-qualification - Safety Reference Checks
Reference checks should consider: Similar jobs - value and scope of work Safety compliance/culture Safety experience

12 Safety Pre-qualification - Prior History on Your Campus
Contractor’s compliance to their own safety requirements Contractor's compliance to your campus safety requirements Working relationship with campus safety and security teams Adherence to safety paperwork needed PPE use observed Sanitation practices

13 Pre-Qualification – Contractor’s Safety Program
Contractors safety program review: Program in writing Set schedule for toolbox meetings Self-inspection program in place Training plan – for orientation and ongoing training of new workers and foreman Responsibilities are assigned Enforcement policy Traffic control Emergency procedures Accident investigation High hazard tasks determined and addressed Fire protection Site safety and security Sub-contractor requirements Resume of site safety person

14 Pre-job Meeting Safety Items
Agree upon job organization and procedures General safety rules, university policies are communicated High hazard areas are discussed Control measures are reviewed Other safety paperwork - inspections, accident procedures, disciplinary measures, etc. maintained Site safety plans by contractors are reviewed

15 Contractor Safety Orientation
Contractor employees should know: University’s safety program/rules Reasons for dismissal from project Hazards associated with operations Emergency procedures Orientation should be documented Orientation is not a substitute for training

16 Contractor employee parking Check-in procedures
Work Area Controls Contractor employee parking Check-in procedures Designation of work areas - include lunch, break and toilet areas as well as barricades and signs used Confirm material storage and office areas Establish work shifts/hours

17 Hazardous Work Permits
What to permit? Hot work, confined space, lockout/tagout, elevated work Determine Risks Permits System Protocol Established Inspections to Verify Documented Process Permit process…

18 Other Safety Practices
Do not lend tools or equipment Make safety costs visible in bids Do not undertake supervision or direction of contractor’s employees. If there are issues, take them to contractor leadership Maintain documentation such as a daily log, letters, safety program manuals, accident reports, meeting minutes, etc. Complete periodic and final evaluation reports, review them in a scheduled sit-down meetings with the contractor

19 Supervision of Contractors
Inspect… to verify Evaluate… contractor performance compared to plan and campus contractor policies Perform… inspection evaluations of site perimeter protections Establish… protocols to alert the construction manager of safety hazards observed when passing by site Create a policy that allows you to alert/advise a contractor when university personnel report concerns Examples could be when the contractor is using an unsafe ladder, not wearing PPE or not using lockout procedures Policy should also identify when they can be removed from the job

20 Supervision of Contractors
Keeping Track… Perform site evaluations whenever university personnel create or participate in construction activities Participate in accident investigations involving university personnel, students and/or property Require the construction manager or prime contractor to advise you in writing of all incidents and injuries involving their personnel and or operations

21 M.U.S.I.C. Coverage Insurance

22 Resources OSHA Establishment Search - OSHA Standard Industry Classification List for Construction - on OSHA Worker Safety Series on Construction - National Safety Council Keeping Contractors Safe - Contractor Safety and Environmental Guidebook from Georgetown University - Construction Safety Guidelines from the University of Michigan - content/uploads/sites/37/2016/08/ContractorSafetyGuidelines.pdf

23 ?

24 This document and any recommendations, analysis, or advice provided by Marsh (collectively, the “Marsh Analysis”) are intended solely for the entity identified as the recipient herein (“you”). This document contains proprietary, confidential information of Marsh and may not be shared with any third party, including other insurance producers, without Marsh’s prior written consent. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modeling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Except as may be set forth in an agreement between you and Marsh, Marsh shall have no obligation to update the Marsh Analysis and shall have no liability to you or any other party with regard to the Marsh Analysis or to any services provided by a third party to you or Marsh. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or reinsurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage.


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