1. 1 ABC’s Safety Training Evaluation Process: Achieving World-Class Safety Performance Presented by: Mike Bellaman & Chris Williams Associated Builders and Contractors, Inc. Washington, DC www.abc.org

2. 22 YOUR PRESENTERS Michael Bellaman President & CEO Chris Williams Director of Safety

3. ABC History Founded in 1950Founded in 1950 22,000 construction industry members22,000 construction industry members 70 chapters nationwide70 chapters nationwide ABC’s Vision: Based on the merit shop philosophy, Associated Builders and Contractors helps Members develop people, win work and deliver that work Safely, Ethically and Profitably for the betterment of the communities in which they work. 3

4. STEP History –Created in 1989 by the ABC National Environment, Health & Safety (EH&S) Committee to help recognize ABC member companies with exceptional safety records. –Six levels of achievement in the STEP program: Participant, Bronze, Silver, Gold, Platinum & Diamond. –Provides contractors with a consistent, effective tool to evaluate safety training programs by using 20 standard “Key Components” of safety. Each key component focuses on specific safety and training areas essential to a successful, effective safety training program. 4

5. So what, exactly, is STEP? Pre-qualification tool for owners/usersPre-qualification tool for owners/users Performance evaluator for insurersPerformance evaluator for insurers Internal company tool for:Internal company tool for: –Recognition –Evaluation / Benchmarking –Data-gathering –IMPROVEMENT STEP provides contractors with the means to determine how they can send EVERY worker home safely EVERY night. 5

6. The Benefits of STEP –Helps contractors evaluate their safety training programs and identify areas of improvement. –Helps contractors reduce workers’ compensation costs by building stronger, more effective safety systems & processes. –Provides recognition for contractors who consistently provide a safe work environment not only to employees, but to customers as well. –Sets companies apart from their competition. –Saves LIVES and MONEY! 6

7. How STEP works OSHA Form 300A data – source of ½ of all STEP application infoOSHA Form 300A data – source of ½ of all STEP application info Company informationCompany information –Man-hours worked –Type of work done –Location of work –NAICS code EMR & Incidence RateEMR & Incidence Rate 20 Key Components Self-Evaluation20 Key Components Self-Evaluation 7

8. STEP vs. BLS Fatality Rates, 2009- 2013 8

9. STEP vs. BLS TRIR, 2009-2013 9

10. STEP vs. BLS DART, 2009- 2013 10

11. STEP vs. Industry Average EMR, 2009-2013 11

12. 12 STEP Savings through Lower EMR

13. Fatality, TRIR & DART Trends: What do they mean? –Fewer fatalities=higher morale –Lower Total Recordable Incidence Rate (TRIR)=higher employee productivity –Lower Days Away, Restricted or Transferred Rate (DART)=fewer days without employees & lower workers’ comp rates STEP participants show lower rates, increasing their productivity and profitability 13

14. 2013 STEP Results (2,044 ABC Contractor Members) 14

15. 2013 STEP Results –61% of STEP applicants have Total Recordable Incidence Rates (TRIRs) at or below BLS NAICS code averages –28% have lagging indicator performance (TRIR, EMR) that significantly outperforms (>25% below) peers 15

16. Strengthening STEP: 2014 and Beyond ALL STEP participants MUST sign the Drug- and Alcohol-Free Workplace Pledge (www.drugfreeconstruction.org)ALL STEP participants MUST sign the Drug- and Alcohol-Free Workplace Pledge (www.drugfreeconstruction.org)www.drugfreeconstruction.org New leading indicator questions added to help track use among ABC members & move industry towards using leading AND lagging indicators as performance metricsNew leading indicator questions added to help track use among ABC members & move industry towards using leading AND lagging indicators as performance metrics 16

17. New Leading Indicator Questions Number of federal/state OSHA final citations issued (after settlements) in 2013Number of federal/state OSHA final citations issued (after settlements) in 2013 –Willful –Repeat –Serious –Other than Serious –De Minimis Length of safety portion of new-hire orientation (in minutes)Length of safety portion of new-hire orientation (in minutes) Do you conduct site-specific safety orientations for all employees? (Y/N)Do you conduct site-specific safety orientations for all employees? (Y/N) 17

18. New Leading Indicator Questions Do you track near misses/hits (situations that, had circumstance(s) been different, would have resulted in injuries/fatalities and/or an OSHA citation)? (Y/N)Do you track near misses/hits (situations that, had circumstance(s) been different, would have resulted in injuries/fatalities and/or an OSHA citation)? (Y/N) Do you establish/participate in site safety committees at each jobsite? (Y/N)Do you establish/participate in site safety committees at each jobsite? (Y/N) Do you conduct safety training for employees beyond owner/user-required training? (Y/N)Do you conduct safety training for employees beyond owner/user-required training? (Y/N) Have you signed the Drug- and Alcohol-Free Workplace Pledge at www.drugfreeconstruction.org? (Y/N)Have you signed the Drug- and Alcohol-Free Workplace Pledge at www.drugfreeconstruction.org? (Y/N)www.drugfreeconstruction.org 18

19. 2014 STEP Qualifying Criteria Participant/Bronze/SilverParticipant/Bronze/Silver –Minimum 20 Key Components scores –2013 OSHA Form 300A (“Summary of Work- Related Injuries and Illnesses”) –Must sign the Drug- and Alcohol-Free Workplace Pledge at www.drugfreeconstruction.org www.drugfreeconstruction.org 19

20. 2014 STEP Qualifying Criteria GoldGold –Minimum 20 Key Components score –Incidence rate equal to or less than BLS NAICS code average –2013 OSHA Form 300A (“Summary of Work-Related Injuries and Illnesses”) –2014 Insurer Support Statement –Must sign the Drug- and Alcohol-Free Workplace Pledge at www.drugfreeconstruction.org www.drugfreeconstruction.org Only applicants with fewer than 100 employees may use 3-year incidence rate average to qualify for STEP Gold (must submit 2011, 2012 & 2013 OSHA Form 300As. Companies under 50 employees may use 5-year incidence rate average to qualify; must submit 2009, 2010, 2011, 2012 & 2013 OSHA Form 300As) 20

21. 2014 STEP Qualifying Criteria PlatinumPlatinum –Minimum 20 Key Components score –Incidence rate 25% or below BLS NAICS code average –2013 OSHA Form 300 (“Log of Work-Related Injuries and Illnesses”) –2013 OSHA Form 300A (“Summary of Work-Related Injuries and Illnesses”) –2014 Insurer Support Statement –EMR/mod factor at or below 0.800 for application year (0.900 for companies with 100 employees or less) –Loss Ratio 15% or lower for each of previous 3 years for companies with less than 50 employees –No fatality/catastrophic accident within application year and previous 3 consecutive years resulting in OSHA citation –Must sign the Drug- and Alcohol-Free Workplace Pledge at www.drugfreeconstruction.org www.drugfreeconstruction.org 21

22. 2014 STEP Qualifying Criteria DiamondDiamond –Minimum 20 Key Components score –Incidence rate at least 50% below BLS NAICS code average in each of previous 3 years (companies under 100 employees may use 3-year average) –2011 2012 & 2013 OSHA Form 300A (“Summary of Work-Related Injuries and Illnesses”) –2011, 2012 & 2013 OSHA Form 300 (“log of Work-Related Injuries and Illnesses”) –2014 Insurer Support Statement –EMR/mod factor at or below 0.700 (0.800 for companies with fewer than 100 employees) –Loss Ratio 10% or lower in each of previous 3 years for companies with less than 50 employees –No fatality/catastrophic accident within application year and previous 3 consecutive years resulting in OSHA citation –Must sign the Drug- and Alcohol-Free Workplace Pledge at www.drugfreeconstruction.org www.drugfreeconstruction.org 22

23. STEP Qualification Criteria for Smaller Companies Companies under 100 employees=may use 3-yr. incidence rate averageCompanies under 100 employees=may use 3-yr. incidence rate average Companies under 50 employees=may use 5-yr. incidence rate averageCompanies under 50 employees=may use 5-yr. incidence rate average Companies under 100 employees may use Loss Ratio qualifier for STEP Platinum and DiamondCompanies under 100 employees may use Loss Ratio qualifier for STEP Platinum and Diamond 23

24. How the 5-year TRIR average helps small companies XYZ Company (19 employees; NAICS 236220) needs 3-year IR of 1.6 to qualify for STEP DiamondXYZ Company (19 employees; NAICS 236220) needs 3-year IR of 1.6 to qualify for STEP Diamond 3-year avg.=2.4—DNQ Diamond3-year avg.=2.4—DNQ Diamond 5-year avg.=1.5—STEP Diamond5-year avg.=1.5—STEP Diamond YearIncidence Rate 20130.0 20120.0 20117.3 20100.0 20090.0 24

25. How Companies Use STEP -Self-evaluation tool—strengthening their safety & training program using the 20 Key Components “roadmap” -Long-term data comparison—track company’s historical performance against itself -Benchmark performance versus: -Peers -Industry/BLS averages -Similar companies (type of work, man hours worked) 25

26. How Companies Use STEP Recognition –Pre-bid qualifications/bid packages STEP recognized among many owners/users as safety indicator –Promoting the company Ads, among peers, etc. Benchmark for safety performance –Advertising STEP logo on hard hats, vehicles, etc. –Negotiating with insurance carriers Proven safety performance –Incentive to keep improving Until we reach 0 injuries, we can always do better! 26

27. Why STEP Matters Provides ABC members and non-members with the tools and resources to achieve world-class safety performance The world-class standard for health, safety and environment in the construction industry embodies leadership commitment to not only developing a safety culture where each person is accountable for the safety and well-being of all, but providing the means and methods for each employee to leave work in the same—or better—condition than which they arrived. 27

28. Questions? Chris Williams Director of Safety Associated Builders and Contractors, Inc. 440 First St., NW Washington, DC 20001 Ph. (202) 595-1855 Mobile: (703) 859-1415 Email: cwilliams@abc.orgcwilliams@abc.org www.abc.org/step Twitter: @SafetyABC 28

29. 29 Appendix: 2014 STEP Application

30. The 2014 STEP application 30

31. Section 1: Company Info 31

32. Section 2: Safety Performance Data 32

33. 33

34. Section 3: 20 Key Components 34

35. Section 4: Company and ABC Chapter Certification 35