One of the most important aspects of any construction project happens before the hammering starts. That’s right: agreeing on a contract. A successful contractor-client relationship comes with rounds of negotiation on both sides, and it often feels like the power is in the hands of the client — but it doesn’t have to be. Here are five tips that may come in handy when nailing down the specifics of a construction contract.
Be Upfront About Your Concerns
It’s crucial to approach the negotiation process with honesty when it comes to your concerns. If a project deadline doesn’t seem feasible, let them know from the outset, otherwise you’ll only create problems for yourself and your team down the line. If an element of a project seems excessively complicated or requires bespoke parts, make it clear that this could cause delays.
These types of conversations are a great time to discuss the change order process, which you can also document in your contract. Agreements on change orders can excessively delay a project, so it’s helpful to establish the process ahead of time. By being communicative and firm about your perception of the project, and its anticipated hurdles, you’re demonstrating your own expertise in the field.
Understand Their Overall Needs
An underutilized negotiation skill is simply listening. Clients like to feel involved in the process, and want their opinions heard. Plus, the more you listen to your client, the better you’ll understand their true goal — and therefore, what they’ll be more willing to compromise on.
Perhaps they’re really only concerned about the project deadline, so they’ll be more flexible on shifting contract language to accommodate delays. Or perhaps budget is the issue, so costly materials and expensive design elements need to be exchanged for alternatives. Once you get an understanding of what really matters to your client, you’ll be able to meet them in the middle.
Present Alternative Solutions
Nobody likes to hear a flat-out “no,” so keep this in mind as you work through the contract negotiation process. Instead of refusing to do something, try to present alternatives so that your client can see a silver lining.
For instance, if a state law specifically prohibits a certain aspect of a project, use your own expertise to pitch a legal solution — otherwise, negotiations could drag on as a client scrambles to figure out what is allowable. If you know certain choices will break a budget, come prepared with a backup. These small gestures will go a long way in establishing client trust!
When in Doubt, Overestimate
One of the most difficult aspects of any project is budget, and it’s for this reason that estimates are crucial. An experienced contractor should be able to provide accurate estimates, but when in doubt, don’t go too low — because it’s never easy to return to the client for a budget increase. Plus, starting high gives you room to be flexible when the client likely returns with a counteroffer.
This idea can also apply to a project calendar. Be sure to factor in potential delays, as every client expects a project to finish on time (and is thrilled if it’s finished early).
Work with the Right Advisors
No contractor should be without protection when engaging in a new project. Having solid legal counsel is crucial when entering into a new business relationship, as they can review your contracts and help identify any areas of concern — most, if not all, clients will have legal counsel of their own.
Similarly, work with an insurance advisor to ensure that the insurance requirements of any contract is satisfied. This is not something you want to simply leave up to the hands of your client and will be crucial to your protection on future projects as well. Coming to the bargaining table with professional assistance only makes you look more polished and bolsters your overall negotiating power.
When the pandemic hit in 2020, it brought a whole new meaning of clean at the office, on the factory floor, and at construction sites. On the commercial front, the demand for janitorial services and deep cleaning with an emphasis on sanitization and disinfection became routine once COVID entered our lives.
Prior to COVID, standard office cleaning services included emptying trash cans, vacuuming, mopping floors, dusting, wiping surfaces, and performing the occasional deep clean. Routine sanitization and disinfection is now required for offices to remain open to maintain a healthy workspace. This is the new norm, particularly as we continue to experience COVID variants and rising infections among the population.
Janitorial companies today are expected to pay close attention to detail and be able to assess each customer's cleaning service needs on an individual basis. For example, high-traffic offices may necessitate more frequent deep cleaning than a business that employs a hybrid model and has fewer workers in the office.
Janitorial Training Required for Today’s New Cleaning Era
The Centers for Disease Control and Prevention (CDC) recommends all janitors and cleaning service providers be trained on how to use chemicals, cleaning agents, and cleaning equipment. Additional training on the use of appropriate personal protective equipment (PPE), such as gloves, goggles, and hearing protection, should also be provided as needed for employees’ health and safety.
Keeping It Clean and Safe on Job Sites
Not only is it important for employers in commercial and industrial spaces to continue to be vigilant in providing employees with a clean and safe environment, but workers on construction sites should also be safe. Following are some safety tips to employ on jobsites:
Shared Tools & Equipment
- Wherever possible, avoid the use of shared tools and equipment. Drop saws, drills, grinders, ladders, and elevating work platforms, for example, should not be used by more than one person.
- Where it is impossible to avoid shared use:
- Provide cleaning supplies (e.g., alcohol spray or solution) in areas where communal tools and equipment are located.
- As tools and equipment are moved around the site, keep cleaning supplies with them.
- Ensure that all operators thoroughly wash or sanitize their hands before and after each use.
- Wipe down all tool and equipment parts (including handles and handrails) before and after use.
In addition, thoroughly clean all work areas, including hoists and lifts; communal and meal break areas; and shared facilities such as bathrooms and kitchens.
Personal Protective Equipment on the Construction Site
Provide information, instruction, and training on the proper use, decontamination, maintenance, and disposal of any PPE provided.
- Any PPE provided must be appropriate for the job and properly decontaminated or disposed of at the end of each shift.
- Employers should monitor and encourage proper PPE use, including posting information on posters and digital screens about washing or sanitizing hands before putting on PPE, putting on face protection before gloves, washing or sanitizing hands after removing PPE, and decontaminating or disposing of used PPE safely.
An integral component of the construction bidding and performance process is obtaining certificates of insurance (COI). Without a COI, a contractor is unable to begin work on a project. Clients, including residential property owners, commercial real estate owners, municipalities and public entities, and general contractors (GC), all require that contractors show proof of insurance. A COI verifies that coverage is in place. However, the COI is not the insurance policy and does not amend, extend, or alter the coverage afforded by the actual terms and conditions of the policy. It is for informational purposes only.
For example, when you submit a bid to win a contract or job, the entity seeking to hire you will request that you include a COI with your bid. Or if you are a GC who frequently hires subcontractors to collaborate on projects, you will request proof of insurance from each subcontractor.
The COI lists the contractor’s name (the insured); the policy term, including the expiration date (to ensure coverage is place for the duration of the project); the policy limits; and any additional insureds if requested. Clients will typically ask to be named as an additional insured in order to extend a contractor’s coverage to them.
Certificate Requests Must Be in Writing
At Gaslamp, we issue about 300 to 500 certificates daily, helping our construction clients get onto the job site as soon as they get the green light. In order to facilitate the COI request process, we recommend planning head to avoid any delays. Our goal is to get a certificate into your hands within a 24-hour turnaround.
We make it easy for our insureds to request a certificate. All you have to do is visit our website and click on “Request a Certificate” under Customer Service. Complete the information on the online form and submit it to us. One of our customer service reps will attend to your request. If there is any missing information or any change request, we’ll reach out to you.
An alternative option for certificate requests is to email us at service@gaslampinsurance.com. All the information that is on the online request form should be included in the email:
- Named insured
- Policy number
- Insured email
- Certificate holder/additional insured name/email/address/city/state/ZIP
- Indicate whether certificate holder needs to be named as an additional insured
- Describe type of work: new construction, remodel work, service/repair
- Attach any related documents needed for certificate/endorsement
Privacy Issues Are a Concern
Protecting your privacy is our main concern, which is why we require that COI requests be made in writing. We want to ensure that our clients are indeed requesting the COI. There are instances where a third party may want to file a claim against you and is seeking to learn the limits on your policy. Or a previous employee may want to pose as you and show proof of your insurance for a potential job. They may even use a PDF editor to modify a COI to get on a jobsite.
If one of your clients with whom you have signed a contract requesting a certificate calls, we will follow up via email with you to verify and get written approval to provide them a copy of your COI.
Plan Ahead
It’s important to plan ahead so that you get the COI when you need it. You may need to make changes to your policy based on the contract’s insurance requirements. For example, a project’s insurance requirements may stipulate that you carry additional policy limits. It will take time to submit this change to underwriting, quote the new policy limits, and provide you with the additional premium amount for payment. If you are bidding on a contract, send us your insurance requirements immediately so we can provide you with the cost to change your insurance ahead of time.
Our Customer Service Department operates from 6 a.m. to 5 p.m. PT, and we strive to deliver on your COI needs. Planning ahead and getting us the information in writing will make the process that much smoother.
Insurance terminology can be daunting and sometimes confusing. We’re here to break down some of the common insurance terms with which contractors should be familiar when reviewing and discussing their policies.
Actual Cash Value (ACV)
In the event of property damage (to a building or automobile, for example), the policy includes how the insured property value is determined and the amount the insurer will pay. ACV is commonly calculated in one of three ways: (1) the cost of repairing or replacing the damaged property, less depreciation; (2) the “fair market value” of the damaged property; or (3) applying the “broad evidence rule,” which requires taking into account all relevant evidence of the value of the damaged property, (as defined by the International Risk Management Institute).
Additional Insured
A party other than the insured that is added to the policyholder’s policy. Construction contracts typically require policyholders to extend their liability coverage to third parties.
Aggregate
The total amount of any insurance funds that are available to pay any and all claims made under the policy during the policy period. A typical aggregate limit for a contractor’s General Liability policy is $1 million or $2 million.
Agreed Value
Pays 100% of the stated amount on a property policy for a covered loss as agreed upon between the insured and the insurance company. There is no coinsurance penalty applied in the policy, so the insured doesn’t have to pay a percentage of the loss.
Builder’s Risk
Covers a building under construction or renovation for physical damage that occurs during a specific policy period (3, 6, 9, 12 months). Typically, the policy period for builder’s risk runs no more than 12 months unless an extension is requested by the insured and provided by the insurance company.
Certificate of Insurance (COI)
This document provides evidence to others (typically customers and business partners) that a contractor, for example, has liability insurance. Contractors prior to beginning a job must provide the COI to a client. The certificate will indicate the named insured, policy type, policy number, policy term, limits, and additional insured information.
Claim
An insurance claim is a formal request to the insurance company for reimbursement for losses covered under the policy.
Commercial Property Insurance
Protects businesses from financial loss deriving from damage to their buildings and contents caused by a covered cause of loss, such as fire or theft. The policy may also cover lost income or increased expenses caused by property damage. Commercial property insurance policies can be written for specific perils or all perils, also known as open perils or all risks.
Contractors Pollution Liability
Typically covers a contractor’s liabilities to others for property damage, personal injury, and cleanup costs resulting from pollution or contamination caused by the contractor’s work. The terms of coverage will vary, depending on the insurance company and policy.
Contractors Professional Liability
Covers legal liabilities arising from negligent acts, errors, or omissions (typically including a breach of the contractual obligation to exercise reasonable care, skill, and diligence when, for example, undertaking a design/build project) during the course of professional services provided to a client.
Declarations Page
Informally known as the “dec page,” this is the front page of a policy which specifies the named insured, address, policy period, location of premises, policy limits, and other key information.
Deductible
This is the amount the insured will pay in the event of a claim before the policy kicks in to pay for a covered loss.
Endorsement
An endorsement is a form change made to an insurance contract/policy that adds a type of coverage or a specific type of items to be covered. Depending on the type of endorsement, an additional premium may be charged. The agent will request the endorsement, and the policy premium will be adjusted to reflect the change.
General Liability
Covers property damage or personal/advertising injuries to another party allegedly caused by the insured or an employee. The policy will cover reasonable legal defense, including attorneys fees, court costs, and expert witness fees. General liability insurance also covers judgments and settlements (up to the policy limits) as well as the plaintiff’s medical expenses.
Inflation Guard
Automatically adjusts the limits of insurance to keep up with inflation and help maintain adequate limits on a property policy.
Inland Marine
Provides coverage for materials and equipment when transported over land (typically by truck) or temporarily stored at a job site or warehouse. Essentially, the coverage follows the property.
Insured
A person or persons covered by an insurance contract, also known as an assured or policyholder. An insured can also be a company or organization.
Limit
A limit is the most an insurer will pay for a claim covered by the insurance policy.
Loss
A loss is an injury or damage sustained by (or caused by) the insured as a result of an accident or event against which the insurer has agreed to pay to or on behalf of the insured in exchange for a premium.
Premium
This is the amount an insured pays for an insurance policy. It can be paid monthly, semiannually, or annually, depending on the type of policy and the terms available.
Replacement Cost Coverage
Covers the amount it takes to replace a property after a loss with new property of “like kind and quality” up to the policy limits.
Umbrella Insurance
Provides an insured with extra protection to help cover a claim that exceeds the limits of certain liability policies. This policy is critical in protecting against catastrophic liability events.
Workers’ Compensation
Mandatory in nearly every state, workers’ compensation insurance provides medical care and wage benefits to employees who are injured or become ill on the job.
Every construction contractor is responsible for following the necessary regulations.
When it comes to construction, every contractor should be exceedingly familiar with the requirements laid out by the U.S. Department of Labor, Occupational Safety and Health Administration, or OSHA. There is strict training required — and it varies from state to state.
So how can contractors ensure they’re following the proper guidelines and protecting their employees? Read on for helpful tips on navigating the variety of federal and state safety requirements.
What is OSHA?
OSHA is a part of the U.S. Department of Labor and was created by Congress with the passage of the Occupational Safety and Health Act of 1970. It exists to protect workers by creating and enforcing workplace standards and providing training. OSHA oversees the majority of private sector workers, and many public sector employees as well.
From agriculture to the maritime sector to the construction industry, OSHA has a wide list of requirements that an employer must follow when it comes to training and protecting its workers. OSHA also allows individual states to develop and enforce their own regulations, as long as they are up to par with the federal requirements — so it’s important that any general contractor follows state-specific training during a job.
What Categories Fall Under Construction Training?
Construction is a major subset of OSHA regulations. Just on a federal level, OSHA requires employees in the construction sector to receive periodic or annual training in tasks such as aerial lifts, cranes, hand and power tools, ladder safety, medical first aid, scaffold safety, and toxic and hazardous substances. Those are just a few of the many items that an employer is not only responsible for giving the training but also ensuring that an employee has understood the training.
Requirements can become more specific on a state level. Certain states have even stricter regulations in place than OSHA, with additional standards in place on various industries. Washington, for example, has almost 50 additional standards for hazards pertaining to the construction industry alone.
The Responsibilities of a General Contractor
Under OSHA laws, general contractors are responsible for following federal and state safety regulations, and training subcontractors. On a federal level, there are clear requirements that must be followed when it pertains to construction. Certain tasks only require initial training, while others must be assessed on an annual or periodic basis.
There are a number of requirements beyond training that a general contractor must follow. Numerous documents must be kept visible on construction worksites, for example. Records must be kept for trainings, employee exposures, injuries, and more. Permits and licenses for project-specific equipment, like cranes, or large tasks, like excavations, must be filed. There must be access to proper sanitation.
These are just a few of the things in the long list of requirements a general contractor must follow on a job site. OSHA will make unrequested workplace inspections, which are conducted by compliance officers; employees can also request an inspection. OSHA rarely gives advance notice of an inspection, which is why strict adherence to federal and state regulations is of the utmost importance.
What Does OSHA Provide?
If the vast amount of OSHA requirements feels overwhelming, the department also exists to provide training and resources. From offsite consultations to partnership programs to webinars, there’s an abundance of assistance available for both employers and employees. The enforcement branch of OSHA will also not be informed if an employer works with consultation, so there’s no fear of retribution.
The Takeaways
Almost every employer in the U.S. needs to adhere to a set of OSHA standards and can face massive fines if you’re found to have violated regulations. The construction industry has some of the most stringent regulations, and general contractors are responsible for upholding them. There are free, accessible resources available to help meet OSHA requirements, so there’s no reason for any employer to fall behind.
With demanding schedules and tight budgets, some contractors see industry associations as a waste of their time and money. However, construction trade associations offer numerous benefits. They not only keep you on top of important industry trends and developments, but also facilitate networking with like-minded professionals. Below are some of benefits of joining a contractor’s association.
Getting the Most Out of Joining a Construction Trade Association
- Networking: By being a part of construction trade associations, you will be able to interact with people like you — business owners in your industry, or adjacent industries. Building relationships with your fellow professionals can help you become a better leader and deepen your industry ties. If you find yourself in need of a subcontractor, you will have a reliable network to consult.
- Education: Association membership typically includes subscriptions to newsletters and magazines, access to seminars and conferences, and other industry-specific educational resources. Staying up to date on the happenings of your industry — emerging trends, important legislation, and best practices — is crucial for maintaining long-term success.
- Credibility Boost: Membership in trade associations sends a positive image to potential customers. It shows initiative, engagement, and commitment to your trade and the current market developments. Construction trade associations benefit more than you and your employees, but also your company itself.
- Training: Associations often extend various training, licensure, and certification opportunity to its members. Employees must be trained to meet the latest government requirements, and associations make it easier for businesses to remain in compliance.
- Technical Support: Have questions about construction specifications? Many construction trade associations have technical departments that provide a national standard for construction specifications, how much to charge clients, what products to buy, how to write contracts, and more. Whether you turn to the association itself or the members you are close with, you can find support.
- Group Purchasing: Larger groups have greater buying power than individuals. By sticking together and purchasing supplies as an aggregate group, you have the opportunity to cut costs and save some money.
To reap these benefits, it takes more than paying your annual dues. Be an active member within your association by investing time and energy in activities.
If you are not yet a member of any trade associations, here is a list of several construction associations to consider joining:
American Road & Transportation Builders Association (ARTBA)
American Subcontractors Association, Inc. (ASA)
Associated Builders and Contractors, Inc. (ABC)
The Associated General Contractors of America (AGC)
Construction Industry CPAs/Consultants Association (CICPAC)
Mechanical Contractors Association of America (MCAA)
National Association of Women in Construction (NAWIC)
National Electrical Contractors Association (NECA)
Preferred Contractors Association (PCA)
Sheet Metal and Air Conditioning Contractors' National Association (SMACNA)
Conduct an online search to find more trade associations. Be aware that some offer regional and national associations and choose what works best for you and your business.
A surety bond is a contract between three parties—the principal (you, the contractor), the surety (typically an insurance company) and the obligee (the entity requiring the bond)—in which the surety financially guarantees to an obligee that the principal will act in accordance with the terms established by the bond. In this way, the obligee can make a claim to recover losses if the principal fails to fulfill the task. If the claim is valid, the insurance company will pay reparations that do not exceed the bond amount. The principal will then be expected to reimburse the insurance company for any claims paid. It is essentially a promise by one party to be liable for the debt, default, or failure of another party.
Types of Surety Bonds
There are thousands of different types of surety bonds, but no industry involves a greater variety of surety bonds than the construction industry.
You need to obtain a Contractor License Bond in order to legally operate in the state where you conduct business. Each state (and some cities or towns) has its own bond requirements. The bond assures the state and the general public that you will comply with state licensing regulations and statutes.
Surety bonds are also required to bid or work on virtually all public works projects and many private construction projects. There are three major types of bonds for this field: bid bonds, payment bonds, and performance bonds. These bonds provide protection for the project owner and for taxpayers or investors in private projects. Usually, a project requires all these together.
Bid Bonds
Bid bonds protect a project owner if someone submits a bid and gets rewarded the contract, but pulls out of the project before it starts, insists on receiving more money to complete the work agreed upon, or is unable to obtain the agreed-upon construction bonding. Without bid bonds, project owners would have no way of guaranteeing that the bidder they select for a project would be able to complete the job properly. For example, an underfunded bidder might run into cash flow problems along the way. Bid bonds also help clients avoid frivolous bids, which saves time when analyzing and choosing contractors.
Payment Bonds
A payment surety bond is a legal contract that guarantees certain employees, subcontractors, and suppliers are protected in case they do not receive payment. You can think of a construction payment bond as an “insurance policy” in case the contractor cannot or will not pay the other parties on a construction project.
Performance Bonds
A performance bond is issued to one party of a contract as a guarantee against the failure of the other party to meet obligations specified in the contract. It is also referred to as a contract bond. A performance bond is usually provided by a bank or an insurance company to make sure a contractor completes designated projects. A payment bond is often obtained along with a performance bond.
All three of these bonds work in conjunction with each other. It is common that contractors will request all three of these surety bonds for their projects.
The Role of the Surety Bond Agency
There are thousands of bonding agents across the U.S. that offer surety bonds. However, many of them primarily offer insurance, and write surety bonds on the side. Surety agents work with applicants and surety companies to determine which surety best fits your specific bond needs. Since surety companies usually do not work directly with applicants, bond agencies are appointed to represent them. The surety’s obligations are to guarantee the financial obligations listed in the surety bond, to investigate any claims made against a surety bond and determine if the terms of the bond have been violated, and to financially reimburse a claimant for a valid claim against a surety bond—up to the bond coverage amount—if the principal cannot or will not pay.
Misconceptions About Surety Bonds
There are many common misconceptions about surety bonds and how they work between consumers and professionals, although the functionality of surety bonds and the role of surety agencies are very straightforward. One big misconception about surety bonds is that they are basically insurance. Surety bonds are not insurance, as insurance is traditionally understood and defined. Traditional insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. Insurance protects the purchaser from liability, whereas a bond puts the purchaser at liability — meaning you only want to hold a bond when absolutely required. They are almost never optional.
Surety bonds are crucial for helping to manage and protect your business. It is important to use reliable surety bond companies. Remember that all contractors are required to obtain surety bonds. Most state, municipal or government projects require surety bonds.
Advancements in technology are allowing construction sites to operate more safely and efficiently.
It’s the 21st century, and construction is evolving to keep up with the latest technological advancements. Though it may seem like something out of science fiction, drones are the latest trend in the realm of construction. But what benefits do they bring to an active construction site?
Before the Project Begins
Firstly, aerial drones — the type you might have seen zooming around at concerts or other open spaces — can benefit a project before any construction work even begins. By surveying a site from above, they can save time and ultimately money on land surveys. Drone data can even be used to recreate 3D models of the site on a computer to further prep for the job. This is essential in anticipating the scale and budget of a project.
Drones and Project Safety
Once a project is underway, a drone can still play an immensely beneficial role. Project managers can use aerial drones to keep track of equipment and even prevent theft. Regular drone surveillance of a site, especially of a complicated, busy project, ensures that everything is running smoothly and allows project managers to focus on other important tasks.
Drones can also be used to keep an eye on workplace safety, and even mitigate high-risk situations. They can assess structures before workers enter them to ensure that nothing is unstable. Using computer software, drone footage can even provide accurate measurements, which can eliminate the need for workers to put themselves in hazardous situations to take manual measurements.
Keeping Everyone Informed
Additionally, a key industry trend across construction is providing visual updates for clients. With remote work becoming increasingly common, everyone from designers to engineers to investors expect to access regular footage of the ongoing project. This also ensures any mistakes or misunderstandings can be caught and corrected immediately, rather than weeks or even months into a costly project.
As a Project Finishes
The completion of a construction project involves many phases of inspection, and drones can also play a critical role in expediting this process. Advanced photography and videography can be used to confirm if hard-to-reach aspects of a build are up to par. Some drones are even able to use thermal imaging to check for electrical wiring malfunctions or other issues. This helps the end stage of a project run smoothly and also helps protect workers who might otherwise find themselves in precarious situations.
Who Should Be Using Drones?
The construction industry has been slower than other sectors to adapt drone technology, but it can have a massive impact on budget and timeline. Large-scale infrastructure projects in particular have a lot to gain from drones — for instance, railroads and roads that span hundreds of miles. However, even smaller projects can reap the benefits mentioned above, as drones provide a project manager with greater flexibility and oversight.
Difficulties with Drone Technology
Though the initial investment can be high depending on the type of technology, drones have become cheaper over the past decades, and end up being a return on one’s investment. Another issue are the regulations in place regarding the use of drones, which vary by location — and staying up to date with these laws can add cost to a project. It’s often recommended to start small, either by partnering with a drone subcontractor on a project or using a drone for a small element of a build rather than replacing numerous aspects of a project with drone technology.
The Takeaway
Drones, like much consumer technology, continue to become cheaper, more accessible, and more capable as time passes. With every project that uses drone technology, the documentation can be saved and referenced for future projects — ultimately allowing for more efficiency with each build. Drones are already being used in many applications such as mining, agriculture, and urban planning, so it’s only a matter of time until the construction industry catches up to this trend.
A construction project could easily become derailed before ground breaks without the proper planning in place. The potential for project delays, overruns, and unhappy customers exponentially increases if proper planning is overlooked or compromised. Here are some tips to implement before your next construction project.
Before creating the plan, meet face to face with your customer to go over the goals of the project and to ensure you are both in alignment. This includes reviewing blueprints and architectural drawings, answering any questions, and addressing any issues the client may have.
Build a Solid Foundation
A construction project plan should include:
- Scope of the project, which is basically a description of the project, all deliverables, and project milestones. This will guide the entire project and its different phases and should be agreed upon by all stakeholders involved.
- Overall budget with cost estimates. The budget is a critical component in realizing the project scope, as it determines the type of materials required, which subcontractors must be hired, and where the construction will take place. Be sure to take into consideration rising labor, material, and fuel costs, particularly in today’s environment. Have a contingency plan in place to cover additional costs.
- A schedule with start and finish dates for each of the different portions of the project so that it is completed on time. With so many moving parts, you want everyone working together along the same timeline. Each stakeholder should advise you of any potential pitfalls that may cause delays or warrant tweaks to the schedule.
Ensure all building materials are lined up and scheduled, taking into account potential supply chain delays so there are no surprises. Additionally, build into the schedule a progress report/communication plan for the client to keep him or her aware of any adjustments that may have to be made along the way. You want to be able to stay ahead of any potential problems and keep the client informed.
Other elements to consider during the planning phase include creating a safety plan, conducting a risk assessment, and developing a response plan.
Detailed strategic planning is the most important aspect of successful construction project management. The more complex the project, the more planning will be required. A well-planned project increases efficiency and provides a step-by-step road map for completing the work on time and within budget.
Construction activity spikes from May through September. It’s when a contractor’s work plate is full, particularly with new builds and home renovations. This activity coincides with the hottest months of the year around the country.
Construction workers who work in extreme heat are susceptible to heat-related illnesses (HRIs) and injuries. The National Institute for Occupational Safety & Health (NIOSH) defines heat stress “as the combination of a worker’s physical activity, environmental factors, and clothing that results in an increase in the body’s heat storage, known as the net heat load.” The physiological response to heat stress is heat strain, “which occurs when the body attempts to increase heat loss to the environment in order to maintain a stable body temperature,” says NIOSH. To function normally, core body temperature must be kept around 98.6°F. Heat stress can cause unrelieved heat strain, which increases the risk of HRIs. Heatstroke, heat exhaustion, fainting, heat cramps, and heat rash are all examples of HRIs.
CDC: Construction Industry Accounted for One-Third of Heat Exposure Deaths
Construction workers accounted for about one-third of occupational deaths from heat exposure over a 25-year period (1992-2016), according to the most recent figures from the Census of Fatal Occupational Injuries (CFOI). The CFOI found that 285 deaths occurred among construction workers, who make up only 6% of the U.S. workforce. About 78% of these fatalities occurred during the summer months of June, July, and August.
Extra measures are therefore necessary as temperatures rise to help keep contractors cool on construction sites. Following are several safety tips, courtesy of the Centers for Disease Control and Prevention (CDC) and the Occupational Safety & Health Administration (OSHA), to help prevent heatstroke and heat exhaustion and keep your contractors safe.
Screen Construction Workers for Heat Tolerance
- Determine previous HRIs, a lack of fitness, and other factors that may limit workers’ ability to tolerate physical activity in hot environments.
- Advise workers to consult with their health care provider regarding any medications or underlying medical conditions that may impair their ability to tolerate heat and physical activity.
Limit Exposure
- Make certain that workers take appropriate rest breaks to cool down and hydrate.
- Have workers wear light-colored, loose-fitting, breathable clothing to work.
- Schedule hot jobs for the cooler part of the day, and/or alternate (not consecutive) days, if possible.
- Schedule hot routine maintenance work for cooler times of the year whenever possible.
- Provide rest and recovery areas that are cool, shaded, or air-conditioned.
- Allow workers to immerse their hands and forearms in a large container (a cooler, large bucket, or plastic tub) of cool water, which reduces skin and core temperature.
- Increase the crew size to reduce heat exposure for each contractor and to allow the job to continue while some crew members rest.
- Require employees to stop working if they experience heat-related discomfort.
- Assign lighter work and longer, more frequent rest periods to new workers.
- Change work/rest schedules to allow for more downtime. Reduce work hours and increase rest time as the temperature, humidity, and amount of sunlight rise; when there is no movement of air; if protective gear or clothing is worn; and for physically demanding jobs.
Improve Heat Tolerance
- Create a strategy for acclimating workers to heat.
- Increase your time in hot environments gradually over 7 to 14 days.
- New workers should be limited to 20% of their time in the heat on the first day, with no more than a 20% increase on each subsequent day.
- Experienced workers should be limited to 50% heat exposure on the first day, 60% on the second day, and 80% on the third day. Full-time work in the heat is permitted beginning on the fourth day.
- Supervise new employees closely for the first 14 days or until they are fully acclimated.
- Recognize that a few days away from work can cause a loss of acclimatization.
Encourage Water Consumption
- Determine how much water will be required and who will obtain and monitor water supplies.
- Workers in the heat for 2 hours and engaged in moderate work activities should drink 1 cup (8 oz.) of water every 15–20 minutes. If workers are sweating profusely for several hours, they should drink sports drinks containing balanced electrolytes.
- Provide individual drinking cups, not communal cups.
Develop a Heat Alert System
- Train all program participants on what to do if the National Weather Service issues an “Excessive Heat Warning.” Concentrate on injury and illness prevention, recognizing HRI symptoms and first-aid procedures.
- Instruct managers and supervisors in writing to ensure that each site has adequate supplies of cool liquids, first-aid supplies, cooling equipment (such as ice packs, iced bedsheets, or a child’s wading pool that can be quickly filled with cool water), and cool rest areas.
For additional information on keeping construction workers safe during the hot summer months, visit OSHA.
Sources: Census of Fatal Occupational Injuries, NIOSH, CDC, OSHA