Striving for Zero:Excellence in Safety p.16

When OSHA ComesKnocking p.22

Are You Ready for the New EUCA.com? p.30

WWW.EUCA.COMJ U N E 2 0 1 1ISSUE 6/VOLUME 217

THE NEXT GENERATION OF CONSTRUCTION LEADERSHIP

The Safety Factor

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Call or stop by your local branch for the industry’s leading underground construction resources.

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R E P A I RR E P A I R

P R E V E N T I O N

S O L U T I O N S

C O V E R A G E

C A R E

P R E V E N T I O N

State Fund’s

Alternative Dispute

Resolution Program

State Fund’s Alternative Dispute Resolution Program (ADR) provides exceptional workers’ compensation insurance with “no-hassle,” cost-control measures for union employers. This program allows eligible employers enhanced benefits, an immediate discount on premiums, while providing comprehensive coverage for employees.

For details on the ADR system and other program features, call your insurance broker, or Cathie Hastings at State Fund Group Programs at (800) 533-6868.

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EUCA Digger Magazine (ISSN: 1086-5004) is published monthly, except December, by the Engineering & Utility Contractors Association, 17 Crow Canyon Court, Suite 100, San Ramon, CA 94583. Editorial comments, letters, and article submissions are welcomed and encouraged. Corre-spondence should be directed to the EUCA offi ce at the above address, by phone at (925) 855-7900, by e-mail at eucaxinfo@euca.com or by fax at (925) 855-7909. Reproduction of editorial material in this issue is permit-ted if accompanied by proper source credit. Periodicals postage paid at San Ramon, CA and other offi ces. Postmaster: Send address changes to: EUCA Digger Magazine, 17 Crow Canyon Court, Suite 100, San Ramon, CA 94583. © 2011 Published in the U.S.A.

2011 EUCA BOARD OFFICERS

President ......................................................Rob Layne

Vice President/President-Elect .................Mike McElroy

Secretary/Treasurer .................................Mike McElroy

Secretary/Treasurer-Elect......................Michael Ghilotti

Past President (2010) .......................... Christian Young

contentsEUCA BOARD OF DIRECTORSNikki Affi nito, Union Bank; Kevin Albanese, Joseph J. Albanese, Inc.; Jami Brady, BakerCorp; Don Cabianca, Cal State Constructors, Inc.; Jerry Condon, Condon-Johnson & Associates, Inc.; Michael Ghilotti, Ghilotti Bros., Inc.; Greg Gruendl, Ray’s Electric; Rob Layne, O.C. Jones & Sons, Inc.; Steve Lydon, TerraCon Pipelines Inc.; Mike McElroy, FMG, Inc.; Robert Purdy, RGW Construction, Inc.; Danny Wood, Jr., D. A. Wood Construction, Inc.; Christian Young, D.W. Young Construction Co., Inc.

EUCA COMMITTEE CHAIRSAssociates: Nikki Affi nito (Associate Director), Union Bank; Jami Brady (Associate Director-Elect), BakerCorp | Caltrans: Michael Ghilotti (Chairman), Ghilotti Bros., Inc. | Government Relations: Gary Andrews (Chairman), Amos & Andrews, Inc. | Labor/Collective Bargaining: Mike Fuller (Chairman), Mountain Cascade, Inc.Steve Geney (Co-Chair), Ghilotti Construction Co. |Safety & Insurance: Gary Rudy (Chairman), Duran & Venables, Inc. | Scholarship: Leslie Cusimano (Chair), Joseph J. Albanese, Inc., Janice Lajoie (Co-Chair), GE Capital

EUCA STAFFMark Breslin, Chief Executive Offi cer; Leslie Lord, Deputy Director; Kelly Montes, Executive Assistant; Randy Ruby, Director of Labor Relations; Ruby Varnadore, Labor & Member Services Representative; Galina Velikovich, Labor Relations Advocate; Shelbie Tieman, Director of Finance & Administration; Terese Pollock, Finance Assistant; Jami Moore, Member Services Coordinator; Stacy Anderson, Director Communications, Events & Education; Denise Ramirez, Education & Website Manager;Joan O’Brien, Education Coordinator; Jenn Rogers, Event Manager; Michelle Vejby, Publications Manager; Emily Cohen, Director of Government Relations; Mallori Spilker, Government Relations Assistant; Kevin Pedrotti, Legislative Advocate

June 2011 5

More Inside:

www.euca.com

6

12

8

26 NEXT UP

28 WE ARE EUCA

30 WWW.EUCA.COM

32 LAST CALL

16

UP Front The Cornerstones of Your BusinessRob Layne, O.C. Jones & Sons, Inc.,EUCA 2011 President

LABORMeal Period Updates & RemindersBy Ruby Varnadore, Labor & MemberServices Representative

PUBLIC WORKSWhy Partnering? Why Now?By John Franich, Granite ConstructionCompany; EUCA Caltrans Committee MemberCaltrans Excellence in Partnering Awards

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JUNE 2011ISSUE 6, VOLUME 217

FACESBay Bridge ReconstructionProject Tour

10Project Tour

FACESEUCA 2011 Convention

14

2010

Striving for Zero:Excellence in Safety p.16

When OSHA ComesKnocking p.22

Are You Ready for the New EUCA.com? p.30

WWW.EUCA.COMJ U N E 2 0 1 1ISSUE 6/VOLUME 217

THE NEXT GENERATION OF CONSTRUCTION LEADERSHIP

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tafety. Risk Management. Finance. Arguably, these disciplines make up the cornerstones of a successful business model. Even though we recognize the importance of these topics, when faced with planning

these aspects of our business, it is easy to lose focus and move on quickly to other pressing issues.

Come on, admit it. How many times have you bounced out of bed and hurried in to work thinking, “I can’t wait to sit down with my broker this morning and review my current general liability trends!”? When was the last time you said to yourself, “I could fi gure out how to get a few more tons per hour through my paver, but what I really want to do right now is study all the insurance provisions of the Owner Controlled Insurance Program that came with that contract I’m about to sign.”? I am right there with you. In fact, I can’t begin to count the number of other tasks I manage to fi nd to occupy my time instead of addressing these topics. However, once you commit to addressing these issues, you will discover how they impact your bottom line in ways you never realized.

Consider insurance coverage, for example. You know what coverage is required, and maybe you’ve given some thought to some additional types of coverage you would like to carry, just in case. And after some digging, you managed to fi nd some of the best rates out there, to make sure your costs are low and your bids are competitive. So you pay your premiums, get the insurance protection you think you need, and you’re in business. Then the end of the month comes around, and you try to collect on that bill you submitted to the general contractor for all the work you completed last month. That’s when you get the news that those insurance certifi cates your broker submitted for you aren’t correct, and your payment won’t be released until they are correct. Two weeks later, after the tenth phone conversation with your broker, you still aren’t paid. And since you aren’t getting paid, you’re about to have to meet with that other cornerstone of your business, your banker. It seems that the general contractor is being diffi cult, but you know he is just following his own good risk management practices.

Now you are beginning to realize that your choices you made for insurance coverage are impacting your business in unexpected ways. You decide to research your broker a

The Cornerstonesof Your Business

adbi

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little deeper, and fi nd that, although he’s a reputable broker, most of his other clients are restaurant owners or beverage distributors. Your paperwork problem should not have been diffi cult to solve, but your broker doesn’t deal with contractors often enough to know the requirements of your business. Another lesson learned the hard way.

It’s often these little, unforeseen issues that can have big impacts on your bottom line.

As another example, we all recognize the role safety plays in the success of our companies. It affects not only a company’s insurance rates and productivity, but also its reputation, ability to attract and retain good employees, and opportunity to secure contracts with good owners. But a good safety program must be built in to all aspects of your business to be effective.

Suppose you are just fi nishing up the successful installation of a long run of pipe. Your safety pre-planning insured that all of the necessary shoring, tools, equipment and protective gear were on hand, and your crews performed their tasks with zero accidents, and ahead of budget. They park the equipment, congratulate themselves on a job well done, and leave the jobsite for the day. That night your transport driver shows up to move the excavator, only to fi nd he can’t access the equipment where it was left parked and it’s still too dark for him to do anything about it. He fi nally gets it loaded up when it’s light enough to see, but now he’s stuck in curfew and can’t get on the highway until mid-morning. In the

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June 2011 7

meantime, your crew is sitting idly by on their new job across the bay, wondering why the excavator that was supposed to be onsite is nowhere to be found. Your safety plan overlooked a seemingly small but important aspect of your business: getting your equipment moved between jobs. Fortunately no one was hurt, but your company’s reputation has suffered a little in the eyes of both the owner on your new job, and your crew waiting to go to work. And worse still for your bottom line, that next job has already started behind budget.

When planning these cornerstones of your business, there is no substitute for experience. EUCA Associate members offer a wealth of experience and expertise in all facets of our industry. And it’s likely that whatever situation you may encounter, one of our members has already been there and done that.

Take the time to participate in all the networking opportuni-ties that EUCA offers, and take advantage of the knowledge and experience available. Your membership in EUCA comes with incredible resources you can utilize to develop, improve and execute your plans for building the solid foundation of your business. And when your mind starts to wander the next time you sit down to plan these aspects of your business, just remember the time and money it cost you the last time you didn’t pay attention to these details!

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Ph: 510/420-8992 6345 3rd Street, San Francisco, CA 94124-3501

Ph: 415/508-1800 San Francisco HRC Certified: #HRC040914855

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HAND SAWING CONCRETE BREAKING/REMOVAL WIRE SAWING

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SHORING EQUIPMENT

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CONFINED SPACE

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TRAFFIC CONTROL ALUMINUM SHORING

First In Service – Since 1979

First In ServiceSince 1979

website: www.tprco.com email: sales@tprco.com

Escondido, CA 877/246-4085San Diego, CA 866/829-6906North S.F. Bay Area, CA 800/321-5550South S.F. Bay Area, CA 877/246-4086

Sacramento, CA 800/548-0688Reno, NV 877/809-6492Las Vegas, NV 877/809-6493Houston, TX 866/247-9449

Los Angeles, CA 800/821-4478N. LA/Ventura, CA 877/246-4087Orange County, CA 800/772-8004San Brndno/Rvrsd, CA 877/246-4085

Meal Period Updates and Reminders

8 WWW.EUCA.COM

It’s now been six months since AB 569 went into effect, providing relief for construction contractors with employees covered by collective bargaining agreements (CBA) that contain meal period provisions. EUCA’s CBAs all contain

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provisions with differing degrees of specifi cs, and as with any new legislation there are still some areas that are not clearly explained. We are in the process of getting clarifi cation on some items and will keep our members informed on any

developments. In the meantime, please refer to the meal and rest period fi les on our website (Free Member Resource Center) and contact Labor & Member Services with any questions.

Also related to meal periods:• Status of Court Decisions: There have continued to be other cases decided over the past couple years that support the contention that employers are only required to authorize meal periods, not enforce them. However, the legal community is still waiting for the outcome of the Brinker case (Brinker Restaurant v. Superior Court of San Diego) for the California Supreme Court’s determination of this issue. A decision will hopefully be forthcoming later this year.• Time Card Requirements: In accordance with Wage Order 16 (Section 6), construction companies are required to record employees’ meal periods, as well as the start and stop times of all shifts worked. The only exception to recording the meal periods is if all operations cease during the meal period. Since 2008, workers’ compensation auditors are also required to look at these time records and reconcile them against hours worked in order to clarify dual wage assignments—lack of proper records can lead to higher workers’ comp premiums. ◆

Please note that in our May issue of EUCA Magazine under our Labor article highlighting Union Apprenticeship & Training Programs, the phone number and website address for the Cement Masons JATC was incorrect. The correct number is (925) 484-2271, and the website iswww.norcalcementmasonsapprenticeship.org. ◆

Correction Notice:

elebrating

1320 Harbor Bay Parkway, Suite 240Alameda, CA 94502-6580

T 510.748.1870 F 510.748.1205

www.stacywitbeck.com

CM/GC, Conventional and Design/Build

General Contracting Services

Light Rail, Streetcar and Commuter Rail Construction

Experts in all phases of transit construction

June 2011 9

travelers.com

Whether your construction company is large,

small or something in between, we cover it.

Small construction companies are different from mid-size companies. And they’re both

different from the big guys. That’s why, at Travelers, we have dedicated account executives, risk

control and claim specialists with an in-depth knowledge of construction companies of every

size. So, whether we’re talking about one employee or one thousand, we’ll build insurance and

surety programs to meet your needs. Contact your independent Travelers agent to learn more.

No matter what size the construction company, we think you’ll see a big difference.

©2011 The Travelers Indemnity Company. All rights reserved. The Travelers Indemnity Company and its property casualty affiliates. One Tower Square, Hartford, CT 06183

10 WWW.EUCA.COM

Thank you to Caltrans, and the attendees:Terry Abbott, Caltrans HQ Design Division ChiefEmily Cohen, EUCA Director of Government RelationsBob Finney, Caltrans District 4Scott Jarvis, Caltrans HQ Construction Assistant Division ChiefRamzi Nassoura, DeSilva Gates ConstructionDominio Nuccio, VP Operations, Ghilotti Bros., Inc.Trevor Nuccio, Project Engineer, Ghilotti Bros., Inc.Gerry Santiago, Caltrans District 4, D-4 Partnering CoordinatorSteve Whipple, Caltrans District 4, D-4 Industry SWPPP Co-LeaderChristine Williams, C.C. Meyers, Inc., D-4 Industry SWPPP Co-Leader

EUCA members and industry specialists were invited by Caltrans to tour the Bay Bridge Reconstruction Project in April. This group was the fi rst that Caltrans has taken up to the top of the tower—458 feet above the Bay.

FACES

Incredible Infrastructure

Workers on the West Span, 1933.

The (original) Bay Bridge construction began July, 1933, and opened November, 1936. It was the longest bridge in the world when it was built. The Bridge carried 9 million vehicles in its fi rst year; today that number is 102,200,000 per year—visit www.baybridgeinfo.org.

Michels: A diversified utility, engineer-ing, design and construction contrac-tor with critical expertise in linkingsystems for energy, communications,transportation and distribution.

Brownsville, WI 53006

920.583.3132 www.michels.usEqual Opportunity Employer

Driving Innovation.Transforming Construction.

June 2011 11

»»»»

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WHY PARTNERING? WHY NOW?

12 WWW.EUCA.COM

onstruction is a diffi cult business in any economy. And in this one, it is especially tough. We all work

to decrease our costs, maintain our profi ts and take extraordinary steps to minimize risks. And yet, one of the most cost-effective tools we have in the construction industry is overlooked by many owners and contractors. Partnering. The benefi ts go beyond establishing good relationships—Partnering creates a systematic way to deal with problems and capitalize on opportunities in a project.

Unfortunately, there is no such thing as a perfect set of plans. Nor, a perfect estimate. And, sometimes, the chemistry between project teams is, well, grizzly. Every time we conduct a “lessons learned” on a problem project, the failure to communicate is at the core. ANYTHING that improves communication among the project team, especially one

that sets expectations of the highest level of collaboration is highly benefi cial. As a matter of practice and culture, we expect our teams to implement formal Partnering on our projects. We see the benefi t in our bottom line in many ways:• Problems are frequently resolved in the fi eld, before they impact costs or schedule.• Issues get elevated quickly, and then resolved before they become claims.• Opportunities to cut time, save dollars, improve quality and enhance safety get implemented.• Projects fi nish early, without claims, and close-out costs are substantially reduced.• Teams have fun, even on tough projects, and they are more productive.

EUCA Members Receive Caltrans Excellence In Partnering Awards

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Unfortunately there is no such thing as a perfect set of pWhat Partnering Does for the Bottom Line

Flatiron Construction Corp.Project: Route 238 Widening & Rehabilitation Project, District 4, Alameda County

Granite Construction CompanyProject: Route 40 Pavement Rehabilitation Project, District 8, San Bernadino County

oA

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Leading

Producer of

Concrete and

Steel Pipe

Systems

10681 Foothill Blvd., Ste. 450,

Rancho Cucamonga, CA 91730, Tel 909-944-4100

10100 West Linne Rd., Tracy, CA 95377, Tel 209-836-5050

10441 Vine St., Lakeside, CA 92040, Tel 619-561-6363

2325 South 7th St., Phoenix, AZ 85034, Tel 602-252-7111

Website: www.ameronpipe.comEmail: pipeinfo@ameronpipe.com

Complete engineering packages are available toprovide fully integrated solutions

AMERONINTERNATIONAL

June 2011 13

Implement Partnering for your benefi t – it’s a way to be heard by Caltrans. The highest levels of Caltrans management embrace Partnering and they’re investing time and budget in changing the culture of Caltrans projects. Why? Because it saves time. It saves money. It saves lives. It’s just good business.

The Fundamentals of Partnering course is offered for FREE, (even in this economy) by Caltrans and the industry. The one-day training is provided by teams of fi eld staff (one Caltrans, one contractor) who have successfully implemented Partnering on their projects. Attendance is limited to 15 Caltrans, 15 from industry. So, during the training, your staff will be learning about the tools and techniques used to make Partnering successful; hearing stories about what works from their peers; and rubbing elbows with Caltrans fi eld staff outside the project setting. Yup, it’s a win-win-win!

As managers and leaders in this business, we have a responsibility to our clients, our employees and ourselves to take advantage of the best tools available. Partnering is one of those tools. And, the Fundamentals of Partnering Training course helps our teams understand what it is and how to use it effectively.

If you’re a manager, set clear expectations for your project managers, superintendents and fi eld staff that they are required to attend the Fundamentals course. Do the same for your subcontractors.

One day, you will thank me. ◆

Implement Partnering for your benefit it’s a wa

Partnering—It’s the Way Caltrans Does Business

Th F d t l f P t i

What is the “Fundamentals of Partnering” Training?

A d l d iWhat Can You Do?

Las Vegas Paving, Inc.Project: Route 15 Mountain Pass Project, District 8, San Bernadino County

O.C. Jones & Sons, Inc./C.C. MeyersProject: Route 205 Widening Project, District 10, San Joaquin County

14 WWW.EUCA.COM

FACESEUCA’s 2011 ConventionROCK the Market & ROLL Over the Competition,San Diego, CA, April 14-17

“To all those EUCA members that didn’t attend San Diego 2011 you missed out!! Great weather, fun city, and a valuable seminar as well as lots of interaction with other members made it a memorable event.” — Mike Ghilotti, Ghilotti Bros, Inc.

“The entire event was awesome! I can’t believe I haven’t been coming all these years. What great networking opportunities and just an overall fantastic time!!” — Jami Brady, BakerCorp

June 2011 15

“To all those EUCA members that didn’t attend San Diego 2011 you missed out!! Great weather, fun city, and a valuable seminar as well as lots of interaction with other members made it a memorable event.”

SPONSORS:Educational Seminar SponsorMichels Corporation

Lunch Cruise SponsorsCondon-Johnson & Associates, Inc.FMG, IncGhilotti Bros., Inc.

Dueling Piano Bar SponsorsMichels CorporationO.C.Jones & Sons, Inc.

Picnic in the Park SponsorsChrisp CompanyRobert A. Bothman, Inc.

2011 © RSC Equipment Rental, Inc. All Rights Reserved.

RSC Equipment Rental is Your Trusted Partner for Equipment Solutions and Safety Innovations

Call to learn how RSC can improve safety and productivity through equipment solutions:

Safety First

TM

RSC Equipment Rental is committed to Safety First. Through training and innovative programs, RSC delivers safety excellence on the jobsite, in the workplace and in the community.

One of the lowest OSHA incident ratings in the industry Customer Safety Training Programs Superior Preventive Maintenance 24/7 Customer Support Equipment Rental and Sales

“Without a doubt, the fact that our entire employee owned company is 100% invested in our Safety Program. From management to our fi eld employees, everyone has the power and the responsibility to ensure that we work safely every single minute of every single day, because being “safe” doesn’t end or begin on the jobsite. It is a mindset that all of us at McGuire and Hester consciously strive to maintain with every task we undertake. This can only be accomplished by ensuring our Safety Program remains positive, educational, interactive and adaptable each day.” — Kim Fischer, Corporate Counsel

16 WWW.EUCA.COM

SAFETY EUCA SAFETY AWARDSSP

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Category: 250,001 - 500,000 Man Hours—Shimmick Construction Company Inc./Obayashi Corporation JV“A total commitment by Shimmick management to take Safety to World Class Status at every level of our workforce. We encourage and integrate involvement from fi eld craft to senior management into our Safety Culture. Our dedication to a safe work environment is a testament that we can produce safely and have incident free jobsites.” — Ike Riser, Safety Director

Category: Over 500,001 Man Hours—McGuire and Hester

The EUCA Safety Awards Program recognizes the safest companies in our association. Contractor member companies may submit applications for the awards, chosen based upon company size and safety information including: work days lost to injury, workers’ compensation modifi cation rate, company safety policy, safety philosophy and more.

EUCA wishes to congratulate the following 2010 award recipients for making safety their top priority. On the following pages they share members of their staff, and answer the question, “What is the one thing you contribute to having a zero/low safety incident rate at your company?”

Photo courtesy Shimmick Construction Company; Tujunga Dam project, Los Angeles County

t aaapppppplililililililicacaca ititititititionononsss

2010

Trying To Get

Your Project Off The Ground?

For more information, contactJim Untiedt408.535.2804 | www.aon.com Beyond Protection. Partnership.

Watch it take flight with our team of dedicatedpartners. Providing solid protection, AonConstruction Services Group delivers worldclass resources and the right tools to galvanizethe success of your project.

18 WWW.EUCA.COM

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Category: 75,001 - 150,000 Man Hours—Injury Free Work Place Award — FMG, Inc.“The support we receive from the Owners, Mike McElroy and Frank Fonseca, is the key to our success. Their involvement is essential to the Safety Program and to all employees. Without everyone’s help, we wouldn’t have the zero/low safety incident rate that we have today. Safety cannot be a one-man show! At FMG, SAFETY COMES FIRST!”— Julio Garcia, Safety Coordinator

June 2011 19

Category: 25,001 - 75,000 Man Hours—All Injury Free Work Place Award Recipients —

“We attribute our zero/low incident rate to a complete safety awareness from management to the fi eld, coupled with a Safety incentive program for all employees.”— John G. Johnson, President

“Company management and fi eld supervision have made job safety priority #1. This is communicated on a daily basis to all company employees and subcontractors.”— Philip Toelkes, Vice President

Jonas & Associates, Inc.

R.J. Gordon Construction, Inc.

Tidelands Construction Company

Suarez & Munoz Construction, Inc.

Pacific Boring

“On a daily basis, reminding employees that Safety comes fi rst, and we would like to return them to their loved ones safely.” — Romena Jonas, Principal-in-Charge

“We attribute our zero-incident rate to our employees making safety the top priority of every job.”— John Iles, Vice President Operations

2010

“The most important thing we attribute to having a zero/low safety incident rate at at our company: The character and quality of our workforce. Quality-minded people are safety-minded people. Quality work and safe work are the pillars of a successful company.”— John Suarez, Secretary Treasurer

20 WWW.EUCA.COM

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Rising gas prices are not the only increasing costs facing contractors. Don’t be surprised by the accelerating Workers’ Compensation net rate increases in 2011 and beyond.

Up until recently, insurers were earning double-digit profi ts in Workers’ Compensation—this changed with increasing medical claims costs and the inability of many employers to bring injured workers back to work in the past recession.

For the last 3 years, the California Insurance Commissioner has rejected the suggested double-digit rate increases proposed by the Workers’ Compensation Insurance Rating Bureau (WCIRB). Although many insurers did fi le minimal base rate increases over the last two years, underwriters

Workers’ Compensation Rates and Experience Modification Factors On the Rise in 2011

offset these rates by applying merit-rating credits in an attempt to gain more market share.

Year Average WCIRB

Construction Rate

xUnderwriting Merit Rating

Creditx

AVG, EUCA Experience

Mod= Net Rate

2008 5.47 x .75 x .95 = 3.90

2009 5.86 x .70 x .94 = 3.86

2010 5.99 x .75 x 1.04 = 4.67

2011 5.88 x .90 x 1.02 = 5.40

2012 (est) 6.50 x .95 x 1.03 = 6.36

Contract Drafting, Review and Negotiation

Trial and Arbitration

Claims, Dispute Resolution and Mediation

Bid Protests

Collection

Employment Counseling

Contact: Janette G. Leonidou A. Robert Rosin

|phone| 650.691.2888 |fax| 650.691.2889 |web| www.alr-law.com

Leonidou & Rosin777 cuesta drive | suite 200

mountain view, california 94040

www.ocjones.com | 1520 Fourth St., Berkeley, CA | 510.526.3424

: Past, Present, and Future

• Highway & Airport Construction• Commercial, Industrial, and Residential Complete Site Development• Maritime & Railroad Intermodal Facilities

• Civil Projects• Emergency Services • Athletic Fields & Parks

There is no substitute for experience.

CSU East Bay Soccer Stadium

Bay Bridge Toll Plaza Demolition

Highway 205 Widening, Tracy

June 2011 21

In April 2011, the WCIRB indicated it will be making an informational fi ling to insurers, suggesting a 39.8% base rate increase is warranted due to the increasing underlying cost drivers that include medical liens, increasing defense costs, and additional body part claims.

We reviewed the experience modifi cation factors of 68 leading EUCA contractors, interviewed 6 construction insurance underwriters, and reviewed the average WCIRB construction rates for the last 4 years. The Table shown (on page 20) is a good example of what a mid-sized contractor with $200,000 in annual Workers’ Compensation premiums might expect to see in 2011 and 2012.

EMR 2008 2009 2010 2011

Under .90 35 39 28 13

0.91 - 1.00 10 9 8 6

1.01 - 1.25 16 12 20 8

Over 1.25 8 8 12 6

Average EMR 94.49 94.27 103.74 1.02

A contractor with fi eld payroll of $1,000,000 could see their premium jump from $386,000 in 2009 to $540,000 in 2011 (a 40% increase). The majority of this increase coming from reduced underwriter merit rating credits (confi rmed by the 6 construction underwriters) and higher experience modifi cation factors. Underwriters are reducing merit rating credits to compensate for inadequate base rates and rising claims costs.

These increased costs are a big concern in this low margin bid environment, but the bigger issue is the rising experience modifi cation (EMR) rates when they exceed 1.0. Many private owners will restrict bid lists to contractors with 1.0 or lower EMRs and public owners may restrict bid lists to contractors with 1.25 EMRs or lower.

In the table shown in the upper right (above), we have tabulated the EMRs for 68 EUCA contractors.

These increases in EMRs are not surprising. The combination of lower construction payrolls over the last few years and higher medical and legal claim costs have signifi cantly impacted EMRs. We have seen 7 out of 10 contractors EMRs rise over the last 2 years.

The majority of underwriters we spoke with are still aggressively pricing contractors with 5-year loss ratios of 35% or lower.

If your 5-year average loss ratio (total incurred claims divided by total premiums) is over 35% then you should focus now on steps to improve your safety program and meet with your broker or underwriter to take action to qualify for maximum merit rating credits at renewal.

We expect Workers’ Compensation net rates will

continue to rise over the next several years. How much they increase is up to you! ◆

Jim Untiedt, CPCU, ARM, Executive Vice PresidentAon Construction Services, EUCA Member Since 1982. Contact Jim at 408/535-2804, www.aon.com.

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22 WWW.EUCA.COM

SAFETY SP

EC

IAL

FEAT

UR

E

Preparing for a Visit from OSHAShare this

article with

your foremen

in the fi eld!An unannounced visit to your worksite by an Occupational Safety and Health Administration (OSHA) compliance offi cer can be an intimidating experience. Since nearly half of all OSHA inspections are initiated by employee complaints, there is a strong probability that the compliance offi cer knocking on your company’s door has been assigned to investigate specifi c worksite conditions or potential hazards.

Your company’s smartest strategy would be to avoid an OSHA inspection—and possible violations and fi nes—by implementing a safety program that provides your workers with proper hazard awareness and prevention techniques.

A review of common OSHA safety violations in construction gives an indication of some of the areas where your company could focus its safety initiatives. Extensive and ongoing employee training is perhaps the most important

By M

ike

Sa,

OSHA

Tra

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,EU

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In

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CELEBRATING 30 YEARS OF EUCA MEMBERSHIP!

800.822.1776

Serving the Construction Industry for 40 Years

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June 2011 23

factor in workplace safety and could help your company avoid employee complaints and subsequent OSHA inspections, or reduce the number of violations by demonstrating to an OSHA inspector that your company is focused on managing and improving workplace safety. (log on to www.osha4you.com/oshainspection for checklists and additional resources).

If an OSHA compliance offi cer makes an unexpected appearance at your worksite, the keys to handling the visit effectively include understanding OSHA inspection procedures, being prepared to respond cooperatively and appropriately to all questions and requests, and selecting well trained employees, such as a competent person or qualifi ed supervisor to represent your company during the inspection process.

Establishing a detailed company policy for handling OSHA worksite inspections is essential to adequately prepare and support your competent person. An effective company policy should include the development of an OSHA Inspection Report form to provide your competent person and supervisors a structured format to follow and to generate accurate documentation for any required follow up after the inspection.

The OSHA Top Ten most cited violations were as follows:1. Scaffolding, general requirements,

construction (29 CFR 1926.451) 2. Fall protection, construction (29 CFR 1926.501) 3. Hazard communication standard, general industry (29 CFR 1910.1200) 4. Ladders, construction (29 CFR 1926.1053) 5. Respiratory protection, general industry (29 CFR 1910.134) 6. Control of hazardous energy (lockout/tagout), general industry (29 CFR 1910.147) 7. Electrical, wiring methods, components and equipment, general industry (29 CFR 1910.305) 8. Powered industrial trucks, general industry (29 CFR 1910.178) 9. Electrical systems design, general industry (29 CFR 1910.303) 10. Machines, general requirements, general industry (29 CFR 1910.212)

Preparation for an OSHA Inspection

Continued on next page

24 WWW.EUCA.COM

SAFETY SP

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When the OSHA compliance offi cer arrives at your worksite, record the compliance offi cer’s credentials, along with the OSHA offi ce address and phone number. It is recommended that you call to verify credentials. Supervisory personnel should notify your company’s main offi ce and safety

personnel of the impending OSHA inspection. If an imminent danger situation is the focus of the inspection, the OSHA inspector will proceed directly to that area of the jobsite and resolve the situation and then have the opening conference.

The OSHA compliance offi cer will begin by holding an opening conference to explain why OSHA selected your worksite for inspection, outline the scope of the visit, reference applicable OSHA standards and clarify walk around procedures. During the inspection a company representative or qualifi ed supervisor should accompany the compliance offi cer at all times.

During the walk around portion of the inspection, the compliance offi cer will evaluate your worksite for compliance with the requirements of the OSHA Regulations. Detailed documentation of this evaluation on your OSHA Inspection Report form will prove invaluable to your company for post-inspection follow up.

After the completion of the inspection, the compliance offi cer will hold a closing conference with your company and employee representatives to discuss the fi ndings. The discussion will incorporate possible courses of action to be taken following the inspection, which could include citations, abatement of potential citations, a negotiated reasonable time frame to perform the abatement, an informal conference with OSHA, contesting citations, proposed penalties or a formal document request.

OSHA citation categories can range from minor violations with no penalty, to criminally willful, which can result in penalties as high as $70,000 per violation. The best strategy for avoiding citations and extra expense is to commit to a safe workplace and prepare your supervisors, competent person and employees to promptly correct any hazardous conditions identifi ed during your OSHA inspection.

Th OSHA li ffi ill

The Opening Conference

The Walk Around

Aft th l ti f th iThe Closing Conference

Preparing for a Visit from OSHA

The Cost of Non-Compliance

I n s u r a n c e B r o k e r s

June 2011 25

Worksite violations will often trigger follow up inspections to determine whether the previously cited violations have been corrected. If your company fails to abate a violation, the compliance offi cer can issue a “Notifi cation of Failure to Abate,” and your company may face additional proposed daily penalties of up to $7,000 while such failure or violation continues.

A full commitment to safety at your worksite is your company’s best strategy for avoiding needless injury or hazardous conditions that may trigger an OSHA inspection. However, with thorough preparation, a detailed OSHA company policy and a well trained competent person, your company can not only signifi cantly reduce worksite hazards and risks, but also be ready to handle an unannounced visit by an OSHA compliance offi cer effectively and professionally. ◆

Michael Sa is a safety consultant with over 26 years of safety and occupational health experience. He specializes in Fed OSHA and Cal/OSHA construction courses as well as the OSHA electrical safety courses. Michael is also one of EUCA University’s safety course instructors through the OSHA Training Center; www.osha4you.com,866/936-OSHA. For a complete copy of Michael’s article, with more in-depth information, visit the magazine page at www.euca.com.

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STAY COMPLIANT WITH EUCA UNIVERSITY SAFETY CLASSESIs your organization OSHA compliant? Are you up to date with all of the required jobsite regulations? In honor of National Safety month why not review your employees certifi cations and make sure they are current and up to date? The safety of your employees should be your number one priority. EUCA

EUCA University: Your Training ResourceCan’t fi nd the specifi c classes you are looking for? EUCA can help. For more information contact Education Coordinator, Joan O’Brien at 925/362-7303, or jobrien@euca.com.

University is here to help. We offer certifi ed safety courses taught by highly qualifi ed instructors who will provide you current information and essential details you need to know to keep your organization compliant. Upcoming courses include:

COMPETENT PERSON TRENCHING & EXCAVATION: Saturday, August 13, 8:00am-4:00pm — Cal/OSHA recommends that Competent Person certifi cation be renewed every three years. Students will learn the role and responsibility of the employer to assign a competent person to the excavation site and arm that person with the knowledge to perform the work properly.

Topics include the understanding and application of defi nitions relating to OSHA’s Excavation Standard (OSHA 7410; Subpart P), excavation hazards and control measures, soil analysis techniques, protective system requirements and emergency response.

You need to attend!

FIRST AID CPR 8-HOUR & REFRESHER:(8-Hour) Saturday, September 17, 8:00am-4:30pm; (Refresher) Saturday, October 15, 8:00am-12:00pm — CAL/OSHA requires

that First Aid/CPR certifi cates be renewed every two years.

Cal/OSHA requires every job site to have a person who is certifi ed in both First Aid and CPR. Class participants will learn the role of the “fi rst responder” in their company’s emergency response plan, and develop the ability to make appropriate decisions in a fi rst aid crisis.

May 2011 27

EUCA AND CONSTRUCTION MILLENNIALS OF AMERICA

BRIDGING THE GAP Leadership & Development for the Industry’s Next Generation

Thursday, July 14th, 20115:30-8:00pm; Walnut Creek MarriottCost: $25 per person

June 2011 27

Don’t miss one of the industry’s largest annual events of the year. EUCA’s Annual BBQ draws a crowd of 700+ construction leaders. Join us August 4, 2011, 4:30pm, at the Alameda County Fairgrounds, Pleasanton; $60 per person.

This year’s BBQ will feature a Chili Cook Off Competition. Join this impressive list of competitors:• Bauman Landscape and Construction, Inc. teams up with Peterson Tractor Co.• Condon-Johnson & Associates, Inc.• FMG, Inc. paired with Union Bank• Ghilotti Bros., Inc.• Ray’s Electric• Shimmick Construction Co. together with Volvo Construction Equipment• Stacy & Witbeck, Inc.Contact Jenn Rogers, Event Manager, to add your name to the list, 925/362-7309, jrogers@euca.com, or visit www.euca.com to register.

EUCA BBQ

Chili Cook Off

Chili Cook Off

READY TO THROW DOWN YOUR WINNING CHILI RECIPE?EUCA’s Annual BBQ:August 4, 2011, Alameda County Fairgrounds, Pleasanton

Are you a Construction Millennial? Are you hungry for advancement, self development and leadership opportunity? This is the event for you...EUCA and CMA (Construction Millennials of America) invite you to a special night of focused leadership, networking and development for the industry’s Gen Y Leaders.

Keynote presentation by Mark Breslin, EUCA’s CEO, and noted industry author and speaker. Contact Michaela Bammer at 925/362-7317, mbammer@euca.com for more information. Sponsorships available.

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28 WWW.EUCA.COM

EUCA

EUCA would like to take this opportunity to recognize and thank the following companies who are celebrating their anniversary of membership with our organization in June:

36 YEARS – 1975Associate Member:Corix Water ProductsMel Miller

34 YEARS – 1977Associate Member:Hanson Pipe and PrecastDanielle Slagle

30 YEARS – 1981Associate Member:GALLINA LLPJack Bosley

23 YEARS – 1988Associate Member:Johnston, Gremaux & Rossi, LLPEd Lampe

22 YEARS – 1989Associate Member:Tractor Equipment SalesGlenn Dagman

20 YEARS – 1991Associate Member:First Capitol Auction, Inc.Brian McKissack

JUNE MEMBER ANNIVERSARIES

17 YEARS – 1994Contractor Member:DeSilva Gates ConstructionRich Gates

16 YEARS – 1995Associate Members:Ignite MarketingJoAnn K. Leonard

The Covello Group, Inc.Gary Skrel

14 YEARS – 1997Contractor Members:AJW ConstructionAlfonso Quintor

Chrisp CompanyRobert P. Chrisp

Linear Options, Inc.Chuck Wilson

Riley’s Striping, Inc.Ed Dillon

Associate Member:Liberty Mutual SuretyLisa Merlin

13 YEARS – 1998Contractor Members:Bay Pacifi c PipelineEugene Carew

Ryan Engineering, Inc.Marty Ryan

Tennyson Electric, Inc.Mike Tennyson

11 YEARS – 2000Contractor Member:Martin Brothers Construction, Inc.Felipe “Phil” Martin

8 YEARS – 2003Contractor Member:Ferguson Welding ServiceRobert A. Ferguson

Associate Member:Ferguson WaterworksAndy Henderson

7 YEARS – 2004Associate Member:BB&T Tanner InsuranceServicesPeter Holley

6 YEARS – 2005Contractor Members:Carone and Company, Inc.Noriene Butterfi eld

Half Moon Bay Grading & Paving, Inc.Cynthia J. Giovannoni

NCD dba Cone EngineeringRoger Cone

Associate Member:The Barricade Company &Traffi c SupplyJennifer Pitts

5 YEARS – 2006Contractor Members:Bentancourt Bros.Construction, Inc.Jeff Bentancourt

East Bay Construction Co., Inc.Sina Hughey

4 YEARS – 2007Contractor Members:Galedrige Construction, Inc.Al Galedrige

J. Howard Engineering, Inc.Joe Howard

Schembri Construction Company, Inc.Charles Schembri

3 YEARS – 2008Contractor Members:Avar Construction Systems, Inc.Carrick Pierce

Platinum Pipeline, Inc.Manuel de Freitas

2 YEARS – 2009Contractor Member:Western TrenchlessRoger Ellis

Associate Member:SeaBright Insurance CompanyRae Farese

1 YEAR – 2010Associate Member:Bay Safety SupplyCole Adams

June 2011 29

EUCA’s Safety & Insurance Committee is comprised of highly motivated representatives from across the industry, boasting a combined 400+ years of experience. These individuals work hard for our members constantly thinking of products and services to keep your company compliant, safe and profi table.

If you have a question on how to interpret a safety regulation, or how to solve a safety issue, this committee will stop at nothing to get you the answer you need.

A special thank you to our Safety & Insurance Sub-Committee. This committee has spent the last year revising the EUCA Safety Handbook so that our members can have the most up to date information regarding safety.

The 2011 EUCA Safety Handbook will be mailed out to all contractor members this month and will include a disc that will allow our members to have access to all of this information on any computer. The fi rst copy is FREE for contractor members. Additional copies can be ordered through EUCA by contacting Jami Moore at jmoore@euca.com for $175 each book. Be sure to check out all of EUCA’s Safety Products on the special insert to this magazine, and on our website at www.euca.com.

Interested in joining this forward-thinking com-mittee? Contact Joan O’Brien, EUCA staff liaison, at jobrien@euca.com, 925/362-7303. ◆

EUCA’S SAFETY & INSURANCE COMMITTEE TAKES ACTION

A few members of the Safety & Insurance Committee; Committee Chairman, Gary Rudy (inset photo), Duran & Venables, Inc.

30 WWW.EUCA.COM

WWW.EUCA.COMNew Website—24/7 ResourcesWEB

EUCA has recently redesigned its website to provide our members with the latest technology and tools to effectively run their business in this competitive market.

All members should have received information in the mail with login instructions to the “Members Only” portal. For more information, please contact Denise Ramirez at 925/362-7308 or via email at dramirez@euca.com.

:

• Streamlined navigation to help you fi nd the answers you need to solve industry and company issues.• Improved online directory, with enhanced links to contacts, websites, and company description.

• Find what you’re looking for in our new Product Store. Members: Make sure to login to receive discounted pricing (enter promo code STORE20 to save 20% in the month of June). New product features include the revised Safety Handbook and new Mobile Poster Paks! New feature products will be added monthly.• Free Downloads are still available in our newly organized member Resource Center.• Members can do virtually everything from the member online portal: register for events, join a committee; update your address and directory specialties, track education certifi cations, renew dues, and more.• Direct access to online videos, delivering important messages regarding the industry.• New webinar feature: virtually train your employees with the Payroll Prevailing Wage Seminar for just $75 (member price; non-member price, $150). More webinars coming soon!• Enhanced photo galleries, capturing members at EUCA and Industry events.

:Innovative Features Include:

0 WWW EUCA COM

June 2011 31

• Valuable and timesaving CapWiz program, effectively allows members to take action and get involved by contacting legislators about the bills and issues that directly affect our industry.• The latest bulletins and updates for Labor Relations and HR, Government Relations and Advocacy, and Regulatory & Safety Issues.

CALL

32 WWW.EUCA.COM

CONSTRUCTION LIFE BEFORE OSHA The Empire State Building — excavation of the site began on January 21, 1930; construction on the building itself started symbolically on March 17, St. Patrick’s Day; the project was completed Apirl, 1931 (ribbon cutting May 1, 1931). The project involved 3,400 workers, mostly immigrants from Europe, along with hundreds of Mohawk iron workers. According to offi cial accounts, fi ve workers died during the construction (photo images by iconic photographer, Lewis Hine).

The Occupational Safety and Health Act of 1970 began a new era in the history of public efforts to protect workers from harm on the job. This Act established for the fi rst time a nationwide, federal program to protect almost the entire work force from job-related death, injury and illness — the birth of OSHA, effective April 28, 1971.

BREAK AWAY CONCRETE CUTTING

CAL WEST CONCRETE CUTTING, INC.

CONCRETE WALL SAWING CO.

DEL SECCO DIAMOND CORE & SAW, INC.

DEMCON STOMPING COMPANY, INC.

LOMBARDO DIAMONDCORE DRILLING

NATIONAL CONCRETE CUTTING COMPANY

NICHOLS DIAMOND TOOL

STOMPER COMPANY, INC.

VICKERS CONCRETE SAWING

W.C. MALONEY, INC.

June 2011 33

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