Owner Safety Leadership
February 2004
For construction project safety, the owner
must take the lead to promote safety as a goal, from bidding, into contract
preparation and pre-construction, through project delivery. The active engagement
of an owner in making safety a project goal, and then monitoring and driving
performance toward that goal, can help ensure the safety and success of the
project.
by Ron
Prichard, P.E. Ph.D.
Arcanum Professional Services
An owner can and should be actively engaged as a partner in the safety of
construction projects. While safety is delivered from the field, through the
means, methods, and techniques of the contractors and the actual work practices
of the individuals doing the physical construction activities (a "bottom-up"
type of result), it is driven from the top down. Leadership starts at the top
of the organization, with the vision (as articulated in the goals of the project)
providing the direction and impetus for the effort.
Owners, as those entities making the decision to construct some facility,
must take the lead. If owners relinquish their position as leader, and the accompanying
authority of this position, they give up their ability to influence outcomes.
Owners must not simply say, "It is enough that I say, make it so." This is inadequate
guidance or action to deliver on the goal. There must also be direct involvement,
in the role of leader, by the owner in the process of the actual construction
of a project. An owner must make safe construction an expectation, and then
back that up with requirements and resources. Thus, while safety is the responsibility
of the employer, it is too important to leave the responsibility only on the
contractors' shoulders.
Owner Involvement
In the vital role the owners play, there are five main areas where they must
take the lead—by doing, not saying—if the project is to be safe.
- Define the expectation that safety is
an important project outcome, required from each contractor participating.
- Communicate this message to all parties
bidding on the job.
- Ensure safety is a factor in the evaluation
of bids.
- Reinforce the contract requirements with
the successful bidder, to ensure that those actually charged with managing
the project understand the expectations.
- Monitor safety performance during the
course of construction, enforce the terms and conditions of the contract
with respect to safety requirements, and close out the construction phase
with a post contract evaluation.
Additionally, the owner is a critical component in the project team who sets
up the context for the project. Through many important areas of describing the
rules under which decisions will be made, and choices selected, the owner crafts
the environment in which the project will take on physical form. Items such
as financing, schedule, contracting method, and the terms and conditions of
the contract agreement are parameters that set up the project for success or
failure. While it is seldom understood that issues such as processing of pay
applications, resolution of disputes, and the handling of change orders are
elements of consideration in the safety (or not) of a project, these and other
aspects of the contract language influence results in a significant way. Therefore,
these elements must be addressed, as the contract is about the apportionment
of risk within a project.
It is unlikely that a project, of any size or complexity, can succeed without
being properly set up from the beginning. Once a decision has been made to build
something, the owner must decide what matters during the performance of the
construction phase. This begins with goals. For a project to be able to end
well, it must begin well. There is only one way to begin well, and that is through
establishing, to level of detail necessary to get the project completed, the
goals of the project. Anything that is left undone, with respect to goals, is
left to the vagaries of fortune (good or bad). Through the project definition
(as described in the various contract documents such as plans and specifications),
the owner sets the stage by defining the boundaries within which the project
team will function.
Risk is about events, and whether they are, or are not, likely to occur during
the course of construction. Contract language is about defining the events that
are desired and sought, and those which are expected to occur, but that are
to be prevented. Also, in defining each of the terms and conditions of the contract,
an owner must decide what is important—what matters. In the simplest of terms,
this comes down to deciding between "what" and "how." Each major category of
risk needs to be addressed, the choice made, and then enough description placed
in the contract that a contractor can adequately bid and perform to the standard.
Contract Preparation
If how something gets done is most important, then it is the owner's obligation
to clearly specify exactly how it is to be done. However, in doing so, the owner
must recognize that he is closing off all other possible alternatives, and,
more significantly, whatever the results, they are solely attributable to the
owner. The contractor can only be held accountable for the degree to which they
performed the specifics set forth by the owner. Examples of things that might
fall into this category are the reporting of man-hours and safety performance
metrics, reporting job site incidents, or performing hot work on the project.
In selecting the means and methods of performance, the owner is solely accountable
for the outcome, provided the contractor followed the rules as prescribed.
If, on the other hand, what gets accomplished matters most, then the owner
must be very clear in setting forth what it seeks as an outcome. This must be
defined in clear and certain terms such that it is understandable and achievable.
Once this choice is made, the owner must recognize that how it is to be achieved
is left to the discretion of the contractor. If there is some means, method,
or technique that is chosen by the contractor that is unacceptable to the owner,
it matters not. The contractor has the right to pick and employ, in any manner
they chose, among all the alternative methods, those which they believe will
accomplish what the owner wants done. Examples of things that might fall within
this category are completing a job with no fatalities or disabling injuries,
ensuring that everyone working on the site is drug free, or staffing a job to
deliver safety results. There are any number of methods available to choose
from to reach these levels of achievement. Since many projects have been completed
with the achievement of such a goal, it is an obligation on the part of the
contractor to do whatever is necessary (within the bounds of laws and regulations,
and their own judgment) to reach the objective.
The contract should be a mixture of both types, how and what, of safety requirements
for contractors. Standard requirements, such as reminders of the normal legal
obligations, should address what are baseline expectations. This would include
clauses stating that the contractors are in control of the work, and have responsibility
for the safety of the employees, including adherence to all federal, state,
and local requirements, and the obligation to hold all subcontractors to the
requirements of the general contract. Beyond these basic clauses, the owner
has the choice of how much other information and guidance is needed to describe
what their goals are for the project. Special safety conditions, such as working
around existing processes, or coordination of work with owner operations, hot
work, critical lifts and others might be additional considerations for inclusion
in the contract either through the contract itself, the general conditions or
the specifications. The choice of where to put the requirements depends upon
the importance of the requirement, and which document within the contracting
package takes precedent in the event of a conflict. Additional considerations
might include things such as partnering, subcontractor selection and management,
incident investigation, visitor protocol, emergency response, and public protection.
Through the contract language, the requirements of the contractors are set
forth. This establishes the "rules of the game" portion of the project. However,
an essential aspect to see that the proper environment is maintained throughout
the duration of the project, and that appropriate choices are made by all parties
to the project, is that the owner give themselves a role and then ensure that
the resources, procedures, and goals are set forth for the fulfillment of this
role. Thus, the owner has to recognize what actions he can take to contribute,
without interfering with the work of the contractors. These need to be made
clear in the contract as well, so that the inter-relationships between the owner
and contractor are precisely defined. This aspect can be considered the project
administration portion, as is necessary to define the work control process in
the course of actual construction.
Along with preparation of the contract documents, in this early phase of
the project life cycle, the owner needs to finalize planning for project execution
with respect to the degree of its own involvement. Since the owner needs to
have dedicated staff to participate over the course of actual project construction,
this staffing needs to be finalized prior to going to actual bidding. Continuity
is a vital component in crafting a strong and competent project team. This is
as material for the owner as it is for the contractor. Thus, the owner should
staff (and resource them in terms of dedicated personnel, defined roles and
responsibilities, authority to act, administrative support, logistics and other
support elements) its project team as the requirements become sufficiently clear
in the contract preparation phase.
Where the project size, or internal resources within the owner's existing
organizational structure permit, it may be possible for the assignment of a
dedicated team of employees to staff the project team. In other cases, the owner
may need to contract for project administration and oversight or other portions
of the project team, since it lacks the staff to be able to man the project
directly, either with regard to actual personnel available or expertise within
those available. In either case, the owner must complete these arrangements
and have its own team in place, with a full understanding of the project requirements,
before it begins the bidding process, as it will be this team which will work
with the bidders in reaching an award, and then in steering the project once
the actual construction phase begins. This team should also help to define the
safety requirements, and take responsibility for delivery of a consistent message
throughout the entire course of the project. Since, over the course of the project,
many different contractors and subcontractors, and other third parties will
act as project participants, for varying durations and with different degrees
of involvement, it is the owner's project team that ensures the consistency
of delivery amongst these parties with regard to the safety requirements.
Bidding
Once the contract terms and conditions have been established, the owner must
communicate them as a part of the bid package. Safety should be an emphasis
area discussed during any pre-bid meetings, and emphasized in any correspondence
sent to bidders. Along with this, the owner needs to make it clear that a record
of proven safety performance is an element of consideration both for being invited
to bid and in selection for award of the contract. This record of safety performance
should also include information, in particular, on how well the contractor did
in type of work you are proposing. It should also be emphasized that each bidder
has already passed through the pre-qualification process, in order to be invited
to participate in the bid.
The more vital the project, the more important the quality of the contractor
becomes to the success of that project. If the owner is going to sign up a contractor
for a long-term contractor, or this is a new contractor, then the qualifications
ought to be revisited. Organizations evolve over time with new personnel, departures
of experienced people, and other internal changes, and so it is important to
be sure that there is enough of the organization that delivered before able
to deliver in the future. It is also important to discover how a contractor
prequalifies or selects its subcontractors. Subcontracting represents a growing
portion of the work force, and thus a significant risk area, and needs to be
fully engaged in any program.
The owner also needs to prepare a set of bid instructions that is more administrative
in nature, describing how the bid process will work and what method and manner
of responding to the request for proposal the owner expects. This is a smaller
version project with the bid instructions serving as the guidance document for
the conduct of the bid, as the contract documents will serve for the larger
project of the actual construction. Any specific requirements about how the
contractors are expected to conduct their work (dictating means) should be reviewed
and the contractors queried as to any objections to such directives. Any information
about the site, from the position of superior knowledge of the owner, needs
to be conveyed in the plans and specifications, to permit the contractors to
properly bid the project. This category of bid information includes things such
as hazardous materials on site, process chemical and other potential exposure
information, known subsurface conditions and other aspects that could not normally
be detected in a site visit.
The pre-bid meeting will set the tone for the rest of what follows. How the
owner's project team conducts the meeting, provides information to the contractors,
and responds to questions will either establish a collaborative atmosphere,
characterizing all successful projects, or will exacerbate the competitiveness
endemic to construction and undermine the openness required for successful communications
among the parties during the course of the project. The requirement is that
if the owner knows something which is material to the risks the contractor will
face in the performance of their work, such knowledge must be shared with all
those bidding on the work. The expectations also need to address permitting,
both securing them for the project, and any required on site for the performance
of particular types of work activities. If there are detailed plant site rules
for an operational location that are expected to be followed, those, along with
any orientation requirements, warning, and emergency response information also
should be reviewed during the pre-bid conferences and site visits. Any particular
information that the owner seeks to have assembled, in a particular sequence
or format, for the bid evaluation, should also be defined in the bidding instructions
and reviewed in any conferences.
During the bid evaluation process, safety results should be evaluated, and
given a numeric score, so that they can either improve or reduce the competitiveness
of the contractor's position. This should be established in advance, along with
the other contract requirements, so that it becomes another objective measure
of bid responsiveness. The proposal, as submitted by the contractor, ought to
explain, in general terms, how they conceive of the project execution—their
strategy. This should include an explanation of what they see as the critical
challenges in the project, major risks, and their intentions to preclude and
prevent negative events.
Pre-Construction
After the decision has been made as to which contractor, or contractors,
will actually perform the work, the owner must reinforce the key project goals
as regards safety. This is best accomplished through an award meeting that includes
participation by the principals of the construction organization and the contractor's
site management leadership team. This presents an opportunity to meet the contractor's
leadership team directly, connecting a face with a name. It also permits the
owner to assess the degree of involvement of the principals in the project and
to reinforce the message that safety is a goal that matters. The objective is
to review the safety requirements with the personnel actually doing the work.
While this information was included in the contract, and relayed directly to
the bidders during that phase of the project, it is vital to ensure that those
actually out on the site are fully aware of the expectations. To leave it to
chance that the internal communications mechanisms of the contractor transmitted
the requirements from the marketing and estimating departments to the field
managers is to risk project failure. This meeting should also emphasize that
before mobilization starts on the project, there will be a pre-construction
meeting where the contractor's team is expected to present their understanding
of the project and how they intend to approach the delivery process.
The pre-construction conference is that last opportunity, before the momentum
of the project begins to move activity forward, to stop and fully reconsider
what is being asked, and what is expected, by both principal parties to the
project, both owner and contractor. The most effective method for handling this
is to reverse roles from the bidding process, where the owner leads (and lectures)
the contractors. In the pre-construction conference, the contractor, as the
principal party in direction of actual construction work on site, should step
into the leadership role. The contractor's management team should present, to
the owner's project team, their proposed strategy and how they see the project
requirements. This would include reviewing the key submittals, processes, high
risk or hazards, and other elements of their intentions, discussions of the
administrative aspects, and how they will oversee, coordinate and control the
subcontractors brought in to perform elements of the work. Through this role
reversal, the owner's team can monitor their contract requirements listing and
evaluate the degree of understanding demonstrated by the contractor. If there
are elements not addressed, or items about which there is uncertainty, questions
can be posed. It is also the last test of the contractor's process before actual
physical construction begins. Who the contractor chooses to bring to this presentation,
who presents and what they say will provide significant insight into how their
organization responds to the requirements and will act during the job. The conference
is a test of understanding by the contractor, with the owner in the position
of grading their performance. The contractor should be prepared to explain how
it reached the decisions they did, as a way of illustrating their thought processes
and the basis for making important decisions.
The pre-construction conference is also a chance, before the pressures of
the project begin to impinge upon the responsiveness of all members of the project
execution team, to check that all of the primary participants can work together.
If there are any issues with individuals selected to serve in key positions,
such as personality conflicts, those concerns need to be addressed before folks
are committed to the work and fully engaged. While the construction process
is about handling material goods to build physical objects, the project management
is an information-based process, and in the regard, the sociological aspects
are as crucial as the experience and expertise of the team members. Communications
between the parties are crucial, and so it is better to address possible problems
before they impact the project. To achieve project success requires a collaborative
effort between the owner's and contractor's project personnel. If this team
cannot communicate fully and openly, it is unlikely they will be able to work
through issues in the course of construction. When issues are not properly attended
to, they contribute additional pressure to the project, and can lead to critical
elements being shortchanged. These then manifest themselves in personal injury
and property damage incidents on a project, undermining the safety goals.
The pre-construction conference is also an opportunity to run a second check
on the contractor's planning and execution process. The first test was the bid.
In that test the requirements were set forth, with a timetable for delivery,
and the result was a product, the actual bid. This bid document is a vital check
to gauge the methods of review, development of concepts, understanding of the
phases, and how they envision actual delivery. It is also tied to the specific
requirements of the project, as defined in the plans and specifications, and
so demonstrates, beyond merely conceptualization in the abstract, the degree
of knowledge and expertise the contractor has for this particular type of project.
However, during the bid, there is still a degree of tentativeness, in that,
until the actual award, the contractor is not fully committed to the project.
During the pre-construction meeting, the owner can evaluate, through an information-based
exercise with the real individuals preparing for a real project, the robustness
and efficacy of the contractor's planning program. In this evaluation, the owner
can validate the contractor's grasp of the safety requirements through their
presentation with regard to staffing, roles and responsibilities, plans for
special hazards and other elements that show their degree of anticipation and
preparation for successful project delivery. The pre-construction conference
is the contractor's occasion to explain, in detail connected to the actual project
contract requirements, what they plan to do, when things will happen, why they
plan it that way, how they will anticipate and avoid foreseeable damage events,
and how they will respond to those they cannot foresee and prevent.
Project Delivery
During the actual course of construction, the owner's responsibility is to
monitor the actual performance of the contractors, against the two types of
goals (how or what), and direct action (either to itself or by contractors)
to readjust performance in line with those project goals. In this regard, the
owner continues in a leadership role. The owner evaluates the degree of achievement,
in light of the clearly defined project goals, and reinforces those goals to
be certain that they do not become lost in the pressure of responding to daily
demands. In order to accomplish this, the owner must stay in touch with the
issues and challenges facing the project team. This permits the owner to be
knowledgeable about what is taking place, so that they are in a position to
provide advice or to make decisions, as the situation dictates. The owner must
continually evaluate what results are being achieved, as documented through
the project reporting process, and compare them with the contractors plan to
gauge the degree to which the project goals are being realized. During the contracting
phase, the owner stipulated what it sought in the project. During the construction
phase, the owner serves in a watchful oversight role to be certain that they
get what they asked for from the contractors.
To support the delivery of safe construction, during the project an owner
must have an active presence on the site. This means that there must be personnel
with the assignment to track the actual project execution and know what is taking
place on site. As was noted above, this role can either be performed by in-house
staff or through the contracted services of out-sourced resources. Either way,
these representatives play a vital role in reinforcing the message that safety
is a requirement, across the duration of project execution. In order to adequately
fulfill the responsibility, the representatives must go beyond reading reports,
memos and other written communication or by participation in meetings and talking
to the contractor's project team. This is not to diminish the importance of
those elements, as they are an important aspect of gathering project information,
status and performance indicators. However necessary they are, by themselves
such information is insufficient.
See and Be Seen. To serve in the role of a
leader, the owner's representatives must see and be seen. This entails periodic
site visits, where people get out to the actual project site. During these site
visits, the owner's representative should meet with the contractor's management
and safety personnel, but they must also put their boots on the ground. This
means leaving the trailers and offices and actually touring the construction
areas where work is occurring. This helps to "show the flag" with regard to
safety. These visits reinforce the importance of safety, for both the contractor's
project management team, and well as those of the subcontractors participating,
but only if safety is a major topic of discussion.
The degree of periodic site visitation should be sufficient to ensure that
the reporting is congruent with what is actually happening on the project site.
By walking through the site (modeling, through personal example, the expectations
of appropriate attire and personal protective equipment) and reviewing the work
practices being used, the owner's project team gets the opportunity to evaluate,
unfiltered through the reporting process, the safety performance of the project.
Efforts should also be made to talk, periodically, with a variety of members
of the project team, from all levels of the hierarchy and to validate that what
is being reported actually matches with what is being done on site. If the project
is performing as required, then the contractor and those on his team should
be recognized for their achievements. If the project is failing to achieve expectations,
then intervention, in line with the contractual remedies, is required.
During actual construction, with the pressure to complete, there is a tendency
to focus discussions and site visits on issues of cost and production schedule.
If safety is not maintained as a major project goal by the owner's team, it
will be subordinated to other more pressing demands. The contractors and subcontractors
will be responsive to the involvement of the owner, and follow their lead with
whatever is viewed—through actions of the owner's representatives—as mattering
the most. The most effective method to reinforce safety is for the owner's representatives
to know what was in the contract documents for safety requirements; which elements
are "hows" and which are "whats." In knowing this, the owner's representative
can then follow-up through the site visits. In determining the degree of compliance
with those contract provisions where the owner stipulated that how something
was done, the artifacts of documentation and the actual work practices in the
field will show the degree of adherence to the requirements. In the situations
where what gets accomplished is the requirement, the owner's representative
looks at the actual results, their relationship to tracking toward goal accomplishment,
and what actions are being taken to rectify any deviation.
Conduct Safety Audits. There should also be
routine formal safety audits, directed at all levels of project management,
for the site. Audits "stir" a process, by subjecting it to a systematic scrutiny.
It helps to refocus attention on vital functions, and reminds project personnel
of the importance of standards. These audits should be directed at different
levels of the project team to evaluate the effectiveness of the contractor's
administration and direction of the project. It must look for the artifacts
of actual activity for safety. This should include sampling of the documentation
of inspections, audits, planning, safety meetings, and other activities related
to influencing safety performance. It should also include a walk through various
areas of the site, to see that the actual work practices reflect both the standards
expected, and the history depicted in the documentation.
There should also be discussions throughout the project with the craft workers
performing the actual tasks of construction work. These are the individuals
who are actually exposed to the physical hazards of construction, and their
attitudes and work practices are instrumental in achieving an injury-free project.
The owner can both evaluate the effectiveness of the contractor's safety management
process, and gauge the degree to which the workers are aware of the owner's
safety goals through these discussions. By discussing safety with the workers,
the owner's representatives can reinforce the importance of safety and uncover
potential issues. It is also an activity that will influence others, whether
they were direct participants in the discussions or not, since other workers
will see what is happening and they will discuss it among themselves. This also
helps to strengthen the alignment of individual goals with those of the owner,
and building shared commitment simultaneously.
The Dual Nature of Leadership
There is a dual nature of leadership for the owner. The first part is in
setting and enforcing the standards of performance. This is what defining contractual
requirements and monitoring actual performance is about. The second role is
to provide feedback as to the worthiness of that performance. This second role
involves both positive and negative reinforcement. The negative comes through
invoking contractual remedies for those events of damage or unacceptable performance,
to either correct the shortcomings or remove the failing performer (at whatever
level in the project organization they reside). This is one function of the
audit and reporting process. The positive feedback comes in recognizing and
celebrating the achievements of the team and its members. Through this later
aspect, the leader motivates and encourages those on the team toward goal accomplishment.
In order to adequately fulfill this role as motivator, the owner must be an
engaged participant in the project. This also requires involvement by the owner,
in seeing and being seen on the project site by management and craft workers.
Recognition means that the owner is tracking what is happening on the project,
is aware of the challenges and difficulties that the situation presented in
reaching milestones, and believes that certain things are worthy of being celebrated
in some fashion. In order for recognition to be meaningful, those receiving
it my value the "giver" of the recognition, and it must be seen as both sincere
and legitimate. Unless the owner's representative is recognized by the workers
on the site (which comes from the site visits and auditing process described
above), his participation in any recognition will be meaningless. The only way
for an owner to reach the worker and management of a project is to be known
by them. This is an added benefit that an owner receives through an active program
of site visitation. This participation also reinforces the message, for both
workers and management, that safety is a significant measure of success.
Feedback should come in multiple forms across the duration of the project.
It will result from the continual intercommunication of the owner's representatives
with the site, through both reporting and actual visits. It will be given through
recognition during the performance of work. It should also be a step in closure
by contract with each party to the project. Prior to any contractor completing
its work and departing the site, there should be a critique meeting. In this
meeting the dialogue must be in both directions, from the owner providing an
overall evaluation of the contractor's performance, and from the contractor
giving feedback on the owner's involvement and influence on results.
Conclusion
In summary, leadership is about creating a vision and then communicating
with people to ensure they know where they are and how they are doing toward
achievement of that vision. The leader, for construction project safety is the
owner, even though they are not accountable for the actual safety of the craft
workers. Still, without the active engagement of an owner in making safety a
project goal, and then monitoring and driving performance toward that goal,
safety is a more difficult achievement.
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