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Construction Project Audits—The Search for Harmony

July 2008

If you're familiar with construction projects and are asked to audit a job, it is nice to say everyone wore their safety glasses and hard hats, but you must also search the project for harmony and pride.

By TJ Lyons
Turner Casualty and Surety

Have you ever stopped to count the lug nuts on your cars wheels? Of course not, since the machine was built within a system. If a project is planned correctly, the staff is competent, cares; inspections are not needed since safety will occur just like a schedule kept or a quality job.

In the big scheme of things, a standard site inspection is of little value. Granted, you can feel good because you found others doing wrong (where did we learn that?), but there is little these audits bring of value to the hard working site teams. In the perfect world, we would trust the system to work and eliminate inspections, which are clearly a sign of mistrust.

This article explores areas where a risk manager or owner can test and understand what he has truly insured or is getting from his or her general contractor. Some of the points may seem simple (Is the gate closed in the early morning?), but each is an indicator of things to be considered.

This column is intended to be used as a guide since everyone's situation is different. Your own senses will guide you. As you walk and talk around the project site, remember to listen to how things are said, track how many questions are asked of you, and remember you are a guest and expect to be treated as one. Keep in mind, you are gathering with a family, and it is not yours. On a successful project, ownership and just a bit of pride will be evident from the moment you contact that team. This is something to feel for, and if all goes well, you will embrace it, for there is nothing as satisfying as walking a project with people who love what they do and are passionate about what they have created.

Preparation

For the sake of this mock visit, let’s assume you are from one of big insurance firms in the United States—Exalted One Insurance, well versed in the science of safety—and your firm chose to insure the project a few months ago. The site operations are well underway; a full-time safety coordinator is on site; the job is completely staffed; and this is the one and only time you plan to stop by. The site team knows you are coming. The reason for the visit is to follow up on field reports your "consultants" have been sending and to see if a long-term relationship with this general contractor is something that will keep you up at night.

One week before your arrival, call the project manager or the superintendent on the job and confirm when and what time you will be stopping by. Then suggest, "My schedule is pretty flexible for the week, is there any meeting or coordination sessions that I might attend?" Now practice your listening skills. A great contractor will understand two things: first, you bring expertise to the site; and second, he or she should welcome you to join their team and the subcontractor community. The best answer would be to invite you to a preplanning meeting that might be occurring so you can help with risk management.

Next ask who will be accompanying you on your tour. This is likely one of the most critical questions to ask for if the project manager (PM) links you up to their on-site safety person (and remember, he had the opportunity to schedule the visit), then he or she is not interested in what you think of the project. One of the key factors you will find in site harmony is pride. Top-down care of site safety is the foundation for success. As an example, when top operations staff assist in at least half of incident investigations, incident rates drop from an average of 7.0 to 1.0.

Take the opportunity to ask if the manager can assemble his or her crew for 10-20 minutes so you can meet them. This is an opportunity to show off what they do and how important their contribution is to the success of the project. Each should think theirs is the most important task on the site, and it is. (Remember the person who put the lug nuts on your car?)

This is also your chance to share anything that might make their jobs easier and safer. Remember, this "family" is focused on their project. And, in the insular world of a construction project, the family members have few opportunities to hear what is going on in the outside world. Never underestimate the chance you have to help out. The long-term rewards will amaze you.

This careful approach to a site visit might seem like you are setting up a good contractor to fail, but it is no different than letting your daughter's date be the first to speak at the front door. There is a world of difference between, "Hey, is Cindy home…" to "Hello Mr. Yastrzemski, I’m Carl, and I'm here to see Cindy." For every 10 sites you visit, about half will pleasantly surprise you.

A decade ago, risk managers were either feared or ignored, and shame on us for that, but the art of gauging people and how they will act and react is a primal skill we all have; and we should use that tool more frequently. To explore true project pride and ownership, or to search out operational indifference, you must feel for it.

Click for Figure 1: Project Photo

The Day Before

In preparation for your visit (wear a tie if you usually wear one), take a moment to do the following.

First, Google the site and see if there has been anything of interest going on. Make sure to search twice, first for the name of the project (Bush Towers) and again using the address only. Note the following.

  • Have there been incidents?
  • Are there articles about site tours for the community or local involvement?
  • Is a photo of the project posted so you can get a feel for the footprint of the building?
  • Run the contractor through the OSHA Establishment Search page to see if there have been any inspections. Remember a list of inspections with nothing found speaks well for the site and the firm, but what was not found is equally or more important.
  • Have there been any environmental-related concerns? Search by the street address, for if this is a Superfund site, you may not want to wear your best shoes.
  • Is there a posted completion date?

All of this will help you get a better feel for the job, the risk of the area (e.g., it’s built next to a state prison), and will help you sleep the night before you visit.

Visiting Hours—The Drive-By

Click for Figure 2: The Early Morning Drive-By

If you are supposed to arrive 7 a.m., get there at 6 a.m., and take a drive around the block and exterior of the project and look for these indicators:

  • If the site is fenced (most are)? Is the fence actually standing?
  • Is the fence a lightweight "snow fence" or something appropriate?
  • Does the site look like a mess? What does the client see?
  • Is there a gate and is it closed?
  • Look for schools, churches, bars, clubs, and other areas where folks will congregate and wander after hours.
  • Is there protection (sidewalk shed) to the public walking by, and is it lit from within?
  • If sidewalks are closed, is the sign stating that illuminated?
  • Is an after-hour emergency contact number posted on the gate?
  • Is there a project signboard listing the parties building it and a drawing of the actual structure?
  • Is the building lit from within?
  • Are people at work?

This specific information is critical because each task requires planning, vigilance, maintenance, and accountability—parts of any system. One of the best indicators of site operations is to verify that the general contractor is onsite while his or her subcontractors are at play—early or late.

Summary

Probably the most damage to the profession of the risk management was allowing the time-honored tradition of the "Seagull Swoop." The project manager gets a knock on the door, the safety "expert" takes a look around, leaves a soiled list of what was found wrong, and heads out, leaving a group of disenchanted and angry people behind. Those who continue that tradition are not long for the industry. As the new breed of schooled safety professional makes his or her rounds, they are becoming a welcome addition to the construction world for they are taught to understand relationships as well as regulations.

If you take the time to explore these softer areas, you will gain a better understanding of the project culture and the good people working there, before even stopping in. With the indicators above behind you, now is the time to actually set foot on the site. But we will leave that for the next column, for like the boy at your door, it is time to meet the family.

Click for Figure 3: On the Job


Opinions expressed in Expert Commentary articles are those of the author and are not necessarily held by the author's employer or IRMI. Expert Commentary articles and other IRMI Online content do not purport to provide legal, accounting, or other professional advice or opinion. If such advice is needed, consult with your attorney, accountant, or other qualified adviser.

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