Construction Monitoring with Drones - liability … · Construction Monitoring with Drones - liability issues & risk management ... • Hacking (spoofing) UAS ... to JSA approach)

Construction Monitoring with Drones -liability issues & risk management

Presented at: Rocky Mountain Asphalt Conference and Equipment Show February 24, 2017

Presented by: John Babel, Assistant Vice President, XL Catlin Insurance. NA Construction, Risk Engineering

© 2015, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 1

Learning Objectives – What we will discuss…

• Definitions & terms• Drone types, applications & limitations• New FAA Part 107 rules for commercial use

• How to fly - legally• FAA operating parameters

• Legal & potential liability issues• Risk management & insurance strategies• Hazard analysis & flight safety considerations


Unmanned Aircraft Systems (UAS) Definitions & Terms

UAV (Unmanned Aerial Vehicle• A “power driven aircraft, other than a model aircraft, that is designed to

fly without a human operator on board.

UAS (Unmanned Aerial System) • An unmanned aircraft and all of the associated support equipment,

controls, payload, data link/telemetry, and navigation equipment• Also known as sUAS (small)

AKA - a “Drone”

3© 2016, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

Definitions & Terms (Cont.)

• National Airspace System (NAS)• FAA Section 333 and COA (Old rules – still in use)• FAA 14 CFR Part 107 (New Rules)• Remote Pilot Airman Certificate (RPAC)• “Hobbyist’ vs. Commercial use• Line of sight (LOS)• Beyond VLOS (BVLOS)


Definitions & Terms (Cont.)

• First person or “camera” view (same)• “Fly-away”• “Geo-fence” – Software - Safety feature• “Detect & avoid” technology - Safety feature• FAA Air Traffic Control (ATC)• UAS Traffic Management (UTM) system – The future.

FAA/NASA/Industry partnership in development


UAS Categories

Fixed Wing = Endurance• Fixed-wing UAS’s can stay aloft longer (1-35 hours)• Specialized payloads onboard for remote sensing,

mapping and survey that require longer flight times• Battery, aviation or unleaded fuel, and/or solar


UAS Categories (Cont.)

Vertical Take-off and Landing (VTOL) = Hover• Short missions where it is helpful to get close to the

target.• 20-30 minutes battery life (currently) - LiPo batteries• Most construction applications use VTOL• # blades is relevant for payload

Size, typically 4, 6, and 8 blades


Piloting options


Direct piloting (LOS)

Autonomous flightPre-Programmed

BVLOS

UAS – Programming Device

9

Credit: Questuav.com

Sirius Pro Surveying UAS Credit: Topcon Positioning Systems

© 2016, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

Benefits

• Significant time & cost reduction over traditional surveys**A recent aerial survey of mining stockpiles in PA was 200X more efficient than traditional survey methodsSource: Integrated Technologies

• Great for dirty, dull and dangerous jobs

• Near immediate data available for processing via point cloud


Applications


Applications

• Digital photography/video documentation• LiDAR - Integration with BIM • Inspect hard to reach & dangerous places• Route mapping/survey for linear utilities, roads, etc.• Remote surveys –

• QC inspection/documentation• IR inspections of electrical substations• Inspect large-scale solar PV farms• Bridges, dams, etc.


Applications (Cont.)

• Emergency response in remote areas (deliver AED)• Marketing videos• Wind turbine inspections• Safety inspections• Inspecting confined spaces• Environmental and IH sampling in high risk areas, e.g.

where intrinsically safe devices are needed• EOD/Hazardous materials operations


Examples

14© 2016, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

Hobbyist vs. Commercial Use

• Hobbyist = no commercial use!• Offering a professional service in connection with a

business is commercial use• Some companies are operating UAV’s by claiming their

operators are hobbyists – Not true!


New FAA UAS rules14 CFR Part 107

Who can fly Commercially• Anyone 16 years old and up• Must speak, write, and understand English• Must be in physical and mental condition that does not

interfere with safe flight practices• Vetted by the Transportation Security Administration


New FAA rules found in 14 CFR Part 107

The new FAA rules permit users to:• Operate UAS <55 lbs. (including payloads) for

commercial purposes, < 400 ft. AGL• Fly without a visual observer, unless BVLOS• Operating without a Section 333 exemption/COA• Users can file online waivers for FAA exemptions – e.g.

BVLOS, night flights


New FAA rules - 14 CFR Part 107 (Cont.)

You are required to:• Register your aircraft with FAA ($5.00) and mark the

aircraft appropriately with unique registration #• Pass aeronautical knowledge test at an FAA-approved

knowledge testing center• If you have an FAA pilot’s license, pass an online course• Apply for and receive a remote pilot airman certificate

(RPAC) with an sUAS rating• Pass a recurring knowledge test every two years


New FAA rules - 14 CFR Part 107 (Cont.)

What you must do:• Conduct preflight checks & keep maintenance records• Fly during daylight or “civil twilight” within visual line-of-

sight (VLOS), under 100 mph, and under 400 feet• Upon request, supply your sUAS to the FAA for inspection

and testing• Report to FAA within 10 days any incident resulting in

serious injury or 3rd party property damage >$500


FAA vs. State/Local Regulations“Preemption”

• FAA is (so far) silent on state & local regulation of UAS.• 40+ states have considered or adopted UAS legislation• Industry groups like AGC want FAA rule that state & local

governments cannot preempt federal law• For now, companies should determine what the laws are

in the states & cities where they operate


UAS Operational Risks

• Unwanted/illegal surveillance & trespass• Homeland security • Bird strikes/attacks• High winds – know your UAS limitations• Cell tower/electromagnetic interference• Lost wireless connection, problems with onboard GPS or

compass• Hacking (spoofing) UAS controls by others• UAS flying in close proximity to/hitting manned aircraft


Operational Risk (Cont.) -Interference with Aircraft


Operational Risk - NewTechnology

• Limited commercial airspace available in the U.S.• Operators must avoid 3rd party structures & “non-

participating” people• “Geo-fence” technology is widely available• “See and avoid” technology developing rapidly• UAS Traffic Management (UTM) System coming…


Privacy & Unwanted Surveillance

• You have a reasonable expectation of privacy• Unwanted photography is considered a violation of your

right to privacy• Ensure your UAS is gathering very specific data – Notify

the adjoining property owners


Insurance


Insurance/Risk Management

Two basic strategies:

1) Embrace the risk – Operate UAV in-house, get insurance (or self-insure), hire FAA certified (RPAC) operators, and have a robust UAS safety & RM program to prevent third party claims

2) Transfer Risk - Hire a specialty vendor/sub with FAA certified operators, bonded, insured, etc.) – UAS technology is developing too quickly and requires a lot of work and expense!


Insurance Coverage

• Third party liability - Personal injury of others• Property, or “Hull” coverage of UAS – damage to my

drone(s) and/or payload(s)• Cyber – How secure is your data?• Do your UAS policies “dovetail” with existing policies?


Insurance OptionsCGL Policy EndorsementFAA defines UAS as “aircraft”, and are thus excluded from most CGL policies.

7 new ISO forms are available specific to UAS:• The various ISO forms include/exclude aircraft (UAS)

in Coverage A or B• Carriers may also have “manuscript’ policies• Consult with your broker and carrier


Insurance Options

Aviation Policy – Provides coverage for:• Physical Damage (PD) and legal liability (AKA “Hull”

coverage)• Aviation policies may also provide expanded

coverage, e.g. third-party Bodily Injury• Several aviation insurers now have UAS policies• UAV’s can be added to your existing policy


Transfer Risk (Subcontract)

If using a vendor:• Contracts - ensure that the drone operator accepts

responsibility for accidental loss of the equipment as well as damage to any third-party property and physical injury – “Agreement for Drone Services”

• Ensure indemnification/HH and risk mitigation language is in your contract

• Vendor experience/references?• Do they meet FAA/state requirements?• Verify adequate limits of insurance in place for the vendor,

3rd party BI/PD. Typical liability limits between $1M-$5M


Flight Safety

• Use qualified, experienced UAS operators• Take FAA test & Obtain RPAC• Understand FAA UAS regulations & NAS• Operator(s) should have documented experience &

hours operating your UAS aircraft• Trainee operators can work under direct supervision of

FAA UAS RPAC Holder• Spotter(s) required/trained if using FPV/BVLOS


Flight Safety

• Conduct risk assessments & develop flight plans (similar to JSA approach)

• Flight plan reviewed and approved internally• Batteries charged (UAV, controller, camera, etc.)• Compass/GPS properly calibrated• Propellers clean and tight• Take-off and landing area clear• Wind gusts below 15 mph or by manufacturer

recommendation


Flight Safety - FAA Sectional Map


Flight Safety - Vicinity Map


Flight Narrative: From base, proceed to 150’ AGL to clear trees and building. Proceed to the west in visual range and maintain between150’-200’ AGL. Circle target counter-clockwise avoiding the adjacent construction.

Flight Safety - Site Map


Anti-Drone Tech


Anti Drone Tech (Cont.)


This drone defense system from Airbus and Dedrone uses different sensors – cameras, radars, microphones and directional scanners –that, when combined, can secure the airspace from up to 10 kilometers away.

Anti Drone (Low) Tech


TBD - Unmanned Traffic Management System (UTS)


• Rapidly evolving technology with many applications• Significant $$ and time savings possible over traditional

aircraft photogrammetry, video & other surveys• Companies must balance the benefits & risks of buying

UAS vs. subcontracting• Final rules Part 107 took effect 29 August 2016• Obtain insurance coverage and/or check vendor

contracts & insurance with your broker & legal folks• Robust risk management, hazard analysis & flight safety

plans


Summary

Q&A

John Babel Assistant Vice President

XL Catlin N.A. [email protected]

(303) 513-2773


• A dedicated team of industry experts focused on building long-term relationships with contractors to clearly understand their changing business needs — day-by-day, project-by-

project — providing them with the innovative products and services to help protect profitability, maintain a competitive edge and keep employees safe.

XL Catlin Mission Statement

Strong Enough To Protect You… Agile Enough To Support You

Building The Future Together, One Relationship At A Time.

A dedicated team of industry experts focused on building long-term relationships with contractors to clearly understand their changing business needs — day-by-day, project-by-

project — providing them with the innovative products and services to help protect profitability, maintain a competitive edge and keep employees safe.

42

How a Drone Can Make Your Asphalt Plant More Profitable

By Jessica Stoikes on May 23, 2016

Unmanned aerial systems (UAS) or drones seem to be dominating many conversations in the

construction industry. The asphalt industry has taken these drones from a marketing tool and turned

them in to a real way to increase profits in their plant operations.

John Dougherty, owner of Louisville Paving and Construction based in Louisville, KY, says the use of

drones has revolutionized the way they do business and they continue to find new uses for them every

day. “Being a pilot, I like anything to do with flying so when I noticed drones at World of Asphalt three

years ago, I immediately recognized the speed that they could bring to many labor intensive tasks,”

Dougherty says.

Stockpile management done faster & cheaper

One of the first things that Dougherty thought the drones could help him with was stockpile

management. Think about how you currently manage your stockpiles. If you’re like most plant owners,

you have a worker physically go to each stock pile with a GPS rover, climb up and down the piles

marking points and tracking the data. That captured data is downloaded and checked before loading

into a take‐off program that converts the volumes into tons. Not only is this exhausting for your worker,

it can take them up to four days per plant to complete.

Dougherty estimates the old process would cost his company $1,080 in labor to complete per plant.

That’s at a rate of $45/hour for 24 total hours. Compare that to using a drone and Dougherty is saving

almost $1,000 per quarter, per plant. Here’s how:

First, you need to map out a flight plan. Louisville Paving uses DJI Ground Station to complete the flight

plan. Using Google Earth to set a boundary, the app that controls the drone generates a flight plan that

can control the drone from takeoff to touchdown. Manual controls can override the flight path if need

be. Dougherty estimates this process takes him about 20 minutes and once a good flight plan is

established, it can be reused for future flights so this step is eliminated. “Once onsite, there is a pre‐

flight checklist that I go through ever time, just making sure that all the components are in good working

order and the conditions are right to fly,” Dougherty says. “The preflight checklist, GPS acquisition and

calibration take about 15 minutes. Flight time varies depending on location and the area covered.

During flight, the drone’s camera is busy taking a series of overlapping images with GPS coordinates.

GPS coordinates on the images are being converted into 2D and 3D maps that are used to create a point

cloud that forms a visual 3D model. Once on the ground, the data the drone has collected is processed

into a program called PIX4D Mapper. From those images and data, Dougherty can produce output

analytic data such as volumes and contours of the materials on the property. That data can be stored in

his existing take‐off program and the flight plan reused. Dougherty says stock pile management using

drones has a labor cost of $90 to complete per plant. That’s for 2 hours at $45/hour. That's almost a

$1,000 saved with this use alone.

“Before we used drones, we didn’t really have a process for plant and quarry stockpile management

and there were times we might be down waiting on materials,” Dougherty says. “Now, we monitor both

our stockpiles and our quarries to anticipate supply problems to allow us to make job mix formula (JMF)

adjustments as needed before we need to interrupt our crews. “And since we can more easily monitor

our stockpiles, we do it more frequently now was well,” Dougherty continues. “This allows us to forecast

potential deficiencies in products, enabling us to plan accordingly.”

Dougherty says to work with your vendor to be sure you’re not only getting the drone to best complete

the work you want, but also the software. “An internet search can find almost anything you need, but

you need to talk to the vendor and be satisfied it will do what you want it to do,” he says.

Plant maintenance made safer

While you may think that no one knows your asphalt plant like a maintenance team in the trenches

every day, you should consider that drones can help your team do the same inspections, not only safer,

but also more efficiently, saving both time and money. Drones can easily fly up to areas on the plants

that are difficult to reach, keeping your crew safe on the ground. Dougherty says drones make it easier

to monitor and document elevated ductwork, drag conveyors and bin tops for any issues. The images

taken can be inspected by plant personnel and potential problems can be more easily caught before

they cause any real issues. “If we can catch plant problems before they result in a breakdown, that leads

to huge cost saving implications,” Dougherty says.

Plan to use your drone as part of the daily walk around, especially on portable plants to make sure

everything is up and running before the guys on the jobsite can even think about being delayed by a

plant breakdown.

Start‐to‐finish project monitoring

Drones are also great for helping your company plan out projects.

With the same 3D mapping that Louisville Paving uses for stockpile management, Dougherty also uses

his drones to map topography of jobsites before crews even get onsite. He says this can help with the

bid process if they suspect a quantity bust on a job.

“We overlay the topo map we take with the drone onto the plan design and generate our own

quantities,” Dougherty says. This can help them accurately bid jobs and turn them down if the profit

won’t be there based on their quantities. “We also fly all site jobs after they are cleared to check

elevations so we can verify quantities before we even get out there,” Dougherty adds. “Many existing

elevations on plans coming from the engineer are generated before the site is cleared which impacts the

accuracy of the results. Obviously, knowing the actual elevations is beneficial.”

In addition to mapping the topography of a jobsite in order to manage quantities, drones can inspect

jobsites for silt control, security and progress. This helps with project information dissemination as

drones can let any member of the project team know the project status after a quick 15 minute flight.

Drones can generate as‐built models that can be sent to project managers to identify any delays or

budget overages. This also adds to increased safety as drones are able to quickly identify hazards even

on large jobsites.

Originally, Dougherty was just thinking he’d use his drone for stock pile management but now, “we’re

still finding uses for it,” he says. Drones can cost anywhere from $1,000 to $30,000 depending on what

capabilities you desire. The more you want the drone to do, the more the drone unit and the software

will cost. Some contractors simply want drones for taking aerial shots of completed work for marketing.

Before drones, about the only way to get these shots was to hire a pilot who could take shots from their

aircraft. At a minimum cost of $600 per flight, purchasing a low‐cost drone would be worth the

investment. “Aerial photography and videography of jobsites make for great marketing tools whether

online, print or when pitching jobs in person,” Dougherty adds. “And its great PR with clients as

everyone is fascinated with drones.”

Documents

Construction Monitoring with Drones - liability … · Construction Monitoring with Drones - liability issues & risk management ... • Hacking (spoofing) UAS ... to JSA approach)