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SUBCONTRACTOR QUALIFICATIONS
MANAGING THE PROCESS
ASSP Construction Practice Specialty Group
Safety Summit
October 2018
Danny Uhyrek, Safety & Risk Manager - McCoy Rockford
Lelton Morse, Safety Director - Bartlett Cocke
Mark Gaskamp Senior Vice President- Marsh Wortham
Why Do You Care About Your Subcontractors
Safety?
2
OSHA- Multi-Employer Citation Policy
CPL 2-0.124 (Appendix A of manual)
Clarifies responsibilities of employers
More than one employer may be cited
4
What category of employer?
Creating
Exposing
Correcting
Controlling
Controlling Employer
1. General supervisory authority Power to correct or require others By contract or in practice
2. Reasonable care to prevent & detect Lesser extent than for own employees Less frequent inspections Less knowledge of trade standards
Factors to evaluate reasonable care: Periodic inspections, frequent enough Effective system to correct hazards Effective, graduated enforcement
Controlling Employer
Factors to evaluate reasonable care:
Periodic inspections, frequent enough
Effective system to correct hazards
Effective, graduated enforcement
8
$$$
Civil Liability
Worker’s compensation only covers employee-employer relationship
Subcontractor employees may sue general contractor
The “Action Over Claim”
Subcontractor Injury… REAL WORLD
Subcontractor rents a back hoe that has a broken hinge. Employee is injured while operating the equipment.
Subcontractor signed contract holding GC harmless and
naming them as an “additional insured”
Who pays for employee injury? 10
Civil Liability- Prevention
#1 DON’T HAVE ACCIDENTS
Reasonable care to prevent/correct hazard
Coordination with other employers
Contract terms / practices with contractors
What do you think the most important step you are taking to prevent Job
Site accidents?
What are you looking for when evaluating a
Subcontractors Safety?
What does your evaluation/ response process look like?
12
Anything different for a new trade or responding to a new GC?
13
14
15
What makes a good sub-contractor? Risk Management Qualification
OSHA Compliance
Good TRIR or DART
16
OSHA Establishment Search
17
What makes a good sub-contractor? Risk Management Qualification
Good Safety Program
Good EMR ?
Good Insurance
18
How do you evaluate a safety program? How do you “show off” your safety program?
THE EMR… Who would you hire?
Contractor had 2 fatalities in the past four years
Contractor had 1 lost time claim in the past three years involving an office staff member with a carpal tunnel injury
Contractor #1 EMR= .84
Contractor #2 EMR = 1.36
How do you evaluate a Subs Insurance program?
21
Insurance Coverages
22
Deductible:
$
Pollution
Liability
$1MM
Deductible:
$
Professional
Liability
$1MM
Deductible:
$
Auto
Liability
$1MM
Deductible:
$
General
Liability
$1MM/ $2MM
Employers
Liability
$1MM
Umbrella/ Excess Liability
$10 MM Workers’
Compensation
Statutory
Limits
Premises Liability & Products Completed Operations Liability
Financial loss that is not bodily injury or property damage
INSURED: THE CORRECT COMPANY
INSURER: VERY IMPORTANT
Contractual Indicate “AM Best A- VI or better”
EFFECTIVE DATES: Is it expired?
COVERAGES: THE CORRECT BOXES CHECKED Only if specifically named
LIMITS As prescribed in contract? Exceptions?
CERT HOLDER: The Correct Name
SB 425- Should Show List of Endorsements
Attached if needed to affirm coverage
23
Proof of Insurance…
Certificate of Insurance
What it is?
Document which shows the coverages in place at a point in time
What it is not?
An insurance policy
24
SUB’s SUB SUB
GC
How the game should work…
25
OWNER
26
Real World Example
Owner Hires Roofer
Causes Water Damage Who Pays?
Which policy responds? Who pays if the worker is injured?
2 Years Later…
Insurance Coverage What should you expect from a subcontractor?
27
Adequate Limits with a financially sound carrier- “at least” vs. “required limit”
Waiver of Subrogation
Primary & Non-Contributory
Per project aggregate
Notice of Cancelation
Maintain coverage and Additional insured protection beyond project
Additional Insured protection
Insurance Endorsements & Contracts
“AS REQUIRED BY WRITTEN CONTRACT”
28
No Contract… No Coverage
Subcontractor of the erection company operated a crane too close to a leased employee of the rigging company. Wall collapsed resulting in fatality
– Written contract in place between GC & Steel erector
– GC is sued and demanded indemnity from subcontractor
29
GC Hires Steel Erector
Who Pays? Alternate Employer Endorsement
Don’t forget Temps!
How do you monitor who is on job sites?
30
How is the process different when third party “evaluation”
vendors are involved?
How do you effectively manage this process?
31
How is the process different when you utilize a CIP?
What’s a CIP?
What’s a CIP?
Dealing with CCIPS, OCIPs & ROCIPs
Why?
What it covers?
What it does not cover?
Claims in excess of OCIP limit
Claims beyond the policy term
Claims that may be covered under current policy
Claims after “close out”- Ex: Manhole cover
Why care about OCIP claims?
“CONTROLLED” Insurance Program
33
How do you evaluate and hold subs accountable
once they are on the job?
As a Safety Manager- How do you manage this
process?
34
What is your biggest issue/ “pet peeve” with
managing subs?
What is your biggest issue with dealing
with GCs?
35
Questions???
Mark Gaskamp Marsh Wortham
Lelton Morse Bartlett Cocke
Danny Uhyrek McCoy Rockford
