TODAY
ISSUE 1 | 2020
CONSTRUCTION PUBLISHED BY THE GENERAL BUILDING CONTRACTORS ASSOCIATION
BUILDING STRONGER. TOGETHER. GBCA MEMBERS ARE WORKING TOGETHER TO REBUILD THE CITY - AND WE ARE WORKING WITH PARTNERS IN LABOR AND LEGISLATURE TO BUILD STRONGER THAN EVER.
ISSUE 1 | 2020 1
We’ll get through this. Together.
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LF Driscoll is an equal opportunity employer. ISSUE 1 | 2020 2
LETTER FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS
Technology has always disrupted the construction industry. Think of the impact of reinforced concrete, the mechanical excavator, building information modelling (BIM), or pre-fabrication. Each has changed existing practices. And each has assisted our industry to move forward in ways we had not previously imagined.
Joe Clearkin
Chairman of the Board GBCA
As the coronavirus has disrupted virtually every aspect of our businesses, the economy and our daily lives, it has become very clear just how much GBCA is able to accomplish when members are engaged and involved. Since the pandemic began to impact our lives and businesses, many of you have engaged with GBCA to help shape the industry’s response to the pandemic. The vast amount of information received from our members in regard to economic recovery, safety planning, and legislative issues, was astounding. Because of YOU, GBCA was able to better inform our membership at-large, making the entire industry stronger. The next few months are going to be challenging for our industry, for the broader economy and for the entire greater Philadelphia region. It is GBCA’s mission to make sure you have the support you need, and to assist you in every way possible to understand what is happening and what is to come. By working together, we have become stronger. And we will continue to strengthen our industry together, one day at a time, as we learn and grow from each challenge we face. We’re all in this together.
Joe Clearkin Chairman of the Board GBCA
ISSUE 1 | 2020 1
LETTER
FROM THE PRESIDENT & CEO
We are living in a moment of dramatic and sudden change. Whether from uncertainty in scheduling, governmental action, liquidity concerns or ever-changing market demands, the construction industry has become more complex than ever before. Throughout these tumultuous times, GBCA has worked diligently to help our members so that you are better positioned to take advantage of future opportunities when they arise. In response to the growing economic crisis, your GBCA has strengthened its services for members. We have advocated for federal measures to support the industry; shared and shaped the latest developments from our local, state, and federal governments; and provided member companies with the resources and facts they need, when they are needed most. GBCA has continued to be an important source of access to the information and resources that members need in order to adapt quickly. In March, GBCA began offering free COVID-19 webinars each week that have now been viewed thousands of times. Today, we continue to offer new programs, on timely topics, while, providing a growing library of online programs available anytime on the GBCA website. These programs include details on COVID-19 prevention and response protocols, economic support available for contractors, managing mental health and many more topics that have aided contractors looking to navigate the issues of today.
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While we have already faced much together, undoubtedly the coming weeks and months will continue to present new challenges for our industry, the economy, and our country. Throughout these challenges, GBCA will make sure that you have the support you need. We will continue to be there to help you understand exactly what is happening; what we are doing to shape our local, state, and federal government response; and to ensure that the resources, information, and tools needed to succeed are available to you no matter what market we face. Lastly, we recognize that to meet the moment of today, now is not the time to go it alone. GBCA is focused on continuing to work with our partners in the union trades and other industry associations so that we can build a stronger industry, together.
Benjamin J. Connors, Esq. President & CEO General Building Contractors Association
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CONSTRUCTION
TODAY PUBLISHER/EDITOR Lauren Hanan ADVERTISING/SALES Lauren Hanan
CONTRIBUTING WRITERS Jason Aten / Jonathan A. Cass / Carl L. Engel / Stephanie Staub / Travis Shaffer / William Rennie / Jackie Linton / Greg Sassi / Steven J. Smith / John Braun / Mike Wallace / Lauren Hanan
NOTES FROM THE PUBLISHER So, where do we go from here? Nobody knows. The future is uncertain and it’s difficult to anticipate next steps. GBCA has been working diligently on your behalf to identify challenges that may develop, offer solutions, and advocate on your behalf. In the pages of this magazine, you’ll find articles contributed by many of the professionals who participated in the COVID-19 Webinar Series that your association continues to offer on a weekly basis. We know the value of continued education, and we’ve built a very robust catalogue of Online Learning Resources. Although we may not be able to host large conferences and lunch-and-learns, we have made it even more possible to gain knowledge with online safety trainings, educational webinars, and leadership development programs.
The articles in the coming pages are stories which serve as reminders of the vibrant industry you work in, the contributions you make to the greater Philadelphia region, and the strides GBCA is making on your behalf. There’s no denying that what lies ahead may be far different from the world we have always known. So, stay the course. Look for insights from GBCA through our News at a Glance, expand your knowledge and attend a webinar, and read through the pages of this publication so that you can prepare for what’s next. First and foremost, stay safe and healthy.
Lauren Hanan
DESIGN Punch Garage ACCOUNTING Kristin DeFrancisco EDITORIAL OFFICE General Building Contractors Assn., Inc. 36 South 18th Street Philadelphia, PA 19103 P: 215-568-7015 F: 215-568-3115 © Copyright CONSTRUCTION TODAY® registered in U.S. Patent and Trademark Office Copyright ©2004 by the General Building Contractors Association. All rights reserved. Submissions for editorial review should be sent to the editorial office address. Neither the publisher nor any individual associated with any branch of production, nor the advertisers will be liable for misprints or misinformation contained herein.
Director, Marketing & Communications General Building Contractors Association
General Building Contractors Association theGBCA
@gbca
theGBCA
4 CONSTRUCTION TODAY
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CONTENT
ISSUE 1 | 2020
ASSOCIATION UPDATES
10
10 EVENT PHOTOS Snapshots from the 2020 Annual Meeting, ACE Mentor Program, Construction Leadership Council and more.
30 SUGGESTED RESPONSE PROTOCOLS FLOW CHART FOR COVID-19 EXPOSURES 38 ADDITIONAL INFORMATION ON COVID-19 40 2020 ANNUAL MEETING HIGHLIGHTS
FEATURES AND CONTRIBUTED ARTICLES
22
20 7 THINGS YOU SHOULD KNOW ABOUT MANAGING REMOTE TEAMS 22 COVID-19 HAS IMPACTED MY BUSINESS: DO I HAVE COVERAGE FOR THE BUSINESS INTERRUPTION? 24 H OW CONSTRUCTION COMPANIES CAN SAFELY BRING EMPLOYEES BACK TO THE OFFICE AND JOB SITES AMID COVID-19 26 LEADERSHIP IN CRISIS 28 M ANAGING JOBSITE RISK IN THE AGE OF COVID-19 32 SAFETY IN THE TIME OF COVID-19
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34
36
IN EVERY ISSUE 14 LEADERSHIP SPOTLIGHT
An interview with Christina Pasquariello from P. Agnes
42 WELCOME NEW MEMBERS 42 REFERRAL DIRECTORY
34 INSURANCE IMPLICATIONS 36 WHAT YOU NEED TO OF COVID-19 ON THE KNOW ABOUT CONSTRUCTION INDUSTRY ARCHITECTURAL GLASS WALLS SYSTEMS
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PROJECT SPOTLIGHT PENN MEDICINE PAVILION PHILADELPHIA, PA ISSUE 1 | 2020 7
CONTRIBUTORS
JASON ATEN
JONATHAN A. CASS
CARL L. ENGEL
Tech Columnist, Inc.com Editor, Fit Small Business
Partner, Cohen Seglias
Partner, Cohen Seglias
STEPHANIE STAUB, CSI, CDT, LEED GREEN Associate Director of Marketing, The Architectural Glass Institute
JACKIE LINTON
President, JL HR Solutions, LLC
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TRAVIS SHAFFER
Vice President, Construction Practice, Conner Strong & Buckelew
WILLIAM RENNIE
Vice President, Account Executive, Conner Strong & Buckelew
GREG SASSI Director of Security, Gilbane Building Company
STEVEN J. SMITH
JOHN BRAUN, CSP, CHST
Regional Director Business Development, Kastle Systems
CEO, Signature Safety
MIKE WALLACE
Producer, The Graham Company
Would you like to be a contributor to the next issue of Construction Today? Contact Lauren Hanan at lhanan@gbca.com or 215-568-7015.
ISSUE 1 | 2020 9
EVENTS 2020 ANNUAL MEETING On Monday, January 13, 2020, GBCA held its 2020 Annual Meeting at the Union League of Philadelphia. Over 400 GBCA members and guests came together at this SOLD OUT event to celebrate another year of accomplishments for the association and its members. After an opening prayer from GBCA Board Member William A. Cobb, Jr., President of Haverstick-Borthwick Company, Philadelphia’s Mayor Jim Kenney gave an opening address, commenting on the role of the union commercial construction industry in shaping Philadelphia’s skyline today. Continuing the theme of celebrating industry success, David E. Panichi, Chairman & CEO of TN Ward Company, presented Francis A. Pietrini, CEO of B. Pietrini & Sons, Inc., with GBCA’s Distinguished Director Award. The Annual Meeting also featured two guest speakers who spoke about the value of GBCA’s services and efforts in 2019: Jamal Byrd, CAPP Instructor & Former Participant, and Mary Kate Radomski, Frank V. Radomski & Sons, Inc. and Chair of GBCA’s Construction Leadership Council.
2020 MLK DAY OF SERVICE On January 20, 2020, volunteers from GBCA, the ACE Mentor Program of Greater Philadelphia, Clemens Construction Company, and the Eastern Atlantic States Regional Council of Carpenters came together for a Day of Service for Martin Luther King Day. Volunteers met at the Houseman Recreation Center in Philadelphia to build cedar wood picnic tables and benches for the neighborhood. Woodland Building Supply provided the materials for the project. Special thanks to all who came out to give back to the community: Students and mentors of the ACE Mentor Program of Greater Philadelphia; Carpenters from the Eastern Atlantic States Regional Council of Carpenters; Clemens Construction Company; Office of Philadelphia Council Member Cherelle Parker; Philadelphia Council Member Derek Green; Philadelphia Council Member Isaiah Thomas; and Members of the Philadelphia Fire Department Engine 70.
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2020 SPONSOR THANK YOU RECEPTION On Monday, February 10, 2020, GBCA’s Board of Directors hosted a private reception to thank our members who sponsored GBCA events during 2019. In 2019, GBCA members sponsored events and activities such as the Annual Meeting, the Membership Dinners, the Golf Outing, the Construction Excellence Awards, the CLC Opening Day at Citizens Bank Park, Eggs with OSHA, the Safety Awards Reception, and the Construction Technology Expo.
GBCA AT ACE MENTOR PROGRAM’S 2020 GIANT JENGA TOURNAMENT On Thursday, February 20, 2020, GBCA competed in the ACE Mentor Program of Greater Philadelphia’s Giant JENGA tournament. GBCA’s two teams, along with 62 other teams, competed in this fundraiser which raised $30,000 for scholarships to students studying in architecture, construction, and engineering fields in college/university. Several GBCA members competed in the event: Clemens Construction Company; EDA Contractors, Inc.; Gilbane Building Company; Hilti; Independence Steel; LF Driscoll; Limbach – Eastern PA Branch; O’Donnell & Naccarato; Paul Rabinowitz Glass Co., Inc.; Skanska USA Building; Torcon, Inc.; and Turner Construction Company. Congratulations to the team from Torcon, Inc., the 1st place winner!
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6ABC FILMS SEGMENT ABOUT WORKFORCE DEVELOPMENT In 2020, GBCA is partnering with 6abc to spotlight stories from Philadelphia’s union commercial construction industry. The next GBCA-produced 6abc Action News Weekend Update segment will focus on workforce development. The segment aired in March 2020. On February 20, 2020, 6abc filmed the segment, which will highlight the impacts of two preapprenticeship programs: the Carpenters’ Apprentice Ready Program (CARP) and the Construction Apprentice Preparatory Program (CAPP). Host Gina Gannon interviewed alumni from these two programs: Jamal Byrd, Lead Instructor and Alumni, CAPP; and Gina Yiantselis, Alumni, CARP. Both Jamal and Gina are currently carpenter apprentices, working on major projects in the city. Watch the segment >
EGGS WITH OSHA: EXCAVATION AND TRENCHING SAFETY On Tuesday, February 25, 2020, over 55 safety professionals gathered for GBCA’s first Eggs with OSHA of 2020. OSHA representatives James Harrity and Scott Shimandle, and Monica Rakoczy of EnterTRAINING Solutions presented issues and best practices for excavation and trenching safety. The presenters also discussed different trenching and excavation products available on the market.
CLC LEADERSHIP SERIES: LINKEDIN BASICS FOR EMERGING PROFESSIONALS On Thursday, February 27, GBCA’s Construction Leadership Council hosting the first Leadership Series workshop of 2020: LinkedIn Basics for Emerging Professionals. Led by Matt Berman of philly MADE creative, this workshop provided tips on making the most of LinkedIn to create a lasting professional network, as well as broke down what it means to create a personal brand strategy.
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NAWIC TOURS LF DRISCOLL’S PENN MEDICINE PAVILION PROJECT On Tuesday, March 3, as part of Women in Construction (WIC) Week 2020, the National Association of Women in Construction (NAWIC) Philadelphia Chapter 145 toured Penn Medicine’s Pavilion project. Following the tour, attendees had a lunch and discussion with some of the women in the trades working on the project.
2020 SPRING MEMBERSHIP DINNER On Thursday, March 5, GBCA held its annual Spring Membership Dinner at the Crystal Tea Room in the Wanamaker Building. Carl Dranoff and Julia Dranoff Gutstadt of Dranoff Properties spoke about the changes in Philadelphia’s development and their thoughts about the potential for new growth through new forms of development, such as the new Arthaus luxury condominium building. Carl and Julia also spoke about the intricacies of working together in a family business, including issues such as succession planning.
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LEADERSHIP SPOTLIGHT Q A
CONSTRUCTION LEADERSHIP COUNSIL
Name: Christina Pasquariello
When did you first become interested in your career path?
Title: Project Manager
I first became interested in my career path at a young age, my father (Pat Pasquariello) would bring my brother and I to the job sites on the weekends to show us what was being done and to see the progress of the construction. I knew I’d want to follow in his footsteps.
Age: 29 Company, City: P. Agnes; Philadelphia Years in field: 7 Education: Cabrini College Birthplace: Philadelphia, PA City of Residence: Philadelphia PA
What is the most rewarding part of your job? Most rewarding part of my job is to see a completed project, and having a happy client when the work is done. A lot of our work is in the healthcare industry and it feels good knowing we are helping create a clean new environment for patients and healthcare workers.
What is your biggest daily challenge? My biggest daily challenge is probably being a woman in the construction industry. Times are changing and it is becoming more accepted, but there are definitely still challenges.
How do you inspire your colleagues? I inspire my colleagues by working hard, and never saying ‘no’ when someone needs a hand. It’s all about teamwork to me.
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SPOTLIGH
EADERSHIP
What goal are you currently striving to achieve? I am currently striving to be able to run my own project without a lot of guidance.
What project are you currently working on? I am currently working on the Law Enforcement Health & Benefits project in North East Philadelphia.
Do you have a life motto? If so, what is it? Put your head down and go to work
What’s the most important lesson you’ve learned in your career? The most important lesson that I have learned in my career is to not be afraid to make mistakes. No one is perfect, and you can always learn from your mistakes. The important thing is to not make the same mistakes twice.
What was your favorite CLC event? Phillies Opening Day.
How do you find that participating in CLC activities benefits you? I found that participating in CLC activities benefits me greatly, because there are so many different people in the committee, and hearing their positives and negatives helps me grow professionally.
Do you have any advice for other CLC members/ young professionals who are looking to advance their career? My advice would be to get as much exposure as possible, do things out of your comfort zone, and go to as many events as possible. Just get yourself out there and meet people. Don’t be afraid to make mistakes because you will learn from your mistakes.
What is your favorite thing about being a member of GBCA? My favorite thing about being a GBCA member is the friendships that I have made through the events and being a part of the CLC committee.
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PROJECT SPOTLIGHT
PENN MEDICINE PAVILION PHILADELPHIA, PA BUILDING FEATURES • 504 Private Patient Rooms • 47 Operating Rooms • Adaptable Rooms Concept – patient rooms equipped to flex between intensive care and standard patient care rooms • 1 Acre of Greenery • 600+ Space Parking Garage • Emergency Department
• • • • • •
Design-assist Pull Planning/Last Planner System Target Value Delivery/Design BIM/VDC Off-site Manufacturing/Prefabrication Daily Crew Huddles
SUSTAINABILITY RATING Pursuing LEED Gold certification
SIZE
PENNFIRST IPD PARTNERS
1,500,000 SF | 17 stories
Penn Medicine LF Driscoll Balfour Beatty Foster+Partners HDR BR+A Southland Industries SteelFab, Inc. Shockey PreCast Group Dale Construction Wm. Shaeffer Electric Philadelphia D&M Construction Hardware Oliver Sprinkler Schneider Electric
CONSTRUCTION START June 2016 CONSTRUCTION COMPLETION 2021 PROJECT COST $1.5B IPD TECHNIQUES • Just-in-Time Deliveries
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Photo by: Foster + Partners & HDR
SUMMARY In 2015, Penn Medicine announced what it dubs the “largest capital project in Penn’s history,” and Philadelphia’s “most sophisticated and ambitious healthcare building project.” The new Penn Medicine Pavilion will ultimately house 504 patient rooms and 47 operating rooms across its 17 floors and 1.5 million square feet. And while the $1.5-billion effort is already poised to take healthcare construction to new lengths, it’s also blazing new territory as one of the largest projects on the East Coast to design and build through an Integrated Project Delivery (IPD) approach—and as a critical facility during the COVID-19 pandemic.
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SUMMARY The Penn Medicine Patient Pavilion is an ambitious $1.5 billion, forward-thinking, new hospital emerging on the former site of the Penn Tower. Ultimately it will be home to 504 new patient rooms, 47 operating rooms, as well as the inpatient care for Abramson Cancer Center, heart and vascular medicine and surgery, neurology, and neurosurgery. When complete, it will be linked to the
example, while planning and designing the building’s foundation, the team invited the concrete contractor, Madison Concrete, into the collaboration space to strategically design and detail the rebar in a way that made the assembly process easier. This helped pave the way for the 14-hour, 650-truck, record breaking, largest concrete pour in Philadelphia’s history. The process also allowed the team to explore a more collaborative, real-time application of technology to the estimating process. The architects needed a practical way to understand quickly how their design choices were affecting the budget as they developed the design, so the joint venture team of LF Driscoll and Balfour Beatty worked with the architectural design team to develop a parametric modeling strategy that integrates an Excel document with the Revit model to adjust the cost data as the model changes. For example, if the design specified a particularly expensive type of door, the model could indicate how adding or removing other features would allow the project to keep as many of those doors as possible. For the Penn Medicine Pavilion, that cost data was added to over time as elements of the design came together. LF Driscoll’s estimating team created a concept estimate from 2D drawings of the massing to define the building geometry, which then controlled the costs. Then they extracted fundamental blocks to analyze the cost data behind them as each section came into shape. As the architects adjusted the design, the team could evaluate quantities and which scenarios were more or less expensive. With that kind of collaboration driving the process, the design was intentionally divided into separate area teams to allow planning, design, and construction to advance in separate but distinct tracks. As the below-ground and mill order/structural steel phases wrapped up, the team moved on to core and shell. However, in the midst of that progress, an unprecedented global pandemic took hold.
Penn Medicine Campus, connected by a new network of public bridges, tunnels, and walkways. The PennFIRST integrated project delivery (IPD) team is designing and building this massive project, which is scheduled to open in 2021. Designated “the job that never sleeps” by the team, the goal is to stay ahead of the curve, developing innovative solutions and working in partnership with each other and the building trades to keep the project moving forward. To reach that goal, construction is scheduled around the clock, six days a week, requiring three shifts and juggling up to 900 workers in and out of the site daily. With no room to stage materials, just-in-time delivery is required and multiple secondary jobsites are up and running, pre-fabricating site materials to enhance the schedule and allow the team to reduce on site labor by as much as 20%. The IPD approach allows for a level of collaboration that is not normally possible and pays dividends in both schedule and cost as the team works together in an integration space intentionally designed to facilitate strategic planning and ensure cohesion. For 18 CONSTRUCTION TODAY
Penn Medicine assessed its facilities and determined that temporarily shifting the focus of the Pavilion construction could provide additional space for treating patients, if needed, during this time. With the project’s scheduled completion still more than a year away, the PennFirst team galvanized to refocus on rapid response. The entire project team agrees that the IPD process put them in an excellent position to respond quickly to the emergency COVID-19 response. With all stakeholders working directly together already, the team was able to quickly adjust to changes and help Penn Medicine serve its community in this enhanced time of need.
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7 THINGS YOU SHOULD KNOW ABOUT MANAGING REMOTE TEAMS BY JASON ATEN | FIT SMALL BUSINESS
Right now, remote working--or, working from home--has become more than a trend. It's now a necessity for companies all across the globe. As a result, there are thousands of team leaders and managers who find themselves suddenly managing a completely remote team. Honestly, that can be scary, especially if it's the first time you've ever had to do so and didn't have a lot of time to prepare. If that's you, this list of tips will help you set up yourself and your team for success:
2. Communicate a Lot It probably goes without saying that you should be in regular communication with your team. One of the hardest things about working from home, especially if you're used to an office environment, is the sense of loneliness and isolation that can set in. That's especially true considering that many people are practicing social distancing. 3. Take Advantage of Technology
1. Have a Daily Check-In Whenever possible, this should be one-on-one, and face-to-face via video. Phone conversations, email, and Slack go only so far. Your team needs to see you, and you need to see them. The good news is that services like Zoom or Google's Team Hangouts make this relatively easy. At first, this should be every day. The purpose is simple--set the agenda and provide the feedback and resources your team members need. 20 CONSTRUCTION TODAY
As a manager, your job is to keep your team connected. Communication tools are a simple way to keep everyone engaged. While email and text messages might be a short-term solution, tools like Slack or Microsoft Teams are far better suited for collaboration and communication. Some of those collaboration tools are even available for free right now.
4. Manage Expectations Help your team figure out what they should do and create realistic expectations for their work. By the way, "managing expectations" applies to you as a manager as well. Set yourself and your team up for success by clearly stating both the tasks and the reasons behind them, and help your team understand exactly how you will measure success. That means defining the scope, deadlines, and deliverables for each task or project your team is working on. Otherwise, don't be surprised if a few weeks from now you find yourself wondering what everyone was doing. Which brings us to ... 5. Focus on Outcomes, Not Activity It's not possible to manage every aspect of the work done by a remote team. For what it's worth, you shouldn't be trying to manage every aspect of any team's work, but especially when your team is distributed across different locations. Instead of focusing on activity or hours worked, focus on the outcomes and measure your team accordingly.
6. Resource Your Team Make sure your team has the technology it needs to get the work done. If you suddenly have a team of remote workers, that means there's a good chance they need tools like laptops, software, mobile devices, or even a high-speed internet connection. It's not reasonable to assume that everyone has all of those things, and it's your responsibility as a manager to make sure they do. 7. Be Flexible Understand that, especially in the current environment, your team has a lot going on. That's not an excuse for not getting things done, but it is a reason to reconsider what productivity really means. Punching a clock for eight hours is out. Regular work hours are also probably out for many people. Instead, trust your team and give them the freedom and flexibility to get work done on the schedule that helps them be the most productive. That's good for your team in the long run anyway.
This article first appeared at Inc.com
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COVID-19 HAS IMPACTED MY BUSINESS: DO I HAVE COVERAGE FOR THE BUSINESS INTERRUPTION? BY JONATHAN A. CASS + CARL L. ENGEL | COHEN SEGLIAS
The impact of COVID-19 on businesses has been catastrophic, with many forced to close altogether, and others required to scale back operations significantly. Put simply, the pandemic has caused widespread business interruption, which poses to each affected business the question of whether there is coverage for the current shutdown-related interruption under its insurance program. In this article, we provide basic information necessary for business leaders to assess whether, and to what extent, coverage is available for their businesses. Coverage for business interruption is typically provided through an endorsement that is added to a policy for property insurance (often titled the “Business Income (and Expense) Coverage Form”). As a general practice, it is “add-on” coverage that must be specifically purchased by the policyholder. To trigger business-interruption coverage, there must be a “direct physical loss of or damage to property at the premises which are described in the Declaration.” A fire that destroys or damages a building out of which the company operates is an example of such a “direct physical loss.” Put another way, as a threshold matter, to have coverage for business interruption arising from COVID-19, a company must establish that COVID-19 22 CONSTRUCTION TODAY
caused a “direct physical loss or damage” to the building(s) insured under the property-insurance policy. Further, many property policies also contain an “Exclusion of Loss Due to Virus or Bacteria.” The insurance industry adopted this exclusion in the aftermath of the SARS epidemic of 2003 in response to carriers’ concerns that viral epidemics could increase their exposure to business interruption claims. This exclusion provides in relevant parts as follows: “[The Insurance Company] will not pay for loss or damage caused by or resulting from any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or disease.” Accordingly, even if an insured company can establish that COVID-19 created a “direct physical loss or damage” to the building out of which it operates, its insurance carrier certainly will cite to this endorsement to deny coverage for a business-interruption claim. In response to the unbelievable economic toll that the COVID-19 shutdown has had, a flurry of lawsuits, including some class actions against specific insurance carriers, have been filed throughout the country seeking coverage for business interruption claims. Many of these lawsuits have been brought by restaurants that closed involuntari-
ly in response to the pandemic. They try to overcome the threshold requirement of “direct physical loss or damage” by arguing that COVID-19 physically infects and “stays on surfaces or objects or material,” thereby causing damage to the covered building. Whether this argument (and the scientific theory behind it) will suffice to overcome the physical-loss requirement remains to be seen. The initial wave of lawsuits involved property policies that did not appear to have the above-discussed “Exclusion of Loss Due to Virus or Bacteria.” However, more recent lawsuits involve polices that do have that exclusion and argue that it shouldn’t apply to preclude coverage. In addition to lawsuits seeking coverage for business-interruptions arising from COVID-19, there has been a legislative response to the forced closures of businesses because of the pandemic. For example, both the New Jersey and Pennsylvania legislatures introduced bills that are intended to force insurance companies to pay some business-interruption claims arising from COVID-19 by voiding the virus exclusion in policies that contain it. We expect that such policyholder-friendly legislative initiatives will be opposed fiercely by a well-financed lobbying effort from the insurance industry. We also anticipate that the constitutionality of such measures enacted by legislatures will be challenged by the same industry groups in the courts Contractors, by the nature of their business, face additional challenges to obtaining coverage for a COVID-19-related business interruption claim. Most contractors (unlike a restaurant, for example) generally do not derive income directly from the buildings out of which they operate (and which are insured under property policies). Rather, they derive income from their work at a project site that, depending on the type and location of the project, may have been shut down by governmental order. Since their loss of income is due to a work stoppage on a project, rather than the closure of a building out of which they operate, there is a lack of a direct causal nexus between the closure of the insured property (the building) and the loss of income. This may explain why we have yet to see a contractor bring a coverage action related to the denial of a COVID-19-related business interruption claim. From this knowledge, there emerges a framework for business leaders to use to evaluate potential pandemic-related business interruption claims. First, you should review the company’s property policy to determine whether there is business-interruption coverage. Second, if there is such coverage, you should determine whether the policy has a virus exclusion like the example discussed above. Third, if you do have business interruption coverage, and even if there is a virus exclusion, we recommend that your agent/broker put your property carrier on notice of a potential COVID-19 business interruption claim,
which is referred to as “record only” or “notice only” claim. If you decide to submit an actual claim, you should expect that your insurance company will promptly deny the claim after requesting some preliminary information. Why should you even bother putting your carrier on notice of a claim if, more than likely, there is not going to be coverage? To use an adage favored by the lottery industry, “you can’t win if you don’t play.” The same applies here. By putting your carrier on notice of a potential COVID-19-related business interruption claim, your company is in the position to submit an actual claim once the initial COVID-19 litigation dust settles, and we have a better understanding as to whether, and how, to attack any subsequent coverage denial.
Cohen Seglias’ Insurance Coverage & Risk Management Group is available to discuss any questions that you may have about a business interruption claim or other insurance issues related to the COVID-19 pandemic. Jonathan A. Cass can be reached at jcass@cohenseglias.com, and Carl Engel can be reached at cengel@cohenseglias.com.
BUILDING SUCCESS
PENNSYLVANIA NEW JERSEY NEW YORK ATTORNEYS AT LAW
www.cohenseglias.com
DELAWARE WASHINGTON, DC KENTUCKY
ISSUE 1 | 2020 23
HOW CONSTRUCTION COMPANIES CAN SAFELY BRING EMPLOYEES BACK TO THE OFFICE AND JOB SITES AMID COVID-19 BY TRAVIS SHAFFER + WILLIAM RENNIE | CONNER STRONG & BUCKELEW
As governors across the Mid-Atlantic region begin to relax stay-at-home-orders amid the ongoing COVID-19 pandemic, construction and real estate companies are grappling with how their employees can safely return to the office and job sites. A safe and productive transition back to a place of business comes with significant challenges that vary from organization to organization, office to office, and job site to job site. Employees in this industry often find themselves in close quarters with one another. Equipment and machinery are often shared between workers. Business meetings with third-party vendors and suppliers are also very common, which present further opportunities for the virus to spread. Employee safety is the top priority for construction companies and the ultimate measure of a successful and productive return-to-work effort. In reviewing best practices gleaned from essential businesses that have stayed open, recent government agency guidelines and traditionally effective HR policies and practices, there are several tactics and strategies companies can utilize to keep workers safe. 24 CONSTRUCTION TODAY
Below are the top considerations all construction companies should take into account to keep their office and job site workers safe as they begin to return to these employees to work. Please keep in mind that if it is a union workforce, some of the below steps may require the employer to engage in good faith bargaining with the bargaining representative prior to implementation, and therefore construction companies should consult with labor counsel prior to implementation. Conduct daily temperature screening – With no COVID-19 vaccine and limited widespread testing capabilities, many of the social distancing and public health protocols will carry over into new workplace policies. Those protocols begin with screening employees for COVID-19 symptoms before they enter the office or job site, which many states, including Pennsylvania, New Jersey, Delaware and Maryland are recommending. This can be accomplished in a few different ways: •
Employee self-reported screenings – New apps and technology platforms allow employees to take their temperature and log other customizable details which
protocols are routinely being followed. For employers in a large building, coordination with the building’s facility management team, other vendors and other tenants may be required around shared spaces such as the lobby and elevators. Consider legal implications of requesting worker medical information and utilization of such information – Employers must be sure not to request information from employees that they are not legally entitled to or to consider such information in making employment decisions. The Equal Employment Opportunity Commission has shared clarifying policies for what medical information employers can request from employees during a pandemic. Employers should review those guidelines and ensure compliance. Communicate early and often – Clearly and effectively communicating safety plans is imperative on a job site and in the office. On job sites, safety managers need to incorporate COVID-19 related policies into their daily job briefings along with concerns about other safety matters. Both in the office and on the job site, orientations should be modified to include information about face coverings, social distancing and proper hygiene. Regular communication through bulletin boards and email can also help to promote awareness and utilization of these safety precautions.
can be verified and submitted to employers. While these apps are more feasible for office workers, digital screening is much more difficult on multi-employer/multi-trade construction job sites. Some workers may not have smart phones and those who do may not be comfortable giving employers access to their devices. •
•
On-site temperature screenings – Medically trained individuals can take employee and visitor temperatures and record other medical information at the entrance to the office building. Construction job sites can set up a designated area set up for testing and encourage distancing to keep crowding to a minimum. COVID-19 antibody testing – More research and development is needed for this to be a viable option for employers, but antibody-based protocols could be created in the coming months.
Create a safe and sanitary working environment – To keep employees safe in the office, construction companies should set social-distancing protocols with adequate signage and suspend use of shared spaces such as conference rooms and break rooms. Employers should provide hand sanitizer, tissues and no-touch trash containers, and employees should be required to wear masks while in open environments. Account for everyone who steps onto company property – Employers may have to create protocols for vendors, customers and other visitors, which may include precluding third parties from entering the workstations. Its critical to consult with cleaning crews to ensure proper disinfecting and sanitation
Minimize the sharing of equipment – Both in the office and on a job site, equipment sharing must be kept to a minimum. Where equipment must be shared, including the operation of manlifts, forklifts, etc., Center for Disease Control & Prevention (CDC) guidelines for disinfection should be practiced prior to sharing. Disinfectant wipes should also be kept in close proximity to all shared equipment to facilitate and encourage their use. Stay attuned to ongoing developments – Given the quickly evolving nature of this pandemic, staying up to date with evolving rules and regulations is imperative. Construction companies should monitor the websites of state and local regulatory agencies, trade associations and news outlets regularly for updates.
A Dynamic Effort Creating protocols that address the myriad employee safety challenges facing real estate and construction companies amid the COVID-19 outbreak is a critical first step. But efforts cannot stop there. Maintaining employee safety requires ongoing attention and the ability to address new challenges as they arise. Establishing a task force dedicated to return-to-work issues is one best practice to ensure these efforts receive the necessary attention. Key leaders from various parts of the organization can review plans and policies and ensure workers are safely getting back on the job. Similarly, these leaders must regularly listen to concerns from their employees and implement changes to protocols as necessary to keep workers comfortable and safe. Ultimately, employers need to rely on common sense and prioritize communication with employees to ensure new protocols are understood and followed.
ISSUE 1 | 2020 25
LEADERSHIP IN CRISIS BY JACKIE LINTON | JL HR SOLUTIONS, LLC
According to the International Risk Management Institute, “a crisis is an unplanned change, a sudden or evolving unanticipated event that may harm the organization, its stakeholders or the public in general”. While this doesn’t sound particularly threatening on paper, when it shows up in your organization, it can be devastating. Let’s consider a few organizational crises that may sound familiar.
In 1982, Tylenol, a product of Johnson and Johnson, represented 37% of the pain killer market outselling its next four nearest competitors combined. During the fall of 1982 someone replaced Tylenol Extra-Strength capsules with cyanide-laced capsules, resealed the packages and placed them back on the shelves of a number of pharmacies and food stores in the Chicago area. The poison capsules were purchased and seven unsuspecting people died a horrible death.
In 2006 the banking industry began offering new and risky options to subprime borrowers. The first signs of trouble began when housing prices fell and these borrowers began defaulting on their loans. In 2007 the Federal Reserve attempted to shore up the banking system by adding $24 B in liquidity. In 2008 the stock market crashed and by 2009 unemployment was at 10%. The impact was felt across the country.
In 2018 a passenger was dragged off an overbooked United flight by arms and legs to the horror of all the holders of cell phone video cameras around him, even though in the beginning he volunteered to get off the plane until he found out how long it would be before he could get rebooked. The CEO initially agreed with the actions of the employees since the policy that allows the airline to remove you from a plane due to overbooking is standard.
In 2020 the United States experienced the worst pandemic since 1918, which killed tens of thousands of Americans, brought the highest unemployment rate in decades and a fundamental change in every aspect of our lives. Closed businesses and work from home were standard occurrences. The ability to visit family and friends was severely curtailed. Face covering and scheduled visits to the grocery store became everyday considerations.
These are just a few examples that we have all heard about, but I am sure you can come up with many more. While some of these crises were caused by internal actions, crises can also be caused by external events over which you have no control; they may strike your organization individually, your industry or the world. It can affect your reputation, your financial bottom line, employee morale or your entire business. A crisis can also bring innovation. According to Rahm Emanuel, “You never let a serious crisis go to waste. And what I mean by that, it’s an opportunity to do things you think you could not do before”. How does that happen? The one thing that is needed to successfully manage through any crisis is strong leadership. 26 CONSTRUCTION TODAY
Strong leadership in a crisis requires unique behaviors that may not be as important under normal circumstances. The extent to which they are required depends on the resiliency of the environment. This resiliency can be categorized at three levels. •
Individual resiliency – how willing are the members of your organization to shift their perspective from being stuck in defining the problem to identifying solutions? While individual perspectives vary, this is more a function of your culture and the extent to which it values and encourages active problem solving.
•
•
Team resiliency - how quickly can your teams adjust their collective work efforts to adapt to changes in the environment? Teams that have high resiliency keep the overall goal in clear focus and don’t get hung up on process. They are able to define new ways of operating while preserving quality standards, pivot quickly and deliver results. Organizational resiliency – how adept is your organization in recreating the business model or the organizational reputation to address changes in the environment? This could include creating new policies or operating norms; identifying new products or services or; effectively protecting the organizational brand.
the implementation didn’t go as expected, engage the group in identifying enhancements or next steps. Employees experience crises in different ways and not all of them are work related. In a crisis, recognize the needs of the whole person. Help them to not get stuck in the issues of the problem. Just taking a few minutes to say hello and let them know you see them, ask how they are doing or see if there have been any individual issues that the crisis has caused for them could all be great ways to let your employees know that you have their best interest at heart. When they know that, they are more likely to give you their best. With guidance and support they can be positive contributors in a crisis.
While the results of these behaviors can be seen at the organizational level, the leadership occurs at the individual level. Here are three leadership behaviors that are essential during a crisis
Acknowledge the contributions that your employees make, even if they seem small to you. In a crisis, everyone needs to feel valuable and your acknowledgement will go a long way in keeping your employees engaged and focused on helping the organization get through the challenges it is facing.
•
Communication
MANAGE YOUR PERSONAL EMOTIONS
•
Engagement Strategies
•
Managing your personal emotions
This could be difficult as you may be experiencing the same feelings of uncertainty as your employees. They are taking cues from you to determine if they should be worried or not. Your behaviors are always under review. Remain calm. If you are feeling anxious, collect yourself first before interacting with your employees. Be accessible to employees. No matter how much capacity you have to deliver results, the collective capability of the team can deliver more. The most important thing you can do now is to get the most out of your team. Be open to questions, even if they express judgment or frustration. Remember, it is not directed at you personally, it’s simply an expression of how they feel at the moment. Acknowledge their emotion and respond with facts.
Lets explore each of these behaviors in more detail. COMMUNICATION In a crisis, communication must be thoughtful and deliberate. Even if you consider yourself to be a masterful communicator, your normal level of communication will not be enough in a crisis. Transparency and accurate information are fundamental considerations in your communication pattern. Remember, your employees are experiencing the crisis too and they have lots of questions and uncertainty. You are not protecting them when you are not being transparent. Tell them what you know and what you don’t know. For the things that you don’t know, let them know what you are doing to find out. If there are things that you are not able to tell them now, let them know that too and why. While it is important to define the issues as you see them, be willing to move past that. Talk about possibilities. Storytelling is a great way to create a vision that others can see. You might talk about how other organizations have overcome seemingly impossible odds or even how this group has overcome difficult challenges in the past. Deliver your communications in multiple ways and make them forward looking and focused on solutions. ENGAGEMENT STRATEGIES While being selected to lead an organization is a testament to your skill and capability, it doesn’t mean that you are expected to be the only one with the answer. In fact the best ideas usually come from the people closest to the work. Invite them into the conversation. Be willing to try new things even if they seem crazy at the time. Report back to the group on the outcomes. If
If you consider the leadership responses to the crises described earlier, you will see that some responses were better than others. There is no one leadership response that always work but there are behavioral best practices that tend to work during stressful times such as the ones presented here. The key is to apply the practices that address the needs of your team and organization at the time.
About Jackie Linton With more than 20 years of executive leadership experience, Jackie Linton is the President of JL HR Solutions, LLC, a fullservice HR consulting firm focusing on talent management strategies; HR strategic planning; HR policies and process improvements; diversity and inclusion training and improvement strategies; and executive coaching. You can find Jackie on LinkeIn Here: linkedin.com/in/jackie-linton-sphrshrm-scp-mba-6544971
ISSUE 1 | 2020 27
MANAGING JOBSITE RISK IN THE AGE OF COVID-19 BY GREG SASSI | GILBANE BUILDING COMPANY + STEVEN J. SMITH | KASTLE SYSTEMS As our local and national leaders announced closures in early March, many of us we’re asking the same questions: “How bad is this going to be?”; “How long will it last?”; “What do I need to do differently to make my project safe and secure during the pandemic?”; “Will construction sites ultimately shut down?” Within weeks it was apparent construction would be materially affected and contractors were left scrambling to develop and implement new strategies to mitigate risk and restore safe working environments. Gilbane’s approach to construction site security begins with a risk assessment to establish objectives for the security planning process. It is imperative to select appropriate security measures to mitigate the risk at each project site since each location poses unique challenges and risks. The goal is to establish measures that will keep our employees and the project safe. Site security measures are layered. The first layer is an effective perimeter fence. Usually, 8 feet in height, while minimizing gaps between sections/poles and other openings, with clear zones on both sides and top and/or bottom guards. The proper fence is a deterrent and a delay method. Signage, another deterrent, is essential along the fence, providing a warning to potential intruders of the consequences. All signs should be bi-lingual. Gates should be robust and locked when not in use. Turnstiles for personnel access are a preferred option for specific project types and geographies. Lighting is interconnected with many other security measures, and it is also a deterrent. Crime is less likely to occur in a place 28 CONSTRUCTION TODAY
where the criminal can be seen. But there is more to lighting than just brilliance. It’s essential to assess temperature/color, uniformity, placement, fixtures, compatibility with security cameras, compliance with local requirements, and more. Another security challenge faced in construction is tower cranes. Urban climbers, photographers, and many others are lured to cranes for thrill and notoriety. Although thrill seekers have little regard for their safety, Gilbane has established specific safety and security measures to prevent site and crane access. Early detection is an effective tool which provides a faster response and a safer outcome and is an important element needed to detect an intruder when they climb the perimeter fence Gilbane’s plan for tower cranes includes signage on the perimeter fence, additional fencing (and lights) around the base of the crane, and motion activated cameras that are monitored 24 hours a day, 7 days a week. Kastle Systems, a nationally recognized analytical detection system, is Gilbane’s preferred partner for our site and crane security. Kastle’s expertise and technology has been beneficial in enhancing Gilbane’s site safety and security on our projects across the United States. As the construction industry faces its latest challenge with COVID-19, Kastle Systems and its innovation will remain a critical resource for Gilbane, to maintain unparrelled site safety and security for the benefit of our clients, trade contractor partners and the surrounding community.
Kastle’s innovative technology helps contractors better secure their sites and assists in mitigating the inherent risk associated with a construction sites that may experience extended periods of shuttering the project during the Covid-19 crisis. The solution is known as VideoGuarding and uses cameras equipped with an artificial intelligence (AI) layer that transforms a camera into a proactive security solution. When the technology deployed is wrapped with a services layer from a Security Operations Center, a powerful means to detect, deter, and dispatch on vandals and trespassers is created. VideoGuarding, as its name would imply, essentially replaces the function of a security guard but does it much more effectively and economically. “Smart Cameras” are always watching and survey the camera view for the presence of trespassers or moving vehicles. Once the smart camera identifies a threat, video from the camera is streamed real time to a 24 x 7 staffed operations center. The remote officer validates the threat and can apply live audio talk-down via IP-based speakers strategically placed around the jobsite. The audio talk-down has proven immensely effective in running intruders off jobsites before they can do harm to themselves or the project. Additionally, the remote officer can notify key holders and dispatch local authorities to the site. According to Smith, Kastle routinely runs trespassers off of jobsites with live audio talk-down. In addition, Kastle’s 24 x 7 US-based operations center has proven exceptionally effective at quickly reacting to threats and apprehending those that aren’t deterred by notifying local authorities of nefarious events in progress. Kastle Systems has a 48-year history of providing electronic security solutions and is the nation’s leader in VideoGuarding with offices and jobsites secured across the US. More information can be found at (https://www.kastle.com/ industries/construction-sites/).
ISSUE 1 | 2020 29
Suggested Response Protocols Flow Chart for COVID-19 Exposures
GENERAL BUILDING CONTRACTORS ASSOCIATION
WHAT TO DO IF A WORKER HAD CONTACT WITH A CONFIRMED COVID-19 CASE?
SCENARIO A:
SCENARIO B:
No Close Contact and the worker is asymptomatic. For example: If working on the same floor but have never been in contact with each other.
Close Contact (within 6 feet for more than 10 minutes without facial coverings). For example: If a spouse, caregiver, or close coworker is confirmed.
No further action is necessary. Worker is sent home. Supervisor and point-of-contact/ Pandemic Safety Officer should be notified. Anyone asked to leave should NOT return to work until: • at least 10 days have passed since symptoms first appeared, AND, • at least 3 days (72 hours) have passed since recovery defined as resolution of fever without the use of feverreducing medications, AND, • other symptoms have improved.
If worker develops no symptoms, they stay out of work for 10 days, the last 3 of which they must be symptom free.
Symptoms of COVID-19 include: • • • • • • • • •
Fever Cough Shortness of breath or difficulty breathing Chills Repeated shaking with chills Muscle pain Headache Sore throat New loss of taste or smell
30 CONSTRUCTION TODAY
If worker develops symptoms, he/she should seek medical attention and should remain away from work for 14 days.
Worker may return after 14 days of selfquarantine, if he/she is: • symptom free for 72 hours before return, with no medications. If diagnosed/confirmed positive by a health care provider, he/she should follow CDC guidelines for self-isolation and return to work when directed to do so by their health care provider.
05/12/2020
WHAT TO DO IF A WORKER IS SICK?
SCENARIO A:
SCENARIO B:
Worker is sick, but symptoms exhibited are not consistent with COVID-19.
Worker is exhibiting symptoms consistent with COVID-19.
Contact on site COVID-19 point-of-contact/Pandemic Safety Officer
Worker follows protocols consistent with company policy sick leave.
Follow established communications plan to notify workforce
Worker IS DIAGNOSED/ CONFIRMED with COVID-19.
Worker: • Stays home, self-isolates • Seeks medical attention • Remains out of work until: » at least 10 days have passed since symptoms first appeared, AND, » at least 3 days (72 hours) have passed since recovery defined as resolution of fever without the use of fever-reducing medications, AND, » other symptoms have improved. • Employer may require clearance from a healthcare provider to return to work.
• Follow established communications plan to notify workforce. • Investigate, contact trace, and establish if any other employees were in close contact with sick person and may need to self-quarantine for 14 days.
Worker is sent home. Supervisor is notified. He/she seeks medical attention; and if deemed necessary, is tested for COVID-19. Worker should make employer aware of diagnosis and follow direction of health care provider.
Worker is NOT diagnosed with COVID-19. Worker should follow direction of healthcare provider and CDC in order to return to work.
A negative COVID-19 test is not currently a definitive indication of non-infection. Worker must remain at home until: • at least 10 days have passed since symptoms first appeared, AND, • at least 3 days (72 hours) have passed since recovery defined as resolution of fever without the use of feverreducing medications, AND, • other symptoms have improved.
Learn more about COVID-19 Toolbox Talks | Job Site Protocols
• Clean and disinfect the area(s). • Identify corrective actions, if any, that can be taken for the future.
Toolbox Talks | COVID-19 Information 05/12/2020
ISSUE 1 | 2020 31
SAFETY IN THE TIME OF COVID-19 BY JOHN BRAUN | SIGNATURE SAFETY
Site specific plans. JSA’s. Compliance audits. In the safety world, these have become household terms – phrasing that rolls off the tongues of construction industry professionals as easily as “mechanical drawing” or “change order.” Yet, recently, they seem to be used exclusively in reference to COVID-19 and the current global pandemic. Since the vast majority of us were not around for the Spanish Flu pandemic of 1918, these are unprecedented times that have understandably called for unprecedented measures. Yet, through it all, essential construction projects were allowed to continue to proceed, and construction as a whole is one of the first industries to be approved (in many states) to open fully. In safety, it is understood that distraction or any other lack of focus can lead to catastrophe if left unchecked. With all that is going on, and with workers now having a new, invisible hazard added to their list of concerns, how can we expect them to keep their attention on their physical safety? The simple truth of the matter is that even in a pandemic, people can fall, people can get cut, people can get electrocuted. These hazards haven’t gone away just because we have a new concern. Therefore, construction companies should be making an extra effort to
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focus worker attention on safety, using some of the following suggestions, while COVID-19 is commanding so much attention. 1.
JSA/JHA: While these may not be required by OSHA, they are definitely considered a “Best Practice” and may even be a contractual obligation or a corporate policy you need to adhere to. Now, more than ever, doing an analysis of your work prior to beginning can make all the difference in saving a life. If your work force is focused on COVID-19 – keeping their face mask on, keeping a distance from others, is that cough I just heard allergies or something worse they may miss hazards right in front of them. Utilize JSAs/ JHAs to take you through your tasks step-by-step, identify hazards associated with each step, and determine ahead of time what you will do to mitigate those hazards.
2. Pre-Work Safety Meetings: If you don’t already hold these meetings, now is a good time to start. They don’t need to be long and dragged out, but they should discuss the work that is to take place and the expected hazards. They should remind people to stay focused on their work, on their safety, and on the safety of those around them.
If you’ve got a written JSA for the work, this is the time to review it with the workforce and allow them to add any input they may have. In addition, this pre-work meeting allows supervisors a chance to do a visual assessment of their crew for fitness-for-duty. 3. Fitness for Duty Assessments: This doesn’t need to be a formal process, but companies should be hyper-aware of what condition their workers are in at the beginning of the work day. While this has traditionally been a time to see if somebody is under the influence of drugs or alcohol (and it is still imperative to not overlook that), it is important to remember that the pandemic has taken a toll on many people’s mental health. From simply feeling isolated to the unexpected loss of loved ones, there are many new reasons a person may not be “on their game.” This may or may not be visible, but your foreman or superintendent should be looking at people’s behavior before work begins. If somebody appears overly distracted or distraught, it is important to pull them aside to have a private conversation to make sure they are ok. 4. Compliance Audits: At the very least, make sure you maintain the same level of compliance inspections you were doing before the pandemic. While it is probably a good time to increase the frequency, a decrease could send a message to the workforce that safety just isn’t a priority at this point. Keep in mind that if your site is limiting outside personnel, it may be difficult to get your safety director or third-party consultant on-site to perform these. If that is the case,
not only do you need to make sure you have somebody on-site competent enough to perform an effective safety compliance audit, but you need to provide them the tools and afford them the time to do so. 5. Stay Positive: This is a difficult time for many, so it’s a good time to make sure you are not just beating the workforce down with safety violations. Without question, look for violations and correct them, but if you’re not already taking a “coaching” approach with your safety program, it could behoove you to begin now. Point out to workers what they may be doing wrong, involve them in coming up with ways to fix it (should it not be something that is readily known or required), and don’t forget to point out the good things they are doing from a safety perspective. Even in the best of times, this method tends to be a more effective way to get the workforce to comply with safe work practices. This list is by no means comprehensive. There are a multitude of things companies can do to ensure worker focus remains on safety, but these are a good place to start. We all want to see everybody remain free of COVID-19, but not becoming infected would be little consolation to somebody who experienced a debilitating injury on the job because not enough attention was on safety.
www.cippco.com
ISSUE 1 | 2020 33
INSURANCE IMPLICATIONS OF COVID-19 ON THE CONSTRUCTION INDUSTRY BY MIKE WALLACE | THE GRAHAM COMPANY
As a result of the Coronavirus 2019 Disease (“COVID-19”) pandemic, businesses across every industry in the Philadelphia region, including construction, are experiencing extraordinary losses. As we navigate the operational, financial and safety challenges of the transition back to widespread operations, we have a handful of items that should be on your radar from an insurance and risk management standpoint.
GOVERNMENT LEGISLATION & LIABILITY ISSUES An area we are monitoring from a liability perspective is general liability coverage as, by and large, these policies do not exclude coverage for virus or communicable disease. This does not necessarily mean that you will be able to find coverage here, though. The question becomes whether exposure to COVID-19 is considered an ‘occurrence’ or an ‘accident’ in order to access the policy. We expect that this will certainly be an area of dispute. In the longer term, will carriers outright exclude coverage for these items? Will there be some sort of liability reform in the next round of relief from the Federal Government? Could we see Congress enact the Pandemic Risk Insurance Act (PRIA) in a similar fashion as the Terrorism Risk Insurance Act (TRIA),
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signed into law after 9/11, to provide a combination of public and private compensation for pandemic-related insured losses. Many of these questions remain unanswered but are important to stay on top of.
WORKERS’ COMPENSATION Generally, in order for an injury to be compensable under a workers’ compensation policy, the employee must prove that the harm suffered was caused by an “accidental personal injury” or “occupational disease” “arising out of and in the course of employment.” Occupational diseases are those identified by the PA Workers' Compensation Act and are usually defined as illnesses that are caused by the nature of the circumstances surrounding a workers’ job (i.e., peculiar to the employee’s job). For that reason, workers’ compensation normally does not cover community-spread illnesses, like the cold or flu (and by extension COVID-19), because it is so difficult for employees to trace the illness back to their work. Therefore, at the outset, many insurance professionals felt that the likelihood of COVID-19 resulting in many workers compensation claims seemed low (except for essential workers like health care professionals and first responders).
However, there have been developments that seem to challenge this assumption. You may have seen that California Governor Newsom signed an Executive Order on May 6, 2020, by which any person working in California who contracts COVID-19 within 60 days of the Executive Order (meaning on or before July 5) is eligible for workers’ compensation benefits without having to prove that the illness was contracted at work. In fact, the Executive Order in California requires that the employer to present evidence to rebut the presumption that the virus was contracted at work. This turns longstanding precedent on its head. It remains to be seen if other states including Pennsylvania will follow this troubling trend. In addition, because of the particular nature of COVID-19, and the clear path of transmission from so-called “superspreaders”, it is possible that workers’ compensation judges will make these claims compensable. While Pennsylvania1 and many other states have moved to exclude COVID related claims from the calculation of future MOD calculations, if these claims become commonplace, the impact on self-insured companies, and the long-term impact on insurance pricing could be considerable. With respect to both workers’ compensation and liability issues, businesses can best protect themselves by having sound safety policies that are consistent with the latest guidance available and ensuring that records are maintained, confirming compliance with these policies.
INSURANCE CARRIERS From an insurance carrier perspective, many of our carrier partners have been flexible and willing to work with clients during this difficult time. Of course, each carrier is different in how they are addressing the pandemic, but your broker should be able to help you navigate the process. Some of the more important issues to inquire with your broker about include: •
Whether you can negotiate reduced minimums to meet extreme changes in volume
•
Whether you are eligible for credits on certain lines of coverage (many carriers are providing auto liability laydown credits for idle vehicles)
•
Whether you can take advantage of a mid-term audit to return any overpayment more quickly
It’s obviously important to conserve cash right now, so working with your carrier to improve cash flow can be critical.
BUSINESS INTERRUPTION
property insurance policies with business interruption coverage to delete virus exclusions and other coverage requirements so that business interruption claims arising out of COVID-19 could be covered. No state has currently passed legislation to enact these proposals. This will surely be an area of coverage disputes and litigation. Accordingly, if you feel as though your business has sustained a loss of business income or incurred extra expense to ward off a loss of income, now may be a good time to discuss with your advisors whether filing a claim makes sense for your business.
FOCUS ON SAFETY When it comes to a transition back to worksites, like so many aspects of the effects of COVID-19, we are dealing with a highly dynamic environment with considerable uncertainty and with unprecedented governmental involvement. There is simply no roadmap to determine with a high level of certainty how many of these issues will play out. Although the times we are facing right now are truly challenging and much of the financial and insurance logistics are still unknown, what construction companies do have in their control is executing safety best practices that will protect their employees. We are urging our clients to abide by the latest recommendations provided by the Centers for Disease Control (CDC) and The Occupational Safety and Health Administration (OSHA), including maintaining six feet of social distance whenever possible, wearing masks or face coverings, administering testing of workers before entering jobsites and staggering shifts where possible. At Graham, we have been with our clients every step of the way as we navigate these uncharted waters, providing strategic council on a myriad of insurance and risk management factors impacting their construction operations and employee safety. Each of our clients is impacted differently – there is not a onesize-fits-all approach to combating these novel challenges. If you have questions about your unique situation, we encourage you to contact your insurance broker who can work with you to address your needs and file claims, if appropriate.
1 Refer to Pennsylvania Workers Compensation Statistical Plan Manual, Section 2, C. 11 for the definition of losses included under Catastrophe Code No. 12. Report Catastrophe Code Number 12 for claims applicable and/or attributable to Coronavirus Disease 2019 (COVID-19) with accident dates of December 1, 2019 and subsequent.
One topic that may be of lesser importance for contractors given the nature of their operations, but which is likely to be heavily litigated, is the concept of business interruption coverage From a legislative standpoint, as of April 28, 2020, 8 states have now proposed legislation that would effectively rewrite existing ISSUE 1 | 2020 35
WHAT YOU NEED TO KNOW ABOUT ARCHITECTURAL GLASS WALLS SYSTEMS TRUST YOUR GLASS PROJECT TO GLASS EXPERTS BY STEPHANIE STAUB, CSI, CDT | ARCHITECTURAL GLASS INSTITUTE Over the past decade commercial interiors have migrated toward open floor plans, utilizing the benefits of daylighting and providing a spacious feel. However, the trade-off is often the reduction of private or quiet workspaces. The use of architectural glass wall systems offers the best of both worlds. The growing popularity of interior glass – and tax implications of demountable partitions – have dramatically increased the use of glazing in commercial interiors. Glass offers visual openness with the benefits of acoustic privacy, while maximizing natural light. As owners strive to increase building efficiency, glass partitions enable an attractive, modern look in less space than traditional walls. Glass work has long been trusted to professional glaziers due to its inherent construction challenges and fragility. Glass requires specialized equipment, safety protocol, and understanding of the metal systems that anchor it 36 CONSTRUCTION TODAY
in place and sealants necessary to ensure its appearance and performance. Glaziers undergo rigorous training to learn glass best practices and jobsite safety. Traditional glazing systems are found in CSI Division 8: Doors and Windows. However, most interior demountable glass partitions are found in CSI Division 10: Furniture, Fixtures, and Equipment. Glazing contractors perform work in both divisions and are a valuable resource for owners considering demountable glass partition systems. A multitude of glazing and framing options in both stick-built and unitized systems offer aesthetic variety while optimizing sustainability and functionality. Demountable systems are made of non-load-bearing, non-permanent glass partitions that can be removed when a tenant vacates a space. They can also be rearranged easily to offer a client workplace flexibility. De-
mountable partitions are considered a tenant’s personal property, such as furniture, qualifying for an accelerated seven-year tax depreciation versus 39 years for stick-built permanent walls. Pre-manufactured interior glass partitions – such as those provided in systems furniture packages – often do not provide the same level of design flexibility as fully customized, glazier-provided systems. An AGI member glazing contractor has the ability to select parts and pieces from different manufacturers and design solutions that meet functional and aesthetic goals. The Architectural Glass Institute (AGI) has prioritized education about the topic of interior glass partitions and offers resources to assist both the architect who is writing specifications without a contractor and the contractor who is supporting specifications development. Cautions and concerns ranging from installer training to cost considerations are addressed in multiple resources including the INTERIOR DEMOUNTABLE WALLS: FACTS TO KNOW sheet, DEVIL’S DETAIL ON INTERIOR GLASS & DEPRECIATION and the detailed INTERIOR DEMOUNTABLE WALLS EXPERTISE brochure. AGI also provides GUIDE SPECIFICATIONS for both Division 8 and Division 10 systems. Click here to request a copy compatible with styles used in ARCOM MasterSpec®. AGI glazing contractors offer professional guidance and technical support and welcome the opportunity to partner with owners and architects early in the design process when recommendations can maximize value and price. They collaborate with designers to develop, document, and fabricate custom solutions that meet aesthetic and functional goals without compromising budget. Alone or in partnership with products manufacturers, they pro-
vide meaningful information for glazing decisions from cut sheets to cost analysis including Shop drawings, CSI specifications, CAD documentation and/or BIM integration, Sound Transmission Class (STC) acoustical test results and other current statistics. AGI affiliated companies raise the bar for glazing contractors so owners benefit from quality installations delivered on time and within budget. From rigorous training
to a focus on quality, AGI glazing contractors provide one source for all facets of a glass project, offering field measurements and design through fabrication, installation, and maintenance.
The Architectural Glass Institute is a labor/management cooperative of the Architectural Glass & Metal Association and IUPAT DC21 Glaziers Local Union 252.
Certified Contractors, Resources, and Education for All Interior & Exterior Glass Applications Resources: Interior Glass Guide Specification Project Case Studies Devil’s Details Technical Articles Lunch-and-Learn Programs
www.theagi.org
info@theagi.org | 215.825.1422 |
ISSUE 1 | 2020 37
GBCA Safety Toolbox Talk: COVID-19 Information Learn more
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BUILDING STRONGER. TOGETHER.
The General Building Contractors Association (GBCA) is proud to represent the best of the best in commercial construction. GBCA members are the contractors and suppliers that leaders in Greater Philadelphia rely on when excellence is essential. Building on a legacy more than 129 years strong, GBCA members have paved the way for building excellence. Now, we’re setting the bar for the new standard in construction with a relentless focus on quality, safety, efficiency, and innovation.
WE ARE IN THIS TOGETHER
WE ARE THE STANDARD OF BUILDING EXCELLENCE.
WE ARE
theGBCA
@GBCA
GBCA
theGBCA
Go to gbca.com to learn more
2020 ANNUAL MEETING
01 .1 3 . 20
On Monday, January 13, 2020, GBCA held its 2020 Annual Meeting at the Union League of Philadelphia. Over 400 GBCA members and guests came together at this SOLD OUT event to celebrate another year of accomplishments for the association and its members.
The Annual Meeting also featured two guest speakers who spoke about the value of GBCA’s services and efforts in 2019
Continuing the theme of celebrating industry success, David E. Panichi, Chairman & CEO of TN Ward Company, presented Francis A. Pietrini, CEO of B. Pietrini & Sons, Inc., with GBCA’s Distinguished Director Award.
40 CONSTRUCTION TODAY
Jamal Byrd, CAPP Instructor & Former Participant
Mary Kate Radomski, Frank V. Radomski & Sons, Inc., Chair of GBCA’s Construction Leadership Council
2019 | BY THE NUMBERS
Read the 2019 GBCA Annual Report online!
290 Members 38 New Members in 2019
$52K+
Awarded for Tuition Reimbursement
175K+ lbs
of Food Donated to Philabundance By GBCA’s Construction Leadership Council
$4.5MM
Saved for Construction Industry Due to GBCA Advocacy Efforts
27
Project Safety Awards Given to GBCA Members
20MM+
Read the Latest Annual Report
Total Eyes That Were Exposed to the GBCA Brand Through Advertising
23%
YOY Increase in Net Assets
ISSUE 1 | 2020 41
WELCOME NEW MEMBERS!
ACTIVE
AFFILIATE
McDonald Building Company, LLC
ARS Fleet Service
Target Building Company
O’Hagen Meyer Signature Safety, LLC Stantec
ASSOCIATE
Univest Financial Corporation
Creative Surfaces Inc.
Venzie Construction Law, LLC
DWD Mechanical Contractor, Inc. Guthrie Glass & Mirror, Inc. Honeywell International Masonry Preservation Group, Inc. Metal Structures, Inc. Nooter Construction Co.
REFERRAL DIRECTORY
Thackray Crane Rental, Inc.
ASSOCIATIONS & UNIONS
GENERAL CONTRACTORS
Laborers’ District Council See our ad on page 29.
Cippco Incorporated See our ad on page 33.
BUILDING MATERIALS
LF Driscoll See our ad on the inside front cover.
Architectural Glass Institute See our ad on page 37.
Turner Construction Company See our ad on page 03.
Chesco Coring & Cutting See our ad on page 43.
LEGAL
Concrete Cutting Systems See our ad on page 05.
Cohen Seglias See our ad on page 23.
Tague Lumber See our ad on the back cover.
SAFETY CONSULTANTS HazTek Inc. See our ads on page 19. Med-Tex Services, Inc. See our ad on page 21.
Providing Quality Concrete Cutting & Outstanding Service to the Building Industry
CORE DRILLING • SLAB SAWING • WALL SAWING • SAWING & SEALING • WIRE SAWING • RIGGING & REMOVAL • SCANNING
2047 Charlestown Road Malvern, PA 19355 1-866-CHESCO-1 ChescoCoringANDCutting.com
WE DELIV ER
B U I L D I N G M AT E R I A L S D I S T R I B U T I O N SINCE 1908
560 East High St., Philadelphia
1-800-66-TAGUE • TagueLumber.com