Improving Safety through Efficiency in the Construction Industry – Is it a Fallacy? Presented by: Todd Hohn Brian Roberts

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 2 Objectives: Improved understanding on the effects of pre-planning. Motion is money – discuss the impact staging of materials has on profits and exposures to loss. Understanding the components that help determine if your job will be safe and profitable. Overview of key loss drivers and review of best practices to control them.

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 3 Road Building Industry: We Know!: Profit margins are thinner than ever Aging Workforce Less Experienced Workforce

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 4 Impacts on Profit Margin: More Competitors Medical claim costs Indemnity claim costs Employee benefits Insurance costs

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 5 Aging Workforce

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 6 Current Population: By 2015 – 55 million workers will be 45 or older Nearly half of all workers will be considered “aging” by 2015 Number of 55 years or older will increase 50 percent between 1998 and Those between ages 24 and 54 will only increase 5 percent.

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 7 Aging Trends – Average Loss Work Days

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 8 Less Experienced Workforce:

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 9 Labor Productivity Changes on Net Profit

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 10 Is your workforce physically capable of doing their job?

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 11 Will your workforce be physically capable of doing their job 10 years from now?

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 12 CNA – Creating a competitive Advantage! Analyzed essential job functions of your workforce Analyzed the physical exposures of your workforce Analyzed the workforce to see if it is physical capable of performing the essential job functions.

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 13 Number Level Lift Grasp Pinch Static P/P Frequency 100% ROM D emandsNumber Level Lift Grasp Pinch Static P/P Frequency 100% ROM D emands ( 1 )Sedentary<10 lb.15 lb.8 lb.<10 lb.- ( 2 )Light10-20 lb.20 lb.10 lb lb.25%>> 50% of categories ( 3 )Moderate20-50 lb.35 lb.13 lb lb.20%>> 75% of categories ( 4 )Intermediate50-75 lb.50 lb.17 lb lb.15%>100% of categories ( 5 )Heavy lb.65 lb.22 lb lb.10%> - ( 6 )Extreme100 lb.>85 lb.28 lb.100 lb.>5%> - Job Function Analysis Classifications Level-1 Level-2 Level-3 Level-4 Level-5 Level-6 Level-1 Level-2 Level-3 Level-4 Level-5 Level-6 Payroll ClerkSalesmanCrane OperatorTear Off CrewsLaborers/Journeyman/ Helper/Apprentice ReceptionistEstimatorForeman BUR Roofing Project Manager Single Ply Kettle Operator

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 14

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 15

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 16

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 17

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 18 Productivity Studies: Ontario study revealed Construction workers only spending, on average, 32% of their day performing fully productive work. University of TX study revealed Construction workers only spending, on average, 34% of their day performing fully productive work.

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 19 Production v. Non-Production

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 20 Categories Analyzed: Direct Installation Indirect Operations Actual Direct Installation On-Site Pre-Fab Operations Testing Operations Set-Up Operations Talk About Job Receive Instructions Planning Job Tools – Get Out, Set Up, Put Away

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 21 Categories Analyzed: Materials Handling Ineffective Activities Miscellaneous Unload Truck Hoisting Move Materials and Tools to Installation Area Late Start, Early Finish Early Lunch, Later Return Coffee Breaks Other Rest Periods Get Coffee for Crew Other

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 22 Production v. Non-Production Time Gained

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 23 2 Common Roofing Job Tasks Analyzed Built Up Single Ply

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 24 Job Sequencing: Scheduling Lay down yards/material storage Staging Areas Work Areas De-Mobilizing Post Construction

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 25 Opportunities – A review of Best Practices: Focused on 3 Areas of Opportunity: Staging MMH Work Method Techniques

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 26 Best Practices – Scheduling: Pre-Fab Delivery of Materials from Shop/Vendor Packaging of Materials

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 27 Best Practices – Lay Down Yard: Location to Project How materials are stored/positioned Storage trailer/layout Equipment to move materials

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 28

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 29

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 30 Best Practices – Staging Areas: Location to work areas How materials are stored/positioned Location and layout of equipment storage/gang boxes Equipment to move materials

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 31

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 32

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 33

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 34

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 35 Best Practices – Work Areas: Storing/positioning material in close proximity to installation (daily) Installation of material Work method techniques Tools used for installation (hand / power) Power tools

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 36

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 37

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 38

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 39

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 40

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 41 Best Practices - Demobilizing: Equipment to move materials Distance to staging How materials are stored

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 42 Best Practices – Post Construction: Compare labor actual vs. estimate Review for opportunities and improvements Share best practices

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 43

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 44 Case Study Showing Success: Trim Crew 2 men x 3 minutes x 100 times = 600 min x 12 days = 7,200 min 120 hrs. x $20 (ave. wage) = $2,400 $2, % = $3,000 1 x 2 minutes x 5 times = 10 min 10 min x 12 days = 120 min 2 hrs x $20 = $40 ($50) (25%+)) $3,000 - $ 50 $2,950 95%+ increase in efficiency Equivalent reduction in risk factors Not calculated was operator time on forklift Loss in productivity if operator not available Operator has other tasks

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 45 Process for Success Establish accountabilities at all levels Establish process to measure projects Review and implement Best Practices developed by CNA

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 46 Measurements for Success: Baseline where you are at efficiency and safety Establish criteria Educate all & establish accountability Go out & measure performance & compare to baseline Track improvements & reflect saving in hours Adjust bid pricing

CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved. Is it a Fallacy? 47 Conclusion: Look at the age of your workforce today Creating a competitive advantage will require you to make your business operations more efficient A systematic process of measuring performance against established criteria or best practices is the only way that will result in bottom-line profitability Efficiency improvements have a direct correlation to a reduction in risk factors Annualize the results!