The Steel Erectors Association of America (SEAA) attended its first ConExpo-Con/Agg show last
week in Las Vegas, Nev. Despite the decision by show organizer Association of Equipment Manufacturers (AEM) to close the show a day early due to uncertainty over COVID-19, registration for the event totaled more than 130,000. SEAA’s experience was a positive one. “In spite of the recent health crisis, we were able to make great connections with industry professionals and SEAA member companies,” said Tom Underhill, Executive Director of SEAA. “Participation gave SEAA exposure to an international construction audience.” Drew Heron, Project Manager for Empire Steel, who volunteered at SEAA’s booth, said: “The show is so much bigger than one could ever imagine. You have the opportunity to see so many new tools, products and technologies that could really benefit the industry and SEAA member companies,” said Heron. “AEM is to be commended for the way they handled the unprecedent situation with the pandemic. In true Vegas fashion, the show must go on!” Coronavirus Disease (COVID-19) in Construction: Liability, Recordability, and Financial Implications3/17/2020
Over the past few weeks, it’s become clear that the world is facing a remarkable health crisis.
The coronavirus pandemic has now been detected in most countries worldwide, creating personal, practical, and legal implications for those in the construction industry. To address business considerations of the COVID-19 threat, employers should consider multiple categories of concern:
Recordability, EMR, and Insurance Costs A recent publication from the Occupational Safety and Health Administration (OSHA) has confirmed that COVID- 19 is a recordable event; this means that employees who contract the virus while at work must be recorded on an employer’s OSHA300 Log. These cases may be compensable under Worker’s Compensation if it can be proven that the virus was contracted on the job (which is fairly simple to uphold if multiple employees become infected at the same time). In other states, it has already been decided that Worker’s Compensation will be extended to workers exposed to COVID-19 on the job and will be inclusive of time in quarantine, medical testing, medical expenses, and indemnity payments while out of work. Considering the long incubation and recovery periods associated with COVID-19, these recordable events are likely to have high levels of “Days Away From Work” and “Restricted Duty”; furthermore, due to the contagious nature of the virus, there is significant potential for multiple cases within a company after the first case appears. An employer’s Experience Modification Rate (EMR) is calculated based upon both of these figures (number of claims and severity of claims). This means that a COVID-19 situation in the workplace has the potential to make a company’s EMR, as well as the corresponding insurance premiums, skyrocket. These figures are kept on a company’s record for a total of three years, thus impacting the ability to bid and receive work long term. Legal Considerations When thinking about the legal implications of COVID-19, employers should consider the regulatory requirements outlined by various parties. A few of the regulatory agencies most pertinent to the construction industry, as well the standards which apply to the COVID-19 pandemic, are outlined below: Occupational Safety and Health Administration (OSHA)
Financial Considerations Due to COVID-19’s impact on global supply chains, it is likely that the spread of the virus will result in delays and cost overruns in the construction industry. China, one of the world’s largest exporters of building materials, is currently experiencing a 17.2% decline in exports. The party that bears the risk and the losses resulting from construction delays and increased costs associated with materials shortages will be dictated by contract. Contractors would be wise to review contracts currently underway and consider making revisions to contracts soon approaching.
The data surrounding coronavirus spread in the United States is staggering, and the Center for Disease Control and Prevention (CDC) as well as the World Health Organization (WHO) are encouraging continued adjustments and accommodations in the work setting. As business leaders, it is important to consider all categories noted above while navigating this chaotic period. The importance of emergency action planning, business continuity, and remote work/alternate revenue sources cannot be over stressed. Written by: - Julia Kunlo, Certified Safety Professional (CSP), Vice President of Evolution Safety Resources - Ashley L. Felton, Senior Counsel, Michael Best & Friedrich LLP - Adam P. Banks, Senior Counsel, Michael Best & Friedrich LLP New ANSI A92 standards for Mobile Elevating Work Platforms, which were supposed to go into effect on March 1, have been pushed back. The new effective date is June 1.
NCCCO Foundation has released a new web-based tool to help employers navigate OSHA’s rules
on crane operator qualifications. Who’s Accredited? Directory, is designed to take the guesswork out of determining whether or not a certification organization’s programs are accredited. It provides a direct link to the accredited certification maintained by the two bodies that OSHA recognizes- ANSI and NCCA.
Scott Ketcham has been chosen by the U.S. Department of Labor as the new director of OSHA’s Directorate of Construction (DOC).
The American National Standards Institute’s (ANSI) updated A92.20/22/24 standards go into effect this December. Aerial Work Platforms (AWPs) will now become known exclusively as Mobile Elevating Work Platforms, or MEWPs. MEWPs will be classified as Groups A and B and Types 1, 2, or 3. Type is determined by how MEWPs are driven to, from, and around job sites.
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