{"id":1034,"date":"2011-07-03T13:39:16","date_gmt":"2011-07-03T11:39:16","guid":{"rendered":"http:\/\/ourblog.greenwoods.org\/?p=1034"},"modified":"2011-07-03T13:39:16","modified_gmt":"2011-07-03T11:39:16","slug":"c-o-n-s-t-r-u-c-t-i-o-n-disaster-recovery-planning","status":"publish","type":"post","link":"https:\/\/greenwoods.org\/c-o-n-s-t-r-u-c-t-i-o-n-disaster-recovery-planning\/","title":{"rendered":"C O N S T R U C T I O N – DISASTER RECOVERY"},"content":{"rendered":"

\"\"<\/a><\/p>\n

C O N S T R U C T I O N<\/span><\/em><\/strong><\/p>\n

<\/strong><\/p>\n

RISK MANAGEMENT<\/em><\/strong><\/p>\n

ALTERNATIVE RISK FINANCING<\/em><\/strong><\/p>\n

DISASTER RECOVERY PLANNING<\/em><\/strong><\/p>\n

<\/strong><\/p>\n

1. Introduction<\/span><\/em><\/strong><\/p>\n

Risk management is a wide ranging discipline<\/em><\/strong>, which is not confined to insurable risks.\u00a0 It is estimated that for every insurance risk, there are probably eight non-insurance events, which require risk management consideration.\u00a0 This work deals with the insurance related risks, which arise on construction sites.<\/p>\n

 <\/p>\n

To put the subject in to perspective, insurance is just one solution to a risk management problem.\u00a0 The cost and frequency of insurance claims in the construction industry has resulted in insurance becoming unavailable in some areas e.g. theft of plant, theft from unattended vehicles and substantial excesses are now normal for most risks. \u00a0It is essential therefore, for the construction industry to practice its own risk management, quite apart from the disciplines which insurer’s may impose.<\/em><\/strong><\/p>\n

 <\/p>\n

2.<\/span><\/em><\/strong> The Risk Management Process<\/strong><\/span><\/em><\/p>\n

Risk management may be defined as the identification, analysis and economic control of those risks which can threaten the assets or earning capacity of an enterprise.<\/p>\n

 <\/p>\n

The following diagram shows the stages in the process.<\/p>\n

 <\/p>\n

IDENTIFY THE RISK<\/em><\/strong><\/p>\n

EVALUATE ITS IMPACT<\/em><\/strong><\/p>\n

CONTROL THE RISK<\/em><\/strong><\/p>\n

PHYSICAL CONTROL<\/em><\/strong><\/p>\n

FINANCIAL CONTROL <\/em><\/strong><\/p>\n

POST LOSS <\/em><\/strong><\/p>\n

PRE-LOSS <\/em><\/strong><\/p>\n

RETAIN TRANSFER<\/em><\/strong><\/p>\n

<\/span><\/em><\/strong><\/p>\n

3. Identification of Risk<\/span><\/em><\/strong><\/p>\n

This is the first and essential step in the risk management process.\u00a0 Without identification the risk cannot be evaluated, and therefore cannot be controlled.<\/p>\n

 <\/p>\n

There are numerous methods of identifying risks in the construction industry e.g. organisational charts, physical inspections, check lists, flow charts, and more technical methods such as the use of fault trees, which can offer alternative causes of any particular risk which may arise.\u00a0 There are advantages and disadvantages with all methods, and the contractor needs to work with that which is most practicable for his situation.\u00a0 Check lists are quite effective in that they are speedy and low cost, as well as encouraging others to get involved in the process.\u00a0 Most contractors will be small enough to purchase conventional insurance, and the insurance manager will give them a comprehensive list of perils and liabilities to which they are exposed.<\/p>\n

 <\/p>\n

In a large international contracting Organization a risk manager will probably be employed, whose sole function is to carry out this process.\u00a0 In an ideal world, such a risk manager should always be employed, but at the end of the day the process has to be cost effective to the enterprise.<\/p>\n

 <\/p>\n

4. Analysis<\/span><\/em><\/strong><\/p>\n

It is necessary to evaluate the impact of the risk once it has been identified.\u00a0 Clearly a fire will have a significant impact on a construction site, as will a severe storm on an exposed site, and vandalism on a suburban site with valuable materials in store.\u00a0 Very expensive plant may be on site and there are risks of impact and collapse, with third party claims also possible.\u00a0 To evaluate any risk requires a lot of information gathering, along with an analysis of previous experience.\u00a0 There is a need to calculate the potential frequency and severity of losses, and various techniques are used to achieve this.<\/p>\n

 <\/p>\n

Just because a risk exists does not mean that it has to be treated in a particular manner.\u00a0 For examples, some risks produce frequent but low cost claims.\u00a0 Theft of plant from sites or from vehicles is common.\u00a0 Most claims are for a few hundred pounds, and as this would eat away the annual premium charged by an insurer, it is likely that the insurer will call for a compensating increase in the premium.\u00a0 It is sensible therefore to self insure such risks either by removing the theft risk entirely, or imposing a significant excess.<\/p>\n

 <\/p>\n

Insurance therefore is not the answer to most low cost high frequency losses.\u00a0 This does not mean that the contractor has to accept the situation.\u00a0 He can improve his security on the site or on his vehicles and seek more stringent controls on the movement and location of plant.<\/p>\n

 <\/p>\n

5. Risk Control<\/span><\/em><\/strong> <\/em><\/p>\n

This comprises two disciplines – financial<\/em><\/strong> control, either by retention, insurance or otherwise, and physical for example improved security on site.\u00a0 In construction insurance the problem is compounded by the wide range of risks to be managed.<\/p>\n

 <\/p>\n

These can range from direct perils such as fire and malicious damage on site to complex legal liability claims, involving professionals, sub-contractors and future tenants and purchasers.\u00a0 In addition there are a range of consequential loss issues, as well as specialist risks and insolvency of contractors (performance bonds).<\/p>\n

 <\/p>\n

The contractors all risks cover alone involves numerous risks from fire, explosion, aircraft damage, riot, malicious damage storm, flood, burst water pipes, impact, and accidental damage.\u00a0 In some circumstance consequential losses may arise, to the contractor, the client, and the professional advisers.\u00a0 Legal liabilities may also arise out of the same incident.<\/p>\n

 <\/p>\n

The impact of these risks will also vary from location to location and in some parts of the world, other perils have to be considered e.g. hurricanes, volcanic eruption, and earthquake.<\/p>\n

 <\/p>\n

This is a considerable challenge to a risk manager, and the scope for risk control in the construction industry is therefore enormous, and in recent years, steps have been taken to improve the situation.\u00a0 Examples of recent initiatives are:<\/p>\n

 <\/p>\n

i)\u00a0 The local Code of Practice on the protection from fire on construction sites and buildings undergoing renovation.<\/p>\n

ii) \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The Theft Scheme.<\/p>\n

iii) The\u00a0 regulations (Construction Design and Management).<\/p>\n

iv)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The Construction (Health Safety and Welfare Regulations.<\/p>\n

 <\/p>\n

The above initiatives have regrettably only been a response to the continuing unacceptable losses from various perils over many years.<\/p>\n

 <\/p>\n

Another method of controlling risk is transfer by means of contract conditions.\u00a0 A common example is the use of the Construction conditions, in relation to plant hire, which transfers most of the risk of damage to the plant, and personal injury, to the hirer.\u00a0 This does not however, reduce the risk.\u00a0 Total elimination of a risk is well high impossible, but reduction in risk is quite possible, and several initiatives are now under way.\u00a0 The 1992 joint Fire Code of Practice, has initially been targeted at the larger contract sites.\u00a0 There has been some criticism that the severe measures required, are causing financial problems to the construction industry in a difficult trading period, when profitability is difficult to achieve.\u00a0 However, this has to be the way forward if insurance protection is to remain available at reasonably commercial premium rates.<\/p>\n

 <\/p>\n

The fire code deals with various headings, such as:<\/p>\n

 <\/p>\n

–\u00a0\u00a0 the design phase, imposing a duty on architects, engineers, contractors, and client.<\/p>\n

–\u00a0\u00a0 the construction phase-involving the appointment of a fire safety co-ordinater responsible for assessing the degree of fire risk, and for updating the site fire safety plan.\u00a0 The requirements go in to some detail.<\/p>\n

–\u00a0\u00a0 Emergency procedures e.g. signs to be erected in prominent positions, indicating the location of fire access routes, and escape routes, and also the position of dry riser inlets, and extinguishers.<\/p>\n

–\u00a0\u00a0 fire protection.<\/p>\n

–\u00a0\u00a0 portable fire extinguishers.<\/p>\n

–\u00a0\u00a0 site security, against arson.<\/p>\n

–\u00a0\u00a0 site storage of flammable liquid and L.P.G.<\/p>\n

–\u00a0\u00a0 electricity and gas supplies.<\/p>\n

–\u00a0\u00a0 hot work.\u00a0 Insurers have imposed conditions under third party policies for many years, where heat is applied on third party premises but have paid little attention to the same risk under contract works policies prior to handover.<\/p>\n

– \u00a0 waste materials.<\/p>\n

– \u00a0 plant.<\/p>\n

 <\/p>\n

The damage potential, caused by contractors on third party sites has now been recognised, and most employer’s now have strict procedures in operation, before contractors are allowed to enter a site, and during operations.\u00a0 It is perhaps an indictment on the industry that these measures are client and\/or statute driven.<\/p>\n

 <\/p>\n

6.<\/span><\/em><\/strong> Local Fire Code-Prevention Checklist<\/strong><\/span><\/em><\/p>\n

Guidance is available for surveyors, construction professionals and contractors.\u00a0 The questions are split in to different phases of the contract.<\/p>\n

 <\/p>\n

Design Phase<\/strong><\/p>\n

i)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Has a design co-ordinater been appointed ?<\/p>\n

ii)\u00a0\u00a0\u00a0\u00a0\u00a0 Does the co-ordinater understand the full scope of his responsibilities ?<\/p>\n

<\/strong><\/p>\n

Construction Phase<\/strong><\/p>\n

i)\u00a0\u00a0\u00a0\u00a0 Has a fire safety co-ordinater been appointed by the main contractor?<\/p>\n

ii\u00a0\u00a0\u00a0\u00a0 Has the fire safety co-ordinater:<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 formulated a fire safety plan?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 ensured that the staff are familiar with and comply with<\/p>\n

the plan?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 monitored compliance with the plan, particularly with regard to hot work permits?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 established a regime of checks and inspection of fire safety equipment, and escape routes?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 established effective liaison with security contractors or staff?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 written records of checks, inspections, maintenance work, fire patrols and fire drills?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 carried out a fire drill, and analysed the results<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 checked arrangements and procedures for calling the fire brigade?<\/p>\n

 <\/p>\n

iii)\u00a0 On large sites has the co-ordinater appointed fire marshalls or deputies, trained them and delegated responsibilities to them?<\/p>\n

Provided site plans for emergency services, showing escape routes, fire protection equipment and facilities for the fire brigade?<\/p>\n

 <\/p>\n

iv)\u00a0 Fire Safety Plan<\/p>\n

 <\/p>\n

Does the plan detail:<\/strong><\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 the Organisation and responsibility for fire safety?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 the site precautions?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 the means of raising the alarm in case of fire?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 the procedure for calling the fire brigade?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 the means of escape in the event of fire<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 the hot work permit scheme?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 the site accommodation-its use location construction<\/p>\n

and maintenance.<\/p>\n

–\u00a0\u00a0\u00a0\u00a0 the points of access and sources of water for the fire brigade<\/p>\n

–\u00a0\u00a0\u00a0\u00a0 the control of waste materials?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0 the security measures to minimise the risk of arson?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0 the staff training programme?<\/p>\n

 <\/p>\n

v)\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0 Emergency Procedures<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is the means of warning of fire known to all staff<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is it checked regularly and is available in all areas above<\/p>\n

background noise.<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are fire instruction notices prominently displayed?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are the fire brigade access routes clear at all times?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 have specified personnel been briefed to unlock barriers when the alarm sounds?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 have signs been installed, indicating fire escape routes and the positions of fire protection equipment?<\/p>\n

 <\/p>\n

vi)\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0 Fire Protection<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 have measures been taken to ensure early installation and<\/p>\n

operation of escape stairs, lightning conductors, automatic fire alarms, automatic sprinkler systems, or hose reels?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are fire dampers, and fire stopping provided at the earliest opportunity?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is steelwork protected as soon as possible?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are adequate water supplies available?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are all hydrants clear of obstruction?<\/p>\n

 <\/p>\n

vii)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Portable Fire Extinguishers<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are adequate numbers of suitable extinguisher’s provided? – are sufficient personnel trained in their use?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are extinguishers located in conspicuous positions near<\/p>\n

exits?<\/p>\n

–\u00a0\u00a0\u00a0 are carbon dioxide extinguishers installed near electrical equipment<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 do all mechanically propelled site plant carry suitable extinguishers?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 have procedures been implemented for the regular, inspection and maintenance of extinguishers.<\/p>\n

 <\/p>\n

viii)\u00a0\u00a0\u00a0\u00a0 Site Security Against Arson.<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are adequate areas of the site including all storage areas<\/p>\n

protected by hoarding?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is security lighting installed?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 has closed circuit television been installed?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 if so, are the screens monitored, and\/or recorded?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is the site checked for hazards at the end of each work period, particularly where hot work has been in progress?<\/p>\n

 <\/p>\n

ix)\u00a0 \u00a0\u00a0\u00a0\u00a0 Temporary Buildings<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 has the contractor made application for a fire certificate? -is the fire break between the temporary building and the works more than 10 metres?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 if the fire break is less than 6 metres-is the temporary building of relatively non combustible materials, and is the building fitted with an automatic fire detection system?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 if the temporary building is within the building under<\/p>\n

(Loss Prevention Standard) or otherwise made of materials which will not significantly contribute to the growth of a fire?\u00a0 Is escape for personnel sufficiently easy?\u00a0 Is access for the fire brigade readily available?\u00a0 Is the building fitted with an automatic fire detection system?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is any space under a temporary building, enclosed with non-combustible material?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are heaters fitted with guards, and securely fixed on the walls<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 if buildings contain heaters for drying clothes are they thermostatically controlled, and are drying racks fixed firmly at a safe distance?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are all heaters and cookers properly installed and is adequate ventilation provided?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are automatic fire and intruder alarms installed in temporary building, used for the storage of flammable liquids and gases?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 do temporary buildings contain the minimum of furniture and fittings made of synthetic materials?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 in areas of fire hazard, does a no smoking policy prevail and are there adequate ‘no smoking’ signs in place?<\/p>\n

 <\/p>\n

x)\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0 Site Storage of Flammable Liquids and LPG<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are flammable liquids and LPG stored in purpose designed compounds?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 if not, is the quantity less than half a day’s supply (about 50 litres) and is it kept in a fire resistant container?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is the storage area at least 10 metres from temporary<\/p>\n

and permanent buildings?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 if not, are all recommended precautions taken?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are oxygen cylinders, chlorine and similar agents kept<\/p>\n

separately from flammable liquids and LPG?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are the stores properly signed<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 has the store a paved on solid base, and is it kept clear<\/p>\n

of weeds and rubbish?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are all electrical fittings of intrinsically safe design?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is automatic gas detection equipment installed?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are suitable fire extinguishers provided at the entrances?<\/p>\n

 <\/p>\n

xi)\u00a0 \u00a0\u00a0\u00a0\u00a0 Electricity and Gas Supplies<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 do electrical installations comply with IEE regulations for electrical installations?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is all electrical work undertaken by a competent electrician?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are all installations inspected and tested regularly?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are all circuits, turned off when work ceases? (except those controlling security functions)<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are all gas supplies installed by a registered gas installer?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are all gas supplies in fixed piping of armoured flexible tubing?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are gas cylinders located outside buildings, secured, and protected from interference?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are flexible links used for LPG supplies only connected by a competent person?<\/p>\n

 <\/p>\n

xii)\u00a0\u00a0\u00a0\u00a0\u00a0 Hot work<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is a permit to work system in operation?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 does the system include an adequately maintained register<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is the area of operations cleared of combustible materials,<\/p>\n

before work commences, and are the opposite sides of walls or partitions also inspected?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is a careful watch maintained during hot work processes with suitable extinguishers of appropriate type at hand?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is wooden flooring, and other combustible material which is not moveable covered before work commences?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is the work area screened when welding or grinding is undertaken?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are gas cylinders secured vertically and are they fitted with flashback arresters?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are tar boilers supervised by experienced operatives, and only taken on to roofs in <\/strong>exceptional circumstances?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is the work area thoroughly examined an hour after work has finished?<\/p>\n

 <\/p>\n

xiii)\u00a0\u00a0\u00a0\u00a0 Waste Materials<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are provisions made for the safe storage and removal<\/p>\n

of waste materials?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are checks carried out routinely to ensure that waste materials are not accumulated?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are metal bins with metal lids provided for oily rags?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is collected waste, awaiting disposal kept away from temporary buildings, stores and equipment?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is all dry vegetation removed regularly from around the site?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is there an absolute prohibition in burning rubbish on site?<\/p>\n

 <\/p>\n

xiv)\u00a0\u00a0\u00a0\u00a0 Plant<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is all plant with internal combustion engines, positioned in well ventilated, non combustible enclosures with exhaust pipes clear of combustible materials?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are compressors, housed away from other plant?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 do notices and staff training make it clear that fuel tanks must not be refilled while engines are running?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 is plant and equipment protected from accidental impact?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are air intakes positioned so that air is cool and free from flammable gases and vapours?<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 are sandtrays provided to absorb drips of fuel and lubricant?<\/p>\n

 <\/p>\n

Any contractor following this checklist will have covered the Local Fire Code requirements very well, as it is very exhaustive.\u00a0 The code was revised again in 1995, and you should keep up to date with developments.<\/p>\n

 <\/p>\n

7. Security on Site<\/span><\/em><\/strong><\/p>\n

Theft and vandalism on sites is a constant problem, and a source of some concern to contract works insurers.\u00a0 Cover is becoming difficult to obtain for some risks, such as theft from unattended vehicles, and comprehensive security measures are almost mandatory to obtain site and depot cover.\u00a0 Substantial excesses are becoming common.<\/p>\n

 <\/p>\n

The type of security devices required will center on high quality standards for locks bolts for thief resistant door locks.\u00a0 This is a minimum standard and some doors may warrant an even more substantial lock.\u00a0 Mortice deadlocks are inferred but if that is not physically possible a rimlock of the correct standard would suffice.<\/p>\n

 <\/p>\n

Other means of securing doors are hinges, padlocks (which should be of the close shackle type, and used with a strong locking bar) key operated bolts, door reinforcement (sheet lining, with coach bolts) and frame reinforcement e.g. a rigid steel strap to the full length of the post, to spread the load.<\/p>\n

 <\/p>\n

Window security may be by key bolts or screws, or by bars or grilles, shutters, or even bricking in.\u00a0 Much depends on the particular situation.\u00a0 Contract works are difficult to secure, and much of the above security would be more applicable to existing structures, such as in refurbishment contracts, or building extensions.<\/p>\n

 <\/p>\n

A more recent requirement is for the telephone line to be constantly monitored by use of systems of such as B.T. Redcare or Red A.B.C. Many alarm systems are either non-NACOSS, or have audible signalling only, or police only, or with a digital communicator to a central station.\u00a0 A direct line is another method which is acceptable to many insurers, although it is expensive.\u00a0 Alarm bells only, or security systems are generally not approved by insurers, unless the risk is very low hazard.<\/p>\n

 <\/p>\n

Site security is possible, with a combination of one or more of the following devices:<\/p>\n

 <\/p>\n

Security Fencing – a first line of defence, which can be used in conjunction with guards and for security lighting.\u00a0 The fencing is usually of the chain link or welded mesh type topped with barbed wire, or steel palisade.\u00a0 The standard required is BS 1722 specification for fences parts 10 and 12.<\/p>\n

 <\/p>\n

Security Lighting-this can be vandal resistant, and if carefully planned and installed can be a very good deterrent.\u00a0 The lighting may be linked to a CCT camera and\/or an alarm system.<\/p>\n

 <\/p>\n

Guards-an expensive alternative, which should be done by a member of security companies and patrol section.\u00a0 Such guards should be well trained with good communication arrangements. \u00a0The guards can be supplemented by use of CCTV and security lighting.<\/p>\n

 <\/p>\n

Security Glazing-in an enclosed hazard area, such as wages distribution points.\u00a0 A glass screen can be fitted and the glass should be anti bandit or even better bullet resistant. <\/em>It would be as well for the whole area including base beneath the glass to be the same resistance as the glass.<\/p>\n

 <\/p>\n

Closed Circuit Television-good for day-time surveillance, but equally good nowadays for overnight detection.\u00a0 The cameras can be monitored on site, and\/or connected to video recorders.<\/p>\n

 <\/p>\n

The main problem in the construction industry, however, remains that of plant theft from site.\u00a0 Some operators have now had their plant and vehicle fleets fitted with the police tracker device, which is fitted to the vehicle in a secret location, and gives out a signal, to enable the stolen vehicle or plant to be followed.\u00a0 It has been very successful so far with a very high detection rate, including the rounding up of a few criminal gangs, responsible for such theft.\u00a0 Immobilisers, and locking devices would be a requirement of all plant insurers, and cover for plant which is not in a locked building, or alarmed compound overnight, is rapidly becoming unavailable.<\/p>\n

Apart from the above devices, a contractor can help to reduce the incidence of losses such as:<\/p>\n

 <\/p>\n

(a)\u00a0\u00a0\u00a0\u00a0 Tighter control of keys.\u00a0 Many items of plant are stolen with the keys still in them!\u00a0 Keys are also often left in site huts, which are easy to break in to.<\/p>\n

(b)\u00a0\u00a0\u00a0\u00a0 Paint the plant a more unusual colour.\u00a0 The large majority of plant in the EUROPE is still bright yellow.<\/p>\n

(c)\u00a0\u00a0\u00a0\u00a0 Improving the quality of locks – many manufacturer’s own locks are of very poor specification.<\/p>\n

(d)\u00a0\u00a0\u00a0\u00a0 Use of security marking devices, such as etching.<\/p>\n

(e)\u00a0\u00a0\u00a0\u00a0 High tensile chain towing eye locks.<\/p>\n

(f)\u00a0\u00a0\u00a0\u00a0 Wheel clamps.<\/p>\n

(g)\u00a0\u00a0\u00a0\u00a0 Mercury tilt switches, to activate an audible alarm<\/p>\n

(h)\u00a0\u00a0\u00a0\u00a0 Telescopic leg fixed to the underside of a machine which extends downwards if the machine is lifted off the ground.<\/p>\n

(i)\u00a0\u00a0\u00a0\u00a0\u00a0 Fuel locks hydraulic locks and battery isolating switches.\u00a0 Electronic access control systems to site with I.D cards with photographs<\/p>\n

(k)\u00a0\u00a0\u00a0\u00a0 Materials to be logged on to site<\/p>\n

 <\/p>\n

Most items of plant are not registered for road use, and therefore have little other identification.\u00a0 Most plant still does not have a vehicle identification number.<\/p>\n

 <\/p>\n

8.\u00a0\u00a0\u00a0 Site Safety<\/span><\/em><\/strong><\/p>\n

Perhaps one of the biggest problem areas for contractors remains that of safety.\u00a0 The industry has dragged its heels for a long time on safety issues, but have now had to take corrective action, in the wake of a deteriorating accident record, various reports on the industry, and now in legislation such as the Construction Design Regulations 1994, and the Construction (Health Safety and Welfare Regulation.<\/p>\n

 <\/p>\n

9. Local Regulations<\/span><\/em><\/strong><\/p>\n

The Regulations impose duties on all parties involved in the construction and design process, including the client.\u00a0 The clients duties are extensive, although some of these duties may be passed down to contractors and consultants.\u00a0 The duties include the appointment of a planning supervisor, and of a principal contractor.\u00a0 The client must also ensure that the planning is carried out as soon as practicable.\u00a0 This may require a further appointment, that of a consultant to carry out an environmental audit.\u00a0 Where existing buildings are involved, their current, and previous use should be made known to the planning supervisor<\/p>\n

 <\/p>\n

A health and safety phase must also be built in to the construction programme, and this should describe the project, identify the risks to persons carrying out construction work, and set out proper precautions.\u00a0 A health and safety file must be made available, and be kept updated.\u00a0 The file will ultimately be passed to the purchaser or tenant of the completed building.\u00a0 Suitable insurance arrangements are also required.<\/p>\n

 <\/p>\n

As far as designers and contractors are concerned, their duties are also complementary.<\/p>\n

 <\/p>\n

–\u00a0\u00a0 except for in house designs, the designer cannot allow its employees to prepare a design for any project, unless reasonable steps have been taken to ensure that the client is <\/strong>aware of the duties it has to perform under the Local Code.<\/p>\n

–\u00a0\u00a0 designers must co-operate with the planning supervisor to ensure that the designs take in to account all considerations and include adequate information, to avoid health and safety risks.<\/p>\n

–\u00a0\u00a0 contractors must cooperate with the principal contractor and comply with his directions, and the notes of the health and safety plan.<\/p>\n

–\u00a0\u00a0 contractors are also required to be pro-active with information to the principal contractor, including data which they do not yet have.\u00a0 Any existing requirements on health and safety, may need modifying by the client, setting out the contractors new duties under the Local Code.<\/p>\n

–\u00a0\u00a0 warranty agreements may now be extended to the principal contractor, and planning supervisor, and any obligations under the contract or collateral warranties should be backed by suitable insurance.<\/p>\n

 <\/p>\n

Local Codes does not give third parties any extra legal rights, except where:<\/p>\n

 <\/p>\n

–\u00a0\u00a0 the principal contractor fails to take reasonable steps to prevent unauthorised persons from having access to the site.<\/p>\n

–\u00a0\u00a0 where the client does not ensure, as far as is reasonably practicable that a health and safety plan is prepared before construction commences.\u00a0 Directors and responsible executives of the client who are found liable may find themselves facing a limited fine in a magistrates court or unlimited if taken to a higher Court, and for imprisonment for a maximum term.<\/p>\n

<\/strong><\/p>\n

The regulations will include a much wider scope of work than previous regulations, including for example works of engineering construction and minor maintenance contracts.<\/p>\n

 <\/p>\n

Some of the more significant areas which will appear in the new legislation are:<\/p>\n

 <\/p>\n

\u2022\u00a0\u00a0 Prevention of fall.\u00a0 This account for an estimated 60% of all construction accidents ie falls of over 2 meters or being struck by vehicles on site.\u00a0 Suitable steps will have to be taken therefore to prevent such falls, such as provision of working platforms, intermediate guard rails, and where appropriate, crawling boards, or crawling ladders.<\/p>\n

\u2022\u00a0\u00a0 Fragile Material e.g. roofing, some means of support will be required to avoid such falls.<\/p>\n

\u2022\u00a0\u00a0 Falling Objects -positive measures will be required to prevent people being struck by falling objects.\u00a0 Materials on site will have to be stacked or laid out in such a way as to prevent them collapsing or overturning.<\/p>\n

\u2022\u00a0\u00a0 Collapse of Structures-adequate support must be provided for any structure which may be in a weakened state or unstable, to avoid collapse.\u00a0 The duty to diagnose such weakness or instability will be on the designer and contractor.\u00a0 Consideration will have to be given to the effect of temporary loadings imposed by construction methods, and natural forces, singularly and in combination.<\/p>\n

\u2022\u00a0\u00a0 Safe Means of Support-the safety performance of scaffolds ladders, or other means of support will be dealt with in detail.<\/p>\n

\u2022\u00a0\u00a0 Demolition and Dismantling – areas to be covered will be the demolition plan.\u00a0 No demolition work will be allowed to start unless steps have been taken to prevent any danger from specified hazards.<\/p>\n

\u2022\u00a0\u00a0 Excavations-risks connected with falling, flooding or in<\/strong>stability will be considered.\u00a0 Provisions for the excavation of any excavation in the event of fire or inundation will be paramount.<\/p>\n

\u2022\u00a0\u00a0 Traffic-the planning and Organisation of traffic routes on or adjacent to the site.<\/p>\n

\u2022\u00a0\u00a0 Doors and Gates -all to have safety devices to meet relevant criteria.<\/p>\n

\u2022\u00a0\u00a0 Vehicles – excavating and handling machinery will be required to be fitted with devices to protect the driver from being crushed if the machine topples.<\/p>\n

\u2022\u00a0\u00a0 Plant and Equipment-the design use and maintenance of plant and equipment will in future be influenced strongly by safety factors.<\/p>\n

\u2022\u00a0\u00a0 Fire Precautions – fire fighting devices, fire detectors and alarm systems will be the order of the day, on construction sites.<\/p>\n

\u2022\u00a0\u00a0 Emergency Routes -every construction site will have to have a sufficient number of escape routes, which must be kept clear of obstruction and provided with emergency lighting where relevant.<\/p>\n

\u2022\u00a0\u00a0 Ventilation-fresh or purified air must be available on all sites.\u00a0 This is obviously required in restricted spaces or enclosed environment such as in tanks or boilers.<\/p>\n

\u2022\u00a0\u00a0 Temperature-this must be reasonable at any point of activity on the site, and the requirement will be interpreted in conjunction with the provision of protective clothing or equipment.<\/p>\n

\u2022\u00a0\u00a0 Lighting – the colour of any lighting on a site must not adversely affect or change, the perception of warning signs or signals.<\/p>\n

\u2022\u00a0\u00a0 Good order-a proposed statutory requirement to maintain a construction site in good order, and in a state of cleanliness.<\/p>\n

 <\/p>\n

The regulations will also be looking at inspection of certain hazards by a competent person e.g. where work is carried on at a height of more than two metres.\u00a0 Welfare provisions will also be considered at some length whether on or off site or for offices or works.\u00a0 The regulations will include facilities for washing, changing clothes and eating.<\/p>\n

 <\/p>\n

10. Environmental Issues<\/span><\/em><\/strong> <\/em><\/p>\n

The environmental aspects of risk management have now been brought to the fore, as a result of the Environmental Protection.\u00a0 Contractors may have responsibilities for land which has been contaminated, and which has been purchased for development purpose.<\/p>\n

 <\/p>\n

Examples of the consequences of failure would include:<\/p>\n

–\u00a0\u00a0 civil liability, including payment of damages or clean up casts as well as affecting the future of the site such as an injunction or abatement order.<\/p>\n

–\u00a0\u00a0 criminal sanctions such as imprisonment as well as fine.<\/p>\n

–\u00a0\u00a0 environmental statutes, imposing personal criminal liability on directors and officers, or controlling parent companies.<\/p>\n

 <\/p>\n

Remedies to avoid such problems would consist of:<\/p>\n

i)\u00a0\u00a0\u00a0\u00a0 Development of a corporate policy on environmental matters with eventual adoption of an environmental standard such as.<\/p>\n

ii)\u00a0\u00a0 Staff qualification under environmental management schemes.<\/p>\n

iii)\u00a0 Greater corporate disclosure, via corporate and environmental compliance audits, which should identify actual or potential shortcomings.<\/p>\n

iv)\u00a0\u00a0 Proper selection, training and supervision of staff and outside agencies<\/p>\n

v)\u00a0\u00a0\u00a0 Documentation is vital. \u00a0Attention should be concentrated on audits and reports, employee manuals and instructions, contract documents, financial documents, and not least insurance policy wordings.\u00a0 Document retention policies are important, in view of the nature of legal liability, which may arise many years in to the future, based on pollution created many years ago.<\/p>\n

vi)\u00a0\u00a0 Care in dealing with regulators.\u00a0 If regulators call in their own experts, a consultant should be appointed.<\/p>\n

vii) In some areas e.g. chemical works crisis management procedures may need to be in place the manual being updated constantly.<\/p>\n

viii)Consideration of the insurance levels required.\u00a0 Public liability policies may vary in the cover they provide.\u00a0 Older policies <\/strong>may provide cover against pollution generally, but newer policies have specific pollution wordings, which (a) define the extent of pollution liability covered, and (b) specifically restrict the cover to sudden identifiable unintended and unexpected incidents which take place at specific times and places.\u00a0 Pollution claims occurring are excluded entirely, and need special consideration.\u00a0 The Environment Act has now further extended the responsibilities of site owners and operators.<\/p>\n

 <\/p>\n

11. Terrorism Damage<\/span><\/em><\/strong><\/p>\n

Due to continuing acts of terrorism, commercial insurance is now only available in respect of buildings, contents and consequential losses. If full protection is required, it must be paid for by applying to Pool Re, a Government backed cover, or a similar scheme.\u00a0 It is vital to be aware and take appropriate action therefore to minimise the chances, and the effects of such damage.\u00a0 Such measures are difficult to apply, because bomb attacks are indiscriminate.\u00a0 Complete security is not possible, but with agreed plans and procedures and pre-planning for disaster, the effects can be reduced.<\/p>\n

 <\/p>\n

12. Pre-attack Procedures<\/span><\/em><\/strong><\/p>\n

i)\u00a0\u00a0\u00a0\u00a0 Vigilance-to be alert at all times for suspicious objects, or people, whether inside or outside a building.\u00a0 Clear instructions to all staff on the action plan to be circularised.<\/p>\n

ii)\u00a0\u00a0 Responsibility-many buildings are multi-tenanted and responsibility for security should remain with the owner.\u00a0 Regular liaison with all tenants is vital and an agreed procedure adopted.<\/p>\n

iii)\u00a0 Tidiness-to keep disruption to a minimum.\u00a0 This may mean the provision of suitable secure cabinets for the storage of all material.\u00a0 Desk tops, floors, and shelves can then be kept free.<\/p>\n

iv)\u00a0\u00a0 Control of entry to buildings.\u00a0 This involves the control of ingress and egress preferably by limiting the number of such points.\u00a0 A security patrol is recommended.<\/p>\n

v)\u00a0\u00a0\u00a0 Visitors-to pass through a reception area designed to prevent further access without approval.\u00a0 All visitors should sign for and receive a security tag and even be accompanied by an employee at all times.\u00a0 The departure should also be logged.<\/p>\n

vi )\u00a0 Other visitors such as contractor’s on site, or delivery personnel should be checked and authorised.\u00a0 Arrivals and departures should be recorded carefully.<\/p>\n

vii) Premises should be searched at the end of each working day, including communal areas.\u00a0 The search should be thorough, including all space up to ceiling level, and include cloakrooms, passageways, car park areas and stairways.\u00a0 Results need to be collated.\u00a0 Any suspicious object should be left untouched and the police alerted.<\/p>\n

viii) Someone must be appointed to co-ordinate the above functions, to be based at a well established point, with good communication access.<\/p>\n

 <\/p>\n

13. Post Loss Measures<\/span><\/em><\/strong><\/p>\n

From the moment that a device is discovered, or a warning given, or a device goes off, urgent decisions need to be taken.\u00a0 Evacuation of the premises is an obvious consideration, but it may not be sensible for all situations.\u00a0 Evacuation may be total or partial, depending on the size and shape of the premises, and the size and type of bomb.\u00a0 The latter can vary from a letter bomb, to a suitcase bomb, or vehicle packed with explosives.<\/p>\n

 <\/p>\n

The decision to evacuate must come from the owner or tenant of the properties concerned.\u00a0 the police do not have such authority.<\/p>\n

 <\/p>\n

It may be more appropriate to relocate staff to a safer part of the building such as a basement or underground car park, depending on where the bomb is located.\u00a0 Designated areas should be arranged beforehand, so that staff are not tempted to go out in to the street, where they may be injured by flying glass and other fragments.\u00a0 Such areas should be checked beforehand by structural engineers.<\/p>\n

 <\/p>\n

These areas are known as “bomb shelter areas.” They should be sited away from windows, external doors and external walls, away from the perimeter structural bay, away from stairwells, or in areas with access to lift shafts.\u00a0 They should also be in areas surrounded by full height masonry, or concrete walls e.g. corridors, toilet areas, or conference rooms.<\/p>\n

 <\/p>\n

Communications between co-ordinater and staff must be comprehensive and clear.\u00a0 Portable powered communication equipment should be available, in case the mains electricity supply is interrupted e.g. hand held transmitters \/ receivers, or other stand alone audio communication links.<\/p>\n

 <\/p>\n

14. Security Measures and Contingency Planning<\/span><\/em><\/strong> <\/span><\/em><\/p>\n

The effects of a blast can be reduced by fitting a special transparent polyester film to the inside of windows or hanging special net curtains.\u00a0 The film provides a good bond which reduces the hazard of flying glass.\u00a0 The fitting of a blast curtain limits the internal effects of an explosion.\u00a0 The curtain is designed to billow out, absorbing the energy of the blast and retaining glass fragments.<\/p>\n

 <\/p>\n

Closed circuit television is very useful, provided it is actively monitored, and has a recording facility.\u00a0 Such devices are now widely used to combat daily crime as well as terrorism.\u00a0 CCTV also needs to be used in conjunction with other security aspects, such as communications, personnel and staff training.<\/p>\n

 <\/p>\n

It is not sufficient just to purchase and install any old equipment.\u00a0 The following criteria are important:<\/p>\n

 <\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 carefully draw up a specification of what exactly is needed<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 employ a CCTV specialist to install the equipment<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 commissioning procedure to be included<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 cameras to be in sound working oder, with clear lines of vision<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 ensure recording devices are in good order, and that tape heads are regularly cleaned, and maintained<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 recording tapes to be of good quality, and recordings retained for 28 days or longer.<\/p>\n

 <\/p>\n

Contingency planning is essential to minimise the disruption to the business.\u00a0 A business can be severely interrupted by any number of contingencies, not all of which need be high profile such as terrorist bombs, and not necessarily relating to insured damage.\u00a0 It might for example involve closure of the premises because of infection or foreign bodies in the product.<\/p>\n

 <\/p>\n

In the event of a bomb, however, the contingency plan should anticipate that a building may be so badly damaged as to be inaccessible.\u00a0 The plan must therefore look at alternative accommodation for staff, restoration of communications, back up arrangements for vital records, off site, and notification of all necessary arrangements to customers and suppliers.<\/p>\n

 <\/p>\n

Key individuals must to appointed, with clear responsibilities on procedure.\u00a0 A sound plan is to appoint one overall supervisor of the plan, with two teams reporting to them one which manages the business itself until things return to normal, and the other which manages the disaster itself.<\/p>\n

 <\/p>\n

15. Risk Management for Professionals<\/span><\/em><\/strong><\/p>\n

Arguably this subject should be at the beginning of this work, as much of what happens at the design stage, will have an influence on the whole construction process.<\/p>\n

 <\/p>\n

The main points to be considered by the architect and engineer are as follows:<\/p>\n

 <\/p>\n

i)\u00a0\u00a0\u00a0 Do not certify anything without having carried out a proper site inspection.<\/p>\n

ii)\u00a0 Insist on an equitable written contract.\u00a0 Such a contract outlines the duties and responsibilities of the parties, so that it is easier to pinpoint the cause of the problem when it arises.<\/p>\n

iii)\u00a0 They must have a specific project plan<\/p>\n

iv)\u00a0 They should not make any exaggerated claims about their design or specification<\/p>\n

v)\u00a0\u00a0\u00a0 They must keep the client informed at all stages<\/p>\n

vi)\u00a0 Any problems should be faced squarely<\/p>\n

vii) written records should be maintained of any changes in the contract terms, designs, scheduling, materials, site meetings, instructions and after any incident or accidents.\u00a0 Such records should be kept for a mininum of 15 years.<\/p>\n

viii)Never guarantee performance or accept uninsurable risks e.g. a contract or collateral warranty, with an express fitness for purpose clause.<\/p>\n

ix)\u00a0 Think carefully before suing for outstanding fees.\u00a0 There may be a reason for the non payment.\u00a0 Only if the claim for fees looks perfectly valid, proceed.<\/p>\n

 <\/p>\n

16. Contractors on Third Party Sites<\/span><\/em><\/strong><\/p>\n

The basic rules of risk management apply equally to activity on other peoples premises, as well as the contractor’s own site.\u00a0 Many contracts consist of work on existing premises, much of it involving “hot work” ie use of heat such as blow torches and welding appliances.\u00a0 Not surprisingly, many major fires have been caused by contractors on other peoples premises and the more enlightened employers have now laid down very strict procedures, regarding access to the site and rules whilst on site.\u00a0 Such procedures cover not only the fire risk, but site security, and health and safety matters in particular.<\/p>\n

 <\/p>\n

A common procedure is to issue any contractor entering the premises with an entry permit, or booklet which incorporates all the procedures to be followed.\u00a0 This commences with entry procedures, and states that no contractor will be allowed to commence activities, until they demonstrate that they understand and will\u00a0 comply with the regulations.<\/p>\n

 <\/p>\n

The contractors health and safety policy should be supplied before work commences, and all employees must report to the correct entry point, and sign in.\u00a0 The health and safety procedures will\u00a0 need to cater for employees of the contractor, as well as employees of the customer, and to third parties.<\/p>\n

 <\/p>\n

If any of the work is to be sub-contracted, the contractor must ensure that the subcontractor has a copy of the health and safety document, and that they will comply with its provisions.<\/p>\n

 <\/p>\n

Fire precautions are laid down, on much the same lines, as the contractors public liability insurers may apply e.g.<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 apparatus to be regularly checked<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 apparatus to be extinguished when not actually in <\/strong>use<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 no storage of flammable liquids on the site<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 permission from the customer before work commences<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 no burning of waste on site<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 fire proof screens to be erected around the work to be carried out<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 fire extinguishers to be immediately at hand<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 site to be checked half an hour or an hour after the work has finished.<\/p>\n

 <\/p>\n

Other requirements would concentrate on such areas as:<\/p>\n

i)\u00a0\u00a0\u00a0\u00a0 Protective clothing and equipment<\/p>\n

ii)\u00a0\u00a0 Noise and environmental pollution<\/p>\n

iii)\u00a0 Electricity regulations<\/p>\n

iv)\u00a0\u00a0 Housekeeping<\/p>\n

v)\u00a0\u00a0\u00a0 Welfare and first aid activities<\/p>\n

vi)\u00a0\u00a0 Fencing of machinery<\/p>\n

vii) Control of Substances Hazardous to Health.<\/p>\n

viii)Insurance requirements -usually a mininum third party cover of say along with suitable employer’s liability cover, and any other relevant cover and on more specific areas:<\/p>\n

ix)\u00a0\u00a0 Scaffolding and means of access<\/p>\n

x)\u00a0\u00a0\u00a0 Lifting operations<\/p>\n

xi)\u00a0\u00a0 Excavations<\/p>\n

xii) Asbestos regulations<\/p>\n

 <\/p>\n

17.<\/span><\/em><\/strong> Self-insurance<\/strong><\/span><\/em><\/p>\n

This is the planned assumption of risk.\u00a0 It should not be confused with non-insurance, which is not planned, and where a catastrophe could arise without the buyer even being aware of the risk.\u00a0 Most large buyers will accept a degree of self insurance, and certain criteria may be adopted such as 1% to 5% of working capital in any one year, or 0.1% of sales per occurrence.\u00a0 Factors which may influence the actual level of self-insurance are the cost of the insurance premium, claims handling costs and loss control.\u00a0 The obvious advantages are improved cash flow on loss payments, no insurance overhead contribution, more focus on loss control, improved control over claims, and improved scope of excess insurance.<\/p>\n

 <\/p>\n

There are disadvantages, such as heavy losses in any one year, and cost of handling the self-insured losses including tax implications.<\/p>\n

 <\/p>\n

Insurers are also slow to offer good discounts for higher deductibles, so that many buyers are settling for lower deductibles than they could actually absorb.<\/p>\n

 <\/p>\n

18. Preparing the Plan<\/span><\/em><\/strong><\/p>\n

A committee should be set up for the specific task in hand, and this should consist of representatives from all areas of the enterprise -production, development, financial, personnel, technical.<\/p>\n

 <\/p>\n

To be effective, the team selected must, be right for the job, selected from senior management, and commitment must be shown from the top.<\/p>\n

 <\/p>\n

The leader of the team, should act as a coordinator, and again needs to be a senior figure in the company.<\/p>\n

 <\/p>\n

The team would look at the worst possible scenario, say a total devastation of the premises, and decide how they would continue to operate the business, and how to progress back to normal working in the shortest possible time.\u00a0 Some disaster have different effects on a business.\u00a0 There may be a loss of production, as on a contract site, on inability to trade because of lost drawings or documents.<\/p>\n

Back up is vital.\u00a0 A key member of the team may be on holiday or away ill, at the time of a disaster, and reserve personnel must therefore be trained up, as part of the team.<\/p>\n

 <\/p>\n

A list of names, addresses and telephone numbers must be available, including emergency numbers, in respect of:<\/p>\n

 <\/p>\n

Bankers<\/em><\/strong><\/p>\n

Insurers<\/em><\/strong><\/p>\n

Loss adjusters<\/em><\/strong><\/p>\n

Plumbers, electrical<\/em><\/strong><\/p>\n

Material suppliers<\/em><\/strong><\/p>\n

Local police<\/em><\/strong><\/p>\n

Emergency services<\/em><\/strong><\/p>\n

Sub-contractors<\/em><\/strong><\/p>\n

Consultants<\/em><\/strong><\/p>\n

 <\/p>\n

Detailed plans of the premises, including location of all services must be available, and liaison with loss adjusters may well repay the company, as they will have useful information contacts and resources.<\/p>\n

 <\/p>\n

It is vital to keep such lists and plans up to date on a regular basis.<\/p>\n

 <\/p>\n

The division of responsibility may include:<\/p>\n

 <\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 communication and public relations<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 computer systems<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 salvage and debris removal<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 production<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0 administration.<\/p>\n

 <\/p>\n

Good public relations is vital in some industries, and the public do need to have their confidence restored.\u00a0 On a major new construction contract the client does need to know where he stands, to avoid substantial trading losses due to delay.\u00a0 A sound two way communication system is required.<\/p>\n

 <\/p>\n

Salvage specialists may be needed and again contact with loss adjusters will assist in this area.<\/p>\n

 <\/p>\n

19. Keeping the Plan Up-to-Date<\/span><\/em><\/strong><\/p>\n

This is an essential function.\u00a0 An out of date plan is almost as bad as having no plan at all.\u00a0 Regular meetings will therefore be necessary to ensure that the plan remains relevant to the current situation.\u00a0 Flexibility must be built in to the plan.\u00a0 Regular meetings also mean increased familiarity with the plan.\u00a0 The plan should also be tested occasionally in parts and as a whole, so that any hitches can be ironed out ahead of any real emergency.<\/p>\n

 <\/p>\n

The document itself should be simple to follow.\u00a0 Personnel do change, and new people taking on such responsibilities should be able to look at the document, and pick up the main points readily.\u00a0 This will involve some thought on the lay out of the document, colour coding and summarising.\u00a0 Copies of the document need to be available at the time of the disaster.\u00a0 If they are all destroyed by the disaster they are not of much use.\u00a0 Copies must therefore be kept off site, say at the homes of directors.<\/p>\n

 <\/p>\n

22. Benefits of a Disaster Recovery Plan<\/span><\/em><\/strong><\/p>\n

    \n
  1. Apart from the fundamental benefit of providing the basis of a speedy recovery, the other advantages are:<\/li>\n
  2. Market Position – possible loss of market in the event of a long delay.<\/li>\n
  3. Legislation – a plan will focus on legislative matters, such as safety procedures, and fire protection.<\/li>\n
  4. Problem Areas -already addressed within the plan<\/li>\n
  5. Education and Training – identifying and dealing with the problem is one thing but lessons can then be learnt and incorporated in to training programmes.<\/li>\n
  6. Prevention-the plan enables different views to be taken on how the work is done in the future.\u00a0 Different working practices may improve the risk for the future, as well as bringing about improvements in the industry generally.\u00a0 One of the problems there was the presence of combustible site huts and materials sited under the main building.\u00a0 One of the outcomes was the introduction of the Local Code of Practice for Construction Sites now in its third edition.<\/li>\n
  7. Finally, the presence of a good disaster recovery plan, may be helpful to the insurance overhead on certain risks where some discount may be available from certain insurers.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    C O N S T R U C T I O N RISK MANAGEMENT ALTERNATIVE RISK FINANCING DISASTER RECOVERY PLANNING 1. Introduction Risk management is a wide ranging discipline, which is not confined to insurable risks.\u00a0 It is estimated that for every insurance risk, there are probably eight non-insurance events, which require risk management consideration.\u00a0 […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"_links":{"self":[{"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/posts\/1034"}],"collection":[{"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/comments?post=1034"}],"version-history":[{"count":0,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/posts\/1034\/revisions"}],"wp:attachment":[{"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/media?parent=1034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/categories?post=1034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/tags?post=1034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}