CONSTRUCTION RISK MITIGATION THROUGH CONFORMITY ASSESSMENT

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CONSTRUCTION RISK MITIGATION THROUGH CONFORMITY ASSESSMENT Graham Brent, Chief Executive Officer National Commission for the Certification of Crane Operators (NCCCO) World Standards Week ANSI-SPRING Services Conference October 18, 2017

2

Key Concepts Construction is inherently risky Property and people are the ones at risk Inadequate risk mitigation = accidents and incidents NCCCO born out of a grass-roots initiative Conformity assessment was (is) core element of initiative: certification and accreditation

Construction in the 80s Personnel certification an alien concept No history of third-party evaluation ANSI (B30) & OSHA standards light on detail No federal requirement; 5 states had rules No pathway to compliance Lip service to personnel competency assessment widespread

ANSI Accreditation to ISO 17024

Where s the Value? Established credibility Market Employer adoption Project owners requirement Insurance industry approval Industry membership associations endorsements Federal/State/Local Jurisdictions OSHA recognition State adoption Redefined Certification for the Industry Distinguished it from Training

Industry Recognition

Where s the Value? Established credibility Market Employer adoption Project owners requirement Insurance industry approval Industry membership associations endorsements Federal/State/Local Jurisdictions OSHA recognition State adoption Redefined Certification for the Industry Distinguished it from Training

OSHA Recognizes Accredited Personnel Certification An accredited certification program that attests to the qualifications and experience of crane operators will provide employers and OSHA with a valuable tool in determining if crane operators are qualified to perform their tasks. The benefit to the employer is that the presence of NCCCO certified crane operators on a job site will be an indicator to [OSHA] compliance officers that the crane(s) is being operated by someone with demonstrated knowledge and ability. The execution of this agreement with NCCCO should have an immediate, significant and beneficial impact on safe crane operations. Voluntary Agreement between OSHA and NCCCO signed February 26, 1999

Where s the Value? Established credibility Market Employer adoption Project owners requirement Insurance industry approval Industry membership associations endorsements Federal/State/Local Jurisdictions OSHA recognition State adoption Redefined Certification for the Industry Distinguished it from Training

U.S. Licensing Requirements 1995 WA ME MT ND MN VT NH OR** ID SD WI MI NY MA CT NV UT WY CO NE KS IA MO IL IN OH KY WV NJ* PA MD VA DE RI CA NC TN AZ NM OK AR SC MS AL GA TX LA AK FL HI 2012 National Commission for the Certification of Crane Operators (NCCCO) : State Licensing Program : Licensing not legislated *Long Boom License Only **Mandatory Training Requirement Only 12

U.S. Licensing Requirements 2017 WA OR** NV CA ID AZ UT MT WY CO NM ND SD NE KS OK ME VT MN NH WI NY MA MI CT PA NJ RI IA IL OH MD IN WV VA DE MO KY NC TN AR SC MS AL GA TX LA AK FL HI : Recognize or require CCO Certification by law : Legislation proposed (recognizes CCO Certification) : CCO Certification not recognized in legislation : Licensing not required **Mandatory Training Requirement Only 2017 National Commission for the Certification of Crane Operators (NCCCO)

Where s the Value? Established credibility Market Employer adoption Project owners requirement Insurance industry approval Industry membership associations endorsements Federal/State/Local Jurisdictions OSHA recognition State adoption Redefined Certification for the Industry Distinguished it from Training

The Ultimate Test: Does it Work? How to determine? Program Growth Follow the Data State Reports Insurance Position Survey Employers Poll Certificants

By the Numbers 150,000 individuals certified since inception 90,000 currently certified More than 350,000 certifications issued 1,000,000 written + practical tests administered 120+ training firms nationwide (unaffiliated)

The Ultimate Test: Does it Work? How to determine? Program Growth Follow the Data State Reports Insurance Position Survey Employers Poll Certificants

The Canadian Experience Ontario Crane-Related Deaths no. /year /100k workers 1969-1978 85 8.5 3.95 1979-2002 51 2.1 0.76 Death Rate down 80% [ Crane and rigging accidents as % of all construction accidents down 50% [

The California Experience CRANE ACCIDENTS, June 02-05 vs. June 05-08 FATAL ACCIDENTS 02-05 05-08 High-Voltage line contacts 5 1 Struck by Loads 4 0 Mobile Cranes Overturned 1 1 Total Cases 10 2 80% decrease NON-FATAL ACCIDENTS 02-05 05-08 High Voltage Line Contact 7 4 Struck by Loads 18 3 Mobile Cranes Overturned 5 6 [ [ Total Cases 30 13 57% decrease

The Ultimate Test: Does it Work? How to determine? Program Growth Case Studies State Reports Insurance Position Survey Employers Poll Certificants

Insurance Industry

The Ultimate Test: Does it Work? How to determine? Program Growth Case Studies State Reports Insurance Position Survey Employers Poll Certificants

Case Studies Large General Contractor (north-west): Crane operators CCO-certified: 350 To have qualified operators in the seat before making a lift reduces our risk tremendously. CCO certification has helped us reduce our crane incidents by 31% in one year. Large General Contractor (south): Crane operators CCO-certified: 206 By requiring CCO certification for all operators, we decreased our crane incident cost by 80% in the first year of implementation.

Case Studies Large crane rental company (north-east): Crane operators CCO-certified: 365 Having nearly 100% of our operators CCO certified has given our customers a high level of confidence in our employees abilities to get the job done and get it done safely. Large general contractor (Gulf states): Crane operators CCO-certified: 125 By saving money on costly crane accidents, we have been able to spend money on the purchase of new equipment.

The Ultimate Test: Does it Work? How to determine? Program Growth Case Studies State Reports Insurance Position Survey Employers Poll Certificants

CCO has helped me do my job By staying certified it helps to keep me aware of the industry standards and regulations." "The ability to quickly decipher load charts for any type of crane. Anybody can hop on a crane and start operating but to do it safe and know the fundamentals means going to school and learning the do's and don'ts of operating.

Survey Three-Time Recertificants Certification has... -- made me a safer operator 87% -- helped me do my job better 86% -- made me more professional 89%

CCO has made me a safer operator It has made me more professional even though I have been operating cranes for 42 years. I'm more aware of power lines, outrigger pad setup, cribbing; just basically more aware of the hidden dangers. "I feel that my ability to read and understand load charts has improved, and I've learned the importance of crane safety." I can foresee and stop likely safety problems before someone is hurt.

OUR VISION A global lifting environment in which crane and crane-related risks are reduced, performance records improved, training needs stimulated, and overall safety enhanced.

Other Observations Limitations of Conformity Assessment Tool in the Toolbox not Panacea Collateral benefits Engaging future workforce

Engaging the Next Generation Collateral benefits Engaging future workforce Limitations Tool in the Toolbox not Panacea

Filling the Skills Gap