The road to compliance

With my demolition consulting company, I receive (once or twice a month) calls or email requesting information of, “What does it takes to start or operate a demolition company?” I try to explain the pitfalls, including insurance/bonding, Occupational Safety and Health Administration (OSHA), licensing, employee training and personal liability. After I complete my list, the conversation becomes, “I did not realize what laws and training are required.”

As an owner, you have a responsibility to protect your employees and the public from harm during demolition operations.

Owners are responsible for compliance through a maze of regulations, laws, licensing, permits, certifications, notifications, inspections, record keeping, immigrations, training and hazardous materials, including chlorofluorocarbons (CFC), asbestos-containing materials (ACM), polychlorinated biphenyl (PCB) and lead.

The bottom line is you, as the company owner, must provide a safe workplace overseen by competent managers and supervisors who are knowledgeable to comply with the laws.
 

Improving communication

How well do you, as the owner, communicate information to your employees? As the owner, you understand Big Brother is watching all the way from the federal level ­[labor, OSHA, U.S. Environmental Protection Agency (EPA), transportation and immigration], the state level [health, air quality, disposal/licensing, hazardous material handling, underground storage tank/above ground storage tank (UST/AST) removal and disposal] down to the local level (licensing, permits, site security, traffic control, utilities, dust control, work hours and inspections).

Project customers may require work -site employee drug testing, language requirements, no tobacco, customer- specific safety rules, site admittance, employee permitting and parking restrictions. The customer has the ability to stop work based on its authority. The compliance of customer, regulations and rules must be clearly communicated to all levels of your organization.

To improve communication you first need to establish a full-time safety/compliance training officer. A safety/compliance officer would conduct: site safety meetings, site safety inspections, site employee safety training, compliance with license, permits, notifications, safety record requirements and safety record keeping.

From a one-story house or a 20-story building, in the eyes of the regulators the same laws and regulations apply.

Getting started

During my consulting career, I have mentored four demolition companies and startups and 100-plus owners, managers and estimators. Most startups fail to understand the headache and costs created by compliance with laws, regulations and rules. Most compliances and regulations revolve around safety and communication to employees of laws and regulations.

During my first conversations with prospective owners, I emphasize:

1. commitment to safety;
2. owner/employee communication; and
3. rewarding excellence.
    

To establish communication in your organization you will need to implement and support:

• written company policies;
• a written safety plan; and
• an employee training program.
   

Communication is the key to a successfully run organization. As owners/managers, how do you communicate laws, regulations and rules to your workforce? As owners/managers, failure to communicate to your employees will lead to costly mistakes and in some cases tragedies.

Continuing education of managers and employees is another key to any successful business.

Investing in a full-time safety/compliance officer, who is responsible to communicate safety and compliance information to owners, managers, site supervisors and field employees, is important.

Safety commitment by owners is the first step in keeping communication open between the owner and employees by conducting safety and training meetings face-to-face with employees and receiving feedback.

Conduct a weekly (one hour limit) status meeting, with owner/managers, safety/compliance, equipment dispatch, maintenance and estimating personnel. A separate meeting (30 minute limit) should include the owner, manager/job status, office manager and estimators.

Work site employee safety training provides the forum to communicate companies’ policies, scope of work, rules, regulations and laws that affect their work place.

As owners and managers, your communication skills are important for you to deliver necessary information to all employees.

Communication is not limited to work-site employees. Your interaction with office/support staff, accounts payable/accounts receivable (AR/AP), safety officer, equipment dispatch and maintenance, estimating, job startups, cash flow, field employee and equipment allocation is critical.
 

Developing a manual

Owners and managers must develop a company safety and policies manual that outlines employees’ responsibilities, including the consequences that apply for employees’ failure to comply.

Failure to communicate leads to poor employee performance eventually and to loss of profit. Employees are more productive when they perceive owners’ commitment to safety. Owners must understand the cost of communication is an investment.

Governmental agencies’ compliance applies to owners, customers, field managers and site-work safety.

How do you communicate the laws, regulations and rules to your employees? First, understand safety is the most regulated of all your concerns from every angle — federal, state, city and customer.

The employment or assignment of a company safety and compliance officer needs to be the top priority of the road to compliance. The safety and compliance officer will be responsible for safety programs, compliance and communication to all managers and work-site employees.

Establish a corporate organizational chart, establish lines of communication and authority including implementing written company policies that cover all employees. Too often, owners hesitate to delegate and empower key employees leading to misunderstandings and confusion.

If the owners refuse to delegate authority, their organization will ultimately become dysfunctional. For more than 50 years, I have mentored more than 100 individuals, startups and existing companies. In each case I have delivered the same message for creating a safe, successful and profitable organization:

1. Safety is first. Seventy-five percent of safety is communication and compliance;
2. Delegate responsibilities;
3. Communicate. Establish lines of communicate to all employees; and
4. Reward. Recognize employees for excellence.
    

Meeting weekly with your people, each attendee can participate and hear the owner’s opinions and the opinions of key people allowing participants to interact with fellow key personal. Good subjects to communicate safety, include:

• emphasize the corporate safety culture of the company;
• monthly safety newsletters included with pay checks;
• annual all-day safety meeting for all employees; and
• safety awards (certificates)/safety cash bonuses for safety excellence.
   

The roads to communicate regulation compliance demolition workers include establishing:

• work site safety meetings;
• a company safety newsletter;
• employee training;
• written company policies;
• written safety plan; and
• written duties and responsibilities plan for all employees.
   

It is the contractor’s responsibility to communicate to managers and field employees all laws and regulations that apply to their work.

Strategies for communicating a company’s safety compliance are as follows:

• designate a safety and compliance person;
• employee training – off site and on site;
• conduct a 10-minute morning safety startup meeting daily;
• job site safety checklist/audit and inspection;
• demonstrate proper use of safety equipment;
• safety awards (lunch on site);
• a company safety newsletter;
• safety rewards for working safely;
• annual employee all-day safety meeting;
• a display safety board – safe maximum heart rate, to-date recordable and first aid cases; and
• cash bonus per hour for safety performance
   

The customer’s expectation of a safe work site includes:

• trained employees;
• a drug-free workplace;
• understanding the scope of work;
• open communication with on-site contractors; and
• compliance with customers.
   

In conclusion, communication is the gateway to safety and compliance. Owners must invest and support their commitment to safety and to communication.

William Gumbiner is president, Demolition Industry Consultants (DIC), based in Noblesville, Indiana, and a 50-year veteran of demolition as a senior corporate officer. More information about DIC is available at www.demolitionhelp.com.