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A&L Industrial ServicesPlan, measure, analyze, and IMPROVE

A&L History Created in 1985 and has the same sole ownerOriginal services involved Sandblasting and Painting onlyIn 2000 A&L created Scaffolding and Insulation DivisionsWe currently own approximately $7,000,000 worth of cuplock scaffoldingWe have the ability to obtain any additional needed scaffold in less than 60 daysOur current business is 50% scaffolding, 30% insulation and 20% paintWe continue to grow our business in a very methodical mannerTaking opportunities which are only beneficial for the client and A&LWe have 3 locations: Houston, Beaumont and Corpus Christi In the process of opening Louisiana

The A&L Values..The differential factor?

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Current List of CustomersMotivaShellLyondellValeroFlint Hills EastFlint Hills WestFlint Hills Port Arthur

CelaneseOneokEnterprisePraxairInvistaMarathon

SIP General Market TrendsGulf Coast is fairly active with capital projects creating the unknown for the Labor MarketHave not experienced the severe labor market shortages similar to the 2008 year.All crafts at leadman stage are making anywhere between $22 and $23 an hour, if you want to obtain good quality craftsmenMangement labor rates are also adjusting to the market but not as significantly as leadman ratesSoft Craft industry is shrinking significantly in competition. Mid-size companies are being bought creating a large spread between the large companies and the mid-size companies.These purchases are giving companies the ability to learn to be more efficient and provide better services than the larger companies.

Types of Contract PricingT&MAll current contracts are written T&MHave consistenly found these to be more productiveOur tracking system gives us the ability to be transparent making T&M more valuable too the clientDo not spend more time trying to determine how to make the contract profitableGives us the ability to spend more time with the client and fulfilling their needs NOT A&LT&M can also be T&M not to exceed, which has been successful

Unit Pricing/Lump Sum

Have been turned into T&M after start because of poor deliverablesSpend more time trying to document ever stoppage to assure paymentSignificantly reduces production because of stopping and starting making sure to record all downtimesAlso makes you train your employees to stop everytime anything outside of normal activity takes place which is NOT PRODUCTIVEComposite RateComposite Rate can be favorable depending on structure of composite rateScope of scaffolding is not easily identified on ground up projectsTherefore scaffold rental rates are not easily determined. Current labor market continues to be volatile

Future OpportunitiesSAFETYProvide Behavioral based ProgramDaily participation by our employees with the ICARE programMonthly Audits provided to Project Managers for areas of opportunity to discuss with fieldMonthly rewards for employees for creating a safe work environmentWeekly recognition of employees for innovative ideas for safety, helping another fellow craftsman, etcTRAININGOnboarding training which includes awareness of all crafts onsite A&L providesReview of clients expectations and procedures to be onsiteContinuous documented onsite trainingWeekly Procedure based meetings

Plan/Schedule/ExecuteImplement Improve from Day 1All tasks will be planned and executed according to client scheduleDaily tracking of EmployeesBi-weekly/Monthly reviews of onsite productionBi-weekly/Monthly reviews of all KPIs

Lessons LearnedSafety is not the only way to being safe.TRAINING is the most important. Every Capital Project/Maintenance Contract/Turnaround Contract for SIP has to have plannersProjects have a significant amount of unforeseen issues that arise which ultimately effect the SIP contractor if bidding unit pricing, or lump sum contracts.Being transparent with our clients provides the best outcome and success of a project

ProductivityPlan,measure,analyze and improveimprove

Our Productivity SoftwareProductivityX factors

To Measure is to Know

Improve Tracking

KPI Comparison Insulation

Crew Wise Production Chart

Tag Production Comparison7X7X10

Scaffold Tag Details

Monthly Rental Comparison

Scaffold Lists

Improve Site Factor

NORMs Site Factor

Company Safety CultureAchieving Goal Zero

EMR - .85 TRIR -.OOI Care

We recruit, train, retain employees that have these fundamental beliefs:

I CARE about my familyI CARE about my jobI CARE about my coworkerI CARE about myself

I CARE Behavior Based Observation ProgramSafety incidents are caused by just two things:Unsafe ActsUnsafe ConditionsDaily, each employee must stop work for 5-10 minutes, observe what is happening around them, fill out an I CARE card. (Observe for safe and unsafe acts and conditions).They are required to document their observations and intervene whenever possible.The goal is not to write employees up, but to gather data on our strengths and weaknesses in our safety program for future training.

"I CARE" BEHAVIOR BASED OBSERVATION PROGRAMTotal Observations514Safe Observations Observed369Unsafe Acts Observed87Unsafe Conditions Observed58Intervention24

Good housekeeping in area41Employees drinking sufficient water5Crew working well together as a team11All safety lanyards for tools inspected3Lifting material properly9Fork lift driver wearing seat belt and PPE3All contractors working safely1Barricade tags were being used properly9Observed vehicles driving safely1Installing insulation on valves1Scaffold being built correctly69Good body position4Good evacuation notice on fire2Everyone following the JSA5Wearing gloves while passing material3Good communications between workers21Exposed beam wrapped with red tape1Having tools with tool lanyard5Good tie off by all employees93All safety rules are being followed8Everyone wearing proper PPE55Using correct tools for the job9Using caution while backing up1Employees working at a safe pace2Employee inspecting his tools in morning7Total Safe Work Observed369

Contractor working without gloves3Bad communication with helper6Contractor working without hard hat2Improper flagging-could not see flag2Forklift driver moved forks without gloves1Observed emp. walking under loaded crane1Employees not using trash containers2JSA not maintained at job site1Poor lifting techniques1Insecure tie off of material being roped4Improper use of hand tools1Worker inside unit without safety glasses1Worker crossed red taped area no permission1Employee working on pipe with no knee pads1Observed speeding vehicle in unit1Shell employee without hearing protection3No Barricade in place for contractor crane lift1Contractor Harness Violation2PPE Violation10Lifting heavy objects without assistance3Crossing red barrier without permission6Contractor taking stop sign in truck1Loose objects fell off scaffold1Horse play3Harness to loose1Nailing without wearing gloves2No Ear Plugs in high noise area12Flint Hills Operator without H2S Monitor1Observed contractor not properly tied off1Use of only one boiler hook rather than 21Contractor without lanyard for tools2Stared job without barricade tape1Employee did not have goggles3Working without gloves5Total Unsafe Acts Observed87

Congested work area-East Plant3Uneven work surface3No barrier around large crane2Hot pipes steam flowing in area6Tripping hazards on ground5Contractor left material poor housekeeping3Employee felt rushed on the job4Scaffold yard needs barriers for traffic2Material left in walkway tripping hazard2Scaffold yard housekeeping needs improvement5Slippery surface9Barricade tags need updated2Observed holes in safety shoes1Parking congestion at East Plant1H2S Monitor not bump tested2No barricade in congested area-West Plant3Missing clams on scaffold1Pipe elevated off ground not secured1No barricade to protect against hot lag1Cup not locked on scaffold1No spotter while backing1Total Unsafe Conditions Observed58

Intervention and Assistance Told Helper that hand tools must be inspected before each shift and before using them on the jobTold Crew about slippery conditions and watch your footing in areas that are slippery, always be aware of those hazardsCo-workers safety shoes were worn our and torn, told him to get a new pairTold Shell employee not to cross our barricade because of potential dangerTold Competent Person that to make all cup locks are secure and locked on each piece of scaffoldingCrew must improve communication to prevent injuriesCorrect PPE must be worn at all times will doing lead abatementAlways install red barrier tape in position when erecting or dismantling scaffoldingSpotter in bad position and told her that the spotter flag must be used when backing large trucksTold employee to not enter an area that has red barricade tape in placeTold two employees to stop the horse play or they will get firedTold Carpenter and helper to put on their gloves when using toolsTold foreman that there was a lot of loose material on scaffold that might fall offStopped new employee who was walking near a crane liftTold other contractors not to go into a barricaded area when we were dismantling scaffoldingPoor housekeeping told crew to clean-up area because of tripping hazardsTold scaffold employees to take their time in the heat because of potential heat illnessHad employee go to the safety shower because he thought he had contacted PhenolGave a contractor a pair of extra ear plugs I had because he had noneTold foreman about insulator that was working unsafe with sheet metalContact Shell employee about not wearing hearing protection-he put it on thenHelped clean-up bad housekeeping in unitAssisted driver with long trailer by spotting for him on a tight clearance turnShowed new employee where the eye wash and safety shower are located

Our Plan for Achieving Goal ZeroWe will staff our workforce with professional, dedicated personnel from the project manager down to the helper position. We will conduct a one on one interview with all prospective employees to make sure they initially possess the safety performance and attitude that we desire. Training credentials, experience levels, references and overall quality performance will be checked for each candidate. An evaluation of a craft workers performance, after hiring will be completed by supervision attesting to the skill level of the new craft personnel. We will make sure they have the ability to perform at a level that is safe, quality driven and productive. Site management is authorized to remove employees who are not performing up to A&Ls standards or our customers expectations.Our improvement process will be to continuously evaluate our front line leaders, who are the KEY to A&Ls success. The evaluation is based upon their safety communication skills, safety training techniques, quality/production performance and feedback from our employees and our customer. We intend to field our A team at all times that will ultimately lead to a safe, quality driven productive performance.

Our Plan for Achieving Goal Zero (Continued)All employees on a daily basis will utilize our behavior-based program I CARE. After a completing a training session on hazard awareness we will require their partnership in this program. Our message is if you see something, say something, intervene if possible, and document it on the I CARE card. The safety director and safety technician will audit all JSAs and I CARE cards each week for completeness in content, observing text duplications from day to day that demonstrates a lack of commitment in fully describing ever changing daily activities, hazard elimination techniques and meaningful thought on working around those hazards.The safety technician will play an active role in conducting daily training with all employees, reviewing and approving all tailgate JSA meetings and making daily audit reports on scaffolding, insulation, painting and fireproofing safety work environment, PPE requirements, tool inspections and employee positions and overall attitude.The safety director and upper management will make a commitment to visit each job site on a regular basis to show our support to our employees and our customer.

Manpower QualityPlan,measure,analyze and Improvee-hiring application

ANL Proprietary e-Hiring SoftwareOnline RecruitmentSafety Council IntegrationOnline Skills Assessment TestsEmployee Self ManagementOnline Record Management

Career PlanningPerformance MonitoringTraining RecordsCentral DatabaseSecure & Reliable

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A&L Workforce Management

Manpower Peak ChartEach worker rated by A/B/C/DOnline Recruitment CenterTraining Centers for Multicraft

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Summary & ConclusionFocused & SavvyThank You

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Sheet11st Qtr2nd Qtr3rd Qtr4th QtrManpower11009007001000Category 22.54.42Category 33.51.83Category 44.52.85To resize chart data range, drag lower right corner of range.

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Scaffold BuildersPainter/BlasterInsulator/AbatementGeneral LaborSales3000 Qualified Workforce Database

Sheet1SalesScaffold Builders2.2Painter/Blasters2.2Insulation/Abatement1.4General Labor/Safety Attendants1.2To resize chart data range, drag lower right corner of range.