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Corporate Responsibility Program Overview WORKFORCE WELLBEING ENVIRONMENTAL SUSTAINABILITY COMMUNITY CONTRIBUTION INNOVATION & PARTNERSHIPS GOVERNANCE & INTEGRITY

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Page 1: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

Corporate Responsibility Program OverviewWORKFORCE WELLBEING ENVIRONMENTAL SUSTAINABILITY COMMUNITY CONTRIBUTION INNOVATION & PARTNERSHIPS GOVERNANCE & INTEGRITY

Page 2: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

“Our employees, clients, and communities motivate and inspire us to be better.”Jim Millar, Co-Chairman

Page 3: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

HITT CONTRACTING | 3

TABLE OF CONTENTS5 OUR STATEMENT

6 INTRODUCTION

7 COMPANY HIGHLIGHTS

8 WORKFORCE WELLBEING

14 ENVIRONMENTAL SUSTAINABILITY

18 COMMUNITY CONTRIBUTION

20 INNOVATION & PARTNERSHIPS

22 GOVERNANCE & INTEGRITY

Page 4: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

4 | SUSTAINABILITY REPORT

“At the core of everything we do is a desire to be good corporate citizens.”

Brett Hitt, Co-Chairman

Page 5: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

HITT CONTRACTING | 5

OUR STATEMENTHITT Contracting is committed to continually building upon our foundation of exceptional quality, service, and relationships. Sustaining this tradition requires a thoughtful balance between economic growth, environmental stewardship, an empowered workforce, and community involvement—compatible goals that drive long-term value for all of our stakeholders.

5 PILLARS OF OUR PROGRAM To successfully execute our Corporate Responsibility strategy, HITT will integrate a triple bottom line (financial, environmental, and social) approach to our decision making in areas where we can have the most impact.

WORKFORCE WELLBEING

Further our legacy as a best place to work by continuing to build a positive workplace culture through investment in training, professional development, safety, and the health of our team

ENVIRONMENTAL SUSTAINABILITY

Be a leader in sustainability services and reporting to support client environmental goals while operating jobsites and HITT offices in a way that minimizes adverse environmental impacts

COMMUNITY CONTRIBUTION

Inspire volunteerism and align our philanthropic endeavours with causes that resonate with stakeholder interests and aid our local communities

INNOVATION & PARTNERSHIPS

Encourage innovation in building construction practices through research and development opportunities and by leveraging strategic partnerships

GOVERNANCE & INTEGRITY

Build and maintain a transparent Corporate Responsibility program to drive consistency, ethical business practices, and risk management through standardized policies, training, and governance

Page 6: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

VICE PRESIDENT’S NOTE

HITT is committed to making a positive impact on our stakeholders, the industry, and the broader community. Delivering sustainable buildings is just one piece of the program.

Social responsibility and environmental stewardship are central to our operations. By focusing on programs that drive impact within each of the five pillars of our Corporate Responsibility program we can build a sustainable business and continue to expand in a world where organizations and people want to align with others who share their values.

For years we’ve informally included several components of Corporate Responsibility in our business operations. In early 2016, we formatted and holistically organized our efforts. This Corporate Responsibility Program Overview outlines our goals and approach, sharing stories that highlight our commitment to the pillars of our program. Annually we publish a secondary executive summary that highlights events and successes achieved during that year.

As HITT’s first Vice President of Corporate Responsibility, I am proud of where we stand today and am grateful for those within the company doing their part to move us forward. It is exciting to see our leadership make a true commitment to the values of corporate citizenship as we continue to integrate triple-bottom-line decision making into the fabric of our company.

Katie RothenbergVice President,

Sustainability & Innovation

For questions or comments, please contact me at [email protected] or 703.289.9221

Page 7: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

2017 PHOTO HIGHLIGHTS

HITT CONTRACTING | 7

Clockwise from left: CANstruction, Charleston Heart Walk, Big Build,, Big Bike Build, Shelter House Intern Day of Service, South Florida Sub Day, Protivity food packing event, JDRF Real Estate Games

Page 8: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

8 | HITT CONTRACTING

WORKFORCE WELLBEINGFurther our legacy as a best place to work by continuing to build a positive workplace culture through investment in training, professional development, safety, and the health of our team

HITT started as a small family business, and we strive to Maintain that element of our culture. We consider our team to be both the foundation of our success and the path to our future, which is why providing opportunities for training and growth within the organization is a priority for leadership.

CULTURE

HITT embodies a work hard, play hard attitude. Since 2004, we’ve consistently ranked as a top workplace by regional publications like the Washington Post and Washington Business Journal. Our Atlanta and South Florida offices have both earned similar distinctions.

These achievements don’t happen by accident; rather they’re the result of our focus on teamwork, empowerment, and connections amongst our people. We believe our success as a workplace leader directly correlates with our investment in the wellness of our team and the tools that will make them successful here at HITT and beyond.

In an effort to continuously improve, HITT conducts an annual employee engagement survey to solicit feedback from our team. Some of the improvements that have come out of this survey include implementing quarterly communication meetings, improving weekly project management meetings, expanding employee benefits, and enhancing systems access and use.

DIVERSITY & INCLUSION

Diversity and inclusion are the cornerstones of high organizational performance. HITT values the diversity of our team members and strives to maintain an inclusive culture that welcomes and celebrates our differences and similarities. Recruiting and cultivating diverse talent is critical to our

success. We focus on providing all team members with equal access to development and opportunities—fostering an environment that supports the retention and promotion of each hard-working team member.

HEALTH

In addition to providing healthcare benefits to employees and their families, we also strive to keep our employees fit and healthy. We host group fitness classes weekly at no cost to employees and have a fully equipped gym at our headquarters office.

To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including softball, basketball, triathlon, flag football, and volleyball.

With a focus on work / life balance, we offer our tenured site operations team members a paid sabbatical to allow them time to rest and recharge.

Page 9: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

WORKFORCE WELLBEING

HITT CONTRACTING | 9

In an effort to increase preventative healthcare measures, HITT incentivizes employees to visit their primary care physician annually for a wellness exam. Throughout the year, we organize physical fitness challenges to encourage team members to maintain a healthy weight, be more active, and drink more water. We take proactive measures in other ways too, such as hosting a free flu shot clinic, held each fall to make access to flu shots easier.

SAFETY

Having a safe working environment for our employees is a non-negotiable. Safety is an integral part of the construction process, equal in inportance to production and quality. Our award-winning safety department has developed and implemented policies and procedures designed to increase the safety of everyone associated with our projects.Developed in 1980 and led by our Vice President of Safety and jobsite safety superintendents, HITT’s safety department promotes a commitment to safety beginning with the principals of the company that is continually reinforced at all levels.

HITT maintains an Experience Modification Rate (EMR) well below the industry standard of 1.0. EMR is used by workers’ compensation insurers to measure workers compensation risk. Our above average EMR illustrates HITT’s commitment to keeping our employees safe and healthy.

Safety superintendents are essential to the HITT safety program. These highly trained safety professionals visit jobsites and record observations of safe and unsafe practices, ensuring our team members and subcontractors are maintaining safety standards. Weekly reports are sent to project teams and sector leaders detailing the findings of these visits, ensuring all teams are made aware of the safe and unsafe observations recorded on jobsite inspections.

The summary below indicates the number of site visits and safety observations made over the past three years. The total number of site visits has grown each year to reflect our commitment to safety and align with the types and number of projects completed. We continue to expand the use of safety tracking tools to gather additional data and improve outcomes.

Our safety department has earned numerous awards over the years including the ABC Diamond STEP award from ABC Virginia, ABC Metro, ABC Georgia, and ABC Rocky Mountain. Awardees are rated on 20 safety program components including management commitment to safety, employee participation, use of personal protective equipment, and record keeping.

PROGRAM HIGHLIGHTS:

�� Safety training required for all new employees

�� First Aid / CPR training required for all employees

�� OSHA 30-hour training mandatory for all supervisors

�� Defensive driving certification required every two years

�� Robust safety superintendent structure and tracking process

EMR HISTORY

53+49+48+52.53 .49 .48 .52

2015

2016

2017

2018

SAFETY OBSERVATION SUMMARY

97+R2015

Total Site Visits: 3,015

95.9%

Percentage of Safe Observations

95+R2016

Total Site Visits: 2,404

93.4% 93+R2017

Total Site Visits: 1,788

89%

Page 10: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

10 | HITT CONTRACTING

HITT UNIVERSITY

HITT launched an in-house training department, HITT Institute, in 2003 to grow and develop talent from within. Team members have their own personal training roadmap to ensure they take required courses identified by leadership. All courses on the roadmap must be completed to be eligible for promotion.

As we look ahead to the future, HITT is redefining and elevating our training and development experience with the launch of HITT University. This enhanced program offers instructional opportunities and education to further advance the careers of our team members. Striving to pick up where the roadmap leaves off, HITT University’s additional course offerings and new online trainings encourage team members to continue their learning beyond requisite courses.

We continue to invest in educational resources, building out advanced video conferencing technology in classrooms for regional attendees and employing software to ensure team members can easily access coursework and track progress against learning objectives. A combination of in-person and web-based training is available to team members, taught both by colleagues and third-party instructors.

We are proud to say that as our company evolves, so too does our approach to career development. HITT team members are our greatest asset, and our investment in their

education is crucial to the success of the company.

PROFESSIONAL DEVELOPMENT

HITT recognizes the importance of cultivating and investing in leadership and talent development at all levels of the organization. This effort begins with our Futures Program; a four-phase program launched in 2005, designed to jumpstart entry-level team members’ construction careers. We provide a holistic approach through mentor-mentee relationships, prescribed classroom and social learning, and frequent goal setting and performance evaluations. Over 250 HITT Futures graduates have completed the program since its inception.

Outside of the Futures Program, team members continue learning through classes that focus on topics such as conflict

management, coaching, discrimination and harassment, and interviewing skills. Historically, HITT has partnered with key external vendors for leadership development; in 2017 we launched an internal leadership development platform centered on mid-to-upper level management. Initial coursework centers on communicating with impact, preventing and navigating conflict, and establishing emotional intelligence—skills that are key to effective leadership.

47+5+1+6+22+19HITT UNIVERSITY CLASS BREAKDOWN

Function Skills and Programs

Safety and Risk Management

Management and LeadershipCredentialing

Culture and Values

Construction Operations and Logistics

Courses and Training

Number of Instructor led courses offered 185

Number of web-based training courses offered 74

Number of training hours completed 13,737

Number of employees that teach courses 64

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WORKFORCE WELLBEING

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Development is reinforced through action planning, mentorship, and executive coaching. HITT’s site operations workforce also has development opportunities through company-sponsored apprenticeship programs and skill-building courses such as software programs and trade skills. Outside of the offerings outlined above, employees are encouraged to work with their supervisors to identify additional leadership or technical training that will help them succeed. All approved training and development opportunities are fully reimbursed by HITT.

HITT launched the Corporate Leadership Council (CLC) In 2015 with the primary purpose of encouraging leadership growth for up-and-coming executives and strengthening our pipeline of future leaders. The group has unfettered access to corporate information typically seen only by executive leadership. Each member is invited for a one-year term; though there is no limit to the number of terms one can serve.

The CLC is responsible for broader input on corporate strategic direction and manages execution of select long-term corporate initiative projects, as determined by the Corporate

Steering Committee (CSC). Engaging the voice of emerging leaders helps drive effective communication at different levels within the organization while providing professional development opportunities to our top talent.

Goals and Objectives – 2018 and Beyond

Sustain and enhance HITT University offerings

Maintain an Experience Modification Rate (EMR) below .70 through comprehensive safety programming

Provide professional development opportunities for team members at all levels

Continue to be recognized by third parties as a great place to work

Refresh Site Operations Sponsor Program and develop a Site Operations Mentor Program

Continue to grow the HITT Internship and Externship program

Construction Intern (CI) Project Engineer (PE) Assistant Project Manager / Assistant Superintendent

Project Manager / Superintendent

Introduction to construction operations

Introductory classroom training

Mentor / sponsor placement

Introduction to HITT corporate culture

Explore different career opportunities

Management interfacing

Office and site experience

Career advice

One-on-one teaching

Hands-on work experience

Social events and team outings

Project specific assignments

Hands-on work experience

Project related training

Core curriculum with HITT University

Career choice opportunities

Full-time on project site

Project specific responsibilities

Mentor / superintendent placement

Executive interfacing

Social events and team outings

Integration into corporate life

Continuation of mentoring

Opportunities to mentor

Continuing in-house education

Internal and external relationship building

Opportunities for cross-training through project rotations

Project specific responsibilities

Leadership opportunities

Autonomy

Project independence

Autonomy

Mobility

Management / leadership opportunities

Performance-based evaluation and compensation

Continuing in-house education

Business practice training

Opportunities to mentor

Page 12: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

12 | HITT CONTRACTING

Page 13: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

ENVIRONMENTAL SUSTAINABILITY

HITT CONTRACTING | 13

SUBJECT MATTER EXPERTISE

Our Sustainable Construction department was established in 2005 with the goals of providing internal sustainability expertise to meet client objectives while reducing our own environmental impact. To date, we’ve helped clients certify more than 150 LEED design and construction projects of all types, including HITT’s own corporate headquarters building, certified Gold in 2011. We also assist projects in complying with other green building regulations and new third-party certification programs such as SITES and WELL. Green building rating systems and energy codes that impact the built environment continue to evolve, and the industry leading expertise of HITT’s Sustainable Construction team helps make navigating those processes as seamless as possible.

OPERATIONAL PERFORMANCE

We currently benchmark energy use at both the HITT headquarters and Atlanta regional office buildings using ENERGY STAR Portfolio Manager; both offices score within the top quartile. As HITT continues to expand, we continue to look for ways to ensure that all of our offices operate in a sustainable manner.

Outside of organized green building certifications, we’ve worked to identify and implement sustainable and environmentally friendly practices throughout our project portfolio. For example, more than 85% of all HITT jobsites, whether seeking LEED Certification or not, have moved to single source waste management with a third-party verified company.

HITT recycles approximately 1.5 tons of electronic waste annually using a third-party verified recycler. During our most recent e-waste drive, we collected items from employees and subcontractors, ensuring personal electronic waste was recycled responsibily along with our corporate waste.

HITT is also testing new approaches to drive jobsite efficiency on a large project in Maryland. In this instance, we submetered and monitored electrical consumption for everything from tower cranes and temporary power to lighting and plug loads in the temporary jobsite offices. In analyzing the data, we realized there was little room for operational improvements outside of the office, but installing motion sensors and programmable thermostats inside the temporary jobsite office were small changes that made a big difference.

While HITT already implements many best practices in green construction management, we aim to put these actions into formal practice and track compliance more programmatically. In 2016, we implemented a nationwide Construction Waste Recycling Policy, requiring all jobsites make a best effort to recycle and divert as much waste as possible given regional variations. Diversion rates must also be tracked, helping the organization get a better handle on our waste stream.

ENVIRONMENTAL SUSTAINABILITYBe a leader in sustainability services and reporting to support client environmental goals while operating jobsites and HITT offices in a way that minimizes adverse environmental impacts

Page 14: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

14 | HITT CONTRACTING

Next we plan to create strategies and education to support implementation and tracking of indoor air quality management (IAQ) protocols and installing motion sensors and programmable thermostats in temporary jobsite offices to further reduce our operational footprint. Formalizing these processes helps improve environmental performance, and further engages HITT team members to integrate green construction practices into projects.

TREES FOR KEYS

On Earth Day 2017, HITT launched our Trees for Keys initiative with our multifamily team, committing to plant a tree for every multifamily unit completed since 2010 and going forward. We planted or contributed 1,298 trees in 2017, and with another 2,000+ units under construction, we

look forward to planting more as a way to strengthen our connection to the communities that our team helps build. By partnering with Casey Trees and National Forest Foundation, we are making both a local and national impact.

Goals and Objectives – 2018 and Beyond

Formally implement green building best practices at all jobsites and projects

Create and implement a corporate procurement policy

Baseline HITT’s carbon footprint using a 2017 baseline

Create tools, resources, and education for operations teams and Clients to help meet project environmental goals

Page 15: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

ENVIRONMENTAL SUSTAINABILITY

HITT CONTRACTING | 15

LEED v4 Project ExperienceThe original release of LEED version 4 (v4) was

in November 2013, however it wasn’t until 2017

when HITT began to see most projects pursuing

certification under the U.S. Green Building

Council’s most stringent version of LEED. As

participants in the v4 pilot program, we had

experience with v4 and our team of sustainability

experts was paying close attention to the new

requirements to ensure a smooth transition.

There are a few common challenges when

working on v4 projects, most of which relate

to the new stringent chemical and product

disclosure guidelines. Materials and Resources

(MR) credits now require manufacturer’s product

disclosure documents, such as Environmental

Product Declarations (EPD), Health Product

Declarations (HPD), Cradle-to-Cradle (C2C),

CASRN, and GreenScreen. These product

declarations are still new to the marketplace and

are only available from select manufacturers. The

new disclosure documentation is pushing the

manufacturing industry towards more transparent

and broader understanding of a product’s

impact on the environment and human health.

Early on in a project, our sustainability team

carefully coordinates with the design team and

subcontractors to ensure compliance and

proper documentation.

Similarly, low emitting materials credits were

made more robust via point thresholds based on

multiple categorical product types now including

ceilings, walls, and acoustic/thermal insulations.

Most notably, wet applied products containing

volatile organic compounds (VOCs) now require

both SCAQMD threshold compliance and

CDPH v1.1 emissions testing. These changes

now require additional education and oversight

for all involved. HITT has a robust LEED training

program for our subcontractors and our process

focuses on early collaboration with the architect

and design team to identify potential challenges.

Not surprisingly, establishment and

implementation of a construction waste

management plan is now a prerequisite in v4,

a testament to how far the construction waste

recycling market has come in the past few years.

Projects can no longer earn points solely for their

diversion rate and must identify a minimum of

five material streams to be diverted. Additionally,

material streams that used to be considered

diverted, including alternative daily cover (ADC)

used at landfills, no longer count towards the

projects recycled waste percentage. These seem

like small changes but in many jurisdictions, they

have a significant impact on credit achievement.

Recyclable material streams are directly

correlated with available geographic commodity

markets, and our national reach and relationships

allow us to communicate credit achievability

early in project planning when determining LEED

certification level goals.

HITT’s sustainable construction department is

a unique resource for our project teams, and

we always look for opportunities to provide

guidance and direction for individual product

compliance or overall green building strategies.

It is this collaboration and dedication that allows

HITT to bring significant added value to our

clients’ projects.

Page 16: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

16 | HITT CONTRACTING

Whether it’s donating funds or volunteering time, HITT has a history of giving to causes that we’re passionate about. In an effort to drive investment in these causes, HITT chose three categories as focuses for our philanthropic giving in the coming years. By concentrating our giving in the areas of education, health and wellness, and community building, we can maximize our impact.

We strive to be both strategic and transparent about our approach to philanthropy and volunteerism, leveraging the clarity of purpose with employees and partners to support a deeper, more measurable impact in the communities where we do business.

JUVENILE DIABETES RESEARCH FOUNDATION

Since 2002, HITT has enthusiastically participated in the Juvenile Diabetes Research Foundation’s (JDRF) annual Real Estate Games, a premier philanthropy event for the DC community. Competing against more than 100 real estate firms in 70 different individual athletic events, we are part of a fundraising tour de force, raising almost half a million dollars each year.

COMMUNITY CONTRIBUTIONInspire volunteerism and align our philanthropic endeavors with causes that resonate with stakeholder interest and aid our local communities

Page 17: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

COMMUNITY CONTRIBUTION

HITT CONTRACTING | 17

BIG BIKE BUILD

Together with our partners NCR Corporation, Gensler, JLL, Cousins Properties Incorporated, and 35 subcontractors and supplier organizations, our Atlanta team made the holidays extra special for kids across Georgia at our inaugural Big Bike Build in 2017. On the day of the event, more than 200 people converged on the NCR jobsite, assembling bikes, inflating tires, checking work, and tying a bow on each finished product. By the end of the day, the team had built 1,006 bikes, but the generosity didn’t stop there. In addition to the bikes, we presented the Atlanta chapter of Toys for Tots with a check for $25,000.

SELECT ORGANIZATIONS HITT SUPPORTS

�� Boy Scouts of America�� Children’s National Medical Center�� DCBIA Community Improvement Day�� Juvenile Diabetes Research Foundation�� Leukemia & Lymphoma Society

�� ReSpectacle�� Food for Others�� Virginia Tech�� Shelter House�� Breast Care for Washington

�� Pheonix House�� Casey Trees�� National Forest Foundation�� American Heart Association

“Part of what makes this event special is that it united our longtime clients, design partners, and subcontractors for a purpose beyond the day-to-day construction of the project,”

-Katie Rothenberg, Vice President of Sustainability & Innovation

Page 18: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

18 | HITT CONTRACTING

SHELTER HOUSE

HITT partners with Shelter House, a community-based, non-profit organization serving homeless families in Fairfax County. We are incredibly proud of the relationship we’ve built with this organization, supporting their mission to provide crisis intervention, safe housing, and supportive services to promote self-sufficiency for homeless families and victims of domestic violence.

Our relationship with Shelter House began in 2016 with team members volunteering year-round. We’ve organized several donation drives, including hygiene product drives, back to school drives to purchase supplies for the new school year, and toy drives to give each child the gift they requested during the holidays.

Beyond that, we donated refurbished computer and peripheral equipment to allow Shelter House to build and maintain a computer lab for residents and provide newer computers for staff. Team members at all levels have made a difference, including our summer interns who tackled interior cosmetic renovations on three separate apartments at the Patrick Henry Shelter in Falls Church, Va.

These activities have been very rewarding for all that participate and we hope to continue expanding our work with Shelter House in the years to come. Shelter House honored HITT with a Corporate Impact Award for Excellence in Philanthropy in 2017, an award for which we are immensely proud.

GIVING BACK THROUGH BUILDING

Senior Superintendent Chris Carella stumbled upon an opportunity to give back while bringing a client’s vision for an art feature to life. With the goal of creating a lens wall, the project required 1,000 optical lenses of different shapes and sizes—a commodity that the team didn’t have access to. Chris’ resourceful thinking led him to reach out to nonprofit ReSpectacle, an eyeglass recycler, to see if they could help. He correctly assumed they may have glasses that were scratched or otherwise unusable for their needs, so when he asked them about donating lenses, they happily obliged. ReSpectacle shipped all the lenses to our Atlanta office, where the team used them to create the impressive installation. As a show of gratitude, HITT made a donation to the organization to help them further their mission of redistributing quality, used eyeglasses to underserved communities worldwide.

Goals and Objectives – 2018 and Beyond

Identify organizations that align with HITT’s causes and build partnerships to grow influence and value

Identify and host giving campaigns throughout the year

Begin tracking and incentivizing corporate volunteerism

Drive community involvement in regional offices

Create a national network of corporate responsibility ambassadors to drive local engagement nationwide

Page 19: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

INNOVATION & PARTNERSHIPS

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INNOVATION & PARTNERSHIPSEncourage innovation in building construction practices through research and development opportunities and by leveraging strategic partnerships

With technology driving changes in building products, logistics approaches, and owners’ operational requirements, we challenge our team to continuously seek out innovative approaches to construction. There is a tremendous opportunity to drive efficiency and effectiveness in our business, and HITT is committed to participating in our industry’s transformation.

VIRTUAL CONSTRUCTION

Our Virtual Construction team functions as a liaison between our operations team, clients, designers, and subcontractors, facilitating all the practical applications of building information modeling (BIM) during projects. As one of the Top 30 BD+C Virtual Construction firms in the country, we are heavily invested in technology that promotes efficiency, collaboration, and increased productivity. Some examples include the use of 3D site logistics, 4D sequencing, virtual mockups, laser scanning of existing conditions, clash detection software, and robotic layout tools. Together, these methods drive precision and efficiency resulting in quality workmanship at all levels.

MIXED REALITY

Since many of our stakeholders and end users are typically not BIM experts, our team continuously explores new methods and technology to drive results. Mixed Reality/Augmented Reality (MR/AR) has the most potential to bridge the gap between design intent and constructability. The use of this technology (including HoloLens) in the context of location awareness immediately eliminates the barrier between the BIM technician and the teams in the field. By leveraging the

proper workflow and technology we have an opportunity to make Virtual Construction available to all stakeholders and eliminate the need for 2D documents. Imagine a future where both paper plans and tape measures are obsolete! Not only could MR/AR eliminate the bottleneck between the technician and the layperson, MR also has other potential downstream benefits including project management and facility management.

INTRODUCING THE CoLAB

Looking to the future, our vision is to drive innovative construction practices to help move the industry forward through the creation of the CoLAB, a building located just minutes from our headquarters. The CoLAB will be a space to work collaboratively with clients, subcontractors, and team members to mock-up, test, and monitor new products and innovative construction approaches used in the many different market sectors that HITT serves. The space will provide mock up bay areas along with cutting edge office space to support meetings and engagement. Scheduled to complete in 2019, we expect the CoLAB to become a center for best practices and advancements that will be shared by the design and construction community.

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20 | HITT CONTRACTING

PROJECT SOLUTIONS

Our Project Solutions team focuses on increasing productivity within organizational processes as well as construction means and methods. The team understands the constraints we face as an organization and industry—providing alternatives for accomplishing our client and community needs. To support organizational efficiency, we partnered with Procore, a project management software designed specifically for the construction industry. This software provides a project-specific collaboration space for internal and external stakeholders and improves visibility and communication throughout the entire construction process. Since implementing the software, HITT has used Procore on more than 2,000 projects. Project Solutions will continue to focus on lessons learned as we look for ways to improve our process and work product.

SUBCONTRACTOR RELATIONSHIPS

HITT is committed to building and growing our partnership with subcontractors. To that end, we employ a full-time Subcontractor Relationships team to provide our subcontractors and suppliers with one point of contact to assist with doing business with HITT as well as to address any concerns and needs. This team also organizes annual Subcontractor Appreciation Days. At this event, HITT team members celebrate and thank our subcontractors for all that they do to make HITT projects a success. Two awards are presented annually. One subcontractor is chosen to earn the coveted Myrtle L. Hitt Award, named after our founders. This subcontractor exemplifies The HITT Way through quality workmanship, excellent service, timely completion, and does whatever it takes to get the job done. We also recognize a Safety Award winner, determined through Predictive Solutions inspection reports and who exemplifies a strong commitment to safety.

Additional opportunities for personalized recognition come through HITT’s annual Featured Subcontractor program, which highlights a subcontractor each month that goes above and beyond the call of duty. A personalized note from HITT’s CEO accompanies each winner’s construction-themed gift basket, and the firm is highlighted in correspondence to HITT

employees through the monthly Subcontractor Bulletin as well as in electronic lobby signage.

The Subcontractor Relationships team also curates the Subcontractor Connection, a quarterly email newsletter that goes out to our more than 10,000 subcontractor contacts and helps to better connect that community with our organization. The newsletter provides an avenue to share information and promote communication. Topics include safety, sustainability, new regulatory issues, HITT news, educational information, events, introductions to HITT team members, and virtual construction.

Goals and Objectives – 2018 and Beyond

Drive innovative construction practices through the CoLab

Distribute white papers on innovative construction practices and encourage the use of technology on projects

Deepen subcontractor engagement through communication and education

Invest in infrastructure that supports organizational and project by project tracking of certified minority- and women-owned businesses

Page 21: Corporate Responsibility Program Overview...headquarters office. To encourage active lifestyles and camaraderie among staff, we also sponsor several intramural sports teams including

GOVERNANCE & INTEGRITY

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GOVERNANCE & INTEGRITYBuild and maintain a transparent Corporate Responsibility program in order to drive consistency, ethical business practices, and risk management through standardized policies, training, and governance

While we’ve built our business on integrity and implemented many governance practices in our 80 years of operation, we see our Corporate Responsibility program as a platform for bringing further transparency to the way we work. We plan to build on this current program structure by providing annual updates on our initiatives and progress, integrating of the requirements of the Global Reporting Initiative (GRI) sustainability reporting methodology into future versions.

GROWTH & REVENUE

HITT experienced tremendous growth both in revenue, employee count, and geographic reach over the past four

decades, and we recognize the responsibility that comes with owning and operating a business of our scale. Our clients, employees, subcontractors, and community count on us to effectively execute our growth strategy—requiring diligent decision making and leadership.

CORE VALUES

Our focus on ethics and integrity , in addition to the way we build and maintain external relationships, —is at the core of who we are. To that end, two required courses on these subjects have been taught at the company for more than 10 years by the most senior leaders at the company.

Strong relationships are the foundation of our business, which is why we take the effort to educate new team members in The HITT Way. The business ethics course is a foundation to the HITT corporate culture and expectations, emphasizing professionalism, trust, and integrity when doing business. While separate, these two courses are inextricably linked, driving home the expectations leadership has for our how we manage our business dealings and relationships with integrity and transparency.

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CODE OF CONDUCT

At HITT, our focus goes beyond simply getting the job done; it’s about how we conduct ourselves while we do it. Our team members’ actions are a direct representation of the company—one that strives to do the right thing with passion, professionalism, and respect for everyone in our industry. The HITT Code of Conduct outlines expectations for ethical behaviors both in and out of the office. Our Code of Conduct is founded on five key principals: always take the high road, respect all individuals, compete with integrity, respect the process, and responsibility for people and planet. All team members are required to acknowledge their awareness of these principals after reading the reviewing the Code.

EQUAL EMPLOYMENT OPPORTUNITY

Being an equal employment opportunity provider is one of the cornerstones of HITT. This applies to our own hiring practices and fuels our sincere desire to partner with socio-economically disadvantaged or small business suppliers and subcontractors across all construction trades. We are constantly honing and instituting various small business outreach programs, including but not limited to conducting “Doing Business with HITT” seminars, implementing corporate small business subcontracting goals, onsite tutoring of diverse subcontractors, and forming Government-sponsored mentoring relationships with disadvantaged protégés.

CORPORATE STEERING COMMITTEE

HITT’s Corporate Steering Committee (CSC) helps maintain consistent leadership, project execution, and risk management practices across the enterprise. The CSC is comprised of the CEO, co-presidents, executive vice presidents, general counsel, and vice president of HR. The group, which is structured to represent all business units, meets weekly and is responsible for providing the company with strategic direction.

ENTERPRISE GOVERNANCE COMMITTEE

The Enterprise Governance Committee (EGC) was established in 2017 to strengthen corporate governance and collaboration amongst our department leaders at HITT. The group meets

weekly and collectively owns the operation of the enterprise – driving excellence, productivity, procedure, resources, and reporting with the aim of marshalling limited resources to create maximum value for the organization. The EGC is made up of each of the department leaders in Corporate Resources, including Preconstruction, Corporate Responsibility, Marketing & Communications, Corporate Business Development, Corporate & Project Accounting, IT, Project Solutions, Human Resources, Safety, and Legal & Risk Management.

RISK MANAGEMENT

Management of risk is essential to the achievement of HITT’s business objectives. On every project pursuit, some amount of risk is inevitable. We created the preconstruction risk management process to formalize checkpoints and facilitate better communication and assessment with key stakeholders to ensure consistency in our approach nationwide.

To mitigate risk associated with large, unique, or complex pursuits, a risk evaluation meeting occurs prior to committing HITT’s resources on the venture. Six criteria have been identified that require project pursuits be evaluated. During

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GOVERNANCE & INTEGRITY

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the risk evaluation the team identifies, assesses, and discusses challenging constructability aspects, potential staffing, financial and other relevant elements of the ownership and design team, contract terms, profitability, and HITT’s potential for winning, all prior to expending resources.

The risk evaluation meeting is the first step in an ongoing risk management process that continues through the preconstruction, construction, and closeout phases. At the conclusion of the presentation and discussion, the CEO makes the final decision to move forward with the pursuit.

Goals and Objectives – 2018 and Beyond

Effectively communicate corporate responsibility efforts through annual reporting

Create and distribute a Supplier Code of Conduct

Issuance of the HITT business model

Initiation of board reporting structure

LEADERSHIP

With new leaders at the helm for HITT, third-generation owners Brett Hitt, and Jim Millar, along with Brett’s father Russell, will advise the company from the newly formed Board, serving as co-chairmen and chairman emeritus respectively. In their stead, three executive vice presidents assume leadership of the firm, with Kim Roy rising to CEO and Jeremy Bardin and Drew Mucci taking on the roles of Co-Presidents. Together, this new era of leaders is poised to elevate HITT and the business of building.

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HITT.COMElevating the business of building.