Permits, Stakeholders, and PublicCommunications

CE 438

21 March 05

Permits

Environmental Assessments

• NEPA, National Environmental Policy Act

• NEPA's basic policy is to assure that all branches of government give proper consideration to the environment prior to undertaking any major federal action that significantly affects the environment

• Must screen all actions

Screening Process

• Is the action excluded by the law?– a few are

• Next determine the significance to the environment– “little handle” concept

Permits

• Construction in the U.S. is highly regulated

• Larger projects often require permits from Federal, State, and Local Agencies.

• These permits are specified in the regulations and usually require certain details be provided before work is allowed to proceed.

• They often have stipulations that require work be done in a certain manner, or at a certain time.

• Permits often require a fee.

• Permits often require a public notice and comment period.

• Both the permitting agency and those who are likely to comment are important stakeholders in the project.

• Some permits are “routine”

• Some are not routine

• Many delays and problems in major projects are due to “permitting.”

• The Fort Knox Gold Mine required over 300 separate permits.

• Need to enumerate the permits early in the project

• Often in the concept stage

Most important

• Who in the project is responsible for getting which permit– Owner– Designer– Contractor

• Often it is the Owner, but with the Designer’s support.

Examples• But first: (It is better for your morale if you

consider the important purpose that is driving the regulation and permitting process rather than regarding the regulators as “obstructionists that do not want the project built.”)

• In the U.S. bribery is uncommon in the permitting process.

• Politics is common, but (Perkins opinion) its effects are exaggerated by people who “have not done their homework.”

Local Government

• Planning and zoning• Building Permit

– Often for each trade: general, plumbing, electrical– Fire protection may be separate

• Block roads• Transport heavy, very large or dangerous

materials over local roads (State permit will also be required)

• Utilities– Temporary and Permanent

State Environmental

• Wastewater and water (out-of-town projects)• Air quality for boilers and generators (both

temporary and permanent)• Waste disposal plan• Oil pollution control• Stormwater control• http://www.state.ak.us/local/akpages/

ENV.CONSERV/permits.htm • http://info.dec.state.ak.us/sps/document.asp

State Lands Department

• Permit to cross state lands

• Temporary roads

• Permanent, need “right of way”

• Cut timber or clear land

• Burn wood

• Materials mining (gravel)

State Fish and Game

• General permit

• Permit to cross streams

• Permit for permanent culverts and bridges

State Labor

• Blasting

• Elevators

State Health

• Radiation

State Transportation

• Large or Heavy Loads

• (Breakup restrictions)

Federal Lands

• Access, Right of Way, etc. on Federal Lands

• Minerals, including gravel and soil, for construction

Federal Environmental

• Some are same as state

• Dredge spoil

Environmental Assessments

• NEPA, National Environmental Policy Act

• NEPA's basic policy is to assure that all branches of government give proper consideration to the environment prior to undertaking any major federal action that significantly affects the environment

• Must screen all actions

Corps of Engineers

• Any change to “navigable” river– dock, bridge

• Dredging

• Work in “wetlands”

Federal Aviation

• Structures over a certain height

• Near airports

Federal Communications

• Temporary radio

Take home message

• All these take TIME.

• Often resources– initial designs– data, number of people in a construction camp– schedule

• When the fish are migrating?

Planning

• Acquisition of the proper permits must be accounted for in the project plan.

• Often a task for each permit should be in the CPM

Changes

• Get permit for 200 man camp.

• Later it must be enlarged to a 250 man camp.

• Now need to review ALL the permits– Which ones need to be modified– If this is a major modification, you may have to

go through the entire public review process.

Is this may “cutting red tape” or cutting the ribbon at the opening

of his project?

Projects and Stakeholders

Key Concept

• “You must accept as fact that you must manage the project from an overall perspective of all the stakeholders – not just the customers and the organization.

• “Manage” does not mean you can or should do everything all of the stakeholders desire, but you must consider their desires.

Who are stakeholders?

• Anyone who is interested in project and especially,

• Anyone who can harm a project

• Cause your design to change– At the last minute

• Organize for explanation, but there is no real organization, it is chaos.

Primary Stakeholders

• Have legal or contractual obligations to the project team.– Users

– Suppliers, Subcontractors

– Unions

– Shareholders

– Creditors

– Employees

– Government Agencies

Secondary Stakeholders

• Have strong interest in project,• But not legal tie

– Public– Competitors– Tourists– Media– Families of primary– Local community

• Relations and communications with stakeholders must be appropriate

• Not all are the same

• Expectations

• More taxonomy

Public Relations

• Public Relations versus

• Risk Communications

From Sandman

Fanatics

Involved

AttentiveEveryone else

• “Public Relations” is only helpful with the “attentive”

• Risk Communications and special project communications is only helpful with the “Involved”

• Fanatics will not be swayed by whatever• Uninterested and unconcerned will not be

swayed by public relations

Planning Steps

• Identify Stakeholders

• Understand their interest

• Measure their interest

• Predict reaction

• Identify effect of reaction on project

Outline

• Meet the Stakeholders so they learn your face– Leave contact information, get theirs

• Seek out contentious issue– They will arise sooner or later

– Don’t get surprised

• Use caution in defining scope, budget, timing• Never promise what you cannot (personally)

deliver

Risk Communications

Why Risk Communications

• Scientists and engineers frequently get into trouble when communicating with the public.

• The most troubling situations usually involve high concern of the public coupled with low trust of the communicator.

• Risk communications techniques are needed to communicate effectively in high concern, low trust situations.

Public Trust

• The public trust is almost always low for representatives of the polluting companies or their consultants.

• It is frequently low for regulators as well.

• It usually low for the media, as well.

Seven Steps in Effective Risk Communication

• Accept and involve the public as a legitimate partner

• Plan carefully and evaluate your efforts

• Listen to Public’s Specific concerns

• Be honest, frank, and open

• Coordinate and Collaborate with trusted sources.

Seven Steps in Effective Risk Communication, cont.

• Meet the needs of the media

• Speak clearly and with compassion.

Accept and involve the public as a legitimate partner

• Right to participate, if it affects their life, property, values

• Involve them early

• You may work for the public, but that’s not the same

• Difficult for technical experts to accept non-technical people as equal partners.

• Goals:

• Informed public that is involved, interested, reasonable,thoughtful,solution oriented and collaborative.

• If public is surprised and angry, resulting will be difficult

Plan carefully and evaluate your efforts

• develop strategy and plan early

• What are our objectives?– provide information– motivate individuals– stimulating response to emergencies– resolve conflict

• Evaluate strengths and weaknesses

• Look at sub-groups in audience– each has its own interests, needs concerns

priorities preferences and organizations

• Use spokespeople who are good

• Pretest, rehearse your message.

Listen to Publics Specific Concerns

• Listen, do not assume you know what people are thinking

• Let all parties who have a stake be heard

• Do's and Don'ts– Handouts from Corps of Engineers,

PROSPECT

Frank, Honest, and Open

• Trust and creditability are your most important assets.– Difficult to obtain– once lost, can never get back fully

• Don’t expect to be trusted– If you don’t know or are uncertain, say so– Get back to people with answers– Admit mistakes

Frank, Honest, and Open, cont.

• Disclose what you have

• Do not minimize or exaggerate risk

• Discuss uncertainties, strength and weaknesses

• Identify worst-case and range of estimates.

Coordinate and Collaborate with Other Credible Sources.

• Inside and outside your organization

• Communicate jointly if possible

• Avoid pubic conflicts with other credible sources

• But, acknowledge real differences.

Meet the Needs of the Media

• Media are prime transmitters• Meet their needs

– Respect deadlines– Graphics for TV– Printed report for newspaper

• Try to establish trust• (But don’t trust, they are looking for

conflicts to report.)

Speak Clearly with Compassion

• Use simple non-technical language

• Avoid distant or unfeeling language about death or injuries.– Any illness or death is a tragedy for someone

• Be aware of public’s emotions

• Remember– Some will not be satisfied

Codes and Standards

• Codes

• Standards

• Specifications

Codes

• Codes are the law.

• Written by a professional organization

• Adopted by a government

• Government will often add modifications to code.– To suit local conditions

Design Review

• Code will often specify review of design by local official.

• Most code provision call for “at least” something

• You are free to do more

• Most codes are conservative– protective of life and safety

• But this not always true

• http://www.dps.state.ak.us/Fire/asp/

Standards

• Recommendations by a professional group

• Often adopted by government

• Or “referenced” in code.

• Which makes them the law as well.

Standards Setting Bodies

• ASTM

• ASME

• ACGIH

• NFPA

• AASHTO

• API

ASTM/ASME

• American Society of Testing and Materials

• http://www.astm.org

• American Society of Mechanical Engineers

• http://www.asme.org

• Ethical problems, resolved

• If the standard is relevant, it is a minimum requirement.

Problems

• So many standards, that are changing all the time

• Hard to keep up

Project

• Owner might set minimum standards for the project

• Cite for designer

• “All welding and radiography on the project will meet API standards.”

• Or cite international standards– often use U.S.

Specifications

• Standard Specs– CSI– http://www.csinet.org/about.htm – http://www.csinet.org/s_csi/docs/9400/9361.

pdf– Corps of Engineers– http://www.ccb.org/docs/ufgshome/UFGSToc.

htm

Project

• Project owner may require a standard specification format, that all designers must use.

Problems

• Conflicts: One contractual document seem to contradict another.

• Paradox: The more definite you are, the more voluminous the specifications, the greater the chance of a conflict.

• Plans with specifications• Specifications with each other• Specifications with its referenced standards

Conflicts

• Conflicts may result in changes

• Public construction, contractor must bid in the least burdensome interpretation.

• Will always want more money if there is a change.

Resolution

• Precedence clause of contract may help

• Most contracts have such a clause.

Project Specifications

• Large projects will often adopt standard specifications for the project.

• Project Style Guide– English, report forms– aboveground – above-ground– above ground

Take Home Message

• Give attention early to codes and standards for the project.

• Cite them in contracts

• Standard Specifications can improve communications and reduce errors, if used properly

Health, Safety, and Environment

1970 Federal Occupational Safety and Health Act

Each employer shall1. Furnish to each of his employees employment

and a place of employment which are free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees; [AND]

2. Comply with the …standards promulgated under [this] act.

• The first is the “general duty” clause.• Employers can be fined under this clause,

even if they are obeying all the printed regulations.

• The second requires the employer to follow all the detailed regulations promulgated by the Occupational Health and Safety Administration (OSHA).

• Note the law says, “…free from recognized hazards that are causing or are likely to cause death or serious physical harm….”

• Later the courts implied the word “reasonably free” rather than what the law say, which would mean “absolutely free.”

• Further, “reasonably” had to be consistent with the type of job.

• One would expect more injuries in construction and mining than in retail sales or office work.

Example of Regulations

• http://www.access.gpo.gov/nara/cfr/cfr-table-search.html#page1

• http://www.access.gpo.gov/nara/cfr/waisidx_03/29cfrv8_03.html

• Safety Nets 1926.105 translated– 29 CFR 1926.105– Give you an idea of the detail provided

OSHA

• OSHA is in the Department of Labor• It has promulgated many regulations• Whole series of regulations are devoted to

certain traditionally dangerous industries: construction, shipbuilding, and so on.

• Plus “general industry” standards• Mining has been regulated, for historical

reasons, in a separate agency, MSHA

General safety and health provisions 1926.20

• (b) Accident prevention responsibilities. • (1) It shall be the responsibility of the

employer to initiate and maintain such programs as may be necessary to comply with this part.

• (2) Such programs shall provide for frequent and regular inspections of the job sites, materials, and equipment to be made by competent persons designated by the employers.

• (3) The use of any machinery, tool, material, or equipment which is not in compliance with any applicable requirement of this part is prohibited. …

• (4) The employer shall permit only those employees qualified by training or experience to operate equipment and machinery.

Landmark Law

• Before 1970, some states had strong regulation of worker health and safety

• These were often the wealthier, industrial states that had strong labor unions

• After 1970 the less industrial states could no longer “compete” for new industry by encouraging a disregard of worker safety.

States

• States are free to have their own occupational safety and health laws

• If their laws are “no less stringent” than the federal laws, the states can apply for federal funding of their programs

• The state then enforces its own laws

• Even then, the federal could be involved

Owner and Designer

• The Owner, Designer and others are responsible for the safety of their own people, each for their own employees.

• The contractor typically has many more employees, who are performing more dangerous work, so the contractor is usually the most important entity in project safety.

Multiple Contractors and Subs

• If a subcontractor has a safety violation

• Both the sub and the prime can be fined

• OSHA will try to answer the question, “Who had the authority to prevent this accident?”

• For jobs with multiple primes, the owner will often appoint one prime as responsible for overall safety

• Occasionally the designer or project manager will be assigned that duty.

• Since OSHA only deals with “employers” and their duty to “employees,” owners and designers cannot be fined by OSHA.

• The designer may be sued by injured workers

Major Projects and Owners

• All owners of major projects– Oil Companies– Corps of Engineers

• Have strong, proactive, safety programs• All have standard contract clauses that

permit them to terminate unsafe contractors and contractors’ employees– These are used when necessary

• Note conflict– The owner want the contractor to supervise his

own people– this leads to maximum efficiency

Major owners

• Require all contractors submit a safety and health plan– Owner will review

• This is an OSHA requirement for many types of work, as well.

Corps of Engineers

• Has a Safety and Health Requirements Manual

• http://www.usace.army.mil/inet/usace-docs/eng-manuals/em385-1-1/toc.htm

• Which distills all the OSHA regulations and emphasizes certain items that are special to the Corps.

• Requires contractors to submit and• Accident Prevention Plan.• Has administrative requirements central to

the Corps enforcing the manual.• After administrative requirements there is a

list of special plans that the contractor must submit as applicable. (These are in your book.)

A major corporation, Xerox

• Example of a major corporation’s safety effort.

• At any given time, corporations of this size have several major construction projects and many smaller ones.

• http://www.xids.com/xrxcontr/home.html

• Following are slides from that site.

Xerox

Contractor Safety Process

How to geton the approved contractor list

I’ve been awardeda Job…Now what?

ContractorSafety

Who Do I Call?Who Do I Call?

ContractManagement

GlobalPurchasing

EXIT

Contractor Approval

Xerox Asset Protection ProcessXerox Asset Protection Process

InstructionsInstructions

ExitExit

Is there a need?

Submit Financial

Documents

TerminateApplication

Acceptable

SignConfidentialDisclosure

SubmitSafety

Documents

Acceptable

Send AcceptanceLetter

Place Contractor on

Approved List

No No

No

Yes

TerminateApplication

Yes

No

AnnualPerformance

Review

Yes

Back to

Main Slide

ContractorSelection

SubmitProject Safety

Plan

DocumentsAcceptable

ContractorSafety Orientation

WorksiteInspections

303Evaluation

Final Acceptance

Yes

No

Xerox Asset Protection ProcessXerox Asset Protection Process

InstructionsInstructions

ExitExit

Back to

Main Slide

The following is an interactive presentation about the Contractor Safety portionof the Xerox Asset Protection Process. Assets are buildings, equipment, raw materials, and people. Our goal is to minimize the risk to losses of these assets by implementing a global process for proper planning and maintenance.

Follow the flow chart to walk through each process step. Simply click on the box in the flow chart for more information. Then click on the slide to bring you back to where you started. There are also some slides with highlighted text. This text will provide you with further information on the highlighted subject.

Xerox CorporationAsset Protection Process

The project manager for Xerox is responsible for the selection of contractors to perform the work. This is typically accomplished by bidding. Any contractor awarded a contract to perform work at Xerox must be on the approved contractor list.

Project SafetyContractor Selection

Prior to the start of work, all contractors must submit a sitespecific project safety plan. This plan should identify allpotential hazards of the specific work to be performed and provide a detailed description of the work activities focusing particular attention to safety measures employed on the job. An example of a project safety plan is located on the contractor safety website at :www.xids.com/xrxcontr/

Project SafetySubmit Project Safety Plan

The project safety plans must be accepted by the local Xerox contractor safety group prior to the start of work. No work will be allowed to begin without such acceptance.

Project SafetyDocuments Acceptable

Every employee of an approved contractor must complete a one hour Contractor Safety Orientation prior to beginning work at Xerox and every two years thereafter.

This orientation is designed to give the contractor a generaloverview of the safety expectations while working on Xerox property

Project SafetyContractor Safety Orientation

The local contractor safety group performs worksite inspections toverify that the contractor is working in accordance with the Xeroxsafety requirements. A “defect” is recorded for every deviance from the requirements. This defect is identified and mailed tothe contractor’s home office. The home office must submit a response indicating how the defect was corrected and the actions for preventing it from reoccurring.

Project SafetyWorksite Inspections

When the facility or equipment is ready to be turned over to Operations, a final acceptance evaluation is required. This final acceptance is commonly referred to as the 303 process.

The process requires safety and operational controls to be in placeand tested prior to receiving final acceptance. The 303 process is described in further detail in the corporate standards.

Project SafetyFinal Acceptance Evaluation

When all of the action items from the final acceptance evaluation have been completed the project is ready to receive final acceptance and turnover to operations. A record of final acceptance should be maintained by the project team, safety representative and operations. The facility/equipment is now considered to be an existing asset and is subject to that portionof the asset protection process.

Project SafetyFinal Acceptance

Brian AyersSafety Engineer800 Phillips RoadBuilding 205-99FWebster, NY 14580Tel: (585) 231- 8482Fax: (585) 422-8217Brian.Ayers@usa.xerox.com

Contractor Safety

John Hughes800 Phillips RoadBuilding 304Webster, NY 14580Tel: 422 - 8536John.Hughes@usa.xerox.com

Xerox Contract Management

David Allen800 Phillips RoadBuilding 205-99BWebster, NY 14580Tel: (585) 265-5458 David.Allen@usa.xerox.com

Global Purchasing

The contractor approval process assures that Xerox hires reputablecontractors with good safety records. Contractor safety is a significant piece of the Asset Protection process. Construction, renovation, and maintenance activities have a high potential for causing injury or asset loss. Xerox takes a proactive approach inevaluating contractor performance.

The contractor approval process is the coordinated effort of the Contractor safety, Global Purchasing, and Contract Managementgroups.

Contractor Approval

Global Purchasing and Contractor Safety reviews the contractorperformance annually. Each contractor is given a status as follows:

Acceptable: Contractor remains on the approved listProbation: The contractor has shown poor performance and is given one year to improve.Unacceptable: The contractor is removed from the approved list

Contractor ApprovalAnnual Performance Review

Project Labor

Day 5

U.S. Law

• Taft-Hartley

• Grants employees the right to “organize”– form a labor union

• Craft unions vs. Industrial unions

White collar and professional

• Many federal, state, and local government workers, including white collar and professional workers, belong to unions.

• Rare in private enterprises.

Construction Unions

• Construction unions are craft unions– Electricians– Plumbers– Equipment Operators– And many others

• Each union maintains a “hiring hall.”

• Employers must sign a contract with the craft union in order use the hiring hall.

• Contracts are typically for three years.– Employer cannot hire workers other than those

“referred” by the hall.

• Makes the union the exclusive agent for the workers.– It would be breach of contract for employer to negotiate

with union employee directly.

• Contract will establish classes of workers and all workers within the class must be paid the same wage.

• Contract will specify “work rules”– limitations on tools and work practices– limit paint brushes to 4” (10 cm) wide

• Contract will designate certain employees as special representatives of the union– “Union Steward”– Must be give preferences, always on the job site– Time off work to attend to union activities.

• often paid

• Contract will have a “no strike” clause

• However– “slow downs” are not strikes

Many Crafts

• A large project will require labor that belong to 15 or 20 different unions.

• Any one of the unions might stop work if their contract expired in the middle of the project– Could make exorbitant demands.

– Other unions, seeing their contracts will expire during the project, will not work either

– Ignore their “no strike clause” or “slow down.”

• Also, seeing the large project coming, one craft might conspire with its contractors– Like sub-contractors on the project– To inflate their wage demands– All the local union contractors will pay the high

rate of pay– But they all the bid the same work, so their

competitive position stays the same.

Work Non-union

• Labor Strife• Workers will “picket” the job site• Other workers will “honor the picket line”

and not go to work – solidarity• Some workers will cross the line• Fights and reprisals “picket line violence”• Charges of “unfair labor practices”

– special meaning in labor law

• 30 years ago there were many regions of the U.S. where all the major construction work was union.– Contractor would not attempt to work non-union

– Fear

– Competition, all bidders have the same problems

– Contractors who have good relations with the union are at a competitive advantage.

– Union contractors would support unions against non-union contractors

Things Change

• Today much work is non-union, more often

• “Open Shop”

• Some subcontractors will be union, some not.

• Union and non-union get along – usually

• Generally a shortage of skilled labor

Union Victories

• OSHA– Strongly supported by unions

• Davis-Bacon– Sets minimum wages for certain work for the federal

government.– All construction-type work is covered by Davis-Bacon– Minimum wage is usually the union wage for the

region.– Follow union guidelines for crafts.– Most states have similar law

Union issues

• Unions do not admit all qualified• Carefully control the number of workers in their

craft• If demand exceed supply, local union will attempt

to temporarily import union workers from other areas.

• May let local people work, but make clear they are not members and arrangement is only temporary

cont.

• The union contract may permit the employer the right to “call out” certain workers– Prior employment– foreman and supervisors.

• Some unions do not permit either• All who “work with tools” must be

dispatched by the union.

• Corruption is an issue in some regions of U.S.

• Labor leaders extort bribes and fees in exchange for “labor peace”

• Most regions this is not a problem

Project Labor Agreement

• The owner (usually) negotiates an agreement with all the unions that will be involved in a project, before the project is let out to bid.

• In turn for agreeing that the project will be 100% union, the owner will get some concessions.

• Wages, overtime pay, transportation allowances, etc.

• Owner wants agreement early• Each unions wants to delay agreement, hoping it

will get better deal by “holding out.”

Strikes

• Most construction contracts grant excusable delays for “strikes.”

• Since the union contract always has a “no strike” clause, strikes are unusual.

• Unhappy union will resort to slowdowns– sickouts

• Better, “strikes or other concerted acts of workmen.”

Strike or Other

• Burden is on owner, project will be delayed• Contractor must pay his overhead, but most costs

are suspended while the strike is on.• What if only one of the crafts slows down?

– When does it become critical, CPM

– Rogue union will be aware when it can hurt the owner.

– Use the owner to force the contractor to some concessions

– Contractor will then want more money from the owner.

Major Projects without Unions

• A major project will distort local labor supply.

• Without PLA, different contractors may compete with each other for labor– bidding up the wages– Cannot “conspire” to reduce wages

• Owners are reluctant to interfere with contractor’s wage negotiations.

International Labor

• Always wise to use as much local labor as possible

• Locals may oppose the project to begin with

• Locals resent foreign workers

• Most countries restrict importation of labor

Use of Locals

• Locals are often much cheaper on a per manhour basis

• Do they have the skills?

• Work ethic?

• How much training is required?

• Language barriers

Ethnic Issues

• Not all “locals” are the same ethnic group

• Difficult to tell what may happen

• Local partner is often required to navigate through these minefields.

Project Management

• If you are the owner

• Do not assume “Labor is the contractor’s problem.”

• Anticipate labor supply, costs, and problems in your project planning.

• Deal proactively with project labor– but be careful

Effects on Project Management

• Wages and labor agreements might not be known, when project budget is determined