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Presidents’ Perspectives

In this special feature, the National Insulation Association’s (NIA’s) current President and President-Elect offer their insights and views of the insulation industry from their different industry segments. Darrel Bailey has been Senior Vice President with Performance Contracting, Inc. for 38 years and has a wealth of knowledge from his decades in the industry. This union contracting company has been a member of NIA since 1966. Darrel’s motto has been “Learn, Lead, Share” during his 2017–2018 Presidency, as he encouraged all industry members to pay it forward and enhance the industry through knowledge and participation. Dan Bofinger is NIA’s incoming President for 2018–2019 and shares his perspective as a distributor/fabricator of insulation materials. As Regional Vice President, East of FBM-SPI (a member of NIA since 1984), Dan has served the industry for 30 years and will take the reins of NIA with the motto of “Making a Difference” and a goal of making a lasting impact for the industry.

Darrel Bailey: “Top priorities for 2018 for our industry should be to continue paying it forward through the training and mentoring of our future generations!”

The overall market in the last 12–18 months was up 10–15%! The commercial, industrial, power, and process markets were all strong. Some of the highlights were the increase in the gas-fired power market, replacing some of the mothballed coal-fired plants, and an uptick in oil-related projects. Some road bumps were the shortage of experienced labor to perform this work and some shortages in mineral wool supply.

I think that recent legislation will positively impact us by bringing more jobs back to the United States, which will improve the overall economy.

My expectation for the next 12–18 months is for continued growth at around the same rates as the last 12–18 months. We will continue to be challenged by a shortage of skilled labor and experienced supervisors, project engineers, and managers. The shortage of skilled tradesmen/tradeswomen is affecting both union and merit contractors. We believe that the shortage is slowing construction starts—in some cases up to a year later than normal. The industry is already doing more modular construction offsite in a location where there is more available labor (though using less labor than they would onsite due to accessibility), lack of congestion, and protection from the elements.

Technological advancements continue to improve the efficiency of our field forces. For example, the implementation and usage of hand-held smart tablets and intuitive software to track timecards, labor control, and document field-change orders; and the development of pre-task plans for the day’s work. We have found our field forces to be very accepting as they experience the time savings in their daily routine.

I find that the young guns can teach us how to be more efficient through the usage of computers, software, and technology in general. The older, experienced contractors can teach the young guns the art of constructability and coordination through the relationships they build with other trades on the job and the craftsmen we employ. It all starts with getting the older generation to step up first and pay it forward to the next generation. Once the old guys step up, the young guns reciprocate.

Learn, Lead, Share

We are excited about the progress we are making with a better understanding of the needs and motivation of our young employees.

Succession planning and leadership training is a must for all companies, and it needs to take place at all levels. It can take the form of everything from informal to formal mentoring, to college-type classes on leadership skills and attributes.

We continually work at improvements in recruiting top talent at universities, community colleges, and vocational schools. It is a very competitive environment, but it is crucial to commit to recruitment efforts while these future workers are still in school and deciding on a career path.

For those of us that have been involved in the industry for decades, it is important to be a “knowledge bank” for newer workers. Passing on the skills and knowledge we have amassed during our years in the industry is a crucial part of developing the next generation of leaders. We can also use this experience to develop top-level training courses that meet the needs of those joining the workforce, help perpetuate best practices, and meet industry needs.

Closing Thoughts

When looking at the long-term success of an insulation system, there are several factors that must be taken into account. An insulation project’s success is based on having the proper, updated specification for the thermal, environmental, and abuse resistance of insulation and jacketing products. Design of piping and equipment must also take the clearances for the thickness of the entire installed insulation assembly into consideration. Additionally, the system’s long-term survival and efficiency—as well as the prevention of corrosion under insulation—is dependent on regular maintenance of the complete system. Properly designed, installed, and maintained insulation will provide significant energy and financial savings over the life of the system, as well as decreasing the chance of corrosion or other system issues.

“NIA plays a critical role in supporting the industry and helping to increase the proper use of insulation by publicizing its benefits for optimal system operation and resource conservation. For insulation industry members, it offers an incredible number of resources and opportunities that can help improve your business. We are a large company and their networking opportunities still helped us to grow our business. You might think you already know the contacts you need, but a couple days out of the office at NIA’s meetings can really grow your business. If you’re a part of the insulation industry and are not a member of NIA, you’re missing out on innumerable opportunities that can help your business thrive.”—Darrel Bailey

Dan Bofinger: “Looking ahead, I think veteran industry professionals have the perfect opportunity to leverage their knowledge and experience to make a concrete difference for the incoming generation of workers and lay the groundwork for the future of the industry.”

The last year and a half showed a continuing construction recovery. Commercial construction typically lags the residential construction by 12 to 18 months, so we saw growth during this recent 12–18-month period that we did not see previously due to the housing crisis. The industrial side took a different turn as the focus went away from oil and coal and turned toward natural gas. Power generation and building an infrastructure to export surplus natural-gas products provided good project work. As more money went into our economy and construction projects grew, the pace accelerated as well. Product availability was good, with a few exceptions, so we were able to service the growth demands.

I believe the current construction cycle will remain strong in 2018 and into 2019. Despite the improvement in activity, I still see quite a bit of price pressure and demand for alternative ways to reduce cost. As a distributor, we are challenged by new regulations imposed on the trucking industry. The electronic logs that enforce the regulations require us to plan differently today versus a year ago. Once a project gets underway, the pace of construction and service demands appear to be accelerated. The business today requires you to react quickly and efficiently, but we certainly welcome the challenge of a growing economy.

So far the current administration appears to have influenced the markets and spending related to construction and manufacturing. I can’t speak for the impact or influence on construction that the tax bill, tariffs, and immigration policies will bring, but we are pleased to see the positive economic trend in the last several months.

Technology Improvements and the Specification Process

Like most trends or change, technology has its positives and negatives. Technology has certainly made data analytics much easier and faster, but on the downside it creates a demand for immediate information and answers. The construction cycle seems to move faster and faster. The time from the engineering stage, to the bid stage, to construction seems to get more and more compressed. Many request for quote (RFQ) inquiries require a 24-hour, or often less, turnaround time. The time allotted for information, material delivery, or contract completion continues to get compressed.

One change that could have a significant impact would be if the engineering and specifying communities improved the quality of mechanical insulation specifications. A well-written specification can accelerate the bid process and improve the overall construction process by leaving little for interpretation. A solid specification will also ensure the mechanical system will work properly and efficiently for many years. Mechanical insulation seems like such a small part of the overall cost of a building project, so sometimes it may be poorly specified or possibly be “de-value engineered” to a cheaper, lower-performing, product.

Unfortunately, an improperly specified insulation system can lead to energy losses or system inefficiencies, causing larger problems. NIA is developing a certified Thermal Insulation Inspector Program that could help plant/facility managers and owners ensure that the insulation has been installed properly per the specification. This program is certainly something the engineers, specifiers, and building/plant managers and owners need to know about to help them plan for an improved future.

Workforce Issues

We are currently in an “up” cycle in construction activity. I want to be sure we remain well positioned with people and resources to service the demands of this cycle. It remains a competitive environment,  so we must be well equipped to execute efficiently and profitably.

In regard to the changing labor pool, we have made adjustments by recognizing the expectations of people coming into the workforce today. Younger workers typically have a higher skill level and a shorter learning curve when it comes to technology. Overall, Millennials are a confident group that welcomes challenges. As a company, we have challenged some individuals by advancing them into management positions early in their working career; the results so far have been exceptionally positive. Overall, I find younger people today focused and hard working. They often accomplish things in non-traditional ways and they demand a good experience in the workplace. Not too long ago, the more senior workers were somewhat apprehensive of Millennials and their style of work. That uneasiness has dissipated and the interaction between the 2 groups is much more cohesive. This is certainly a welcome change that will benefit the industry as Baby Boomers continue to retire.

Closing Thoughts

Mechanical insulation is an old but proven technology. The industry has a lot to offer to anyone looking for a career that is self-sustaining and employs a group of the friendliest and most passionate professionals. My career in this industry has spanned over 30 years. It has kept my interest, provided for my family, and never required me to focus on a career change. I hope the actions we are taking at our company will help to impress these benefits on the new generation of workers, and help them make their own mark on the industry.

“NIA is the voice of all mechanical insulation constituents. The association addresses the needs of contractors, distributors, and manufacturers, as well as engineers, architects, and specifiers. I would encourage everyone to utilize NIA’s resources to improve your business and our industry through the networking, training, and advocacy that NIA has provided for so many years. NIA is the one organization that can collectively address the needs of our industry and improve our value in the construction supply chain.”

 

 

 

Copyright Statement

This article was published in the April/May 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

NIA Sites > Insulation Outlook Magazine > Global

Tips from an Insulation Contractor: Top 10 Ways to Keep Your Project on Time and on Budget

There are many factors that can affect the success of a project. Following are 10 of the most common issues experienced during insulation installation and solutions to ensure they don’t negatively affect the project. These issues tend to crop up repeatedly, so it is important to continually reinforce these lessons to project teams. By avoiding these issues, you can help ensure your project meets the planned deadline and budget.

1. Problem: Scheduling and Sequencing of Work

One common issue is the lack of a schedule or the use of a schedule with inadequate time allocated for insulation activities. It is fairly common to have partial releases on a site when part, but not all, of a section is completed. This can hinder the efficiency of work, as well as causing multiple trades to be working in an area at one time—leading to slower work schedules or the need for repeated visits to a part of the project. Staying on time is also critical—work that is released late can cause increased costs because workers might not be able to access the area they need without working over or through other trades.

Solution

These issues are mostly avoidable if those managing the project are aware and take appropriate action. Solving these problems with the general contractor or mechanical contractor as or before they occur, rather than waiting, can ensure the overall project stays on budget and is successful. Proactive communication prior to the start of project is a must. Additionally, it is advisable to hold weekly project status meetings to discuss any issues and to communicate the current state of the project. If there are delays, it is incumbent on the insulation contractor to provide notice on cost impacts as soon as possible or per contractual requirements.

2. Problem: Access

Failing to include a clearly defined access plan and the associated costs in the bid has a huge potential financial impact. Many times scaffolding, man lifts, and other forms of access to work areas are underestimated or not clearly enumerated in the request for proposal (RFP) or a contractor’s proposal. Once again, cost overruns due to underestimated scaffolding or lift costs as well as loss of productivity are likely to occur when there is not an agreed-upon access plan with the client and the associated costs are not contained in the proposal.

Solution

During the bidding process, make sure the insulation contractor qualifies and clarifies access plan requirements and costs. This must be agreed upon and part of the contract document. Prior to mobilization, it is helpful to meet with the insulation contractor to review the access plan requirements. It should also be revisited during weekly project status meetings.

3. Problem: Damage to Installed Insulation Systems during Construction

Insulation being walked on and damaged by other trades during construction is a constant
problem on projects. This may lead to conflict on the site if there are disagreements about who caused and is responsible for the damage. It can sometimes fall to the insulation contractor to correct all damage to the system during construction. This frequently results in a contentious and costly issue, often near the end of the project.

Solution

Damage to insulation systems is likely to occur on any jobsite. The issue can be mitigated, however, with proactive and constant communication between the trades. It is advisable to bring up the issue at weekly meetings and ensure there is an awareness down though the field level. For the insulation contractor, it can be useful to create a damage-to-work document complete with pictures and a description of the damage. This document should be updated weekly (must be a cumulative, living document) and transmitted to the general contractor or mechanical contractor each week, with cost estimates to repair the damaged items. Damaged insulation compromises the integrity of the system, and even opens up the potential for system failures. Being proactive about preventing damage to the insulation will save the building owner money down the road.

4. Problem: Material Storage

Onsite material storage that is not in close proximity to the work area can be costly. Many times cost overruns for material handling and loss of productivity occur because these costs aren’t accounted for at bid time or there isn’t a good project logistics plan in place from the start. Remember, if the installers don’t have the materials, they can’t put them on, potentially leading to project delays. Another potential issue is weather—if the materials aren’t stored in a protected area, they can be at risk of damage from rain or high winds if they aren’t secured. If the insulation becomes wet, it may need to be reordered incurring additional costs and delays.

Solution

Make sure you receive detailed material storage and laydown requirements for the project in the contractor’s proposal. Laydown requirements refer to a specified place where material will be stored. This must be agreed upon and be part of the contract documents. Costs for this function must also be included in the contractor’s estimate. It is important to ensure this is clear prior to mobilization, and to abide by the terms and conditions contained in the contract.

5. Problem: Interferences

Many times there is a lack of adequate room to install the specified insulation thickness. This can be caused by a design that doesn’t leave enough room for the required insulation thickness or other trades installing parts of the job out of sequence, lessening the available area for insulation. Unfortunately, sometimes the insulation’s thickness is modified to fit the available space. It is never recommended to allow this, as it could cause performance issues with the specified insulation system down the road. Modifying the system without engineering approval could lead to costly rework requirements. Additionally, the field modifications increase the cost of installation by slowing productivity down on the initial installation. Finally, a system without adequate insulation thickness may not run as efficiently, leading to higher operating costs down the road. Other interferences include physical barriers such as temporary hangers. The insulation contractor will have to work around the temporary hanger and leave space for where the permanent hangers will go, which will necessitate multiple run-throughs and can increase project costs.

Solution

The first step in preventing this issue is for the mechanical engineer to know the pipe size and design enough room for the appropriate amount of insulation. It is particularly important to design enough space for valves to be insulated—this tends to get overlooked and can lead to system failure if the valves do not have sufficient insulation. Staggering the valves can be one option, as it can be hard to fit the proper insulation around valves if they are in close proximity. At bid time or prior to the start of the project, it is advisable to meet with the mechanical contractor to discuss space requirements needed for the total finished specified insulation system. This should be followed up with a written document detailing the meeting. The insulation contractor should notify the owner and general contractor that the lack of appropriate space requirements may result in an insulation system that cannot be warranted. Insulation systems should not be modified from required thicknesses due to lack of appropriate space requirements. This may result in insulation system failure as well as costs impacts to the client. Solving these issues upfront will save time and money. In terms of other interferences, such as temporary hangers, proactive communication between the trades responsible for these systems can help them establish a schedule to minimize repeated trips and keep costs under control. These types of issues should be discussed in initial planning meetings and revisited in weekly meetings.

6. Problem: Lack of Proper Workflow (Jumping Around)

Incomplete releases of work are common and always quite costly to the insulation contractor and ultimately to the owner. They often cause multiple trades to be working in one area at the same time, and also necessitates multiple run-throughs by different trades on site, which can cause work to go more slowly. Normally, they are a result of a lack of good scheduling or when a client—who could be the mechanical contractor, general contractor, or owner, depending on the project and who the insulation contractor is working for—gets behind and must rush to get back on schedule. This can be disruptive to overall progress and lead to stalls in progress, causing potential delays to the overall schedule.

Solution

During the proposal process, discuss and clarify what is expected regarding minimum expected work backlog (percentage of effective work available) for the insulation contractor prior to mobilization. The general contractor, building owner, or mechanical/
plumbing contractor should sit down with the insulation contractor and come up with a schedule to minimize delays caused by improper workflow. It can be helpful for the insulation contractor to provide weekly reports to the client as to the percentage of available work released ahead, as well as completed, by the contractor. Cost impacts due to jumping around should be given as soon as possible or in conjunction with contract requirements.

7. Problem: Leaving Welds-Fittings-Hanger Points Open

Many times specifications or contract documents call for welds and fittings to be left open for testing and inspection purposes. This requires the insulation contractor to work multiple times in an area to complete the insulation system. This will increase the cost of installation and can also cause delays.

Solution

During the bid process, get pricing from the contractor on the impact that multiple run-throughs will cost to get an idea of the potential impact from this issue. It is good practice to meet before the project to attempt to reduce or eliminate having to go back and fill in welds or fittings. As always, proactive communication and collaborative planning are key to avoiding issues that cause increases in budget or project delays. Minimizing the need to go back and reinsulate can decrease costs and save money for the building owner or manager.

8. Problem: Sub-Tier Insulation Contractor Status

Many times there is no direct communication link with the prime contractor and other trades by the insulation contractor. This typically results in work being done out of sequence and can potentially have a costly impact for the insulation contractor. It is most prevalent on commercial work and sometimes occurs in the industrial environment as well.

Solution

Recognize and be pro-active on communication and payment issues. Make sure to include the insulation contractor in weekly subcontractor site meetings and be prepared to discuss relevant issues at the meeting. Document the discussion in written format so everyone is on the same page—communication and documentation are vital to preventing slowdowns and additional costs.

9. Problem: Hot Spots/Cold Spots

We have all encountered warranty issues that more than likely could have been avoided at the time of initial installation. These issues can potentially be costly and lead to headaches for the building owner or manager. Hot or cold spots almost always result from workmanship issues—insufficient insulation on fittings, gaps in insulation, etc. In a cryogenic system, improper insulation can lead to freezing and system failure, which can lead to huge repair costs for the building manager or owner.

Solution

Continuous quality control (QC) and quality assurance (QA) are the keys to preventing hot and cold spots in a system. A high-quality contractor should provide specific craft training on the installation details of the specified insulation system prior to each person beginning work on the project. Additionally, QC/QA inspections should be done daily to ensure compliance with project-specified and industry-standard installation requirements. In this instance, hiring matters. Make sure you enlist the services of an insulation contractor that is proactive about these issues and has a QC/QA process in place for the project.

10. Problem: Poorly Installed Insulation

Generally speaking, if an insulation system visually does not look good, it probably won’t work well. Gaps, insulation that isn’t securely fitted to the pipe, or other installation issues can lead to severe performance issues down the road. As with other issues, improperly installed insulation puts the system at risk of inefficiencies or in the worst case, failure.

Solution

Again, this will come down to hiring a quality insulation contractor. During the bid process, inquire whether the contractor provides specific craft training on the installation details of the specified insulation jacketing system. Additionally, make sure they will perform QC/QA inspections daily to ensure compliance with project specified and industry standard installation requirements.

Do Your Homework, Avoid Headaches

In many of these instances, an ounce of prevention is worth a pound of cure. If you do your homework on the front end of the job, many of these problems won’t happen. Hiring the right people, of course, is a vital component, as is proactive, continuous communication between trades. Many of these issues occur because of a lack of communication and collaboration. Working cohesively with all trades involved will help ensure the project stays on schedule and on budget.

 

 

Copyright Statement

This article was published in the March 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

NIA Sites > Insulation Outlook Magazine > Global

Safety Matters: Getting to the Root of the Matter

Even the most safety-conscious workplaces will experience incidents from time to time. How a company responds to an incident is what separates the top performers from the rest. Incident investigation is a forward-looking process with the purpose of preventing future incidents. It is not an exercise in fault finding and finger pointing. Consider, for example, an incident where a load is dropped from an overhead crane. If the investigation stops at the fact that an employee used a damaged sling, that company is likely to have future crane-related incidents. The investigation should uncover, among other questions, why the sling was damaged; whether slings were being inspected on a regular basis; whether they are appropriate for the loads being hoisted; and whether employees are trained on rigging and crane use.

An incident can be described as any unintended event that results in injury or property damage, or has the potential to do so. Most safety professionals now prefer the term incident over accident, because the term accident implies that it was unavoidable. Incidents also include close calls, usually referred to as near misses. In the example above, even if the load was not damaged, and nobody was hurt, it should still be investigated due to the potential for serious injury or damage to occur.

Incident investigation should be a formal systematic process and key employees should be trained in the process. It should be a team effort with both management and employee involvement. The extent and detail of an investigation should be appropriate for the severity, or potential severity, of the incident. At a minimum, companies should have forms for incident reports and witness statements. Investigations may also involve pictures, measurements, and possibly even reenactments (done safely of course). A review of training records, standard operating procedures, job safety analyses, and inspection records should also be part of the investigation.

The key of the investigation is to identify all contributing factors that led to the incident. Safety professionals break these factors down into proximate causes, or the obvious contributing factors; and latent causes, the deeper underlying causes, often referred to as root causes. In our example, the damaged sling would be a proximate cause, whereas the lack of a preventive maintenance program would be a latent factor. Corrective actions based solely on discipline will have very little preventive value. Targeting the underlying factors, such as instituting a crane and rigging inspection policy, will have far greater results in preventing future incidents.

The last step in the investigation process is corrective action. Treat incidents as improvement opportunities and conduct your investigations with the purpose of making program or process improvements. Every contributing factor identified should have a corrective action assigned addressing the specific issue. At the very least, findings should be communicated in some form of a Hazard Alert to all employees. When more serious root causes are identified corrective action may require engineering solutions, retraining of employees, and possibly new or revised policies and procedures. Remember, “Those who fail to learn from history are doomed to repeat it.”

 

 

Copyright Statement

This article was published in the March 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

NIA Sites > Insulation Outlook Magazine > Global

Combating Wild Weather

The Cost of a Chaotic Climate

What does this mean for the construction industry? Quite a bit. According to Forrester Research, weather is the leading cause of business disruptions.1 No other industry is as susceptible to weather’s unpredictability as construction workers who operate outside. High winds from thunderstorms and tropical developments create hazardous environments for crane workers and equipment stacks if site managers do not shut down before winds have reached the location’s operational thresholds. Lightning strikes are also a major headache for outdoor workers. According to the Federal Emergency Management Agency (FEMA), lightning often extends laterally for many miles, meaning it can pose a great danger to individuals outside even if a storm is not directly overhead.

Even one disruption from thunderstorms, lightning, or a tornado, can have a domino effect on the rest of the supply chain, which can cost thousands of dollars in downtime and profit leaks. The Atlantic Hurricane Season may produce up to 9 named storms, 4 hurricanes, and 1 intense (category 3 or greater) hurricane. Construction sites that are not properly secured from a major storm could experience delayed or indefinite completion dates, which can eventually cost them their reputation or their next job. Extremely high temperatures put personnel in danger of heat-related illnesses, including exhaustion, fainting, rash, cramps, or worse, stroke. Near coastal environments, heat combined with humidity can further damage the human body since humidity reduces the amount of sweat that the body needs to cool off.

Heat Hurts, Humidity Kills

From scheduling delays to reduced personnel safety, legal liabilities, and profit leaks, summer wreaks havoc on even the most seasoned of construction workers. There is a way to avoid such weather interferences.

For heat disturbances, there are several internet-based indices available to provide data; however, in situations where humidity contributes to life-threatening situations, a more detailed assessment is needed. In environments with extreme humid conditions, the proprietary Modified Discomfort Index (MDI) is a tool used by many companies as part of their Heat Injury Prevention Plan. To calculate MDI, construction site managers add ambient (air) temperature (Ta) to wet bulb temperature (Tw), which is found via local weather reports. The formula is as follows: MDI = (.3 x Ta) + (.75 x Tw).

Besides monitoring heat and humidity reports hourly, employers can also implement the following tactics to protect personnel, including:

  • Gradually increasing an employee’s workload if he/she is new to the environment;
  • Offer an air-conditioned trailer with appropriate refreshments;
  • Introduce work-rest cycles with relief workers rotating in shifts;
  • Reschedule projects to cooler times of the day, such as the evening; and
  • Encourage self-monitoring where employees can take personal breaks if they feel overheated.

Tropical Troubles

While summer’s clear skies are a desirable time of year to work on construction projects, these assignments are routinely disrupted by hurricanes, tropical storms, and thunderstorms, producing high winds. By implementing the following timed phases for efficient operational shut downs, companies can safeguard personnel, reduce profit losses, and return to work as quickly and efficiently as possible.

Phase One: (Four to Five Days Out)

  • Determine a shut down timeline—Often businesses decide on evacuation plans based on when a hurricane makes landfall. This can be dangerous as damaging winds may arrive up to 12 hours before the storm. Recently, many workers have determined shut down based on wind strength. For example, if a site cannot safely work with winds in excess of 48 mph, they will shut down.
  • Identify resource needs—Identifying a site’s resources is an opportunity to see what employees, products, equipment, and supplies the project has available or needs to address prior to shutdown.
  • Answer critical questions:
    • What is the facility’s operational schedule for the next couple of days and who will be affected?
    • Does the company need to facilitate deliveries to and from the site?
    • In the event of damage, does the site have a vendor or team who can clean up the location?
    • Based on recovery efforts, how quickly can employees return to work?
  • Communicate with key team members—Key team members are clients, employees, vendors, corporate executives, local government agencies, and supply-chain workers who will be affected by the site’s delays and/or closures. On-site managers should have each of their employee’s and contractor’s personal contact information to communicate critical updates following a storm.

Phase Two: (Two to Three Days Out)

  • Release non-emergency personnel to evacuate—If there is a team that needs to assist with shut down until the arrival of the first threshold, they should have already attended to their personal plans.
  • Continue site shutdown—No additional deliveries should be made during this time. The construction zone can continue its protocol for shutting down and removing any non-essential product and supplies.
  • Continue monitoring the storm—This is the time to review a project’s worst-case-scenario to maintain the safety of personnel and equipment.

Phase Three: (Less than 48 Hours Out)

  • Facilitate a final walkthrough—This is the last chance to secure or transport outstanding materials.
  • Place vendors on standby—Storm surge, high winds, and hurricane-producing tornadoes could damage a construction site. Managers should advise their clean-up vendors to be on standby.
  • Evacuate—Remaining personnel and management should evacuate.

Mark Twain once said, “Climate is what we expect, weather is what we get.” Even though construction workers can’t guess the weather’s next move, these business continuity tools can help workers avoid monetary penalties from lengthy delays and more importantly, protect outdoor personnel from weather’s unpredictability.

 

1. Forrester Research, Inc. (Q4, 2011). [151 Global Business Continuity Decision-Makers and Influencers Who Have Had to Invoke a Business Continuity Plan]. Disaster Recovery Journal Business Continuity Preparedness Survey.

Originally published at www.constructormagazine.com. Reprinted with permission from Constructor, a publication of the Associated General Contractors of America.

 

Copyright Statement

This article was published in the March 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

NIA Sites > Insulation Outlook Magazine > Global

Extreme Weather and the Construction Industry

This fall, the United States was hit with a series of tropical storms that caused extreme destruction and mass evacuations. It’s estimated that together, Hurricane Harvey and Hurricane Irma caused $290 billion in damages. Harvey accounts for the majority of this figure: the rebuild is expected to cost $190 billion, making Harvey one of the costliest weather disasters in U.S. history.

In the wake of these disasters, a new reality has been made apparent: We’re entering an age of increased risk from extreme weather events. For an industry as susceptible to weather as construction, this is not good news.

By its nature, construction is dependent on weather. Project planning and design are determined in large part by the landscape, geography, and local weather. Building strategies and materials are tailored to suit a particular climate. And of course, construction teams work outside. In addition to the effects felt by citizens and residents, extreme weather events can derail projects, endanger workers, and increase construction costs considerably.

Because weather is becoming more extreme and less predictable, it’s important for construction firms to develop strategies of resilience. But first, we have to know what we’re up against. Here are 4 ways that climate change and extreme weather are impacting the construction industry.

1. Labor Shortage

Even prior to Harvey and Irma, the construction industry was already experiencing a shortage of skilled labor. There are countless theories as to what has caused the labor shortage: early retirement, low wages, and fewer young people interested in entering the field—to name a few. Whatever the reason, construction labor has been hard to come by. After Harvey, the shortage is likely to get worse, with approximately 91% of contractors worried about finding skilled workers. With more extreme weather comes more destruction to infrastructure, homes, and commercial buildings. An increase in demand will provide an economic boost to the industry, but only if contractors and firms can find enough workers to fill vacant roles.

2. Unusual Weather Conditions

Many construction firms have grown accustomed to the weather patterns and climate within the areas they do business. Through experience and data gathering, they’ve developed strategies for ensuring that inclement weather doesn’t threaten a project’s success. Unfortunately, climate change has caused weather to become much less predictable. Across the globe, regions are seeing unusual weather patterns that are atypical. In 2009, for example, London, England, experienced the worst snowfall in almost 20 years. The city was ill-equipped to deal with the snow and it’s estimated that this disruption cost them billions in snow removal, lost revenues, and emergency services. When construction firms become unable to predict weather patterns and develop emergency plans for weather variables, it puts their entire business at risk.

3. Equipment Damage & Efficacy

Unusual weather conditions can also throw a wrench into a firm’s procedures for caring for equipment and preventing weather damage. Weather can affect the performance and wear and tear of construction equipment. Dry weather can increase the amount of dust on the job site, which can jam and clog machinery. Strong winds can strain equipment and cause breakage. And hot weather can reduce the efficacy of materials like sealants and mortar. Most firms have protocols in place for preventing weather damage, but those procedures are location and climate dependent. As weather patterns shift, firms may not be familiar with the procedures for caring for equipment in more extreme conditions.

4. Materials Scarcity

Extreme weather makes construction materials harder to source and purchase. Drought, flooding and storms can cause scarcity, which may drive up cost or prevent materials from be obtained at all.

For example, flooding in areas where natural resources are being extracted can cause a shortage in the raw ingredients used to make construction materials. In contrast, drought can prevent construction sites from getting enough water to complete vital tasks. A phenomenon like erosion can create shortages of materials like sand, which is used to make concrete and asphalt and is becoming hard to source.

The good news: material scarcity creates an opportunity for developing innovative ways to meet the materials needs of construction projects. Recycled materials and the circular economy are 2 ways of lowering the impact of construction material extraction on the planet and reducing industry dependence on depleted resources.

Conclusion: Building Resilience

These are just some of the ways that climate change can threaten the success and security of the construction industry, but there are more. In light of these threats, it’s important for firms to develop strategies for handling extreme weather.

One of the best ways to build resilience is to improve the efficiency of your firm’s planning and communication procedures. That way, when extreme weather events arise, you’re organized enough to deal with the emergency effectively. This can be done by using construction software to run a tight ship—a ship that’s better able to weather storms both literal and figurative.

Construction software will create company-wide transparency with regards to financials, scheduling, and project planning, ensuring that everyone has the information they need to rearrange work, adjust budgets, and ensure employee safety.

 

 

Copyright Statement

This article was published in the March 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

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Reed Exhibitions’ IEX USA Trade Show

Reed Exhibitions’ IEX USA trade show aims to unite end users of insulation with the experts at the National Insulation Association (NIA) who can offer the solutions to their project needs. The IEX USA reception event provided an opportunity for trade show attendees to interact with NIA members, and NIA also maintained a booth on the floor to encourage networking and information exchange throughout the trade show. NIA’s booth gave attendees a place to meet, connect, and get more information on all of NIA’s valuable resources.

During the trade show, NIA’s staff was able to share information on NIA’s tools and its industry-leading magazine, Insulation Outlook. Many attendees were also able to take advantage of a special free subscription to Insulation Outlook, giving them ongoing access to the technical resources and installation solutions featured in this award-winning publication.

IEX USA also offered the chance for companies to showcase and demonstrate their products through the IEX USA Learning Theater. The Learning Theater included 30-minute professional development sessions each day of the event. Topics included layered thermal insulation systems for industrial and commercial applications, non-metallic cladding, flexible insulation solutions for the oil and gas industry, water-resistant calcium silicate, corrosion under insulation, the effects of moisture on insulated pipes, and more. The trade show represented a valuable opportunity for those interested in learning more about insulation products and solutions.

 

 

Copyright Statement

This article was published in the February 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

NIA Sites > Insulation Outlook Magazine > Global

NIA Holds Fall Summit, Helping Members Meet Construction Industry Needs

In 2015 and 2017, the National Insulation Association (NIA) held its annual fall member meeting, the Fall Summit, in collaboration the Insulation Expo (IEX) USA trade show, held by international trade show expert, Reed Exhibitions. It is the only U.S. national trade show that focuses exclusively on mechanical insulation, and helps insulation end users gain access to industry experts who can provide insulation products and solutions for their projects.

NIA’s members consist of contractors, manufacturers, distributor/fabricators, and metal building laminators. They represent the entire supply chain of insulation products and accessories for the commercial and industrial insulation industries. NIA’s goal as an association is to both represent the interests of its members, and provide opportunities
for them to strengthen and grow their businesses to meet industry needs. NIA’s membership consists of the insulation companies who are striving to lead the industry, and they welcomed the opportunity to learn more about new industry developments, improve job performance, and hear about the latest safety updates. NIA’s Fall Summit helps facilitate NIA’s members’ ability to bring the best and most-needed services and products to the greater construction industry.

Keynote Speakers

The event also included 4 keynote speakers, who addressed efficiency investment, safety, workforce development, and market trends, providing another opportunity for NIA members to develop solutions to the industry’s leading issues and make plans for the future. Expert speakers included:

Hearing these reports on new OSHA standards, energy-efficiency initiatives, and labor and market trends will help NIA members shape their business plans to meet the construction industry’s ongoing and future needs.

Of course, part of the value of the Fall Summit lies in the opportunities for NIA members to network and share their expertise with others from across the country. Solutions to tough jobs, manpower shortages, and training are discussed among peers to make each company more productive. In addition to the networking events at the Fall Summit, there were additional networking opportunities during the IEX USA trade show, which allow for new contacts to be made and for trade show attendees to gain access to the expertise and solutions that NIA members offer. Companies that are committed to ongoing improvement of contracting, distribution, and manufacturing practices are the companies that perform better—and are the types that will provide exceptional service to their customers.

During the Fall Summit, NIA members had the opportunity to hear from construction experts during 6 forum-style committee meetings. These discussions enable them to hear valuable feedback that they can then implement into their businesses and offerings. Forum-style meetings were held in:

  • The Associates Committee Forum, which welcomed CUI Mitigation Specialist Peter Bock,who provided a comprehensive presentation on existing and emerging technologies to combat corrosion under insulation;
  • The Distributors/Fabricators Committee Forum, which featured FMI’s Michael Clancy, who presented valuable insights for attendees to match their company’s value proposition to the needs of their customers to build lasting relationships;
  • The Health and Safety Committee Forum, which featured a popular OSHA and Safety Best Practices panel discussion with contractor safety representatives that explored specific issues, including electronic record-keeping, competent person, fall protection, scaffolding, as well as taking member questions on issues such as GPS vehicle tracking;
  • The Merit Contractors Forum, where attendees heard from 2 speakers: Greater Houston Partnership’s Peter Beard shared details about UpSkill Houston, which is closing the skills gap and helping Houston’s regional economy; and Alliant Americas’ Matt Stevens,who provided details on NIA’s new membership benefit, the Contractors Pollution Liability Insurance program;
  • The Union Contractors Subcommittee Forum, which also welcomed insurance specialist Matt Stevens,who provided details on NIA’s new membership benefit, the Contractors Pollution Liability Insurance program; and
  • NIA’s new Young Professional Advisory Committee (YPAC), whose members heard from 2W International’s Stephen Mackey, who shared 7 ways to become a leader worth following and provided attendees with a checklist of the steps to take when they returned back to their office.

Future Events

If you missed the chance to connect with insulation experts and benefit from NIA’s resources in person, there will soon be a larger industry event with even more opportunities to learn about technologies to improve your systems. NIA’s 63rd Annual Convention will be held April 18–20 in Orlando, Florida, and will have an abundance of educational and networking opportunities for attendees. Visit www.insulation.org/convention2018 or email events@insulation.org for more information.

 

 

Copyright Statement

This article was published in the February 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

NIA Sites > Insulation Outlook Magazine > Global

The Tax Cuts and Jobs Act

Are you ready for tax “reform?” Thanks to the recently passed Tax Cuts and Jobs Act (TCJA), the tax rate for incorporated businesses will be reduced from its current 35% to 21% for the 2018 tax year and thereafter. Although the business tax cuts are—for the most part—permanent, the tax cuts for individuals are only temporary, expiring in 2026. The big news is what the TCJA will mean to those in the mechanical insulation and construction industries, and their customers and clients.

Domestic Production Activities Deduction Repealed

When it comes to the one tax deduction most often overlooked or neglected, the Section 199, Domestic Production Activities Deduction (DPAD), won hands down. The DPAD allowed businesses to claim a deduction equal to 9% (6% for some oil and gas activities) of their production activities’ income or their taxable income for the year, whichever was less. Of course, the deduction was limited to 50% of the W-2 wages paid during the year, and Section 199 applied only to income derived from property manufactured, produced, grown, or extracted within the United States; construction activities; and some engineering or architectural services. Now, thanks to the TCJA, the DPAD has been repealed after the 2017 tax year.

Cost Recovery—Increased Expensing

Unlike in past years when a business was required to claim depreciation—spreading the recovery of their equipment expenditures over several years—many businesses will be able to fully and immediately deduct the cost of certain equipment. This provision has also been made retroactive to September 27, 2017.

Of course, the faster write-off of equipment costs is only temporary. It is at the 100% level for expenditures between September 27, 2017, and January 1, 2023. After December 31, 2023, and before January 1, 2025, the amount deductible drops to 60% with a further decrease to 40% after 2025, and to 20% after 2026. On January 1, 2027, the equipment cost write-off disappears.

SECTION 179

There has been a narrowing of differences between bonus depreciation and the tax law’s Section 179 (first-year expensing), with both now offering 100% write-offs for both new and used property. Section 179, however, remains an improved option. The immediate write-off, or “expensing” of capital assets is appealing because, unlike so-called “bonus” depreciation, the use of equipment doesn’t have to begin with the business.

Section 179 allows up to $1 million (up from $500,000 in 2017) of expenditures for business equipment and property to be treated as an expense and immediately deducted. The ceiling after which the Section 179 expensing allowance must be reduced dollar-for-dollar has also been increased from $2 million to $2.5 million.

Improvements—including roofs, heating, ventilation, air conditioning systems, fire prevention, alarms, and security systems—now qualify under the new Section 179 rules, providing another opportunity for businesses that actually need equipment.

Like-Kind Exchanges, Swaps, and Trade-Ins

The tax law’s Section 1031 governing like-kind exchanges currently allows businesses to defer the tax bill on the built-in gains in property by exchanging it for similar property. This is more of a strategy for deferring a tax bill when business assets are sold, swapped, traded-in, or otherwise disposed of. With multiple exchanges, however, gains can be deferred for decades and ultimately escape taxation entirely.

Under the TCJA, like-kind exchanges will be limited to so-called “real” property (but not for real property held primarily for sale). The provision redefines like-kind exchanges and includes language that would limit Section 1031 exchanges to exchanges of like-kind “real” property.

Rehabilitation and Disabled Access Credits Repealed

Before the TCJA, a 20% tax credit existed for rehabilitation expenditures for certified historical structures. A 10% credit existed for rehabilitated building expenditures, which generally meant a building that was first placed in service before 1936.

Under the TCJA, the 10% credit for qualified rehabilitation expenditures for pre-1936 buildings has been repealed. The 20% credit for qualified rehabilitation expenditures for certified historic structures can be claimed, ratably, over a 5-year period, beginning in the tax year when the rehabilitated structure is placed in service.

Qualified Property Write-Offs Gone

The separate definition of qualified leasehold improvements, qualified restaurant, and qualified retail improvement property have been eliminated under the TCJA. Today, so-called “qualified improvement property” is generally depreciable over a 15-year period, using the straight-line method of depreciation and the half-year convention, regardless of whether the improvements are “property” subject to a lease or are placed in service more than 3 years after the date the building was first placed in service.

Auto and Luxury Vehicle Expenses

New limits on the amount of write-off for the cost of so-called luxury automobiles and personal use property were included in the TCJA. For passenger automobiles and light trucks placed in service after December 31, 2017—where the additional first-year depreciation deduction is not claimed—the maximum amount of allowable depreciation is increased to $10,000 for the year in which the vehicle is placed in service, $16,000 for the second year, $9,600 for the third year, and $5,760 for the fourth and later years in the recovery period.

For passenger automobiles placed in service after 2018, these dollar limits are indexed for inflation. For those eligible for bonus first-year depreciation, the maximum first-year depreciation allowance remains at $8,000.

Similar rules apply not only to passenger automobiles, but to any property used as a means of transportation, or property used for purposes of entertainment, recreation, or amusement. Computers and peripheral equipment have been removed from the definition of listed property and are no longer subject to the increased substantiation requirements applying to listed property.

Interest Expenses

In the past, with a few exceptions, interest was usually tax deductible with the tax laws protecting the ability of small businesses to write-off the interest on loans. In an attempt to “level the playing field” between businesses that capitalize through equity and those that borrow, the TCJA caps the interest deduction to 30% of a business’s adjusted taxable income.

Every business is subject to disallowance of the deduction for net interest expense in excess of 30% of the operation’s adjusted taxable income. A special rule applies to pass-through entities that requires the 30% determination to be made at the entity level rather than at the tax filer level. In other words, at the partnership level instead of the partner level.

Other exceptions exist for small businesses, generally those with gross receipts that have not exceeded a $25-million threshold for a 3-year period, to protect their ability to write off the interest on loans that help them start or expand a business, hire workers, and increase paychecks.

Like-Kind Exchanges

The tax law’s Section 1031 governing like-kind exchanges currently allows businesses to defer the tax bill on the built-in gains in property by exchanging it for similar property. Although more a strategy for deferring a tax bill when business assets are sold or otherwise disposed of, with multiple exchanges, gains can be deferred for decades and ultimately escape taxation entirely.

Under the TCJA, like-kind exchanges will be limited to so-called “real” property (but not for real property held primarily for sale). The provision redefines like-kind exchanges and includes language that would limit Section 1031 exchanges to exchanges of like-kind “real” property. This ensures real estate investors maintain the benefit of deferring capital gains realized on the sale of property.

Losing with NOLS

One of the main benefits of net operating losses (NOLs) was the fact that they could be carried back to more prosperous years, creating a refund of taxes paid in those earlier years and providing an immediate infusion of badly-needed cash. Today, the NOL deduction has been severely limited. The write-off is now limited to 80% of an operation’s taxable income; a NOL carryback is only permitted in special cases. There is no limit on how far forward NOLs may be carried.

Small Business Accounting Method and Simplification

The simplification of the rules governing the method of accounting that must be used for tax purposes is a welcome option. Businesses with average annual gross income of less than $25 million may now use the simple cash-basis accounting method.

Accrual basis taxpayers include amounts in income when all the events have occurred that fix the right to receive income can be determined with reasonable accuracy. This can occur when a bill is sent out or a contract signed. Cash basis taxpayers, on the other hand, generally include amounts in income when actually or constructively received. Most individuals are on the “cash” basis, counting a payroll check as income when received, while a business counts income when payment is received—not when billed.

A number of exceptions exist to permit deferral of income received as advance payments. An advance payment is where the business receives payment before the goods or services are provided to a customer. The rules now allow tax deferral to mirror financial accounting deferral, where income is recognized as the goods are provided or the services performed.

In terms of qualifying to use the cash method of accounting, the current $5 million threshold for corporations and those partnerships with a corporate partner is increased to $25 million, and the requirement that such businesses satisfy the $25 million limits for all prior years has been repealed. The average gross receipts test will now be indexed to inflation.

With the cash method of accounting, a business may label inventory costs as non-incidental materials and supplies instead of tracking them on a beginning of year, end-of-year basis. Or, as an alternative, a business with inventories using the cash method of accounting can account for its inventories using the method of accounting reflected on its financial statements or its books and records.

Pass-Through Businesses

Pass-through businesses operating as partnerships, limited liability companies (LLCs), S corporations, and sole proprietorships, pass their income to their owners, who pay tax at the individual rate. The TCJA created a 20% deduction that applies to the first $315,000 of income (half that for single taxpayers) earned by businesses operating as S corporations, partnerships, LLCs, and sole proprietorships.

All businesses under the income thresholds, regardless of whether they’re service professionals or not, can take advantage of the 20% deduction. For pass-through income above this level, the new law provides a deduction for up to 20%, but only for “business profits,” reducing the owner’s effective marginal tax rate to no more than 29.6%.

The TCJA contains strong safeguards to ensure that so-called “wage income” does not receive the lower marginal tax rates for business income. Thus, that 20% deduction applies only to business income that has been reduced by the amount of “reasonable compensation” paid the owner. Although lawmakers know what is “excessive,” “reasonable” compensation has not been defined yet.

Fringe Benefit Limits

Don’t forget those “fringe benefits” of both employees and bosses. The new law “disallows” deductions for entertainment expenses, eliminating the necessity of attempting to prove whether such expenses are sufficiently business- or practice-related. The 50% limit on the deductibility of business meals has been expanded to include meals provided through an in-house cafeteria or otherwise on the premises of the business.

A business’s deduction for fringe benefits such as transportation (e.g., parking and mass transit) is no more, although such benefits received by an employee—even the business’s owners and shareholders—continue to be excluded from the recipient’s income.

More—So Much More

Obviously, there are many more changes contained in the massive TCJA. S corporations attempting to convert to regular C corporations will face new rules; Section 199, the deduction for so-called “domestic production activities,” has been repealed; and partnerships will no longer terminate upon the death or exit of a partner.

The corporate Alternative Minimum Tax has been repealed, deductions for local lobbying expenses are gone, and the estate tax exemptions under so-called “death tax” have been doubled, although they will sunset in 2026.

According to some of our lawmakers, the TCJA modernizes our international tax systems, making it easier and far less costly for U.S. businesses to bring home foreign earnings. They also say the international provisions of the TCJA aim to prevent U.S. jobs, headquarters, and research from moving overseas by eliminating incentives.

Overall, however, the TCJA appears to favor businesses over individuals with longer-lived tax savings for the former. Unfortunately, with few exceptions, the potential savings won’t be seen by businesses until the tax bill for 2018 comes due.

 

 

Copyright Statement

This article was published in the February 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

NIA Sites > Insulation Outlook Magazine > Global

Online Insulation Training

Do you want to learn more about insulation, but aren’t sure where to begin? Here are some free and easily accessible resources that can help develop your understanding of mechanical insulation—whether you’re just starting out or looking to build on your existing knowledge.

1. The Mechanical Insulation Design Guide

The Mechanical Insulation Design Guide (MIDG) is an online, free resource that can take you through the A-Z of system design or product specification. If you don’t know how to build your insulation system, we will walk you through it, including:

  • Design objectives;
  • Categories and characteristics of mechanical insulation materials;
  • Physical properties, and product characteristics of weather barriers, vapor retarders, and finishes;
  • Fabrication of insulation products;
  • Accessory products;
  • Installation of insulation products;
  • Design data;
  • Specifications; and
  • Design resources.

If you are in the beginning phases of system design and need help designing or specifying materials, the MIDG is an excellent tool that will take you through numerous options for your system.

2. Insulation Calculators

We have made it easy to do insulation calculations—just plug in your information and get results! Easily make calculations with these simple insulation calculators:

We love insulation and want to help people design systems properly. Save yourself hours by using these tools to take care of the science and math for you!

3. NIA’s Online Training Course

The MIDG also includes a link to an online training course that was created, in part, by the National Insulation Association (NIA). Users can sign up for free and either take the entire course, which includes 5 modules and is approximately 2–2.5 hours long, or just look at shorter, individual modules. The modules are as follows:

  • Module 1: Educational Series Introduction and Defining Mechanical Insulation—Provides an overview of the series, discusses mechanical insulation in comparison to other insulation, and provides information on the National Institute of Building Sciences’ (NIBS’) MIDG, including the simple calculators.
  • Module 2: Benefits of Mechanical Insulation—Provides an overview of the power of mechanical insulation in the new construction, renovation, and maintenance arenas when designed, installed, and maintained properly.
  • Module 3: Mechanical Insulation Science and Technology—Discusses understanding energy, what insulation is, how insulation works, psychrometrics, and mechanical insulation definitions and terminology.
  • Module 4: Mechanical Insulation Design Objectives and Considerations—Discusses design objectives, including condensation control; energy, economics, and the environment; fire safety; freeze protection; personnel protection; process control; and noise control. Design considerations include abuse resistance, corrosion under insulation, indoor air quality, maintainability, regulatory considerations, service and location, and service life.
  • Module 5: Mechanical Insulation Maintenance—Discusses the benefits of timely and proper maintenance, which can provide a significant return on investment.

Users who complete the entire course are eligible for credit from the United States Green Building Council (USGBC) and its sister organization, the Green Building Certification Institute (GBCI), as well as the American Institute of Architects (AIA). NIA also offers professional development hours (PDHs) for the completion of the training course. You can sign up for a free account to access this training course at https://tinyurl.com/ybl5eez4.

4. NIA’s Online Training Portal at Vimeo

Another excellent tool is NIA’s online video streaming portal at www.Vimeo.com/NIAinfo. NIA members and non-members can access the Vimeo On Demand website to stream NIA’s webinars or the Mechanical Insulation Installation Video Series. The series is a fantastic tool as it has actual video footage that demonstrates how to install insulation for different applications. Each video features installation information for different materials, including:

  • Calcium Silicate and Perlite Pipe and Equipment Insulation Installation;
  • Cellular Foam Pipe and Equipment Insulation Installation;
  • Cellular Glass Pipe and Equipment Installation;
  • Elastomeric Pipe and Equipment Insulation Installation;
  • Fiber Glass Pipe and Equipment Insulation Installation;
  • Mineral Wool Pipe and Equipment Insulation Installation; and
  • Removable/Reusable Flexible Insulation Covers Installation.

The series provides the unique opportunity to actually see installation methods, which can provide helpful insights to improve installation processes. NIA’s Vimeo page also includes access to several free videos, including a webinar on the MIDG, videos on the value of insulation, and footage of expert discussion panels from NIA’s Annual Convention. Prior webinar series on leadership, health and safety, heat stress prevention and compliance, hiring and retention, Occupational Safety and Health Administration (OSHA) compliance, and more, are also available for rental. Additional training and educational materials will be added to this training portal as they are developed.

5. Resources, Specs, and Codes from Insulation.org

Need to brush up on your insulation terminology? Wondering about the physical properties of a certain material? The Specs & Codes page on Insulation.org has easy-to-access, free tools at your fingertips.

6. Insulation Materials Specification Chart

Created by experts from NIA’s Technical Information Committee, this guide has the physical and material properties of various insulation materials as specified in ASTM Materials Specifications.

7. Guide to Insulation Product Specifications

Are you a specifier or owner? This compilation of current ASTM, federal, and military specifications relevant to the insulation industry might be just what you need. It also lists the companies that manufacture products that conform to each specification.

8. Insulation Science Glossary

Looking to beef up your insulation vocabulary? Check out this easy guide for a list of need-to-know terms.

Head over to the Specs and Codes page at https://tinyurl.com/ybdef8td to find these and other free resources.

9. Subscribe to Resource Central

Insulation Outlook is one of the best sources of information for anyone involved with insulating mechanical systems. Engineers, specifiers, building managers/owners, and other end users may be eligible for a free subscription. Visit www.insulation.org/io/subscribe for more information.

10. Committing to Ongoing Education

Taking the time to brush up on basics is an easy way to make big improvements on your projects. Visit www.insulation.org/resources to access the resources mentioned above and learn more about NIA’s other free educational tools.

 

 

Copyright Statement

This article was published in the February 2018 issue of Insulation Outlook magazine. Copyright © 2018 National Insulation Association. All rights reserved. The contents of this website and Insulation Outlook magazine may not be reproduced in any means, in whole or in part, without the prior written permission of the publisher and NIA. Any unauthorized duplication is strictly prohibited and would violate NIA’s copyright and may violate other copyright agreements that NIA has with authors and partners. Contact publisher@insulation.org to reprint or reproduce this content.

NIA Sites > Insulation Outlook Magazine > Global

OSHA’s Silica Dust Standards: First Construction, Now General Industry

In fall 2017, new Occupational Safety and Health Administration (OSHA) standards imposed strict limits on workplace silica dust exposure in the construction industry. But, OSHA is not stopping there. In June 2018, OSHA will begin enforcing very similar rules for employers in general industry. These new standards are stringent and employers must quickly implement procedures to comply or risk citations and significant penalties.

Silica Is Everywhere—and Dangerous

Silica is the second-most common element on the Earth’s crust. It is everywhere, and found in many jobsite materials, including concrete, cement, brick, block, mortar, man-made stone products, wall board, and insulation materials.

Common occupational activities involving these materials—such as sawing, sanding, cutting, and grinding—release silica into the atmosphere. Breathing silica dust can lead to life-threatening pulmonary illness such as silicosis and lung cancer.

Action Level and Permissible Exposure Limit

The new standards apply to employers in construction and in general industry whose employees are exposed to silica dust above “the action level” of 25 micrograms per cubic meter averaged over 8 hours.

OSHA’s silica dust Permissible Exposure Limit (PEL) for construction and general industry is 50 micrograms per cubic meter averaged over 8 hours. While this number probably means little to most people, consider this: the new PEL is just 20% of the old silica PEL.

Staying below the new limit could be difficult. After all, some employers struggled to stay below the prior PEL. However, compliance is essential: Failing to stay below the PEL can result in a $12,675 fine for a first time citation, and up to $126,749 for a repeat citation.

Written Exposure Control Plan

First, employers whose employees are exposed to silica dust above the action level must develop and implement a written exposure control plan. The plan must describe the employers’ work activities that cause exposure to silica dust; list the methods to limit that exposure; describe measures to restrict access to areas with high levels of silica dust; and describe housekeeping measures to limit silica dust exposure.

Apparently cleaning activities—like sweeping at the end of the day—are a common source for silica dust exposure. Employers must devise methods to clean without generating dust, such as “wet sweeping” and vacuuming.

Identifying Silica Dust Hazards

Before work begins and whenever work conditions change, the employer must determine whether employees will be exposed to silica dust. Both the general industry and construction standards specifically list 3 silica-based compounds to beware: quartz, cristobalite, and/or tridymite. The easiest way to do that is to review Safety Data Sheets for the materials on the jobsite to determine if they contain one or more of those silica compounds.

Remember that exposure may come from other employers on a jobsite. Regardless of the source of the exposure, all employers are expected to protect their employees from silica dust.

Initial Monitoring

If employees will be working with materials containing quartz, cristobalite, and/or tridymite, they must assess the amount of silica dust being generated to determine whether dust controls are required. The assessment must occur before work begins and whenever there is a change in the work activity.

There are 2 methods to assess the amount of respirable silica dust: “the performance option” or “scheduled monitoring.” The performance option gives employers flexibility to determine the possible silica dust exposure by using any combination of air-monitoring test data and/or objective data. Objective data means information, such as air-monitoring data from industry-wide studies that closely resemble the employers’ current operations.

Alternatively, employers can assess silica exposure through scheduled monitoring. Under this method, employees wear equipment to monitor any silica dust exposure, which must be sent to a lab to determine the exposure, if any. This method is not real-time monitoring like the performance option, and does not involve any objective data.

Limiting Silica Dust Exposure

If the employer determines that employees face silica dust exposures above the PEL, employers must use engineering controls to reduce the exposure below the PEL—unless those controls are not technically feasible. Engineering controls include water, which can be introduced to various practices to liquefy silica dust, or vacuum procedures to capture silica dust before it becomes airborne. Equipment manufacturers will increasingly offer tools designed to help employers comply with the OSHA silica dust standard, like drills with built-in vacuum attachments.

If engineering controls do not reduce the exposure below the PEL, the employer must supplement those measures with respirators sufficient to lower the exposure below the PEL. These standards are somewhat unique in that the employer may only use personal protective equipment, like a respirator, as a control measure on top of, and not in place of, engineering controls.

Table 1

For some employers, utilizing “Table 1” may be the easiest way to comply with the new silica dust standards.

The silica standard for construction includes Table 1, which lists 18 common construction tasks commonly involving silica containing materials. If a construction employer’s jobsite activities involve materials containing quartz, cristobalite, and/or tridymite, they can refer to Table 1 to determine whether those jobsite activities are listed there. If the jobsite activity is listed in Table 1, employers need only follow the instructions there to limit the potential silica dust exposure. There is no need to do any assessment or measuring to determine the amount of breathable silica dust on the jobsite.

For example, if an employer is using a stationary masonry saw to cut brick (containing silica), Table 1 tells the employer to simply “use saw equipped with integrated water delivery system that continuously feeds water to the blade.” Provided the employer can do so, that is the only measure necessary to comply with the standard.

However, Table 1 does not appear in the general industry standard. Nonetheless, general industry employers may follow Table 1, but only if their task is “indistinguishable from a construction task listed on Table 1.” Also, if a general industry employer follows Table 1, then that employer must follow the remainder of the construction standard.

Regulated Areas

The general industry standard requires employers to establish regulated areas where and when an employer reasonably suspects that an employee’s exposure to silica dust will exceed the PEL. The employer must post warning signs marking the regulated area, and must restrict access to only those employees who are required to be there. Those entering the regulated area must have a respirator sufficient to reduce exposure below the PEL.

Medical Examinations

Employers must also offer medical examinations to employees who will be exposed to silica dust, at or above the action level, for 30 or more days within the year. Medical examinations are intended to identify silica-related diseases, identify any underlying condition that might make an employee sensitive to silica dust, and determine the employee’s fitness to use respirators. The employer shall provide free periodic medical exams every 3 years as well as any referral to a specialist.

Employee Training

Employers covered by the silica standards must also inform employees about silica dust hazards and the methods the employer uses to limit their exposures to those hazards. Employees must be trained before they are exposed to silica dust at or above the action level.

Specifically, employees must know and understanding the following: health hazards associated with exposure to silica dust, tasks that could result in exposure, measures to protect employees from exposure, the contents of the OSHA silica dust standard, and the purpose and description of the medical surveillance program.

Record Keeping

Employers are also required to keep records regarding silica dust. Record keeping is also a very good way to demonstrate employer compliance when facing an OSHA inspection. Specifically, employers must keep records of air-monitoring data, objective data relied on for compliance, and medical surveillance. The employer must make and keep accurate records for each employee provided medical surveillance under the standard.

The silica standards require employers to keep exposure records (including air monitoring and objective data) for at least 30 years. They must also maintain medical records for at least the duration of the exposed employee’s employment, plus 30 years.

Conclusion

The OSHA silica dust standards for construction and general industry are extremely demanding. The best place to start may be with an occupational safety and hygiene consultant who can do the initial monitoring to determine whether these standards even apply. Please keep in mind that this article is a broad overview of some of the new requirements. Employers should take a few moments to carefully read the construction industry silica standard found at 29 CFR 1926.1153, and the general industry silica standard at 29 CFR 1910.1053. Both can be found at osha.gov. It is important to ensure you are compliant with all the new requirements in order to avoid penalties and citations.

 

 

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