Category Archives: Global

NIA Sites > Insulation Outlook Magazine > Global

Safety Procedures for Employees Working Alone

While
it is acceptable for employees to work alone (unless a federal, state, or local
agency prohibits it), proper steps must be taken up front to provide them and
others with procedures to follow to ensure their health and safety. Businesses
should check the guidelines from the Occupational Safety and Health
Administration (OSHA) to ensure that their working-alone procedures follow all
federal rules
and regulations.

The
first step in developing a working-alone procedure is defining what the term
means. Different companies may refer to a single-worker situation as an
employee working alone, a lone worker, or a single-worker job. Regardless of
the terminology, the concept generally refers to a situation where 1 person is
performing a task by himself, he cannot be seen or heard by other workers, and
assistance is not readily available. The term is not exclusively used to refer
to an entire job—it can also be used if a single employee is completing a
section of a task and, in that time period, does not have contact with other
workers.

The
notion of employees working alone is not a new concept and is fairly common
within construction and related industries. While there may be risk, working
alone can be a safe and acceptable situation if an established procedure is
followed. If there is no procedure, or if employees do not follow the
appropriate steps, a working-alone situation may become unsafe.

While a business may not seem to have such situations, it
may become apparent, after further inspection, that there are times when an
employee is indeed working alone. It may be as simple as an employee completing
a task in a basement or isolated area alone, or driving a truck without another
employee present. If there is no procedure to check on these employees, these
examples might qualify as working-alone situations. While working alone may not
be hazardous, depending on the circumstances, it is important for businesses to
develop a working-alone procedure and conduct a risk/hazard assessment for any
jobs that fit into this category.

Certain
companies may choose to take the step of prohibiting solitary work in order to
maintain the highest level of safety. However, this is not always a practical
solution. Companies need not necessarily prohibit working alone, but instead
should work to develop a procedure that is direct and clear to all employees
and that maintains the highest degree of safety when employees have to work
alone. Employers need to ensure employees who are working alone have an
effective way of communicating with others who can respond if there is an
emergency or the employee is injured.

One of the first steps in creating a working-alone
procedure is to make a list of any jobs or tasks that are not appropriate for a
single employee. These tasks may include factors such as:

  • Extreme heights

  • Use of fall protection

  • Use of respiratory equipment

  • Operation of power-lift equipment

  • Confined space

  • Hazardous substances or materials

  • High-voltage electricity

  • Hot-work conditions

Employers should also make a list of jobs where employees
are required to work alone and complete a risk/hazard assessment of each job to
determine if the job is appropriate for a single employee. The risk/hazard
assessment should include the following considerations:

  • Is it reasonable for the person to be
    alone?

  • Is the work in a remote or isolated
    location?

  • Is the job after hours? (Could it be
    done during normal hours?)

  • Are there extreme temperatures?

  • Is the job in the
    warehouse when other workers are gone?

  • Is the job in a basement, away from
    other workers?

  • Is the employee driving a vehicle alone
    for an extended period of time?

  • What consequences could result from a
    worst-case scenario? (Consider all possible “what if” factors.)

  • What is the
    likelihood for other persons to be in the area?

  • Is there a possibility that a critical
    injury or incident could prevent the employee from calling for help or leaving
    the workplace?

  • What is the expected emergency response
    time?

  • What if a worker has physical handicaps
    or preexisting medical conditions?

The preceding list, while not all-inclusive, gives a few
examples of what should be considered in a risk/hazard assessment. Businesses
should consult with their health and safety, and legal experts to determine the
scope of their risk/hazard assessment. The assessment should be repeated on a
regular basis to account for the possibility of hazards changing over time.
Once the assessment is completed, it should be communicated to both management
and employees.

Companies that have employees working alone need to
develop a checklist to specify the protocol solitary workers must follow. This
list must be completed before any employee is permitted to work alone. The
employee checklist should be distributed to the employee assigned to check on
the individual working alone as well as the solo employee. The following
factors should be included on the working-alone checklist:

  • Identification of the risks or hazards
    associated with the work to be performed or the environment where the work is
    to be done,

  • Emergency contact number for the
    employee,

  • Name of employee that will be working
    alone,

  • Job tasks that will be accomplished,

  • Methods of communication by which the
    worker can secure emergency assistance and how
    emergency assistance will be provided in the event of incidents or accidents,

  • Time intervals in which the employee
    will be contacted (10 minutes, 20 minutes, etc.),

  • If the employee was involved in the
    development of the checklist, and

  • Whether a risk/hazard assessment was
    completed for the task.

On
pages 12 and 14 are 2 different types of sample working-alone documents. They
do not cover all jobs where employees work alone, but they give examples of
some of the items that need to be included.

It is
essential that the working-alone procedure is clear on the steps that must be
taken when employees have to work alone. All employees should be trained on
working-alone procedures annually, if not more frequently. Employees should be
involved in the development of the procedure as well as the risk/hazard
assessment defining which job tasks are not suitable for a single employee.

Working alone can be safe if
procedures are in place, are communicated to employees, and are strictly
followed. The suggestions in this article are not meant to be comprehensive.
Businesses should consult their health and safety and legal experts to ensure
their working-alone procedures fully protect their employees. It may sometimes
be necessary to assign a single employee to a task, and business owners should
take all necessary steps to ensure the safety of their employees. Business
owners and employees can visit OSHA?s website at OSHA.gov for more
resources on this subject and to ensure their procedures follow federal
guidelines.

Figure 1
Figure 2
NIA Sites > Insulation Outlook Magazine > Global

Leed V4: The Old, the New, and the Reinvented: What New Regulations Will Mean for Insulation Users and Manufacturers

The U.S. Green Building
Council (USGBC) unveiled the latest version of its Leadership in
Energy and
Environmental Design (LEED) program—LEED v4—at the
Greenbuild International
Conference and Expo in Philadelphia last November. The latest
version, classified
as a “quantum leap for LEED” by the USGBC, builds on the foundations
of the
previous version, LEED 2009, while incorporating new types of
buildings,
product selection criteria, impact categories, and credit-earning
calculations.

Consistent
with previous versions of LEED, LEED v4 includes prerequisites that
must be
satisfied to earn credit, as well as optional credit requirements.
However,
there are some notable differences in approach as well as the
addition of new
sustainability criteria. This article describes how and where the
selection and
use of insulation applies to LEED credits, with a specific focus on
the
Materials and Resources section, and changes to Indoor Environmental
Quality
criteria. Manufacturers of insulation as well as architects,
designers,
contractors, specifiers, and other users will continue to leverage
the benefits
of steps taken to earn LEED credits under the previous standard,
while also
accessing new credit opportunities with the strategic selection of
insulation.

The 40,000 Foot View of
LEED

In some ways, LEED v4 is
more complex than former versions, as it tries to evaluate and
measure the
synergistic benefits of designing, building, managing, and operating
sustainable buildings. In many cases, credits are no longer offered
for simply
meeting a particular criterion, but are now awarded based on a
calculation of
how meeting a given criterion impacts the end result. The new
standard also
includes credits for new sustainability criteria that must be third-
party
validated or certified.

There are 6 areas where thermal insulation on mechanical
systems can apply toward earning credits in LEED v4:

  1. Energy
    efficiency

  2. Product
    transparency

  3. Raw materials
    sourcing

  4. Material
    ingredients

  5. Indoor air
    quality

  6. Acoustic
    performance

In
some cases, credits are earned simply by selecting insulation that
meets a
given criterion. In others, credits are based on the impact
insulation has on
the end result.

Energy Efficiency

LEED
was originally created with the intention of revolutionizing how we
design,
construct, and operate buildings. It focuses on many aspects of
sustainability
including water use and conservation, indoor environments that
support human
health, operation and management of buildings in environmentally
friendly ways,
and environmentally conscientious use and reuse of materials, among
other
factors. Above all, however, LEED has focused on energy efficiency.
From this
standpoint, insulation can play an enormous role in helping LEED-
accredited
buildings achieve their desired project status. Most types of
insulation are
explicitly designed to increase energy efficiency. Unlike some other
product
categories, insulation is relevant to every type of building
striving to earn
energy credits for LEED certification.

Energy and Atmosphere

Minimum energy
performance prerequisites in LEED call for measurable reductions in
energy
consumption in a standard building. Energy simulation calls for
evaluation of
chosen insulation methods used in the building. By increasing energy
efficiency, insulation helps deliver buildings that operate with
increased
comfort and efficiency—both significant goals of LEED.

However,
the use of insulation has implications for other environmental
attributes as
well, and insulation brands that support sustainability will pull
ahead of
others in terms of helping project teams earn LEED credits.

Product Transparency

The
Materials and Resources section of LEED v4 calls for the efficient
use of
resources and selection of materials that support both human health
and
sustainability. New to this latest version of LEED is the potential
to earn
credits based on selection of building materials from manufacturers
that strive
to bring a level of transparency to their environmental impact.
Project teams
earn credits for selecting products that have received a verified
third-party
environmental product declaration (EPD) or, alternatively, those
that have been
shown to meet environmental impact criteria.

The
EPD (worth 1 credit) calls for the building to “use at least 20
different
permanently installed products sourced from at least 5 different
manufacturers
that meet 1 of the disclosure criteria.”

An
alternative option is to ensure that 50% of permanently installed
materials of
a project meet a set of performance criteria outlined for reduced
global
warming, depletion of ozone, acidification of land and water
resources,
eutrophication, and formation of tropospheric ozone.

In
both instances, third-party validation and/or certification offers
manufacturers and users the most effective, streamlined way to
identify
products that meet these criteria.

An
EPD is a comprehensive report that documents the ways in which a
product
impacts the environment in 6 key areas. Independent program
operators offer
certification of EPDs, which must comply with product category rules
that have
been established using a defined process. These types of EPDs meet
the
specifications outlined in LEED and offer clear and definitive
compliance for a
credit’s criteria.

Raw Materials Sourcing

LEED has long called for
the specification of products that are sustainably sourced. The
difference in
LEED v4 is that the collection of attributes has been centralized
into a single
prerequisite calling for the achievement of multiple single-
attribute criteria.
Through this prerequisite, it is possible to earn a total of 2
points for a
project. Required attributes include:

  • Materials reuse, which calls for salvaged,
    refurbished, or reused
    products

  • Wood products that are sourced sustainably
    and are certified by
    the Forest Stewardship Council or a USGBC equivalent

  • Bio-based materials tested using ASTM Test
    Method D6866

  • Recycled content

Insulation bearing third-party claim validation marks can
be easily identified as meeting the specified attributes. Companies
may also
have their corporate sustainability reports third-party audited and
certified
to document their compliance.

Material Ingredients

In the new version of
LEED, credit is also given for material ingredient disclosure. The
intent is to
evaluate not only the impact of products on and in the building, but
to
demonstrate a chemical inventory to at least 0.1% (1000 ppm).

Declaration
of chemical content, health product declarations, and cradle-to-
cradle
certifications ask manufacturers to offer additional transparency
regarding the
content inventory of their products. Insulation manufacturers have
an option to
seek third-party evaluations to verify chemical content. Project
teams would
need to research availability and select 20 permanently installed
products
offering this content inventory in order to earn this new credit.

Indoor Air Quality

Indoor air quality,
addressed in the Indoor Environmental Quality (IEQ) section of the
standard,
has been included in LEED since v2.2. Previous versions awarded
credits for the
selection of low-emitting products in specified product categories.
Project
teams achieved this credit by selecting products bearing trusted
third-party
certifications that indicated compliance. However, there is a way in
LEED v4
for some components of product categories to contribute toward
earning credit
with a complex compliance methodology involving calculations of the
amounts of
low-emitting materials by volume, surface area, or
cost—depending on the
product type—and then determining the percentage of total
product compliance in
a certain space.

Insulation
is required to be calculated by surface area compliance with
California
Department of Public Health Standard Method v1.1. Certain parties
have
expressed concern that the new complexity may drive teams away from
trying to
obtain this credit, and this could negatively impact IEQ in indoor
environments. It is advisable for teams to continue to select
products with
trusted third-party certifications that they have used in the past.
Additionally, there are extra points available in this version of
the rating
system for indoor air testing of certain chemical levels. If the air
quality
meets the specified criteria, the building is given double the
credits that
would have been received for simply flushing out air. By selecting
and using
certified low-emitting products, including doors and hardware,
product teams
can better ensure that required indoor air quality clearance testing
will yield
acceptable results.

Acoustic Performance

Acoustic performance is a
new credit opportunity available to all building types (except
schools, where
it had previously been incorporated into the standard). The intent
of this
requirement is to produce workplace and other environments conducive
to
occupant productivity and comfort.

The use of both mechanical
and thermal insulation
can support efforts to earn this credit by reducing HVAC background
noise and
reducing sound transmission. Calculations are required to earn this
credit.

Conclusion

With its extensive
language, credit options, multi-part criteria, and new formulas,
LEED v4
demands more specific, measurable sustainability attributes from
insulation
manufacturers regarding their products’ impact on the environment.

Manufacturers
and project teams, including specifiers, architects, designers, and
others,
need not be overwhelmed with the new criteria, however. The simplest
way to
maximize credit-earning potential is to select products that have
been
validated and certified by trusted third parties. The selection of
sustainable
products will in some cases earn a credit and in others simply help
guarantee
that when calculations are completed, sustainable products will
contribute to a
positive result.

For
manufacturers striving to differentiate their products and make them
turn-key
ready for LEED, it may be worthwhile to investigate the options for
earning an
EPD, obtaining low-emitting certification, and/or pursuing an
Environmental
Claims Validation through a trusted third party. There are scores of
additional
benefits to earning these certifications, including sending a clear
message to
purchasers, specifiers, and end users about the manufacturer’s
commitment to
sustainability. In many cases, the process of earning certification
can also
provide in-depth operational data that highlight cost savings and
other areas
for improvement that can save the company precious time, money, and
resources.

It is
useful to consider the pursuit of sustainability as a journey as
opposed to a
single action. The important thing is to continue to make strides,
little by
little—not only to comply with LEED, but to protect resources
and the planet
for generations to come.

The opinions expressed in this article are the
author’s own and do not necessarily represent those of UL
Environment or the
National Insulation Association.

Resources:

For more information on EPDs, please visit www.ul.com/epd.

To source certified materials for your next green
building project, visit www.ul.com/spg, where you can search by
sustainable
product credit, manufacturer, or product type.

NIA Sites > Insulation Outlook Magazine > Global

Insulation Finishes—This Month’s Topic: Mastics and Coatings

Product Characteristics of Weather Barriers,
Vapor Retarders, and Finishes

Mastics are
available in numerous formulations and are designed to protect insulation from
physical, chemical, water, and weather damage. They can be broken up into
special-use classes, as described below; and the selection of the proper mastic
will depend on the insulation type, equipment, piping or duct operating
temperature, fire hazard classification required, expected service life, and
other conditions. Mastics can be applied to protect the entire insulation
system surface, facing materials over insulation, or over irregular insulation
surfaces such as sprayed polyurethane foam systems; bends and elbows; protrusions
such as flanges, valves, supports; or insulation terminations where sheet
materials cannot be effectively applied. They are most often applied by brush,
trowel, or spray in 2 coats at the manufacturers? recommended application rate,
with a reinforcing mesh embedded between the first 2 coats. Typical reinforcing
meshes are made of synthetic fibers, fiberglass scrim, or cloth and canvas
cloth. The mastic manufacturers? application guide should be consulted for
selection of the proper reinforcement to use with the mastic chosen.

Properties and
tests commonly considered in the selection of a mastic are given in ASTM C647,
Standard Guide to Properties and Tests of Mastics and Coating Finishes for
Thermal Insulation.

Mastics are
broken up into the following types and sub-types:

  • Vapor Retarder (Vapor Barrier) Mastics and
    Coatings

    • Solvent-based
      thermoplastic rubber/resin types.

      Common
      uses:

      • Cryogenic applications (below
        -40°F)

      • Severe chemical environments

      Other
      benefits:

      • Fire resistive—meet Class A flame
        and smoke

      • Highest performance of vapor
        retarders

      • Lowest permeance


    • Water-based
      synthetic polymers types

      Common
      uses:

      • Low-temperature piping and
        equipment (-40°F to ambient)

      • Sealing seams, punctures, and
        terminations of vapor retarder facings

      • Chilled water, air-conditioning
        duct, brines

      Other
      benefits:

      • Fire resistive—meet Class A flame
        and smoke

      • Low hazards during application and
        shipment—low toxicity and no fire hazard

      • Permeance:
        dependent on type—below 0.5 perms

      • Solvent-based
        asphaltic types

      Common
      uses:

      • Buried pipes

      • Exterior low-service temperature
        piping

      Other
      properties:

      • Chemical resistant

      • Poor fire resistivity


  • Weather Barrier (Breather) Mastics and Coatings

    • Water-based
      synthetic polymer type

      • Most common type on the market

      • Provide weather protection

      • Keep liquid water out

      • Allow water vapor to pass through
        over hot equipment

      • UV resistant

      • Protect vapor retarder facings
        (FSK, ASJ)

      • Exterior ductwork and piping

      • Weather protection

      • Physical protection against
        puncture

    • Water-based
      asphalt emulsions

      • Older technology

      • Low material cost, but high labor cost



Mastic Characteristics

When
selecting a mastic, the following general characteristics and uses should be
considered.

Vapor retarder mastics are designed to prevent the
ingress of water vapor into cold insulation systems in addition to protecting
against mechanical abuse, liquid water intrusion, and weather. Permeance of
vapor retarder mastics will vary greatly, ranging from 0.5 perms to <0.01
perms, depending on the mastic type and performance requirements. Most
manufacturers will provide information on the mastic?s permeance on their
product data sheets. It is important to consider the test temperature, test
relative humidity, and film thickness when comparing the permeance of a mastic.
Changes in any of these properties will affect the permeance of any mastic.

Cold
insulation systems with respect to mastics can be further defined by:

  • Cryogenic
    service (operating below -40°F)

  • Low-temperature
    service (-40°F to 32°F)

  • Cool/cold
    service (33°F to ambient)

Cryogenic insulation systems
require specialized engineering beyond the scope of this column. Mastics and
coatings for these uses have very low permeability (<0.02 perms) and include
specialized vapor stop coatings with extremely low service temperature limits
(down to -320°F), and solvent-based thermoplastic rubber (Hypalon) mastics.
Contact the mastic manufacturer for assistance in selecting these materials.

Low-temperature
service mastics should have permeance of <0.02 perms. These products include
solvent-based thermoplastic rubber and water-based synthetic rubber mastics.
The solvent-based mastics will typically have the lowest permeance, highest
chemical resistance, and longest service life; however, they may be restricted
for use in some regions, are combustible during application, and require
solvents for cleanup. Some water-based mastics have permeance values below 0.02
perms, can be used in all regions, and have the added advantages of being
non-flammable during application and easily cleaned with  water.

Cool or cold-service insulation
includes insulation of chilled water piping, air conditioning, ductwork, and
other systems operating between 33°F and ambient. The proper mastic and
permeance requirements for these systems will depend on whether the system is
interior or exterior, the facing on the insulation, the likelihood of physical
or mechanical abuse, the climate (high versus low-humidity environment), and insulation
type. There are still some solvent-based mastics used for these applications;
however, in most cases, water-based mastics will meet the required performance
and are preferable. The vapor retarder system, including any sheet facing
materials and mastics, should have permeance <0.05 perms, per ASTM C755.

In many cases insulation for duct
systems or piping in warm humid climates will be faced with a FSK, ASJ, or
other vapor-retarder jacket. In this case, water-based mastics with permeance
<0.5 perms are typically acceptable for vapor-sealing punctures (from
hangars or pins) and seams in the facing on interior applications. These
mastics can also be applied over the entire facing surface to provide
additional physical protection, if required, or physical and weather protection
of the facing on outdoor insulation. If the insulation is not faced with a
vapor retarder jacket, at insulation terminations, or over bare insulation, the
mastic should have a permeance less than 0.05 perms. Reinforcing mesh embedded
in the mastic is typically required per manufacturer?s guidelines.

Weather barrier mastics and
coatings are
also commonly referred to as “breather” coatings. They are specifically
designed to provide protection of the insulation from physical abuse and/or
weathering. They are normally water-based synthetic polymer coatings. These
mastics have higher permeance, > 1.0 perm, than vapor retarders and will
allow water vapor to pass through them while repelling liquid water. This is
particularly important when used over hot equipment or piping where trapped
moisture must be allowed to pass through the mastic to avoid blistering of the
coating. Weather barrier coatings also find use on dual-temperature systems;
such as rooftop HVAC ductwork used for cooling and heating, or dual-temperature
water piping, where the insulation contains a vapor retarder facing that
requires weather protection. On exterior applications, the insulation should
always be sloped to avoiding ponding water.

On
interior applications on hot pipes, specialized lagging adhesives and coatings
may be used with fiberglass cloth or canvas cloth to create an insulation
cover. The lagging adhesive is used to both bond the cloth to the insulation as
well as to provide a protective finish.

Inspection, Maintenance, and Repair of Mastic Systems

Mastics are a key
component in the protection of many insulation systems and need to be
inspected, maintained, and quickly repaired to function properly. Regular
inspection of the mastic should be conducted as part of an overall insulation
system maintenance program. Inspection should include visual observation for
any cuts, tears, punctures, chemical breakdown, embrittlement from chemical
attack, or other damage to the mastic or reinforcement. Any buildup of dirt or
other chemical contaminants should be removed to ensure that underlying damage
has not occurred and to prevent deterioration of the mastic. Surface wear
should be repaired by thoroughly cleaning the surface before applying a new
finish coat of mastic. The use of reinforcing mesh may be required if there was
damage or exposure of the previous reinforcement. If damage includes a breach
of the mastic such as a puncture, tear, or through cut, the insulation system
should be closely examined to ensure that water or contaminants have not
entered the insulation system. If the insulation is wet or damaged, it must be
removed and replaced prior to re-applying any mastic. Any newly applied mastic
should be reinforced per the manufacturer?s recommendations and extend at least
3 inches over the previously sealed and cleaned surface.

Coatings
generally need to be re-coated every 2?3 years. If applied to flexible
insulation products or insulation materials that will expand and contract
during service, they may “egg shell or crack,” but will not flake or peel off.
This egg-shelling effect may detract from the appearance of the application,
but it will not generally affect the UV performance of the product. It can be
re-coated for extended service life.

NIA Sites > Insulation Outlook Magazine > Global

A Different Perspective: A Diagram of the Job Plan for a Successful Project

A project?s success is often measured by whether
the completion and milestone dates were met, if it came in under budget, and if
the job was well planned. Due to construction and scheduling requirements, the
emphasis on project planning is becoming increasingly important. Generally,
labor will make up 65% or more of installation and/or removal costs. During any
major project, the labor will involve the mutual cooperation of many crafts,
including boilermakers or welders, mechanics, operators, electricians,
scaffolding workers, insulators, sheet-metal workers, and bricklayers (for
installing refractory). These trades will also interface with engineering,
procurement, project management, and project planning personnel. Any delay or
problem with the material procurement, labor interface, or work assignments may
impact the entire construction schedule. It is important to understand that a
successful project begins with careful job planning. A carefully prepared plan
increases the likelihood that all project goals will be met.

With the wide variety of labor
crafts, it is critical to define their responsibilities. Each has its own
unique job classifications and by-laws. The following is a short synopsis of
work that each craft may be responsible for. The list is not all-inclusive, but
rather gives a summary of general work responsibilities for different labor
crafts.

Players in the Project

  • Boilermakers or welders—weld pressure parts
    (e.g., boiler water wall tubes, steam drums, weld casing, and plate)

  • Mechanics—maintain
    motors for fans and equipment

  • Operators—control the operation of the boiler and
    the systems that support it (e.g., feed-water heaters, turbines)

  • Electricians—install
    and repair electrical systems, including thermocouples and temperature probes

  • Scaffolding
    workers—    build and dismantle scaffolding

  • Insulators—install
    insulation and pipe jacketing

  • Sheet-metal
    workers—    install outer lagging

  • Bricklayers—install
    refractory and brick

The Job: Adding Insulation to Equipment

Consider the following scenario: A power plant
safety engineer is concerned about personnel protection and energy efficiency
at a newly installed fuel feeder spout area on the steam-generating unit. The
manufacturer of the fuel equipment did not require any thermal insulation;
therefore, no insulation was originally designed or installed. After the unit
was in operation, the boiler operators realized the lack of thermal insulation
created a hazard and took action to add insulation to ensure the safety of all
personnel.

Taking Action

The operators
organized a team consisting of those responsible for operation, mechanics,
electric, welding, engineering, insulation, and lagging. They discussed the
problem and agreed that a thermal shield needed to be designed and installed.
This shield would allow heat to radiate off the spouts and protect personnel
without causing excessive heat loss.

The next step was implementing
this plan, which required engineering, design, and installation. Engineering
drawings of the proposed heat shield were drawn up, and labor projections and
durations were established.

Since the heat shield was designed for personnel protection, the type of
insulation used was less critical than the cost. The total cost of the project
(labor and material) had to be kept at or near the expected forecasted budget.
The design used a mineral wool board that could be impaled on pins. The outer
lagging material had to match the existing lagging that was used on the
steam-generating unit. A carbon steel framework of angle iron welded together
by the welders (boilermakers) would complete the design. Thermocouples were
later installed to allow for temperature readings by the mechanics and
electricians. For ease of accessibility to the fuel chute area, rollers were
added to the bottom of the heat shield. The area of work was limited due to
pipe restrictions, so an area was chosen on the floor below to build the
enclosure and the team made sure that once constructed, it could fit inside the
elevator.

This case is a perfect example
of how cooperative action is the key to solving build issues. By having the
entire team (plant personnel, labor, manufacturers, and engineers) work
together, any problem—big or small—can be resolved quickly and efficiently.
Unfortunately, many problems are not so easily solved in such a cooperative
manor. In many cases, egos, personal agenda, cost-versus-profit concerns, and
lack of knowledge interfere with the ability to work together as a team.

Key Steps for Project Success

In addition to team cooperation, the following
planning steps are crucial to a successful project:

1. Understand the job scope.

Prior to starting a job or project, you must
prepare and understand each and every detail of application and work scope.
This means reviewing all documents, specifications, and drawings, as well as
the current site conditions. A pre-project site visit is always beneficial, but
first you must read and review all drawings and work scope documents. The more
drawings available, the better the job installation will be. Drawings provide
the necessary information for estimating man-hours, material procurement, and
establishing elevations for scaffolding. Good preparation always saves time and
money in later stages of the project.

Rule number 1: The more you know, the better things go.

2. Perform a job site walk
down.

The next step is the review of the current site
conditions. A pre-outage site visit allows you to see how the site conditions
will affect man-loading and material-handling requirements (e.g., rigging,
cranes), expected productivity of work, scaffolding requirements, and safety
considerations. This normally will be done prior to the job outage. In most
cases, the steam-generating boiler will be in operation.

Rule number 2: Walk the work area and visualize the project.

3. Calculate layout and
material take-offs.

The next step is establishing the material
requirements. Using the drawings provided in step 1, calculate the quantities
needed to complete the project (tube sizes and lineal feet, refractory and
insulation, etc.). From these material take-offs, materials will be ordered and
man-hours will be established (see step 4). The layout and material take-offs
are also essential for good labor control, are helpful in planning
material-handling requirements, and assist in scheduling and productivity expectations.
The take-offs and layout will most likely be done from arrangement and detail
drawings, although field measurements may sometimes be required. These layouts
and take-offs will act as a control document and a source of information
verifying that all contract specifications and requirements have been met. They
will also be of great value as a historical document for future work.

Rule number 3: Layouts and take-offs are essential—not
optional.

4. Establish labor costs and
durations of work.

It is at this time that labor and material
estimates are created. Estimating man-hours and productivity of the work will
allow good field supervision and control. The initial expected productivity
will be based on experience, past studies, and established data base. These
estimated man-hours and productivity will be the basis for the job schedule and
the interface with other crafts. Every job or project should include the
durations of the scope and the interface required among the crafts.

Rule number 4: Man-hours set the schedule.

5. Establish or create a
project work schedule.

Once all the crafts and departments have submitted
their hours and work requirements, a work or project schedule must be created.
This can be done with existing computer software or can be as simple as
creating a visual management board like a dry erase board. Either way, this
schedule should contain enough information to allow everyone to see where they
are in the project on a daily basis.

Rule number 5: Schedules create daily tracking and interface
between crafts.

6. Establish ownership and
commitment.

It is time to
take ownership of the work and productivity required to meet the schedule. This
will require another pre-job meeting and a walk-down of the entire work area
with the field supervision (i.e., working foreman and project management).
These are the people responsible for running the individual crews and will have
the most impact on your ability to reach the expected productivity. Their
familiarity with the local work force will help in getting the job done on
time. This walk-down will also help them understand the work scope, craft
responsibility breakdown, material handling and storage areas, and expected
productivity (e.g., square foot of coverage per day, number of tube welds per day)
to meet the schedule.

Rule number 6: Craft ownership creates cooperation.

7. Man-load each work area.

The next step is
to man-load specific work locations. This is key to a smooth-running job.
Properly man-loading a project will help ensure a continuous workflow (e.g.,
tube welding, refractory attachment, welding inner casing, installing
insulation and lagging). Every work area must be scrutinized and planned to
ensure a well-managed job. Nothing must be overlooked, including the amount of
space available for material storage, the accessibility to unreachable areas,
the amount of workspace available for pre-engineering, and where power and
water hookups are located.

Rule number 7: Scrutinize and plan even the smallest of
details.

8. Establish trailer and work
tent locations.

In addition to man-loading requirements, the
locations of fabrication shops, work trailers, and storage tents are essential
considerations. Keep in mind that most plants do not have just 1
steam-generating boiler. Normal boiler operations must not be interrupted on
the other units during the project, so placement of your fabrication shops,
storage tents, or work trailers will be very important. Most crafts will need a
trailer and work tents or shops for pre-fabrication work (e.g., lagging
flashing of seams, corners, penetrations, and openings require special
pre-formed shapes and sizes; and water wall tubes must be cut to size, and the
tube ends prepared for welding).

Rule number 8: Fabrication shops and storage areas keep the
job on schedule.

9. Consider material handling
at elevations.

Weather-damaged materials or difficulties getting
the materials to elevation are detrimental when trying to meet a schedule.
Therefore, having materials protected and available at the specific work locations
will eliminate wasted time. Make sure that you consider all aspects from
material handling (e.g., forklifts and carts, elevator usage, and crane
requirements) to weather protection.

Rule number 9: Have enough material
at work elevation (or within 1 elevation) for the entire work shift.

While problems occur on every project, and additional work is always
being added to the work scope, good planning and cooperation will always make
for a successful conclusion. Job planning will help minimize the possibility of
problems and will only enhance your chances for a successful project.

NIA Sites > Insulation Outlook Magazine > Global

Passing the Torch: Transferring Knowledge from Baby Boomer Employees to the Next Generation(s)

A generational change is slowly occurring in
today’s workplace. With the oldest Baby Boomers now reaching the traditional
age of retirement, we are about to see a dramatic shift as these long-time
professionals leave the workforce—and some organizations will face an
accompanying knowledge and skills deficit if they do not take steps to prevent
it.

Approximately 80 million
Boomers are due to retire over the next 15 years. Luckily, this turnover is not
likely to happen overnight. The youngest Baby Boomers are just 49 and probably
not thinking about retirement, while many older Boomers are resisting
retirement and prefer to continue working for financial and personal reasons.
As these workers begin to tender their resignations, they will leave a
noticeable gap; while your organization can easily fill those positions with
willing employees, it may be harder to replace the specialized skills, institutional
knowledge, and on-the-job expertise that your Boomers accumulated over decades.
Will those valuable assets retire along with your oldest experts?

Knowledge Transfer Defined

Take an objective look around your organization. Is
your workforce “graying?” Do you have specific departments or teams with
personnel who are all entering their 50s or 60s at about the same time? If so,
you can take some specific steps to retain their knowledge and skills if and
when they leave. It is crucial to start this process as soon as possible—do not
wait until your older employees start to announce their retirement plans.

The good news is that there are
processes in place for this. The organizational effort of attempting to keep
the job knowledge of employees consistent despite turnover is called knowledge
transfer. Sometimes referred to as knowledge sharing or knowledge continuity
management, knowledge transfer focuses on passing critical knowledge from
exiting employees to their replacements. Do not think of this as an “exit-interview”
strategy where you sit down with Joe Smith a week before he leaves to ask him
everything he knows about his job. Knowledge transfer is an organization-wide
effort to build long-term knowledge continuity across the board.

How do you go about knowledge transfer? Fundamentally, it begins with an
organization’s culture and values—but for today’s businesses, it also involves
intergenerational relations.

Create a Culture of Teaching and Learning

There are many methods for transferring employee knowledge
(see “Knowledge Transfer Methods” above), but for any of them to succeed,
employers must be open to sharing information, encourage employees to teach
each other, and value the knowledge that individual employees hold.

For any type of knowledge sharing,
nothing beats face-to-face interaction, and you will want to encourage passion
and excitement about this type of sharing. Start by reviewing the current
culture and environment within your company, and be prepared to work with what
you have. One way to gauge your environment for learning exchange is to look at
the physical layout of your workspaces. Do you have areas where people can
exchange ideas and information? Are your hallways wide enough to accommodate
conversation? If you see a gathering place—whether it is the break room or an
empty corner—consider installing a whiteboard or flip chart there and see what
happens. Although you cannot mandate knowledge transfer, there are many things
you can do to encourage it. Here are a few broad ideas to get you started.

  1. Implement learning opportunities throughout your
    department or organization.     Do not
    just talk about learning—institute opportunities that will allow everyone to
    learn. This type of learning does not occur through professional development
    opportunities (i.e., classroom training), but rather, through knowledge
    sharing. Approximately 70% of learning happens on the job, and an additional
    20% occurs with and through others. Try asking specific employees to lead
    informal “lunch and learns,” start a mentoring program, ask willing Millennial
    employees to videotape interviews with company experts and post them on your
    intranet—get creative!

  2. Relax your
    definition of “learning.”     You must have confidence that your employees want
    to do a good job, and let them do it. If you notice your marketing team having
    a wind-up toy race, do not assume there is no learning taking place. Not all
    learning comes from employee handbooks or training sessions.

  3. Facilitate
    intergenerational interaction.     Create forums and general opportunities for
    senior experts and leaders to interact with newer and/or younger employees. Opportunities
    for cross-generational learning could range from mentoring, to “Ask the Expert”
    roundtables, or project reviews.

  4. Take learning online. If your organization (or employee base) is
    geographically spread out, or if you believe virtual communication would better
    suit your employees’ preferences, offer some online venues for sharing
    information. These include podcasts and YouTube channels; chatrooms or forums
    focused by area of expertise; personal websites or knowledge profiles; or
    simply a list of experts who can be contacted for answers, information, and
    troubleshooting.

  5. Enlist
    outside help.     A trained third-party facilitator can look at your
    organization’s culture and values, determine the methods best suited to your
    needs, and create a climate that is conducive to knowledge transfer, where
    employees are comfortable talking about what they know and what they do not
    know.

Narrow Your Focus

Once your cultural foundation for knowledge
exchange has been reinforced, focus teaching and learning opportunities on the
specific knowledge you need transferred. Note that knowledge is both “know how”
and “know why.” There are 2 types of knowledge that employees should pass on:
explicit knowledge, which is easily codified and conveyed to others; and
implicit or tacit knowledge, which is experiential, such as wisdom,
discernment, hunches, instinct, and personal insight. Job profiles or
descriptions and written procedures are a good way to share explicit knowledge.
The problem is that most people jump into a new job, then read the procedures
when they want to find an answer to a specific question—often missing out on
the implicit knowledge they need to fulfill their duties.

All of your organization’s
knowledge is important. What you have to figure out is, what knowledge is
critical or essential for your organization to continue into the future? To
answer this question, consider the following: your vision and business success
drivers, industry trends, current and future core competencies, scarcity, and
replacement costs. Beware of TMI (too much information)—you do not want to
overwhelm or bore those involved—you want to engage learners.

Once you identify specific
areas of knowledge you need to retain, you can draft a plan for recording this
knowledge. However, be careful not to rely solely on “people-to-paper” (or
“people-to-database”) processes such as written guidelines or procedural
handbooks. Create some effective people-to-people methods as well to capture
tacit knowledge. When using technology, this means focusing on live or recorded
“conversations,” including videos and podcasts.

Leverage Generational Preferences

Remember that knowledge sharing is voluntary. You
will need to learn what motivates and demotivates your employees to encourage a
successful transfer of knowledge. A good starting point is addressing
generational preferences, values, and strengths that impact how your employees
work, teach, and learn. Your knowledge transfer methods should take these
preferences into account for maximum effectiveness.

  1. Baby Boomers

    This generation came into the workforce en masse
    and made the rules that many companies play by. Many of them define themselves
    by their careers and are proud of their accomplishments in the workplace. When
    creating a knowledge transfer plan, appeal to their pride and their loyalty to
    your organization and your industry, and stress that the plan will help them
    leave a legacy. All these motivators relate to the Baby Boomers’ work values
    and principles.

  2. Generation X

    The 41 million
    members of Generation (Gen) X have had the opportunity to reshape organizations
    to meet their generation’s priorities—a sometimes difficult task, given the
    sheer numbers and strong personalities of the Baby Boomer generation. Gen Xers
    prefer to work independently and are loyal to good bosses, stimulating
    projects, and capable team members. Because more than half of them grew up as
    latch-key kids, Gen Xers feel strongly that they do not need someone looking
    over their shoulder. In other words, they prefer hands-off management;
    micromanaging does not work with them.

    Like all generations, Gen X
    values learning new things and acquiring marketable skills. This trait,
    combined with their desire for independence and appreciation for efficiency,
    makes them excellent recipients of older workers’ knowledge. Your knowledge
    transfer plan can appeal to Gen Xers by emphasizing the value of gaining a
    “portable portfolio” of skills and knowledge.

  3. Millennials

    The youngest
    generation in today’s workplace has a bit of a “whatever” view of title and
    position, showing less reverence for a position that is simply based on
    experience, which they think Baby Boomers overemphasize. What they respect is
    knowledge and learning. In fact, they will leave for greener pastures if
    challenge, learning, and fun are absent from their work. Although they do not
    default to deference automatically, Millennials acknowledge that they have much
    to learn and they appreciate the wisdom of their more tenured colleagues. The
    methods you use for knowledge transfer are key: if you can effectively engage
    Millennials, they will soak up the knowledge like sponges! One trait to note is
    that they are typically team-oriented and work well in groups, preferring group
    work to individual endeavors. If you can harness the use of technology for your
    methods, that will also help keep their attention.

Additional Ideas

Baby Boomers—just like employees of all
generations—value learning new things, so do not simply rely on them to teach.
Offer them a chance to keep gaining skills and knowledge in order to keep them
engaged. You might consider a reverse mentoring program, where a more
experienced employee, or even a manager, actively seeks the counsel of an
employee with less overall experience. This modern twist has older employees
depending on younger staff for fresh perspectives, trend spotting, and
technology guidance.

Another option is to establish
lunch and learns with Boomers in mind, with topics like the latest in social
media, personal finance, or health issues. The extra benefit of learning new
things will strengthen their loyalty and commitment as it reinforces your
workplace as one that values learning and skill building in general.

Warning! Pitfalls Ahead

Before you implement your knowledge transfer plan,
consider how your employees might perceive it. If, because of internal
demographics, you are concentrating your efforts on a specific department or
management level, others may think their knowledge is not important to the
organization.

Another potential pitfall is
the possibility that you may focus on transferring one area of knowledge, but
unforeseen changes in the future may make such knowledge obsolete or less
valuable. To mitigate this issue, employers should make knowledge transfer
tools available to anyone who is interested. You will find that it is fairly
easy to extend your knowledge transfer program to include a toolkit for any
employee or manager who requests it.

When you introduce knowledge
transfer to employees, begin by inviting them to participate and acknowledge
each individual and his or her history and skills. Include them in the process,
or they may feel used. Many might also fear that you are asking for their
knowledge because they are going to lose their jobs. Take extra time to stress
their value, their legacy, and the fact that employees of all ages will act as
givers and receivers of knowledge.

Recognize and Reward Employee Efforts

Sharing
knowledge means making an extra effort and sometimes requires additional time
as well as creative thinking. Employees who participate—the recipients as well
as the knowledge holders—should be recognized and rewarded for their efforts.
Thank them, stress the importance and value of what they are doing, and lead by
example. Demonstrating that knowledge transfer is highly valued begins with
your organization’s leaders freely passing on their knowledge and lessons
learned. As an organization, you must acknowledge “legacy leavers,” create
knowledge-sharing champions, and publicly recognize their contribution. All of
this contributes to a culture that values sharing, teaching, and learning.

SIDEBAR #1

Knowledge Transfer Methods

There are many ways
to transfer both explicit and implicit knowledge (see definitions on page 17).
Some of the ones listed here may suit your needs, capabilities, and company
culture, and can be combined as you see fit:

Legacy Development Plans—a facilitator asks employees to
share what they know, and asks them what should be shared. This method shifts
the emphasis to contribution. This can be included in annual performance
appraisals by asking each employee to write up or update what they know when
they prepare for each appraisal. For some older employees nearing retirement,
legacy planning can replace career planning; they can devote their time and
energy to leaving a legacy rather than training and professional development.

Case Studies—a facilitator
interviews the experts and writes up a case study that poses questions about
what it takes to go from good to great work in a specific job. This is
especially useful when it targets something that is the exception to a rule.

Communities of Practice (COPs) or Worknets—COPs are typically groups that may not work together
but have the same body of knowledge. Example: Although Xerox Tech Reps
have the same job, they never see each other—each works alone in the field,
servicing equipment for regional customers. However, they created a COP on
their own by setting up a database of problems and solutions to help each
other, and often arrange to meet informally when possible to talk about work.
COPs usually exist underground, and too much intervention from the employer can
interfere. If you discover a COP within your company—like the employees who
gather outside during smoke breaks—support it, but do not smother it.

Demonstrations—used for highly
technical knowledge, or around more subtle human interactions. Example:
A customer service representative may demonstrate the exact tone of voice they
use when successfully calming down an angry caller.

Designated Experts—identify
your top managers or employees with the most explicit and implicit knowledge,
and appoint them as “subject matter” experts. Encourage them to share their
knowledge, and encourage others in the same job or department to turn to them
for advice.

Document Improv—in any work group, people improvise tricks of the
trade—the “unconscious competence” they use to make things work smoothly. These
are seldom written down or shared, so it is a good idea to ask people to
document the “better practices” they have been improvising so that others can
use them. Remember, documenting can be in the form of videos, audio, or
graphics.

Education and Training—share
knowledge in a formal training session. Your designated “subject matter”
experts can teach classes or provide the information for a trainer to impart.

Find-the-Expert Yellow Pages—list
the people with the answers to every question you can come up with, distribute
or post the list, and encourage all employees to turn to your “yellow pages”
for answers. Use this in combination with a frequently asked questions (FAQ)
document.

Hands-on Brown Bags—gather a
department or group of people together over a brown-bag snack to listen to a
designated expert. Include a question-and-answer session or dialogue.

Interviews—have a facilitator or skilled employee conduct a
journalist-style interview with each expert on your staff. Record the interview
and make it available to others in writing, audio, and/or video.

Job Aids—create checklists,
quick-start guides, forms, tips, and templates—any tools that may help
accomplish a task. This is a method that every organization can and should
include in their knowledge transfer plan.

Job Historians—this is ideal
for a retiree or new employee with special training. Have them interview each
long-time employee/expert, and create a timeline of that person’s employment at
the company, as well as a timeline of how they typically spend their time on
the job.

Job Shadowing—assign newer
employees to follow experts around and learn how they work. The length of time
spent on this will vary, depending on the job, but it should be at least 90
days.

Knowledge Profiles—this
rigorous process is used quite often. It entails writing a profile of
everything an expert knows—typically technical or detail-oriented. The profile
can then be put online where other people in similar jobs can access it.

Lessons Learned—there are
several methods for sharing lessons learned. They can be written down, or you
can schedule a Failure Friday forum for employees to get together and talk
about disasters and how they were handled. This demonstrates what can go wrong,
as well as what can be done, and can instill confidence in others that they can
handle problems. You can also host a “lessons of experience” discussion where
experienced managers transfer wisdom to newer managers.

Master Forums—ask one of your
experts to speak on a topic and make the presentation available to everyone in
your company. The National Aeronautics and Space Administration (NASA) does
this. Consider using a shared drive where PowerPoint presentations can be
archived and made available to everyone.

Master-Apprentice Programs—this
mentoring style is typically used in bargaining units or unions that employ
skill tests for employees who wish to become “masters” of their trade.

Mentoring (One-on-One)—mentors and their partners should self-select each
other, and be given structure and tools to support their learning process. Many
mentors find that the first phase of the learning is all about explicit
knowledge. Then, after 4 or 5 months, an interesting shift happens, and
mentoring focuses more on “how I do it” rather than “what I do.” (Mentoring
will be covered in more detail in the April/May issue of Insulation Outlook.)

Mentoring (Group)—this tactic
makes use of a scarce mentor set. Match a senior mentor up with a small group
to spread out your resources. This can help the members of the group form their
own COP.

Personal Websites—used by
Microsoft, this method has everyone set up a personal page or site on the
company intranet to share knowledge. You may set up guidelines for the sites,
such as requiring an FAQ format, or an interactive forum for answering
questions. (Remember, technology enables knowledge transfer—alone, it does not
hold all the answers.)

Shared Diaries—people write up
a job history in real-time online. Others can see what is happening in other
departments (or their own) and may build a COP.

Storytelling—a facilitator can
teach people in your organization how to tell stories—because stories leave
more of an imprint than other communications. Basically an oral history,
storytelling also conveys the values of your organization, reveals who the
heroes and villains are, what the culture is, how people are rewarded, and how people
work. You can schedule weekly or monthly storytelling sessions, make
storytelling part of your annual meeting, or simply train employees and let
them practice around the coffee pot or in the hallways.

Talk/Chat Rooms—make online
communities available to employees so they can share knowledge, answer each
other’s questions, and give advice.

Traveling Masters—this is
particularly useful when you only have a few experts in a given role. Have them
travel around to various offices or departments and give presentations on their
unique knowledge. Like group mentoring, this is a good method if you have
scarce expert resources.

“Tribal Elder” Campfires—a lot
like storytelling, this method is built on a respect or reverence for someone
in your organization who has done something exceptional. Tribal elders are
those who embody the values of an organization, and having them host a
“campfire” provides a terrific opportunity for powerful conversations and
dialogue, and is a natural way to stress leaving a legacy.


SIDEBAR #2

Silents
(1933–1945)

Baby
Boomers (1946–1964)

Generation
X (1965–1976)

Millennials (1977–1998)

NIA Sites > Insulation Outlook Magazine > Global

Insulation Finishes—This Month’s Topic: FABRICS

Product Characteristics of Weather Barriers,
Vapor Retarders, and Finishes

Fabrics are often
coated and used as insulation jacketing materials, particularly for
removable/reusable insulation covers. The fabrics are woven from a wide variety
of textile fibers including, but not limited to:

  • Canvas

  • Fiberglass (Type E)

  • Amorphous silica fibers

  • Ceramic fibers

  • Aramid fibers

  • Stainless steel

  • Inconel

Coatings and laminate
membranes are usually applied to these fabrics to provide increased protection
and abrasion resistance. Common coatings include, but are not limited to:

  • Acrylic

  • Silicone

  • Polytetrafluoroethylene
    (PTFE)

  • Polychloroprene

  • Vermiculite

The selection of the
fabric/coating combination for a particular application depends on the
temperature, abuse, chemical compatibility, and combustibility requirements.
Consult manufacturers of fabrics or removable/reusable covers for guidance.

NIA Sites > Insulation Outlook Magazine > Global

Cold-Weather Injuries: OSHA Notes: Cold-Weather Injury Prevention Requirements and Contractor-Subcontractor Liability

The July issue of Insulation
Outlook featured an article about heat stress due to the serious nature of
this concern and the correspondingly strict stance the Occupational Safety and
Health Administration (OSHA) has taken on heat stress prevention. OSHA had
informed construction industry employers that if they did not have a heat
stress program in place, they would be cited for violations of the General Duty
Clause. Although a similar memorandum has not been issued regarding
cold-weather injuries, the same enforcement action is available to OSHA.

There
are several types of cold-weather injuries: chilblains, frost nip, trench foot,
frostbite, and hypothermia. Symptoms of chilblains manifest themselves after
you have left a cold environment and rewarmed yourself. They are itchy,
painful, reddish or purplish areas of swelling on fingers, toes, ears, or nose.
These symptoms may last for several days, but they usually leave no permanent
damage. The same is true of frost nip, which is characterized by burning,
itching, or pain, but is even less likely than chilblains to result in any
permanent damage.

A
more serious cold-weather condition is trench foot, which results from having
the feet exposed to cold, wet conditions for an extended period of time.
Employees whose feet get wet do not have to be exposed to very cold
temperatures to develop trench foot; symptoms have been found in people working
in temperatures up to 60°F. Without proper first aid, trench foot can lead to
the development of gangrene and possibly the amputation of the affected extremity.

Frostbite is the most serious cold-weather injury, and
can cause body tissue to actually freeze. This condition develops primarily
because of decreased blood flow and heat delivery to the extremities. When the
affected tissue is rewarmed, death of the tissue frequently occurs. The parts
of the body most commonly affected are the feet, hands, nose, ears, and cheeks.
In severe cases, frostbite can lead to amputation of the affected extremity.
While this article is not intended to address first aid for these conditions,
it is important to be aware that if frostbite occurs, the affected extremity
should not be rapidly thawed if there is any chance that it will be refrozen.

While
it is not a bodily injury, hypothermia is the most serious cold-weather condition.
Hypothermia occurs when the core body temperature drops below 95°F. One of the
difficulties of hypothermia is that it can be difficult to diagnose, as it can
occur with none of the symptoms of the other cold-weather conditions. When core
body temperature drops, the heart, nervous system, and other organs cannot work
properly. If this occurs, there can be complete failure of the heart and
respiratory system, which may lead to death. Hypothermia usually results from
exposure to cold weather or immersion in cold water.

Employers
should develop a program to address the potential for cold-weather injuries in
their workforce. This program should include steps for the prevention of
cold-weather injuries, the identification of symptoms and first aid, and any other
steps required by OSHA or other federal or state regulations. Prevention steps
include encouraging employees to drink plenty of water and to avoid alcohol,
caffeinated drinks, and smoking. It is also advisable to suggest that your
employees eat high-calorie snacks, and have a dry change of clothing available
on the job site. Finally, all supervisors should be trained in the recognition
of the symptoms of cold-weather injuries.

Contractor Liability to
OSHA for Subcontractors

Certain contractors may
attempt to escape responsibility for safety compliance by using subcontractors
instead of employees. Many administrative agencies, including OSHA, are aware
of this practice and are taking enforcement steps to address the subcontractor
issue. The most recent OSHA case on this topic is Absolute Roofing &
Construction, Inc. v. OSHRC, Sixth Circuit, No. 13-4364 (docketed 11/20/13). In
Absolute Roofing, a roofing contractor was cited for serious and repeat
citations for fall protection violations allegedly committed by a
“subcontractor,” Koran Construction, Inc. Absolute Roofing argued that any
citations should have been issued against Koran Construction, Inc. Testimony at
the Review Commission hearing by the Compliance Officers who performed the
jobsite inspection explained that the representative for Koran Construction,
Inc. claimed that he did not have his own business, even though he carried
liability and workers’ compensation insurance. He also told them that most of
the tools he used belonged to Absolute Roofing. He reversed this testimony at
the hearing, but the Judge concluded that his “substantial and ongoing work
relationship” with Absolute Roofing may have influenced his testimony.

The
Judge also noted that the 2 businesses had the same business address, shared an
office, had the same Owners and Managers, did the same work, and occasionally
shared the same employees. While there is nothing wrong with using
subcontractors, businesses that do so must be careful to maintain a true arms-length
business relationship with the subcontractor. Absolute Roofing’s appeal of the
Review Commission decision affirming the citations will be briefed and argued
to the Sixth Circuit Court of Appeals. Look for an update on this case and a
further discussion of appropriate contractor-subcontractor relationships in
upcoming issues of Insulation Outlook.

Conclusions

What businesses should
take away from this article is that they do have a responsibility to maintain
the safety of any workers that are directly connected to their business that
can be legally defined as under their employ. With this winter bringing record
low temperatures around the United States, it is crucial that employers provide
for the safety of their employees and ensure that they are trained in all
necessary cold-injury prevention and recognition techniques. Employers should
also consult their health and safety experts and legal team to ensure they are compliant
with all federal and state regulations.

NIA Sites > Insulation Outlook Magazine > Global

ASHRAE Issues Updated Standard 90.1 and Handbook Chapter on Mechanical Insulation

ASHRAE, founded in 1894 (and formerly known as the American Society of Heating, Refrigerating, and Air Conditioning Engineers), is one of the largest engineering groups in North America, with more than 54,000 members worldwide. The group and its members focus on building systems, energy efficiency, indoor air quality, refrigeration, and sustainability within the industry. ASHRAE’s mission is to advance the arts and sciences of heating, ventilating, air conditioning, and refrigerating through research, standards writing, publishing, and continuing education.

ASHRAE Publications
The well-known Standard 90.1—which contains standards for the energy-efficient design of high-rise residential, commercial, and institutional buildings—as well as Standard 55—on thermal comfort standards in buildings—are periodically revised. In recent years, Standard 90.1 has been revised every 3 years and is referenced by its year of issue: 90.1-2004, 90.1-2007, 90.1-2010, and 90.1-2013. Standard 90.1 was first published in the mid-70s. ASHRAE publishes 4 Handbook volumes: Fundamentals, Refrigeration, HVAC Applications, and HVAC Systems and Equipment. Each volume is updated every 4 years. The ASHRAE Handbook—Fundamentals was published in 2001; 2005; 2009; and, most recently, in June 2013. The ASHRAE Handbook—Refrigeration was published in 1998; 2002; 2006; and, most recently, in 2010. The 2014 edition has been approved and is being type-set for printing and distribution in June 2014. There are many other ASHRAE publications, such as copies of technical papers presented at the semi-annual meetings. They also publish many books; 2 examples are The ASHRAE Guide for Buildings in Hot and Humid Climates and the ASHRAE Green Guide: The Design, Construction, and Operation of Sustainable Buildings.

ASHRAE Standard 90.1-2013
ASHRAE recently released the latest edition of Standard 90.1, entitled Energy Standard for Buildings Except Low-Rise Residential Buildings. This standard addresses high-rise residential, commercial, and institutional buildings (i.e., not single-family residences or low-rise apartments). It has sections on minimum requirements for the building envelope, fenestration (i.e., windows and doors), service water heating, power, lighting, and HVAC (including mechanical insulation). A major goal of issuing periodic revisions to Standard 90.1 is to make improvements in reducing building energy use. Hence, the 2013 edition, if followed for a new building design, will result in at least 50% less energy use, by design, than the 2004 edition (with the 2007 and 2010 editions each successively leading to less energy use than the previous edition). This is done by requiring, among other considerations, greater roof and wall R-values; greater use of triple-glazed windows; more reflective window glass; more tightly sealed envelopes; more efficient HVAC equipment; greater use of heat exchangers for ventilation; better control over fresh air ventilation dampers and fans; more energy-efficient lighting (with controls to turn lights off when not needed); and, of course, greater mechanical insulation thicknesses and R-values.

Minimum required insulation thicknesses and R-values for pipe, equipment, and ducts were increased in the 2010 edition over the 2007 edition, but there are no changes in this area in the 2013 edition over the 2010 edition. While this may seem to be an oversight on the part of Standard Projects Committee 90.1, it may instead reflect the requirements in the HVAC section for greater use of lower temperature hot water systems for space heating (i.e., most hot water heating systems operate with a maximum supply water temperature of about 180°F in the coldest weather, and that adjusts downward in milder weather by using electronic controls). In addition, old-style steam heating systems—that often have operating temperatures up to 380°F—are being replaced in both old and new buildings with hot water distribution systems, even if steam is sent to the building from a central steam plant (as is often done at colleges, universities, and hospitals). ASHRAE 90.1-2010 requires insulation with a certain K-factor performance to be applied at a thickness of 5 inches on pipes with an operating temperature greater than 350° F, and a diameter greater than 3/4 inch NPS. In these circumstances, meeting this requirement with mineral fiber insulation requires a double layer.

2013 ASHRAE Handbook—Fundamentals, Chapter 23
Chapter 23 in the ASHRAE Handbook—Fundamentals covers “Insulation for Mechanical Systems.” The 2005 version was the first ASHRAE Handbook—Fundamentals edition with a chapter on this subject, so the 2013 edition is only the second revision of that original chapter. The following is a list of major changes to that chapter in the 2013 edition:

  • Recommended minimum pipe insulation thicknesses, for both hot and chilled pipes, were increased to match those in Standard 90.1-2010.
  • The section called “Condensation Control” was rewritten to better explain how to accomplish the following in regard to chilled water (CHW) pipe:
    • Calculate pipe insulation thickness to minimize surface condensation in unconditioned spaces such as mechanical rooms and central chiller plants, and
    • Minimize moisture intrusion problems in the insulation on those pipes.
  • The section on “Corrosion Under Insulation” (CUI) was updated to explain how to minimize CUI problems and includes recommendations for the use of weather barrier jacketing on outdoor systems.
  • The updated “Materials and Systems” section now recommends the use of lower permeance insulation systems on CHW pipe and equipment systems, and use of appropriate weather protection on outdoor systems.
  • The subsection on vapor retarders now urges caution when using traditional All Service Jacket (ASJ) on CHW systems in unconditioned spaces, particularly when the building is located in a region with a hot and humid climate. In the same subsection, there are new recommendations to use appropriate vapor retarders on CHW pipes.
  • The “Installation” section added advice on the design of factory-insulated pipe supports. The section also includes new information advising designers and building owners to pay particular attention to pipe components in mechanical rooms (such as valves, flanges, strainers, etc.) that need to be insulated along with the pipes. They also need regular maintenance, since that insulation is often stripped by mechanical maintenance personnel.
  • The updated edition includes findings of Research Project RP-1356 on a method of testing CHW pipe insulation and the increased thermal conductivity of pipe insulation with a condensed water content.

2014 ASHRAE Handbook—Refrigeration, Chapter 10
ASHRAE’s TC 10.3 – Refrigeration Piping, Controls, and Accessories has responsibility for the chapter in the 2014 ASHRAE Handbook—Refrigeration entitled “Insulation Systems for Refrigerant Piping,” with a scope that it “is a guide to specifying insulation systems for refrigeration piping, fittings, and vessels operated at temperatures ranging from 35 to -100°F. It does not deal with HVAC systems or applications such as chilled-water systems.” The 2014 Handbook is not yet published, but all revisions have already been approved. The major changes that were approved by TC 10.3 are:

  • An increased emphasis on the need for the vapor retarder system to be continuous
  • Explanation that water entering an insulation system can bring with it a near-inexhaustible supply of corrosive contaminants from the ambient environment, which can exacerbate corrosion.
  • Changes to all the insulation thickness tables to:
    1. Determine all insulation thicknesses using the current state-of-the-art calculation methodology (ASTM C680-10).
    2. Use the latest thermal conductivity curves from the appropriate ASTM material standard for each insulation material.
    3. Maintain the same design criteria used in the 2010 Handbook—Refrigeration (i.e., condensation control and 8 Btu/hr-ft² heat flux limit).
    4. Continue the practice of not including any safety factor in the condensation control calculations.
    5. Use the correct emittance for aluminum jacketing of 0.1, as specified in ASTM C1729-13, Standard Specification for Aluminum Jacketing for Insulation, instead of the 0.4 value used in the past.
    6. Maintain the same design conditions used in the 2010 Handbook, except for changes in relative humidity and jacket emittance.
    7. Minimize the changes from the 2010 Handbook to insulation thicknesses in the tables, since the insulation thicknesses in the current tables have proven to be acceptable in the field. To accomplish this goal for the outdoor condition tables, the design relative humidity was increased until the overall insulation thickness changes to the tables were minimized. This occurred at a relative humidity of 94%, not the 90% previously used. For the indoor tables, the heat gain portion of the design criteria controls the required thickness, so increasing the relative humidity would have no impact. Since the 8 Btu/hr-ft² heat gain limit is firmly set in the industry, it was deemed inappropriate to modify this design criteria. The insulation thicknesses in the indoor tables were therefore allowed to deviate based on only goals 1-4 above.

ASHRAE Research Related to Mechanical Insulation
ASHRAE sponsors a large number of research projects on HVAC-related topics, one of which is ASHRAE Research Project RP-1356 (mentioned in the ASHRAE Handbook Fundamentals section). Dr. Lorenzo Cremaschi, of Oklahoma State University (OSU), gave a presentation on this project at the National Insulation Association’s (NIA’s) 2013 Annual Convention. That project is complete and will be featured in an upcoming issue of Insulation Outlook. The full report is also available for purchase from ASHRAE’s online bookstore for $30. Another project—RP-1550, conducted by David Yarbrough—addresses the thermal performance of thermal insulating coatings. That project was also recently completed and is going to be featured in an upcoming issue of Insulation Outlook. The full report is available for purchase through ASHRAE for $30. In this project, 3 commercially available coatings were tested using an ASTM C335 hot pipe test apparatus.

Finally, OSU is currently conducting another research project, RP-1646, using the same test facility it developed as part of RP-1356 (i.e., an environmental chamber with 2 identical chilled thermal test pipes, 1 pipe being used for moisture condensation test samples, and the other for thermal measurements). OSU is testing 6 different insulation systems for thermal and moisture performance. The pipe temperature for these tests is 38°F, located in an environmental chamber held constant at 90°F and 83% relative humidity. Additional test conditions include:

  1. Flexible elastomeric insulation with all joints glued together and no separate vapor retarder jacket;
  2. Cellular glass insulation with all joints sealed and no separate vapor retarder jacket;
  3. Fiberglass jacketed with standard ASJ and sealed with standard taped butt and lap joints;
  4. Same system as number 3, with the addition of solvent sealed PVC jacket;
  5. Polyisocyanurate insulation covered with PVDC film, with taped butt and lap joints; and
  6. Phenolic foam insulation covered with a very low permeance vapor retarder jacket and tape, with a pressure-sensitive adhesive, which both meet ASTM C1136, Type IX.

Since each system must be tested for 2 months’ duration, progress is slow. The first couple of tests had to be repeated due to irregularities that were discovered. Hence, this research project may not be complete, with a test report reviewed and approved by TC 1.8, until late in 2014 or early 2015. When completed, each system will have been characterized by a tested system vapor permeance and a relationship, for the insulation material, between condensed water content and thermal conductivity at a below-ambient temperature.

SIDEBAR:
What Does ASHRAE Do?
Among other matters at the society-wide meetings, the Technical Committees (TCs) meet to discuss their objectives and projects. Three such groups are: TC 1.8 – Mechanical Systems Insulation, TC 10.3 – Refrigerant Piping, and TC 1.12 – Moisture Management in Buildings. The TCs are responsible for certain chapters in ASHRAE’s 4-volume Handbook; and they sponsor research, technical sessions, seminars, and forums at the society-wide meetings. There are also a number of Special Project Committees, many of which write standards.

NIA Sites > Insulation Outlook Magazine > Global

Moving Forward Into 2014—Forecast: Economic Recovery and Continued Growth

As 2013 draws to a close, the U.S. economy is coming off a lackluster year in terms of gross domestic product (GDP) growth and employment. Real GDP for the third quarter (Q3) of 2013 increased at an annual rate of 2.8%, primarily driven by a build-up in inventories. Consumer expenditures account for about 70% of GDP and rose by 1.5%. Nonresidential
fixed investment, which includes business expenditures for enhanced capacity and productivity, increased by 1.6%.1 GDP growth for the year is expected to be 1.7%, but Q4 2013 will be more positive at 2.4%.2 Unemployment will average 7.4% for 2013 as a whole, but Q4 should show improvement to 7.1% as more jobs are added to the employment base. Inflation will again be a bright spot for consumers, with the year-end consumer price index (CPI) only up about 1.5%.3

Although the 2013 “fiscal cliff,” sequestration, and government shutdown are behind us, we face a new year with great uncertainty. In December, Congress reached a tentative agreement that the House approved on December 12. The agreement will reduce some of the uncertainty regarding fiscal policy, which may positively affect consumer confidence. We can expect a degree of conflict over federal spending and funding policy that may cause more reluctance for consumers to spend and the private sector to invest. Additionally, after the launch of the Patient Protection and Affordable Care Act (PPACA) in November 2013, there is still uncertainty regarding the cost of implementing the act to employers, consumers, and taxpayers.

Consumer and Business Confidence

A continuing concern for more robust improvement in consumer expenditures is the lack of growth in consumer confidence. As seen in Figure 1 on page 6, through October 2013, confidence indices have trended up only slightly since 2008 and remain at much lower levels than pre-recession years.4 Rising consumer confidence leads to increased consumer expenditures that, in turn, typically foster business investment expenditures.

Business confidence is also a driver of business investment decisions. The Small Business Optimism Index, published by the National Federation of Independent Business, stood at 91.6 as of October 2013. “The average value of the Index since the recovery started is 91, 8 points below the 35-year average through 2007 and well below readings typically experienced in a recovery.”5 The recent decline in the index is attributed primarily to the outlook for business conditions and for real sales growth. It is noteworthy that survey respondents indicated that the 3 most important problems their businesses face—in order—are government regulations and red tape, taxes, and poor sales.

General Economic Outlook

The 2014 outlook for the U.S. economy is for the recovery to continue at a modest pace. As Figure 2 (on page 8) indicates, real GDP forecasts for 2014 generally fall in the 2.4% to 3% range, with the unemployment rate improving to 6.8% from 7% by year end.6 The forecast for inflation for 2014 at 1.9% is only slightly higher than the previous year. The benchmark 10-year Treasury yield is expected to rise 3.1% to 3.4% as the Federal Reserve reduces its purchases of securities that have provided reserves into the monetary system. Most analysts believe that the Federal Reserve will begin tapering its security purchase program in the spring of 2014, but labor market improvements in Q4 2013 may hasten the start of this process. However, if the markets perceive that the tapering is likely to occur sooner, interest rates will rise in advance of the expected federal action, as occurred in the summer of 2012.

Credit Markets

Business credit market conditions for commercial and industrial loans should remain relatively accommodating in terms of rates, but lender credit underwriting standards will
remain largely unchanged, with some slight improvement. The Federal Reserve’s October 2013 Senior Loan Officer Opinion Survey indicates that, across all borrower size categories, only 11.1% reported that credit standards had “eased somewhat.”7 Commercial real estate credit markets have continued to improve as rents and occupancy levels rise. However, there is significant variance in activity among property types and geography. For example, the National Association of Realtors estimates that at Q4 2013, industrial vacancy rates nationwide are at 9.2%, while rates in the Los Angeles area are about 4%.8

Current Construction Industry Status

Construction employment in the United States began a slow recovery from the low point of 5.435 million in January 2011.9 Over the 41 months since, construction employment has grown at an average annual rate of 1.9%. The current employment level in October 2013 was 5.834 million, still considerably below 2003 levels of approximately 6.7 million (Figure 3). A simple comparison of the construction unemployment rate history with that of the overall economy demonstrates the severe impact of the recession and the relatively slow recovery for construction10 (Figure 4).

Figure 5 (on page 10) shows the slow, steady recovery in total construction spending to an annual rate of $908.4 billion at October 2013.11 It is also evident that the recovery for nonresidential construction has been more gradual compared to residential construction. At an annual rate of $575.6 billion (seasonally adjusted), nonresidential construction stood at about the same level as it was at the end of 2006, below the peak annual rate of $719.0 billion in October 2008.

Current Nonresidential Construction Spending

For nonresidential construction expenditures, it appears that 2014 will be characterized by modest overall growth with wide variation among sub-sectors.  The American Institute of Architects (AIA) Consensus Construction Forecast predicts that total nonresidential construction spending will end the year with overall growth of 2.3%.12

In terms of the value of construction put in place, year-over-year October 2013 total private nonresidential construction spending declined by 3.4%. Most of the decrease is explained by reductions in communication and power plant spending, at -18.8% and -16.5% respectively. Lodging and commercial construction spending were the leaders, at 18.6% and 6.6%. Educational, amusement and recreation, transportation, and manufacturing all increased approximately 3%; while office and health-care expenditures increased at less than 2%.

Public nonresidential construction, dominated by state and local construction, increased by 2.4%. However, the sub-sectors most closely aligned with commercial insulation demand (health care, education, public safety, and amusement and recreation) declined by $3.3 billion or 3.8%. The only exception was transportation, which grew by 6.5%.13

2014 Nonresidential Forecast

2014 should be better than 2013, with certain sectors expected to perform much better than others. The 2014 AIA Consensus Construction Forecast (Figure 6 on page 12) is a compilation of 6 forecasts. The consensus indicates overall growth of 7.6%, with private commercial construction leading the way with 11.5% growth, followed by industrial construction at 6.3%, and institutional construction at 5.6%.14 Within the commercial category, hotel construction is expected to continue as the strongest sector at 15%. Retail and related construction is anticipated to increase by 11.7%. This growth is based on improvement in vacancy rates and retail rent rates. The National Association of Realtors expects national retail vacancy rates to decline from 10.4% in Q4 2013 to 9.9% in Q4 2014. Average rents are expected to increase by 2.2% for next year.15 For certain types of retailers, brick and mortar construction will be constrained by customers shifting to online purchases.

Industrial construction is expected to rise by 6.3%. This category includes construction of manufacturing and warehousing buildings. The return of some manufacturing to the United States bodes well for expansion for both of these classes of construction. Additionally, airport terminal improvements and expansions will add to construction demand. The continued success of the automobile industry is expected to provide additional construction opportunities.

The consensus forecast for health-care construction is expected to increase 7.7% over 2013. However, there will be countervailing influences. As the population ages, more health-care facilities serving this population segment will be needed. Conversely, shorter hospital stays and increasing pressure to contain costs will serve to dampen the need for other types of facilities. Effects of the PPACA are not yet fully understood and may increase the demand for health-care construction beyond current expectations.

Education construction expenditures, forecasted to rise by 4.8%, will struggle as budget issues continue to plague this sector. Educational construction will be strongest for those
states and municipalities that have sound budgets and are experiencing rising populations, economic growth, and tax revenues. Areas that have stagnant or decreasing populations will have limited demand for additional construction projects.

Office construction is expected to rise by 9.5%. The demand for this sector will be heavily influenced by local market conditions. Areas with high employment growth rates will experience declining vacancy rates and rising rents, creating demand for new space, while other markets will not fare as well. A headwind for this sector comes from companies reconfiguring their existing office space to more efficiently house their workforce, therefore needing less space. Additionally, new office space design reduces square feet of office space per employee.

In general, institutional construction is expected to show improvement not seen in 2013, but still at a slow pace. Construction activity for education, health care, recreation/amusement, and public safety will recover more strongly as state and local governments experience improved revenues and financial condition.

Associated Builders and Contractors’ (ABC’s) Construction Confidence Index tracks 3 facets of the nonresidential construction industry: sales prospects, profit margins, and staffing level expectations. Index values are calculated at 6-month intervals. The latest report, for the first half of 2013, indicated slight improvement over the last half of 2012. According to ABC Chief Economist Anirban Basu, “Overall, contractors are saying positive factors will outweigh negative ones, helping create an improved construction environment in 2014.”16 Further, ABC believes that 2014 will experience high single-digit growth in nonresidential construction, with the industry continuing to add jobs.


Leading Indicators for Nonresidential Construction

As 2013 comes to a close, leading indicators of nonresidential construction demand are indicating that 2014 will see positive, but still recovering, growth in the industry.

ABC’s Construction Backlog Indicator (CBI) is a forward-looking national economic indicator that reflects the amount of work that will be performed by commercial and industrial contractors in the coming months. The index generally has trended upward over the past 4 years, with the October 2013 reading at 8.21 months.17 ABC’s analysis of the backlog data at Q3 2013 indicates that the CBI varies significantly by region: South, 9.79 months; Northeast, 8.23 months; West, 7.38 months; and the middle states at 6.15 months. The South and West regions are likely to experience the most expansion in backlog going forward.

AIA’s Architecture Billings Index is a leading economic indicator that predicts nonresidential construction activities for the upcoming 9 to 12 months. Any score above 50 indicates an increase in billings. The Index stood at 51.6 in October 2013, down from August and September readings of 53.8 and 54.3. The regional indexes for October saw the West at 55.9, followed by the South at 54.4, the Midwest at 51.6, and the Northeast at 49.7. AIA’s index for new project inquiries rose in October to 61.5 over September (at 58.6), but down from August (at 63.0). AIA Chief Economist Kermit Baker noted that the continuing uncertainty surrounding the overall U.S. economy has affected the demand for nonresidential facilities and, therefore, slowed progress on new building projects.18

Summary

As the new year unfolds, the nonresidential construction industry will continue its slow, steady recovery, with some sectors and geographic regions performing better than others. Improving labor market conditions during Q4 2013 may well portend more positive momentum in the economy. Uncertainty regarding monetary policy, credit market conditions, and regulation implementation will likely hold back more rapid recovery.

 
Notes

  1. News Release, U.S. Department of Commerce, Bureau of Economic Analysis, November 7, 2013.
  2. Bloomberg Monthly Survey, Catarina Saraiva, October  10, 2013; U.S. Economic Forecast, Wells Fargo Securities, LLC Economics, Group, November 1, 2013; Survey of Professional Forecasters, Research Department, Federal Reserve Bank of Philadelphia, November  25, 2013.
  3. U.S. Economic Forecast, Wells Fargo Securities, LLC Economics, Group, November 1, 2013.
  4. Surveys of Consumers, Thomas Reuters, University of Michigan (monthly updates); Consumer Confidence Index, Conference Board (monthly updates).
  5. William C. Dunkelberg and Holly Wade, Small Business Economic Trends, National Federation of Independent Business, November 2013.
  6. Catarina Saraiva, Bloomberg Monthly Survey, October 10, 2013; Survey of Professional Forecasters, Research Department, Federal Reserve Bank of Philadelphia, November 25, 2013; U.S. Economic Forecast, Wells Fargo Securities, LLC Economics, Group, November 1, 2013; Minutes of the Federal Open Market Committee, Board of Governors of the Federal Reserve System, September 17-18, 2013; U.S. Forecast, the Conference Board, November 13, 2013.
  7. “The October 2013 Senior Loan Officer Opinion Survey on Bank Lending Practices,” Board of Governors of the Federal Reserve System, November 4, 2013.
  8. “Modest Growth Seen in Commercial Real Estate Markets,” National Association of Realtors News Release, November 22, 2013.
  9. U.S. Bureau of Labor Statistics Survey, December 3, 2013.
  10. Ibid.
  11. U.S. Census Bureau Survey, November 2013.
  12. AIA Chief Economist Kermit Baker, Consensus Construction Forecasts, the American Institute of Architects, July 2013.
  13. U.S. Department of Commerce Census Bureau, Value of Construction Put in Place—Seasonally Adjusted, October 2013.
  14. AIA Chief Economist Kermit Baker, Consensus Construction Forecasts, the American Institute of Architects, July 2013.
  15. “Modest Growth Seen in Commercial Real Estate Markets,” National Association of Realtors News Release, November 22, 2013.
  16. “Despite Headwinds, Contractor Confidence Rises in first Half of 2013,” Associated Builders and Contractors, September 25, 2013.
  17. Associated Builders and Contractors News Release, Backlog Indicator Charts and Graphs Index, November 2013.
  18. Architecture Billings Index Slows Down,” the American Institute of Architects’ Press Release, November 20, 2013.

 

Figure 1
Figure 2
Figure 3
Figure 4
Figure 5
Figure 6
NIA Sites > Insulation Outlook Magazine > Global

Marvelous Things You Ought to Know About Negotiations

Here are 5 practical tips that will help make a negotiation more successful. These concepts are based on the author’s direct experience in the field as a design firm leader, conducting hundreds of negotiations.

Tip 1: Number of People to Take to a Negotiation

How many people should you bring to a negotiation? An old hit song says, “1 is the loneliest number that you’ll ever do.” This is really true. There is so much going on during a negotiation:

  • Remembering your interests
  • Controlling your own behavior
  • Focusing on their interests
  • Watching their behavior

The concept of going alone is clearly a weak idea.

What about bringing a larger group—say, 6 or 7 people? Even during a simple role-playing exercise in my FMI “Effective Negotiations” class, it is impossible to get that many people to stay on the same page. In a group that size, the entire group may not share the same interests, even though they represent 1 firm. Also, the more people you have, the more likely that someone will say the wrong thing, publicly disagree with his own team, or commit some other faux pas that detracts from the negotiation.

If your choices are to go alone or go with 6 people, the loner has the advantage over the group. The song goes on to say that, “2 can be as bad as 1; it’s the loneliest number since the number 1.”

Sending 2 people to a negotiation offers opportunities for each individual to have a better view of all aspects of the negotiation—both the substance of the discussion and the behavior—but then who is watching out for your interests?

The beauty of sending 3 to a negotiation is that 1 person can track your firm’s interests, 1 can keep track of the other side’s interests, and the third person can be the observer. It is the observer’s role to stay out of the action and watch the dynamics. The observer on your team is almost always the person to recommend a time out or a trip to the balcony. This may seem like you are sending someone along to simply sit there, but having an observer is key, as shown in the case study: The Importance of Bringing an Observer (see page 18).

Tip 2: Speed and Pacing

Have you ever sent a proposal to a client that has not responded to you for weeks or months? Suddenly, a call comes in from the client, usually on Friday at about 11:00 a.m. You have got people sitting and waiting to get to work on this project, and now the call comes and the client says, “Oh my gosh, I’m sorry I haven’t called you, but we’re ready to go. We want to start on Monday. Just take 10% off the fee and we can get this thing started.”

Have you ever had a call like this? It is a trick. They know you have people sitting and waiting. They are hoping you are so anxious to get them working that you are going to rush into an agreement without thinking and say, “Yes.”

So, what do you do in this situation? I had one of these calls from a client in another part of the state. “That’s great,” I said. “We want to get started on Monday, too. I’ll be there in 3 hours.”

“What are you coming here for?” They asked.

“Well, clearly we’ve opened up the negotiation and it’s urgent. I’ll be there in 3 hours. I’ll just run to the airport, get on a shuttle, and I’ll be there. If this is urgent and you need to start on Monday, I want to help you out.”

“Maybe we can meet next week,” they said.

“Okay, I thought it was urgent; but if you want to meet next week, that’s okay,” I said.

In the back of your mind you may be thinking, “Well, can’t I just give in on this so we can start on Monday?” But remember, it is a trick. They do not really need to start on Monday, and your response is, “No, we have to sit down and talk about this.” It may come in different forms, but it is a trick. Call them on it.

At the start of the “Effective Negotiations” class, I always ask the students to list their expectations for the class. We write them on a flip chart and hang it on the wall for the duration of the program. In one of the classes, a student said his goal was to “learn to negotiate faster.”

After going through the first day of lessons and exercises, this student walked to the front of the room, crossed out the word “faster,” and changed the goal to “learn to negotiate slower.”

One of the fundamental tactics of a positional negotiator is that of pushing to go fast during the negotiation.

[In] our section on preparation, we discuss the value of taking the time required for preparation. The value proposition we share also applies to the actual negotiation. In a negotiation, speeding up is normally a trick. The need to thoroughly consider each item, recall your preparation, focus on achieving your interest, and develop creative options takes time. The process should not be rushed. Just as in driving, in negotiations, speed kills.

Tip 3: If You Don’t Ask…

Do you know who the loser is in a self-negotiation? There is an old story about a city slicker who is out driving in the country on a Sunday afternoon. A few miles after passing a gas station, he runs over a nail and gets a flat tire. He opens the trunk but he does not have a tire iron and ends up hiking 3 miles back to the gas station. As he walks, he starts thinking, “These country gas stations are all alike. They charge you an arm and a leg for being open on Sunday.” This idea makes him a little angry. “They won’t like me anyway,” he goes on, “because I’m wearing a suit, and they’ll probably charge me extra for being from the city.” He gets even madder. The longer he walks, the angrier he gets about the outrageous amount the gas station is going to charge him to borrow a tire iron. When he finally reaches the gas station, he walks up to the startled attendant, throws money in his face, and yells, “There! And you can keep your stupid tire iron. I don’t want it anyway!”

He never even asked.

What I have learned over the years about car mechanics is that when you go in and they tell you the price, always ask them, “Can you do any better?” Nearly all of them will say, “Well, let’s see, we can take 10% off.” Or more! In the past, America had a non-bartering culture. You went to a retail store, looked at the price tag, and paid that price if you wanted the item. One of the few items where negotiation was involved was car buying, which made it one of the most hated activities in the United States. Everyone loved getting a new car, but hated having to buy it because it involved negotiating with someone who was a lot more skilled at negotiation than they were.

Today, due to many influences, Americans are slowly learning how to barter, and such negotiations are becoming more commonplace. Businesses and retail stores are now more willing to negotiate than ever before. However, if you do not ask, you will never know if
the item you are buying is negotiable.

Tip 4: Out-of-Scope Work

We have found that tremendous amounts of revenue are left behind by design professionals due to an unwillingness to request additional funds for out-of-scope work.
Architects, [contractors], and engineers have developed an extensive list of justifications for not pursuing additional services:

  • We do not want to be accused of nickel-and-diming.
  • We have to maintain the client relationship.
  • We do not want to get into a fight.
  • We forgot to define what was out of scope.

All of these excuses are symptoms of avoidance. Do you really think that the client has never had to go to one of his or her own clients at some point and say, “We’re happy to do X for you, but it falls outside our agreement and will be billed separately?” Of course not! It is a normal part of business.

An even more important consideration is this: What is the client’s Best Alternative to a  Negotiated Agreement (BATNA) for this out-of-scope item? The client probably does not have one. If you cannot negotiate a settlement over an out-of-scope item, what are the client’s alternatives?

For example, if you are designing a building and the client wants to rearrange a floor when you are well into the documentation phase, what BATNA does the client have if you clarify that this is out-of-scope and you need to negotiate a separate fee for the work? Will the client really cancel the project at this point, go back to square one, issue a new request for proposals, and hire another firm? Of course not. The client has a problem to be solved and hired you to solve it because the company felt like your firm had the best solution for its needs. The client wants to work with you—the company chose you.

A key to successfully negotiating out-of-scope items is to identify them immediately. A question to ask when an item is identified is: “How do you want to handle that?”

Normal response: “Handle what?”

“We have just been talking about an effort that is out of scope. Do you want us to:

  • Submit a proposal and have it approved before we begin work?
  • Send you an email that we are working on this out-of-scope item and get your written approval to proceed?
  • Open a new number to track this effort?”

Figure 1 shows the chance of getting appropriately compensated for an out-of-scope item over time.

By the way, the concept “if we wait until later to ask for compensation, it will be better” is just plain wrong. It never works and never will. It does not hurt if you already defined how to handle out-of-scope items during your negotiation, because that is one of your interests.

Tip 5: It’s Not a Pie, It’s an Amoeba

Many negotiations books and courses talk about “making the pie bigger.” However, I do not believe this metaphor represents what happens in an interest-based negotiation.

A better way to represent a negotiation is to compare it to an amoeba.

The amoeba has a flexible shape, and its shape changes based on the direction it wants to go and where it finds the least resistance in its environment.

Similarly, a negotiation is a search for the areas of least resistance in order to expand our interests. The final shape of a negotiation is based on where both parties found opportunities to expand and necessities where they had to contract. It is not a perfectly round pie, but an irregular, organic amoeba shape determined by the discovery of mutual interests.

SIDEBAR

Case Study: The Importance of Bringing an Observer

I went with a team from my firm on a trip to China to negotiate with an organization. There was a translator working with us. The leader of my firm and the leader of the Chinese organization were speaking to each other through the translator, and I was the team observer.

As I watched the leader of the Chinese organization, it became obvious to me that he understood English. He was using the time that the translator spent explaining what we had said to come up with responses. The effect of this was that he responded to us very quickly after the translator finished, speeding up the pace and making my team feel pressured. We were struggling to come up with responses as quickly as he did, but did not have the advantage of time to think things through.

As the observer, I called a break, took my team out of the room, and explained what I had observed. They were so focused on following the conversation that they had not observed the other side closely enough to see what I saw.

We needed to shift tactics to even out the advantage of the other side, so we stopped trying to respond immediately after the translator had finished, as the other side was doing. We slowed down our responses and made sure we took adequate time to be thoughtful.

Excerpted from the new book Negotiate With Confidence: Field-Tested Ways To Get the Value You Deserve by FMI Division Manager Steven J. Isaacs. The book is available from Greenway Communications at http://store.di.net/.

Figure 1

Copyright Statement

This article was published in the January 2014 issue of Insulation Outlook magazine. Copyright © 2014 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.