Last month, we discussed setting up a Subcontractor Assessment and Monitoring program. In that program, we suggested that General Contractors needed a qualifying standard of performance to guide them in determining the quality of subs on their bid list. This month, we get more specific. 

When performing an initial assessment on a subcontractor the one question you really want answered is: Has the subcontractor addressed his hazards or is that subcontractor a hazard for hire? As a general contractor, you are in the business of hiring professionals to get the job completed safely and to the customer’s satisfaction. The Subs that you hire onto your jobs, need to be your assets – not your problems. Before hiring them, you should consider many factors. Among them are the following:

If You’ve Worked with the Subcontractor before, what were your previous assessments of them?

Have subcontractors worked safely on your jobs in the past and kept site hazards to a minimum. Have your Subs had or caused injuries, caused equipment/property damage, created near misses or otherwise damaged your or the property owner’s reputation for work safety or quality? Have the contactors had recent OSHA citations or are they subject to OSHA inspection due to high experience modification? Next, consider their communication skills. Have your Subs been respectful of other sub’s work space by maintaining their materials and equipment properly and in their own working area? Do you have any subs, who won’t work out on the same site as other subs which you use, because of a friction in their relationship? Maintaining good working relationships on a multi-employer site starts with the selection process. If you don’t want to end up as a referee on one of your jobs, choose subs that can work together.

You don’t have time for risky behavior, short cuts or poor communication skills. If any of your subs don’t meet your specifications, it may be time for a change in your bid list of available contractors for hire.

If You haven’t Worked with the Subcontractor before, investigate their working reputation.

If a contractor is a safety problem, their previous Cal/OSHA citations may reflect that problem. You can easily search their past OSHA record athttp://osha.gov/pls/imis/establishment.html. If there are none, other general contractors will know about them. Avoid hiring your next problem.

Initial Subcontrator Assessment for Safety

Determine if the subcontractor has addressed hazards specific to their license and more specifically, for the work they will be performing on your site. For special hazards, such as welding and hot work; electrical certification and crane operator certification make sure that their people have been trained and/or certified to perform this work as required by Cal/OSHA andother pertinent agencies.

Monitoring Their Safety Performance on Your Site

· Daily Inspections
· Safety Training Topics

It’s important to assess each subcontractor based on the safety and quality standards they contribute to the job; and their ability to work with other trades on multi-employer sites. But the job doesn’t stop there. Once they are on the site, it is your job to monitor each trade to make sure they deliver on their promise of safety and quality workmanship.

Ask the Code Consultant
By Chuck Daleo

Q: My job is to build new trash enclosures at an apartment complex. I went to get my permit and the plan checker told me I had to comply with ADA. Is this true?
Jim H.

Well, it’s partially true.

Whenever we use the term “ADA” we usually mean accessibility for all uses. However, when residential units are involved, we actually have to be concerned with the federal Fair Housing Guidelines and Chapter 11A of the Califorrnia Building Code. 

A trash enclosure is part of the “common area” shared by the tenants of the apartments. They are regulated and must have an accessible path of travel from the accessible units to the enclosures. The enclosure itself must be accessible and the reach range to a trash container must be within an acceptable distance and height. 

n Jim’s case, the apartments are existing and the trash company needs to have the gates to the trash compartments widened. This work necessitates a complete re-build of the trash compartment using masonry construction and that is why he went to get the building permit. 

he apartments were first constructed around 1970 thus they pre-date any requirement for accessibility provisions that went into place around 1986. The question then comes up –If the apartments don’t have to be accessible, why should the trash compartments have to comply?

This question is answered by Section 1101A.1, entitled SCOPE and by Item No. 4, which states “Common use areas serving covered multifamily dwelling”.

In this case, the units are not “covered”, that is, they are not required to be accessible. Therefore, the trash areas do not need to be accessible.

I suggested that Jim show this Code section to the plan checker to get relief.

What is the deal with applying the new Code to existing buildings? 
Dan V.

This question is I believe to be the most significant current Code issue.

I just gave a lecture on this very topic and the attendees included building department staff and architects. In addition to the examples we presented, they had many instances where the “new” requirements made it difficult to comply.

A plan checker from La Mesa said that they had a tenant improvement where the new Code required a two-hour wall between an existing restaurant and the new expanded retail store. He said that they tried to figure out a way to not require the two-hour wall. After our lecture, he said that he would look at the problem again and see if he can reduce the requirement. The potential issues were quite involved as it would require closing the restaurant for at least three days to install a two-hour wall on the restaurant side since two separate inspections are required. Of course, the restaurant owner was quite upset and went to the City Council to complain. Hopefully the solution we gave him will work and the wall will not have to be rated.

Unfortunately, not every case is the same and each tenant improvement will have to be evaluated. There are solutions so it is worth the time spent to derive a solution.

For many of you, Code knowledge is somewhere in the back burner because you have a lot of other concerns. But, if you have a similar condition ask the plan checker if a “non-separated use” can be the solution. This analysis will require that the actual area of a strip mall must be compared to the maximum allowable area. If the actual area is less than the allowable then none of the spaces must be separated by a fire rated wall.

At the same class, an inspector from Simi Valley asked if the “common path of travel” is applicable to an existing building. The “common path” was never addressed in the older Uniform Building Codes and is now included in the new CBC based on the IBC. I’ve talked about the “common path” before but the Code basically requires two exits when the “common path” travel distance is exceeded. What Chapter 34 states is that an existing use can continue if the fire-life safety features are not reduced. Here’s the rub, if the new Code states that the “common path” is a required concern and the existing building can’t comply even though it complied with the Code under which it was permitted, does the new Code now consider it to be unsafe?

This question did not receive a consensus of opinion and it comes down to the interpretation of each local building department.

LYME DISEASE

Lyme Disease is a serious, tick-borne illness that can cause chronic muscle pain, inflammatory arthritis, heart disease and/or neurological disorders. Because the disease can be long term and debilitating, early recognition and diagnosis is important so that it can be successfully treated with antibiotics.

In California, Lyme Disease is transmitted to humans by black-leg ticks. These ticks, which are more abundant in spring and early summer, are smaller than common dog or cattle ticks so they can easily go unnoticed. When possible, avoid tick habitats such as brushy or overgrown grassy and wooded areas and reduce tick and host (deer and rodent) habitats by removing leaves, tall grass, and brush from around work areas.

In situations where you can’t avoid or clear tick and host habitats protect  yourself by:

·  Wearing light-colored clothes so that ticks can be easily seen and removed before attachment
    ·  Covering exposed skin with a long-sleeved shirt, a hat, gloves, and neck scarf, long pants tucked into socks with high boots or closed shoes that cover the entire foot
    ·  Applying insect repellents on the skin and permethrin on clothes which kills ticks
    ·  Carefully examining the body for ticks and then showering after working in high risk areas
    ·  Washing in hot water clothing worn in high risk areas
    ·  Promptly removing an attached tick with tweezers and thoroughly cleaning the affected area with an antiseptic

The diagnosis of Lyme Disease is primarily based on a known exposure and recognition of disease symptoms. Flu-like symptoms may include a fever, lymph node swelling, neck stiffness, generalized fatigue, headaches, migrating joint aches and/or muscle aches. Lyme Disease often – but not always – is characterized by a ‘bulls-eye’ rash in addition to symptoms.

Take precautionary measures in high-risk areas and if disease symptoms appear, see a doctor immediately.

LA ENFERMEDAD DE LYME

La enfermedad de Lyme es una afección grave, transmitida por las garrapatas, que puede causar dolores musculares crónicos, artritis inflamatoria, enfermedades del corazón y/o trastornos neurológicos. Debido a que le enfermedad puede ser debilitante y a largo plazo, su reconocimiento y diagnóstico tempranos son importantes para poder tratarla con éxito usando antibióticos.

En California, la enfermedad de Lyme es transmitida a las personas por las garrapatas de patas negras. Estas garrapatas, que son más abundantes en la primavera y comienzos del verano, son más pequeñas que las garrapatas comunes en los perros o en el ganado, por lo que fácilmente pueden pasar desapercibidas. Siempre que sea posible, evite estar en los lugares donde viven las garrapatas, como son las áreas de arbustos, malezas y bosques, y reduzca el hábitat de las garrapatas y sus huéspedes (venados y roedores) eliminando las hojas, yerbas altas y arbustos de los alrededores de las áreas de trabajo.

En situaciones en las que no se pueden evitar las áreas contaminadas ni eliminar los hábitats de las garrapatas y sus huéspedes, protéjase tomando las siguientes medidas:

·  Vista ropa de color claro para poder ver fácilmente las garrapatas y quitárselas antes de que lo piquen
·  Cúbrase la piel expuesta con una camisa de manga larga, un sombrero, guantes, bufanda sobre el cuello y pantalones largos metidos en las medias o calcetines con botas altas y zapatos cerrados que le cubran todo el pie
·  Aplíquese en la piel repelentes contra insectos y permetrina (que mata las garrapatas) en la ropa
·  Examínese cuidadosamente todo el cuerpo para detectar las garrapatas y báñese en regadera después de trabajar en áreas de alto riesgo
·  Lave en agua caliente la ropa usada en áreas de alto riesgo
·  Quítese rápidamente cualquier garrapata que lo pique usando pinzas delgadas y límpiese el área afectada con un antiséptico

El diagnóstico de la enfermedad de Lyme se basa principalmente en una exposición conocida y reconocimiento de los síntomas de la enfermedad. Síntomas similares a los de la gripe pueden incluir fiebre, inflamación de los ganglios linfáticos, rigidez en el cuello, cansancio general, dolores de cabeza y de diferentes articulaciones y/o dolores musculares. La enfermedad de Lyme con frecuencia – pero no siempre – se caracteriza por una erupción “en forma de tiro al blanco”, además de los otros síntomas.

Tome medidas de precaución en las áreas de alto riesgo, y si se le presentan síntomas de la enfermedad, consulte a un médico de inmediato.

Kalb's Q&A for Contractors
By David Kalb, President of Capitol
Services, Inc.
Kalb's Q&A for Contractors

Like rising summer temperatures, optimism is on the upswing as contractors begin to see opportunity again in the Golden State. Our first question comes from one such an optimistic Californian. Another contractor actually answers his own question, but for everyone’s benefit we ‘employ’ my expertise in explaining it for all...

Q: I was reading your Kalb's Column and I thought you would be the perfect person to answer my question.

I am currently living in California and want to open a construction company. My father has the experience and is willing to take the exam for a General “B” license. I want to form an S-corporation. I know I must form the corporation first before my father applies for the license. My question is does my father need to act as an RMO under my corporation and own 20% stock, or should he just apply for his own license. Thank you in advance. 

A: When forming a corporation, you have choices on the qualifier. Your father can be a Responsible Managing Employee (RME) or Responsible Managing Officer (RMO). If he will be the RMO, ownership percentage can be anywhere from 0 to 100%. There is no requirement that he own 20% of the company. To save time and money it is best to apply for the corporate license and have your father sit for the exam. There is no need for him to first apply for ‘his own’ Sole Owner license.

Q: We have noticed a trend towards some corporations becoming "100% employee owned". One of these general contractors recently submitted exemptions to a public agency, stating that since they were all "owners", no Worker’s Compensation Insurance was required. This is not the first time we have heard this, although this is the first time an agency has informed us that this has occurred. As you know, under California law, any company with employees must provide Worker’s Compensation. I think the Exemption this company has on file with the Contractors Board is improper. If you publish my question, please withhold my name.

A: As many of my readers know, I never use anyone’s name or any identifying information in my columns. When people ask me questions by email, phone or fax, I answer them as best I can and, if published, always make sure there is complete anonymity.

What you’re describing is likely an ESOP (Employee Share Option Plan). This is a benefit plan that allows employees to become owners of stock in the company they work for. Under a typical ESOP plan, companies usually provide their employees the opportunity to acquire the company's shares over a period of time. Employee ownership can mean many things, ranging from a few executives owning stock in their companies to the ownership of a company by most or all of its employees. 

Without knowing the specific make up of the company in question, I cannot speak to whether they’re acting properly or trying to ‘game the system’. Nevertheless, you’re correct; simply being a “100% employee owned” would not exempt them from needing Worker’s Compensation. Even the claim, ‘employee’ –owned suggests insurance would be necessary.

If in fact they have employees (but have filed an Exemption), this is a serious violation and may result in disciplinary action being taken by the CSLB and CA Department of Industrial Relations. During several of the Contractor Board’s recent sting operations, companies that had employees but had filed an Exemption form (under penalty of perjury) were targeted. 

While knowledge is power, knowing where to go for the answers is half the battle. Get expert assistance immediately when you call 866-443-0657, email info@cutredtape.com, or write me at Capitol Services, Inc., 1225 8th St. Ste. 580, Sacramento, CA 95814. Research past columns at www.cutredtape.com .