HazTek's Monthly Subcontractor Review Process Is Altering Construction Safety Performance

Delivering a construction project involves a complex network of moving parts, with owners, general contractors and project management teams working in tandem. 

While the delivery process is ideally seamless, nearly 80% of construction projects experience delays, and 75% of owners experience budget overruns. According to a study from McKinsey & Co., this is largely due to lack of organization, inconsistent communication and inadequate risk management. 

When it comes to high-risk activities, such as working around electrical hazards, operating heavy equipment or working at heights, transparent and collaborative communication among all parties involved is of utmost importance.

However, while the vast majority of owners, general contractors and subcontractors are committed to job site safety, tensions can arise when communication between partners breaks down, potentially overshadowing the importance of coming together to deliver a project safely, on time, on budget, and without accidents or injuries. 

To facilitate interactive conversations between all parties, HazTek, a New Jersey-based safety management firm, implements a monthly subcontractor review process.

“During this process, we look at all of the contractors that are performing high-risk activities,” said Matt Clark, operations manager at HazTek. “We evaluate them on their ability to manage these activities, and at the end of every month, there is a safety alignment meeting where all parties come together and talk through results, including what areas we’re handling successfully and what areas need improvement.”

Encouraging collaboration among all parties is the main objective of this new process. Long gone are the days of finger-pointing or shifting blame to others, Clark said. The firm brings together everyone on a project in one physical space, including owners and key stakeholders, which is vital to the success of a project. 

“This can be a challenging process for some, with so many differing parties and opinions in one room all at once, but that’s why we check in early and often with every team member,” Clark said. “We want to create an environment that is psychologically safe as well as physically safe.” 

HazTek’s monthly subcontractor review process is considered an industry best practice, he said. It is a proactive method to identify companies that need additional support with their safety efforts without waiting until an injury occurs to realize there was a problem.  

Clark said that HazTek began to apply the monthly review process to multiple data center construction projects with positive results. This comes at a pivotal time for the data center industry, which is experiencing a massive spike in demand, with nearly 26M SF of data center space expected to be built over the next five years.

Randy Tigert, operations manager at HazTek, also said there is a misconception that if the construction site is having a lot of minor incidents, a serious incident is likely to occur. That isn't necessarily the case. 

“The true leading indicator of a serious incident, including a disabling injury or serious equipment damage, is the type of activity that you're performing,” Tigert said. “For example, if you’re working at heights, your exposure to falls becomes much greater. Or if you’re doing a lot of lifting with mobile cranes, lifting accidents can occur.”

Tigert said that HazTek’s monthly subcontractor review process aims to identify and mitigate risks associated with high-risk activities. Whenever a contractor is planning on conducting one of these activities, a comprehensive level of planning is required before operations can commence. 

A formal risk assessment is required, with a risk grading from the least to most severe consequences of the activity. The general contractor, owner and other involved parties, in conjunction with the HazTek team, put forth a plan of mitigation in addition to identifying any residual risks. Tigert said that ultimately generates a solidified plan for all parties to follow through the duration of the project.

“The work doesn't proceed until everyone is in agreement that the plan is effective,” Tigert said. “The plan needs to be thoroughly understood to be effective and achievable.” 

Tigert said that this understanding begins with leaders from all companies involved discussing and agreeing on the safe work method and plan. Next, the supervisors who will plan, direct and execute the work meet to discuss and align on the plan. Finally, the crew in the field that will perform the work meets with the foreman at the work location to discuss the safe work plan and ensure everyone involved understands the plan, as well as their specific role.

According to Clark, another crucial aspect of the monthly subcontractor review process involves putting experienced health, safety and environment professionals in the field to verify if all parties are adhering to the plan.

“The best plan can be rendered ineffective if you're not actually using it and following it,” Clark said.

In addition to risk mitigation, the monthly subcontractor review process helps track project progress to ensure timely and cost-conscious delivery. To do this, a rating system that ranks performance is put in place. 

While the unit of measure is ultimately up to the partners involved, Clark said that it could end up being as simple as a color scale, with a color such as red signifying that much improvement is needed and blue connoting that the subcontractor has gone above and beyond expectations.

“Though it's a very comprehensive process and takes some time and effort, it builds relationships and camaraderie among trade partners,” he said. “It's a way to get together, look at areas of improvement and celebrate victories.”

Since the implementation of the monthly subcontractor review process, particularly on data center construction sites, Clark said that the “proof is in the pudding” and that the results of the process have included stronger and more effective safety cultures as well as fewer scheduling delays.

“This review process is changing the way construction safety is conducted,” he said. “All parties are now involved at every step of the process, and they’re bringing great enthusiasm to the meetings. It’s been rewarding to see the results of such a comprehensive process come to fruition.”

This article was produced in collaboration between HazTek and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.