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Permits, Stakeholders, and Public Communications

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Title: Permits, Stakeholders, and Public Communications


1
Permits, Stakeholders, and PublicCommunications
  • CE 438
  • 21 March 05

2
Permits
3
(No Transcript)
4
Environmental Assessments
  • NEPA, National Environmental Policy Act
  • NEPA's basic policy is to assure that all
    branches of government give proper consideration
    to the environment prior to undertaking any major
    federal action that significantly affects the
    environment
  • Must screen all actions

5
Screening Process
  • Is the action excluded by the law?
  • a few are
  • Next determine the significance to the
    environment
  • little handle concept

6
(No Transcript)
7
Permits
  • Construction in the U.S. is highly regulated
  • Larger projects often require permits from
    Federal, State, and Local Agencies.
  • These permits are specified in the regulations
    and usually require certain details be provided
    before work is allowed to proceed.

8
  • They often have stipulations that require work be
    done in a certain manner, or at a certain time.
  • Permits often require a fee.
  • Permits often require a public notice and comment
    period.

9
  • Both the permitting agency and those who are
    likely to comment are important stakeholders in
    the project.

10
  • Some permits are routine
  • Some are not routine
  • Many delays and problems in major projects are
    due to permitting.

11
  • The Fort Knox Gold Mine required over 300
    separate permits.
  • Need to enumerate the permits early in the
    project
  • Often in the concept stage

12
Most important
  • Who in the project is responsible for getting
    which permit
  • Owner
  • Designer
  • Contractor
  • Often it is the Owner, but with the Designers
    support.

13
Examples
  • But first (It is better for your morale if you
    consider the important purpose that is driving
    the regulation and permitting process rather than
    regarding the regulators as obstructionists that
    do not want the project built.)
  • In the U.S. bribery is uncommon in the permitting
    process.
  • Politics is common, but (Perkins opinion) its
    effects are exaggerated by people who have not
    done their homework.

14
Local Government
  • Planning and zoning
  • Building Permit
  • Often for each trade general, plumbing,
    electrical
  • Fire protection may be separate
  • Block roads
  • Transport heavy, very large or dangerous
    materials over local roads (State permit will
    also be required)
  • Utilities
  • Temporary and Permanent

15
State Environmental
  • Wastewater and water (out-of-town projects)
  • Air quality for boilers and generators (both
    temporary and permanent)
  • Waste disposal plan
  • Oil pollution control
  • Stormwater control
  • http//www.state.ak.us/local/akpages/ENV.CONSERV/p
    ermits.htm
  • http//info.dec.state.ak.us/sps/document.asp

16
State Lands Department
  • Permit to cross state lands
  • Temporary roads
  • Permanent, need right of way
  • Cut timber or clear land
  • Burn wood
  • Materials mining (gravel)

17
State Fish and Game
  • General permit
  • Permit to cross streams
  • Permit for permanent culverts and bridges

18
State Labor
  • Blasting
  • Elevators

19
State Health
  • Radiation

20
State Transportation
  • Large or Heavy Loads
  • (Breakup restrictions)

21
Federal Lands
  • Access, Right of Way, etc. on Federal Lands
  • Minerals, including gravel and soil, for
    construction

22
Federal Environmental
  • Some are same as state
  • Dredge spoil

23
Environmental Assessments
  • NEPA, National Environmental Policy Act
  • NEPA's basic policy is to assure that all
    branches of government give proper consideration
    to the environment prior to undertaking any major
    federal action that significantly affects the
    environment
  • Must screen all actions

24
Corps of Engineers
  • Any change to navigable river
  • dock, bridge
  • Dredging
  • Work in wetlands

25
Federal Aviation
  • Structures over a certain height
  • Near airports

26
Federal Communications
  • Temporary radio

27
Take home message
  • All these take TIME.
  • Often resources
  • initial designs
  • data, number of people in a construction camp
  • schedule
  • When the fish are migrating?

28
Planning
  • Acquisition of the proper permits must be
    accounted for in the project plan.
  • Often a task for each permit should be in the CPM

29
Changes
  • Get permit for 200 man camp.
  • Later it must be enlarged to a 250 man camp.
  • Now need to review ALL the permits
  • Which ones need to be modified
  • If this is a major modification, you may have to
    go through the entire public review process.

30
Is this may cutting red tape or cutting the
ribbon at the opening of his project?
31
Projects and Stakeholders
32
Key Concept
  • You must accept as fact that you must manage the
    project from an overall perspective of all the
    stakeholders not just the customers and the
    organization.
  • Manage does not mean you can or should do
    everything all of the stakeholders desire, but
    you must consider their desires.

33
Who are stakeholders?
  • Anyone who is interested in project and
    especially,
  • Anyone who can harm a project
  • Cause your design to change
  • At the last minute
  • Organize for explanation, but there is no real
    organization, it is chaos.

34
Primary Stakeholders
  • Have legal or contractual obligations to the
    project team.
  • Users
  • Suppliers, Subcontractors
  • Unions
  • Shareholders
  • Creditors
  • Employees
  • Government Agencies

35
Secondary Stakeholders
  • Have strong interest in project,
  • But not legal tie
  • Public
  • Competitors
  • Tourists
  • Media
  • Families of primary
  • Local community

36
  • Relations and communications with stakeholders
    must be appropriate
  • Not all are the same
  • Expectations
  • More taxonomy

37
Public Relations
  • Public Relations versus
  • Risk Communications

38
From Sandman
Fanatics
Involved
Attentive
Everyone else
39
  • Public Relations is only helpful with the
    attentive
  • Risk Communications and special project
    communications is only helpful with the
    Involved
  • Fanatics will not be swayed by whatever
  • Uninterested and unconcerned will not be swayed
    by public relations

40
Planning Steps
  • Identify Stakeholders
  • Understand their interest
  • Measure their interest
  • Predict reaction
  • Identify effect of reaction on project

41
Outline
  • Meet the Stakeholders so they learn your face
  • Leave contact information, get theirs
  • Seek out contentious issue
  • They will arise sooner or later
  • Dont get surprised
  • Use caution in defining scope, budget, timing
  • Never promise what you cannot (personally) deliver

42
Risk Communications
43
Why Risk Communications
  • Scientists and engineers frequently get into
    trouble when communicating with the public.
  • The most troubling situations usually involve
    high concern of the public coupled with low trust
    of the communicator.
  • Risk communications techniques are needed to
    communicate effectively in high concern, low
    trust situations.

44
Public Trust
  • The public trust is almost always low for
    representatives of the polluting companies or
    their consultants.
  • It is frequently low for regulators as well.
  • It usually low for the media, as well.

45
Seven Steps in Effective Risk Communication
  • Accept and involve the public as a legitimate
    partner
  • Plan carefully and evaluate your efforts
  • Listen to Publics Specific concerns
  • Be honest, frank, and open
  • Coordinate and Collaborate with trusted sources.

46
Seven Steps in Effective Risk Communication, cont.
  • Meet the needs of the media
  • Speak clearly and with compassion.

47
Accept and involve the public as a legitimate
partner
  • Right to participate, if it affects their life,
    property, values
  • Involve them early
  • You may work for the public, but thats not the
    same
  • Difficult for technical experts to accept
    non-technical people as equal partners.

48
  • Goals
  • Informed public that is involved, interested,
    reasonable,thoughtful,solution oriented and
    collaborative.
  • If public is surprised and angry, resulting will
    be difficult

49
Plan carefully and evaluate your efforts
  • develop strategy and plan early
  • What are our objectives?
  • provide information
  • motivate individuals
  • stimulating response to emergencies
  • resolve conflict

50
  • Evaluate strengths and weaknesses
  • Look at sub-groups in audience
  • each has its own interests, needs concerns
    priorities preferences and organizations
  • Use spokespeople who are good
  • Pretest, rehearse your message.

51
Listen to Publics Specific Concerns
  • Listen, do not assume you know what people are
    thinking
  • Let all parties who have a stake be heard
  • Do's and Don'ts
  • Handouts from Corps of Engineers, PROSPECT

52
Frank, Honest, and Open
  • Trust and creditability are your most important
    assets.
  • Difficult to obtain
  • once lost, can never get back fully
  • Dont expect to be trusted
  • If you dont know or are uncertain, say so
  • Get back to people with answers
  • Admit mistakes

53
Frank, Honest, and Open, cont.
  • Disclose what you have
  • Do not minimize or exaggerate risk
  • Discuss uncertainties, strength and weaknesses
  • Identify worst-case and range of estimates.

54
Coordinate and Collaborate with Other Credible
Sources.
  • Inside and outside your organization
  • Communicate jointly if possible
  • Avoid pubic conflicts with other credible sources
  • But, acknowledge real differences.

55
Meet the Needs of the Media
  • Media are prime transmitters
  • Meet their needs
  • Respect deadlines
  • Graphics for TV
  • Printed report for newspaper
  • Try to establish trust
  • (But dont trust, they are looking for conflicts
    to report.)

56
Speak Clearly with Compassion
  • Use simple non-technical language
  • Avoid distant or unfeeling language about death
    or injuries.
  • Any illness or death is a tragedy for someone
  • Be aware of publics emotions
  • Remember
  • Some will not be satisfied

57
Codes and Standards
58
  • Codes
  • Standards
  • Specifications

59
Codes
  • Codes are the law.
  • Written by a professional organization
  • Adopted by a government
  • Government will often add modifications to code.
  • To suit local conditions

60
Design Review
  • Code will often specify review of design by local
    official.

61
  • Most code provision call for at least something
  • You are free to do more
  • Most codes are conservative
  • protective of life and safety
  • But this not always true

62
  • http//www.dps.state.ak.us/Fire/asp/

63
Standards
  • Recommendations by a professional group
  • Often adopted by government
  • Or referenced in code.
  • Which makes them the law as well.

64
Standards Setting Bodies
  • ASTM
  • ASME
  • ACGIH
  • NFPA
  • AASHTO
  • API

65
ASTM/ASME
  • American Society of Testing and Materials
  • http//www.astm.org
  • American Society of Mechanical Engineers
  • http//www.asme.org
  • Ethical problems, resolved

66
  • If the standard is relevant, it is a minimum
    requirement.

67
Problems
  • So many standards, that are changing all the time
  • Hard to keep up

68
Project
  • Owner might set minimum standards for the project
  • Cite for designer
  • All welding and radiography on the project will
    meet API standards.
  • Or cite international standards
  • often use U.S.

69
Specifications
  • Standard Specs
  • CSI
  • http//www.csinet.org/about.htm
  • http//www.csinet.org/s_csi/docs/9400/9361.pdf
  • Corps of Engineers
  • http//www.ccb.org/docs/ufgshome/UFGSToc.htm

70
Project
  • Project owner may require a standard
    specification format, that all designers must use.

71
Problems
  • Conflicts One contractual document seem to
    contradict another.
  • Paradox The more definite you are, the more
    voluminous the specifications, the greater the
    chance of a conflict.
  • Plans with specifications
  • Specifications with each other
  • Specifications with its referenced standards

72
Conflicts
  • Conflicts may result in changes
  • Public construction, contractor must bid in the
    least burdensome interpretation.
  • Will always want more money if there is a change.

73
Resolution
  • Precedence clause of contract may help
  • Most contracts have such a clause.

74
Project Specifications
  • Large projects will often adopt standard
    specifications for the project.
  • Project Style Guide
  • English, report forms
  • aboveground
  • above-ground
  • above ground

75
Take Home Message
  • Give attention early to codes and standards for
    the project.
  • Cite them in contracts
  • Standard Specifications can improve
    communications and reduce errors, if used properly

76
Health, Safety, and Environment
77
1970 Federal Occupational Safety and Health Act
  • Each employer shall
  • Furnish to each of his employees employment and a
    place of employment which are free from
    recognized hazards that are causing or are likely
    to cause death or serious physical harm to his
    employees AND
  • Comply with the standards promulgated under
    this act.

78
  • The first is the general duty clause.
  • Employers can be fined under this clause, even if
    they are obeying all the printed regulations.
  • The second requires the employer to follow all
    the detailed regulations promulgated by the
    Occupational Health and Safety Administration
    (OSHA).

79
  • Note the law says, free from recognized hazards
    that are causing or are likely to cause death or
    serious physical harm.
  • Later the courts implied the word reasonably
    free rather than what the law say, which would
    mean absolutely free.
  • Further, reasonably had to be consistent with
    the type of job.
  • One would expect more injuries in construction
    and mining than in retail sales or office work.

80
Example of Regulations
  • http//www.access.gpo.gov/nara/cfr/cfr-table-searc
    h.htmlpage1
  • http//www.access.gpo.gov/nara/cfr/waisidx_03/29cf
    rv8_03.html
  • Safety Nets 1926.105 translated
  • 29 CFR 1926.105
  • Give you an idea of the detail provided

81
OSHA
  • OSHA is in the Department of Labor
  • It has promulgated many regulations
  • Whole series of regulations are devoted to
    certain traditionally dangerous industries
    construction, shipbuilding, and so on.
  • Plus general industry standards
  • Mining has been regulated, for historical
    reasons, in a separate agency, MSHA

82
General safety and health provisions 1926.20
  • (b) Accident prevention responsibilities.
  • (1) It shall be the responsibility of the
    employer to initiate and maintain such programs
    as may be necessary to comply with this part.
  • (2) Such programs shall provide for frequent and
    regular inspections of the job sites, materials,
    and equipment to be made by competent persons
    designated by the employers.

83
  • (3) The use of any machinery, tool, material, or
    equipment which is not in compliance with any
    applicable requirement of this part is
    prohibited.
  • (4) The employer shall permit only those
    employees qualified by training or experience to
    operate equipment and machinery.

84
Landmark Law
  • Before 1970, some states had strong regulation of
    worker health and safety
  • These were often the wealthier, industrial states
    that had strong labor unions
  • After 1970 the less industrial states could no
    longer compete for new industry by encouraging
    a disregard of worker safety.

85
States
  • States are free to have their own occupational
    safety and health laws
  • If their laws are no less stringent than the
    federal laws, the states can apply for federal
    funding of their programs
  • The state then enforces its own laws
  • Even then, the federal could be involved

86
Owner and Designer
  • The Owner, Designer and others are responsible
    for the safety of their own people, each for
    their own employees.
  • The contractor typically has many more employees,
    who are performing more dangerous work, so the
    contractor is usually the most important entity
    in project safety.

87
Multiple Contractors and Subs
  • If a subcontractor has a safety violation
  • Both the sub and the prime can be fined
  • OSHA will try to answer the question, Who had
    the authority to prevent this accident?

88
  • For jobs with multiple primes, the owner will
    often appoint one prime as responsible for
    overall safety
  • Occasionally the designer or project manager will
    be assigned that duty.
  • Since OSHA only deals with employers and their
    duty to employees, owners and designers cannot
    be fined by OSHA.
  • The designer may be sued by injured workers

89
Major Projects and Owners
  • All owners of major projects
  • Oil Companies
  • Corps of Engineers
  • Have strong, proactive, safety programs
  • All have standard contract clauses that permit
    them to terminate unsafe contractors and
    contractors employees
  • These are used when necessary

90
  • Note conflict
  • The owner want the contractor to supervise his
    own people
  • this leads to maximum efficiency

91
Major owners
  • Require all contractors submit a safety and
    health plan
  • Owner will review
  • This is an OSHA requirement for many types of
    work, as well.

92
Corps of Engineers
  • Has a Safety and Health Requirements Manual
  • http//www.usace.army.mil/inet/usace-docs/eng-manu
    als/em385-1-1/toc.htm
  • Which distills all the OSHA regulations and
    emphasizes certain items that are special to the
    Corps.

93
  • Requires contractors to submit and
  • Accident Prevention Plan.
  • Has administrative requirements central to the
    Corps enforcing the manual.
  • After administrative requirements there is a list
    of special plans that the contractor must submit
    as applicable. (These are in your book.)

94
A major corporation, Xerox
  • Example of a major corporations safety effort.
  • At any given time, corporations of this size have
    several major construction projects and many
    smaller ones.
  • http//www.xids.com/xrxcontr/home.html
  • Following are slides from that site.

95
Xerox Contractor Safety Process
How to get on the approved contractor list
Ive been awarded a JobNow what?
Who Do I Call?
Contractor Safety
Contract Management
Global Purchasing
EXIT
96
Xerox Asset Protection Process
Back to Main Slide
Contractor Approval
Instructions
Exit
Is there a need?
No
Terminate Application
Yes
Submit Financial Documents
Submit Safety Documents
Acceptable
Acceptable
No
No
No
Terminate Application
Yes
Yes
Sign Confidential Disclosure
Send Acceptance Letter
Place Contractor on Approved List
Annual Performance Review
97
Contractor Selection
Xerox Asset Protection Process
Back to Main Slide
Instructions
Exit
Submit Project Safety Plan
Documents Acceptable
No
Yes
Contractor Safety Orientation
Worksite Inspections
303 Evaluation
Final Acceptance
98
Xerox CorporationAsset Protection Process
The following is an interactive presentation
about the Contractor Safety portion of the Xerox
Asset Protection Process. Assets are buildings,
equipment, raw materials, and people. Our goal
is to minimize the risk to losses of these assets
by implementing a global process for proper
planning and maintenance. Follow the flow chart
to walk through each process step. Simply click
on the box in the flow chart for more
information. Then click on the slide to bring
you back to where you started. There are also
some slides with highlighted text. This text
will provide you with further information on the
highlighted subject.
99
Project SafetyContractor Selection
The project manager for Xerox is responsible for
the selection of contractors to perform the
work. This is typically accomplished by
bidding. Any contractor awarded a contract to
perform work at Xerox must be on the approved
contractor list.
100
Project SafetySubmit Project Safety Plan
Prior to the start of work, all contractors must
submit a site specific project safety plan.
This plan should identify all potential hazards
of the specific work to be performed and provide
a detailed description of the work activities
focusing particular attention to safety measures
employed on the job. An example of a project
safety plan is located on the contractor safety
website at www.xids.com/xrxcontr/
101
Project SafetyDocuments Acceptable
The project safety plans must be accepted by
the local Xerox contractor safety group prior to
the start of work. No work will be allowed to
begin without such acceptance.
102
Project SafetyContractor Safety Orientation
Every employee of an approved contractor must
complete a one hour Contractor Safety
Orientation prior to beginning work at Xerox and
every two years thereafter. This orientation is
designed to give the contractor a
general overview of the safety expectations while
working on Xerox property
103
Project SafetyWorksite Inspections
The local contractor safety group performs
worksite inspections to verify that the
contractor is working in accordance with the
Xerox safety requirements. A defect is
recorded for every deviance from the
requirements. This defect is identified and
mailed to the contractors home office. The home
office must submit a response indicating how the
defect was corrected and the actions for
preventing it from reoccurring.
104
Project SafetyFinal Acceptance Evaluation
When the facility or equipment is ready to be
turned over to Operations, a final acceptance
evaluation is required. This final acceptance
is commonly referred to as the 303 process.
The process requires safety and operational
controls to be in place and tested prior to
receiving final acceptance. The 303 process is
described in further detail in the corporate
standards.
105
Project SafetyFinal Acceptance
When all of the action items from the final
acceptance evaluation have been completed the
project is ready to receive final acceptance and
turnover to operations. A record of final
acceptance should be maintained by the project
team, safety representative and operations. The
facility/equipment is now considered to be an
existing asset and is subject to that portion of
the asset protection process.
106
Contractor Safety
Brian Ayers Safety Engineer 800 Phillips
Road Building 205-99F Webster, NY
14580 Tel (585) 231- 8482 Fax (585)
422-8217 Brian.Ayers_at_usa.xerox.com
107
Xerox Contract Management
John Hughes 800 Phillips Road Building
304 Webster, NY 14580 Tel 422 -
8536 John.Hughes_at_usa.xerox.com
108
Global Purchasing
David Allen 800 Phillips Road Building
205-99B Webster, NY 14580 Tel (585)
265-5458 David.Allen_at_usa.xerox.com
109
Contractor Approval
The contractor approval process assures that
Xerox hires reputable contractors with good
safety records. Contractor safety is a
significant piece of the Asset Protection
process. Construction, renovation, and
maintenance activities have a high potential for
causing injury or asset loss. Xerox takes a
proactive approach in evaluating contractor
performance. The contractor approval process is
the coordinated effort of the Contractor safety,
Global Purchasing, and Contract Management groups.
110
Contractor ApprovalAnnual Performance Review
Global Purchasing and Contractor Safety
reviews the contractor performance annually.
Each contractor is given a status as
follows Acceptable Contractor remains on
the approved list Probation The contractor
has shown poor performance and is
given one year to improve. Unacceptable
The contractor is removed from the approved list
111
Project Labor
  • Day 5

112
U.S. Law
  • Taft-Hartley
  • Grants employees the right to organize
  • form a labor union
  • Craft unions vs. Industrial unions

113
White collar and professional
  • Many federal, state, and local government
    workers, including white collar and professional
    workers, belong to unions.
  • Rare in private enterprises.

114
Construction Unions
  • Construction unions are craft unions
  • Electricians
  • Plumbers
  • Equipment Operators
  • And many others
  • Each union maintains a hiring hall.

115
  • Employers must sign a contract with the craft
    union in order use the hiring hall.
  • Contracts are typically for three years.
  • Employer cannot hire workers other than those
    referred by the hall.
  • Makes the union the exclusive agent for the
    workers.
  • It would be breach of contract for employer to
    negotiate with union employee directly.

116
  • Contract will establish classes of workers and
    all workers within the class must be paid the
    same wage.
  • Contract will specify work rules
  • limitations on tools and work practices
  • limit paint brushes to 4 (10 cm) wide

117
  • Contract will designate certain employees as
    special representatives of the union
  • Union Steward
  • Must be give preferences, always on the job site
  • Time off work to attend to union activities.
  • often paid

118
  • Contract will have a no strike clause
  • However
  • slow downs are not strikes

119
Many Crafts
  • A large project will require labor that belong to
    15 or 20 different unions.
  • Any one of the unions might stop work if their
    contract expired in the middle of the project
  • Could make exorbitant demands.
  • Other unions, seeing their contracts will expire
    during the project, will not work either
  • Ignore their no strike clause or slow down.

120
  • Also, seeing the large project coming, one craft
    might conspire with its contractors
  • Like sub-contractors on the project
  • To inflate their wage demands
  • All the local union contractors will pay the high
    rate of pay
  • But they all the bid the same work, so their
    competitive position stays the same.

121
Work Non-union
  • Labor Strife
  • Workers will picket the job site
  • Other workers will honor the picket line and
    not go to work solidarity
  • Some workers will cross the line
  • Fights and reprisals picket line violence
  • Charges of unfair labor practices
  • special meaning in labor law

122
  • 30 years ago there were many regions of the U.S.
    where all the major construction work was union.
  • Contractor would not attempt to work non-union
  • Fear
  • Competition, all bidders have the same problems
  • Contractors who have good relations with the
    union are at a competitive advantage.
  • Union contractors would support unions against
    non-union contractors

123
Things Change
  • Today much work is non-union, more often
  • Open Shop
  • Some subcontractors will be union, some not.
  • Union and non-union get along usually
  • Generally a shortage of skilled labor

124
Union Victories
  • OSHA
  • Strongly supported by unions
  • Davis-Bacon
  • Sets minimum wages for certain work for the
    federal government.
  • All construction-type work is covered by
    Davis-Bacon
  • Minimum wage is usually the union wage for the
    region.
  • Follow union guidelines for crafts.
  • Most states have similar law

125
Union issues
  • Unions do not admit all qualified
  • Carefully control the number of workers in their
    craft
  • If demand exceed supply, local union will attempt
    to temporarily import union workers from other
    areas.
  • May let local people work, but make clear they
    are not members and arrangement is only temporary

126
cont.
  • The union contract may permit the employer the
    right to call out certain workers
  • Prior employment
  • foreman and supervisors.
  • Some unions do not permit either
  • All who work with tools must be dispatched by
    the union.

127
  • Corruption is an issue in some regions of U.S.
  • Labor leaders extort bribes and fees in exchange
    for labor peace
  • Most regions this is not a problem

128
Project Labor Agreement
  • The owner (usually) negotiates an agreement with
    all the unions that will be involved in a
    project, before the project is let out to bid.
  • In turn for agreeing that the project will be
    100 union, the owner will get some concessions.
  • Wages, overtime pay, transportation allowances,
    etc.
  • Owner wants agreement early
  • Each unions wants to delay agreement, hoping it
    will get better deal by holding out.

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Strikes
  • Most construction contracts grant excusable
    delays for strikes.
  • Since the union contract always has a no strike
    clause, strikes are unusual.
  • Unhappy union will resort to slowdowns
  • sickouts
  • Better, strikes or other concerted acts of
    workmen.

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Strike or Other
  • Burden is on owner, project will be delayed
  • Contractor must pay his overhead, but most costs
    are suspended while the strike is on.
  • What if only one of the crafts slows down?
  • When does it become critical, CPM
  • Rogue union will be aware when it can hurt the
    owner.
  • Use the owner to force the contractor to some
    concessions
  • Contractor will then want more money from the
    owner.

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Major Projects without Unions
  • A major project will distort local labor supply.
  • Without PLA, different contractors may compete
    with each other for labor
  • bidding up the wages
  • Cannot conspire to reduce wages
  • Owners are reluctant to interfere with
    contractors wage negotiations.

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International Labor
  • Always wise to use as much local labor as
    possible
  • Locals may oppose the project to begin with
  • Locals resent foreign workers
  • Most countries restrict importation of labor

133
Use of Locals
  • Locals are often much cheaper on a per manhour
    basis
  • Do they have the skills?
  • Work ethic?
  • How much training is required?
  • Language barriers

134
Ethnic Issues
  • Not all locals are the same ethnic group
  • Difficult to tell what may happen
  • Local partner is often required to navigate
    through these minefields.

135
Project Management
  • If you are the owner
  • Do not assume Labor is the contractors
    problem.
  • Anticipate labor supply, costs, and problems in
    your project planning.
  • Deal proactively with project labor
  • but be careful

136
Effects on Project Management
  • Wages and labor agreements might not be known,
    when project budget is determined
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