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IHC, INC.

GENERAL

FOREMAN’S

GUIDELINES

This book belongs to:

April 2006

IHC General Foreman’s Guidelines

1.0 Introduction......................................................................................................................1-11.1 Welcome.......................................................................................................................1-1

1.1.1 Safety....................................................................................................................1-11.1.2 Quality..................................................................................................................1-21.1.3 Equipment............................................................................................................1-21.1.4 Responsibility to Others.......................................................................................1-2

1.2 Business Ethics and Conflict of Interest Guidelines....................................................1-31.3 Values and Beliefs........................................................................................................1-3

1.3.1 Mission Statement................................................................................................1-31.3.2 Corporate Culture.................................................................................................1-41.3.3 Values...................................................................................................................1-41.3.4 Beliefs...................................................................................................................1-51.3.5 Ethics....................................................................................................................1-8

1.4 The IHC Team..............................................................................................................1-82.0 Leadership........................................................................................................................2-1

2.1 Characteristics of a Good Leader.................................................................................2-12.2 Roles of a Leader..........................................................................................................2-22.3 Goal Setting..................................................................................................................2-32.4 Inspiring Employees.....................................................................................................2-42.5 Training and Coaching.................................................................................................2-42.6 Learning........................................................................................................................2-42.7 Power and Leadership..................................................................................................2-5

3.0 Benefits.............................................................................................................................3-13.1 Insurance......................................................................................................................3-13.2 Family and Medical Leave Guidelines.........................................................................3-23.3 Retirement Plan............................................................................................................3-53.4 Mechanic’s Truck/Tool Reimbursement......................................................................3-7

3.4.1 Trucks...................................................................................................................3-73.4.2 Tools.....................................................................................................................3-8

3.5 Hourly Travel Incentive...............................................................................................3-93.6 Hourly Incentive Bonus..............................................................................................3-113.7 Hourly Incentive Bonus Handout...............................................................................3-133.8 EBS Flexible Benefits Plan..........................................................................................3-13.9 Hourly Savings Plan.....................................................................................................3-23.10 Referral Incentive Plan.................................................................................................3-2

4.0 Safety................................................................................................................................4-14.1 Overview......................................................................................................................4-1

4.1.1 IHC Safety Philosophy.........................................................................................4-14.1.2 Asset Protection....................................................................................................4-1

4.2 Commitment to Safety..................................................................................................4-24.3 Safety Program Guidelines...........................................................................................4-24.4 Drug-Free Workplace Policy........................................................................................4-54.5 Hazardous Materials Training Summary.....................................................................4-84.6 Hazard Communication Program.................................................................................4-94.7 Spill Prevention Control and Countermeasure Plan...................................................4-10

5.0 Environment.....................................................................................................................5-1

Equal Opportunity Employer i Revised 05/07


5.1 Spill Prevention Control and Countermeasure (SPCC) Plan.......................................5-15.1.1 Things to Watch and Do.......................................................................................5-15.1.2 In Case of a Spill..................................................................................................5-1

5.2 Spill Kit........................................................................................................................5-25.3 Clean Water Act...........................................................................................................5-25.4 Emergency Planning.....................................................................................................5-3

5.4.1 Emergency Response...........................................................................................5-35.4.2 Non-Emergency Response...................................................................................5-35.4.3 Correction Plan.....................................................................................................5-3

6.0 Quality..............................................................................................................................6-16.1 Statement......................................................................................................................6-16.2 Quality Control.............................................................................................................6-1

7.0 Total Quality Management...............................................................................................7-27.1 Overview......................................................................................................................7-27.2 Process..........................................................................................................................7-27.3 Awards Program...........................................................................................................7-3

8.0 Operations........................................................................................................................8-19.0 Equipment........................................................................................................................9-1

9.1 Overview......................................................................................................................9-19.2 Functions......................................................................................................................9-19.3 Inspections....................................................................................................................9-1

9.3.1 Daily.....................................................................................................................9-19.3.2 Road Side Inspections..........................................................................................9-29.3.3 Annual Vehicle Inspections..................................................................................9-2

9.4 Scheduled Maintenance................................................................................................9-39.4.1 Objective..............................................................................................................9-39.4.2 Purpose.................................................................................................................9-39.4.3 Distribution...........................................................................................................9-39.4.4 Frequency.............................................................................................................9-39.4.5 Responsible Parties...............................................................................................9-39.4.6 Instructions...........................................................................................................9-39.4.7 Special Considerations.........................................................................................9-4

9.5 Minor Repairs...............................................................................................................9-49.6 Rental Equipment.........................................................................................................9-4

9.6.1 In-House Rental....................................................................................................9-49.6.2 Renting from External Sources............................................................................9-89.6.3 Renting to External Sources.................................................................................9-9

9.7 Accident Reports........................................................................................................9-109.8 Utilization Reporting..................................................................................................9-10

10.0 Production......................................................................................................................10-110.1 Performance Reports..................................................................................................10-110.2 Quotas and Status.......................................................................................................10-110.3 Pre-Work....................................................................................................................10-1

11.0 Reporting........................................................................................................................11-111.1.1 Time Cards.........................................................................................................11-111.1.2 Daily Reports......................................................................................................11-1

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11.1.3 Field Work Orders..............................................................................................11-111.1.4 Delivery Tickets.................................................................................................11-111.1.5 Daily Project Diary.............................................................................................11-2

11.2 Personnel Functions...................................................................................................11-211.3 Revenue......................................................................................................................11-311.4 Subcontractor Back Charges......................................................................................11-311.5 DOT Compliance.......................................................................................................11-311.6 Representing IHC at Public Functions.......................................................................11-311.7 Dress Code.................................................................................................................11-311.8 Threats and Violence..................................................................................................11-3

11.8.1 Searches..............................................................................................................11-311.9 Employee Evaluation and Termination......................................................................11-411.10 Field Purchasing.....................................................................................................11-4

11.10.1 Objective........................................................................................................11-411.10.2 General...........................................................................................................11-411.10.3 Project Designated Expenses..........................................................................11-511.10.4 Procedures......................................................................................................11-5

12.0 Administrative Policies..................................................................................................12-112.1 EEO Policy.................................................................................................................12-112.2 EEO Complaint Procedure.........................................................................................12-112.3 Sexual Harassment / Inappropriate Conduct..............................................................12-212.4 Patents and Copyrights...............................................................................................12-212.5 Problem Solving.........................................................................................................12-312.6 Discipline / Discharge................................................................................................12-3

13.0 Disclaimers.....................................................................................................................13-113.1 About the Manual.......................................................................................................13-1

14.0 Project Codes..................................................................................................................14-114.1 Job Costing Codes for Project Budgets......................................................................14-114.2 Standard Codes for Direct Job Overhead...................................................................14-2

14.2.1 A01 Mobilization...............................................................................................14-214.2.2 A02 Setup and Utility Installation......................................................................14-214.2.3 A03 Demobilization-Restoration and Teardown...............................................14-314.2.4 A04 Engineering and Material Testing..............................................................14-314.2.5 A05 Survey and Layout......................................................................................14-314.2.6 A06 Project Staff and Office Supplies...............................................................14-414.2.7 A07 Utilities and Rent........................................................................................14-414.2.8 A08 Facilities Supplied to Others......................................................................14-414.2.9 A09 Subsistence:................................................................................................14-414.2.10 A10 Administrative Travel Expense..............................................................14-514.2.11 A11 G-Gas – D-Diesel – Fog-Filters, Oil and Grease...................................14-514.2.12 A12 Bonds......................................................................................................14-514.2.13 A13 Association Dues....................................................................................14-514.2.14 A14 Insurances...............................................................................................14-614.2.15 A15 Financing................................................................................................14-614.2.16 A16 Penalty....................................................................................................14-614.2.17 A17 Miscellaneous Project Expense..............................................................14-7

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14.2.18 A18 Security...................................................................................................14-714.2.19 A19 Traffic Control........................................................................................14-814.2.20 A20 Potential Subcontractor Backcharge (Receivable).................................14-814.2.21 A21 Authorized Non-Contract Extra Work...................................................14-814.2.22 A22 Authorized Contract Change Order........................................................14-914.2.23 A23 Special Cleanup......................................................................................14-914.2.24 A24 Haul Road Construction and Maintenance.............................................14-914.2.25 A25 Subcontract...........................................................................................14-1014.2.26 A26 Maintain Access...................................................................................14-1014.2.27 A27 Legal Expense......................................................................................14-1014.2.28 A28 Hourly Vacation Bonus........................................................................14-1014.2.29 A29 Special Taxes........................................................................................14-1014.2.30 A30 Mechanics.............................................................................................14-1114.2.31 A31 Support.................................................................................................14-1114.2.32 A32 Non-Productive Time...........................................................................14-1114.2.33 A33 Cold Weather Protection......................................................................14-1214.2.34 A34 Hot Weather Concreting.......................................................................14-1214.2.35 A35 Sell Project............................................................................................14-1214.2.36 A36 Forms....................................................................................................14-1214.2.37 A37 Lumber.................................................................................................14-1314.2.38 A38 Stockpiling and Material Handling......................................................14-1314.2.39 A39 Lighting................................................................................................14-1314.2.40 A40 Incidental Rework/Pumping.................................................................14-1314.2.41 A41 Demo Sawing.......................................................................................14-13

14.3 Standard Codes for Permanent Materials.................................................................14-1314.4 Standard Concrete Paving Codes.............................................................................14-14

14.4.1 Pay Item C-.......................................................................................................14-1414.4.2 Cost Type.........................................................................................................14-16

15.0 Forms/Reports................................................................................................................15-115.1 Acknowledgement of Receipt of Drug-Free Workplace Policy................................15-215.2 Issued Safety and Other Equipment...........................................................................15-315.3 Pre-Work/Mass Meeting Safety Checklist.................................................................15-415.4 Employee Accident/Injury Report..............................................................................15-515.5 Supervisor's Work Injury Progress Report.................................................................15-615.6 OFI – English.............................................................................................................15-715.7 OFI – Spanish.............................................................................................................15-815.8 Operators Daily Equipment Inspection Report..........................................................15-915.9 Equipment Inspection/Estimated Repair Cost Report..............................................15-1015.10 Auto/Liability/Equipment Accident Report.........................................................15-1515.11 Equipment Utilization Report..............................................................................15-1615.12 Weekly Time Sheet..............................................................................................15-1815.13 Foreman's Daily Report........................................................................................15-1915.14 Field Work Order.................................................................................................15-2015.15 Daily Project Diary...............................................................................................15-2115.16 Record of Evaluation/Termination of Employment.............................................15-2315.17 Purchase Order.....................................................................................................15-24

Equal Opportunity Employer iv Revised 05/07


15.18 P.O. Log...............................................................................................................15-2515.19 Weekly Expense Report.......................................................................................15-2615.20 Time and Materials Change Order Reporting Form............................................15-2715.21 Theft/Vandalism Report.......................................................................................15-3415.22 Temporary Traffic Control Daily Checklist.........................................................15-3515.23 Project Bulk Storage Fuel Consumption Report..................................................15-3615.24 Material Ledger....................................................................................................15-3715.25 Production Ledger................................................................................................15-3815.26 Employee Master File Update – English..............................................................15-3915.27 Employee Master File Update – Spanish.............................................................15-4015.28 EBS Enrollment Form..........................................................................................15-4115.29 InterCare Benefit Enrollment Form – English.....................................................15-4215.30 InterCare Benefit Enrollment Form – Spanish.....................................................15-4315.31 US Department of Justice I-9...............................................................................15-4415.32 Contractor and Employee Plan Enrollment Form................................................15-4615.33 Time Card.............................................................................................................15-4715.34 Mechanic's Daily Time Record............................................................................15-4815.35 Employment Warning Notice...............................................................................15-49

16.0 Hourly Manual...............................................................................................................16-1

Equal Opportunity Employer v Revised 05/07


1.0 Introduction

1.1 Welcome

Interstate Highway Construction, Inc. is proud to welcome you to our family of employees. We hope you find the work here interesting, challenging and rewarding. Every job is important, and each member of our team is vital. We hope this manual provides you with an overall understanding of the company and the benefits and services we provide.

IHC is a nationally known full service heavy-civil contractor specializing in building highways, airfields, streets and local roads, parking lots, industrial pavements and water resource projects. We provide a full range of services in addition to concrete paving that includes grading, drainage, utilities, bases and stabilization. IHC has been in business for over 50 years and the primary market areas include the Rocky Mountain, Midwest and Southwest United States.

IHC is a leader in concrete paving innovation and quality and currently ranks in the Top 400 ENR Contractors with annual revenues up to $120 million and 350 employees each year. IHC has received many awards and letters of recognition from various national organizations, state agencies and owner-agencies.

IHC is a wholly owned subsidiary of Ralph C. Wilson Enterprises, which also owns the Buffalo Bills.

In 1993 IHC built the first roadway paved with slipform concrete in Mexico. In the U.S., IHC has built many prominent projects including the Orlando, Tulsa, Dallas, and Houston Airports, and the longest commercial runway in North America at Denver International Airport, as well as highways, roads, parking lots and commercial developments.

IHC has many policies and guidelines in place to allow each employee to perform the best possible job and to be proud of who we are and what we do. Also, this information has been compiled so that you will be better able to understand the benefits the Company is providing for you and your family.

We wish you success in building a prosperous future for both of us.

1.1.1 Safety

At IHC safety starts with you.

Your safety and the safety of your coworkers is the #1 priority at IHC. Hard hats and seat belts save lives! It could be your life that is saved. That

is why you are required to wear them at all times. Personal Protective Equipment is provided for your safety (safety vests,

ear plugs, dust masks, gloves, safety glasses, etc.) Please ask if you need safety protection equipment.

Equal Opportunity Employer 1 Revised 5/07


Every IHC employee must do his or her part to create and maintain a safe and productive working environment. Unsafe behavior will not be tolerated from anyone.

To ensure your welfare, notify your supervisor immediately if you get hurt on the job!

A safe work site is a clean work site. Take pride in keeping your work area clean.

1.1.2 Quality

A job well done is a job to be proud of.

Our team is known throughout the industry for providing quality workmanship.

Your fellow workers take pride in their work. Focus on doing the job right the first time.

Our goal is NO rework! If you don’t understand or know how to do something the correct way,

ask! Continuously strive to become better as individuals and as a team!

Working together we can achieve excellence in quality.

1.1.3 Equipment

To do your job well your assigned truck or equipment must be kept in good shape. It is your responsibility to make sure it is greased and the general maintenance is performed.

The appearance of our equipment is a reflection on us all. Take pride in keeping your assigned piece of equipment clean and treat the equipment as if it were your own.

Performing daily walk-around inspections allows you to ensure your truck or equipment is safe and maintained. Report unsafe equipment to your supervisor immediately.

Ask for proper training if you do not know how to operate a piece of equipment.

1.1.4 Responsibility to Others

Be at work on-time. Treat others the way you would like to be treated. Maintain your equipment and keep a clean work site. Promote safety and quality.

Help each other make one another successful. Every job is important and each member of our team is vital. We expect all employees to give their best toward the success of IHC.



1.2 Business Ethics and Conflict of Interest Guidelines

Competitive market advantages are gained solely through product superiority, product value, service to customers and users, and what IHC perceives to be acceptable business conduct. Employees are expected to be objective in handling responsibilities and decisions in their daily business functions by:

Obeying national, state and local laws, including federal and state antitrust legislation and trade regulations.

Avoiding actions or situations in which an individual’s personal or non-Company business interests are placed in conflict with any interest of the Company.

Avoiding any action in which there is a knowing misrepresentation of Company products, services, or business intentions to customers or others.

Here are a few examples of unacceptable business conduct for illustrative purposes:

Ownership, partnership or personal involvement in supplier companies or distribution outlets related to Company business.

Ownership, partnership or personal involvement in renting equipment or other property to the Company for profit.

Involvement in any form of bribery or kick-backs. Misuse of Company office, position or knowledge of Company

affairs for personal gain. Personal business transactions or loans to or from current or

potential customers or suppliers which might adversely influence the employee’s decisions or actions on the job. This includes accepting or providing services, gifts, hospitality or entertainment on behalf of the Company, so that your or a customer's business decisions are unduly influenced. Money cannot be accepted or given as a gift. Any other gift or gratuity, either offered or received, must be only of a value that is offered to others who have a similar business relationship.

Invoicing for items of work or extra quantities under a different pay item than those actually performed.

Unauthorized disclosure of confidential data, trade secrets or other privileged information to persons outside the Company.

Questions about potential conflicts of interest should be discussed with your supervisor.

1.3 Values and Beliefs

1.3.1 Mission Statement

We dedicate ourselves to assemble, train and organize our fellow associates into a highly effective, harmonious, principled and quality oriented organization that is continuously striving to provide its employees with an enduring personal and



professional lifestyle that fulfills both the individual's human needs, and his/her needs to be an integral part of this organization. Through this commitment, IHC will become and be recognized by its peers as a meritorious leader, and the finest employer in the industry.

Dedicate – to give wholly or earnestly up to Assemble – to fit together Train – educate; regiment to accomplishing a task Organize – to arrange several parts of for action or work; to establish and

systematize Cohesive – to stick together; unite; to keep in close contact as parts of a

whole Effective – producing desired results Harmonious – just adaptation to fit the parts into a system that makes an

agreeable whole Principled – adherence to the rules of integrity Quality – to meet or exceed the expectations of both internal and

external customers Enduring – to remain in existence or in a certain state for an indefinitely

long time Integral – meaningful part of a whole Commitment – morally bound to do Meritorious – earned or deserved based on standards set by our industry

1.3.2 Corporate Culture

The intangible quality, a certain informal style, character, way of doing things that is more powerful than the dictates of any one person or any formal system. Corporate culture for a time will transcend changes in personnel. Ours is based on:

Shared Values Shared Beliefs Shared Expectations Shared Norms Shared Assumptions

Key aspects of our corporate culture:

Every associate has had a part in making IHC's corporate culture what it is today

Corporate culture can be changed by changing the unwritten rules Changes in corporate culture will only occur over the passage of time

1.3.3 Values

A value is something of which we think highly or is of importance to us.



Customer Service

positive work environment building relationships profitability

Ethics

determined from company values/beliefs/philosophies

Quality

TQM (a process of innovation and continuous improvement) QC - product quality (superior to the 'State of the Art')

1.3.4 Beliefs

A belief is something we hold to be true.

Customer service is meeting or exceeding the expectations of our customers. It is the belief of this Company that internal customer service takes precedence over external customer service if in conflict (infrequently does this occur). Practicing effective internal customer service will result in excellent external customer service. We are committed to the business of customer service.

A positive work environment is one that fulfills and balances both the professional and personal needs of each associate.

All decisions we make must always take into consideration the quality of life issues, keeping in mind what is best for the whole.

Company policies and procedures should be administered fairly and applied equally to everyone.

The use of teamwork is highly emphasized because it helps make everyone a meaningful part of the whole and the product of teamwork will most often achieve superior results. We all recognize that we need one another to be successful. We fully support the concept of 'Partnering' or 'Team Building' with our customers and advocate using the philosophy on all projects whether there is formal partnering or not.

The safety of all employees is of paramount concern, thus all decisions must take into consideration safety in the workplace. A safe work environment is a productive environment.

We should strive to fulfill our 'sense of obligation' to society through contributions to a worthwhile or deserving cause.

Decisions should be based on team gains, not personal gain. We resolve to assure that each employee is provided alternative avenues to

vent frustrations, solve problems, resolve disputes, etc. when the issue cannot be satisfactorily resolved with one's immediate supervisor. Each employee has the



right to properly continue pursuing resolution beyond their immediate supervisor, but should begin the process with his/her immediate supervisor. It is also recognized that some problems cannot always be resolved in-house because of the lack of expertise or the nature of the problem. Accordingly, an EAP service is provided by the Company.

The sense of self-worth and belonging of our employees can be enhanced by sharing authority and responsibility throughout the organization.

Just consideration is given, to the best of our knowledge, so that each employee is compensated (base compensation) fairly based on their contribution to the Company and relative compensation levels in the industry.

Policies, procedure, systems, corporate philosophies, etc. are designed to encourage the entrepreneurial way of thinking.

We believe the atmosphere at IHC needs to be filled with an insatiable desire to be the best at what we do and expect everyone to contribute to this cause. We will not tolerate any free-loaders.

It is important to us that our employees have economic security, thus we manage our company assets prudently and provide an excellent fringe benefit package to all employees. We also know that our future success is dependent upon retaining long term key contributors. For this reason our benefit package encourages continued employment at IHC. Within our ability and given what is practical and reasonable, IHC pledges to retain its key employees through difficult times.

To create an environment of unified purpose, no personal business interest shall conflict with the interest of IHC.

We offer employees a gratifying work environment by providing all the tools necessary to be successful. This environment should allow for proper training, role definition, challenges, opportunity, feedback, security (both financially and emotionally), fun and to be free from any form of discrimination.

Since it is our desire to spread IHC's corporate culture throughout the organization, it is understood that a high degree of conformity to this belief system is required.

Building meaningful relationships is the foundation from which IHC will excel.

Treat people the way you would like to be treated. Try to recognize the value and worth of each human being and

understand that equal responsibility and accountability must exist in both directions to build a meaningful relationship.

We believe that meaningful relationships are built on trust, loyalty and honesty.

Always make your motives known and be unselfish (no misrepresentation of intend). Help each other and make one another successful.

Everyone must take time to know, understand and be compassionate with those that work closely with them. This is a prerequisite to be able to



satisfy their professional and personal needs. Soliciting feedback and being a good listener are key components.

We need to create an emotionally secure environment by minimizing anxiety by freely sharing information in-house and by explaining decisions that impact those around us.

When we interact we need to recognize accomplishments and constructively criticize failures for the continuous improvement of the Company.

At IHC a healthy relationship is built on fairness, not necessarily equality.

We garner respect in many different ways, but unquestionably one entitlement we must grant each other is to expect that every one around us has our best welfare in mind and is dedicated to give their best towards the success of IHC.

At IHC we understand that supervision by fear or intimidation is not the preferred tactic to achieve long term positive results.

Everyone needs to create an environment that is conducive to the free expression of ideas and thoughts.

Maximize a fair profit.

RCWE (Our Owner)

IHC pledges to protect the monies entrusted to us by its owner. To the best of our ability, we intend to maximize our owner's return on

investment.

IHC

Profit is not a dirty word. Not only are profits a necessity to survive, but maximization of a fair profit is a necessity to provide the level of customer service we desire and to sustain high performance. A solid secure organization is a prerequisite to personal economic security. This can only happen when the Company maintains a position of profitability.

We earn competitive advantages through product superiority, product value, service to customers and users and solid business relationships.

For us to maximize a fair profit, IHC must be the 'Low Cost Producer' in its given marketplace.

Associates

We conservatively account for profits as a general rule of good business and to provide security for our people by making provisions for the unexpected risks.

We bring profits cleanly to the bottom line so that employee profit sharing plans can be distributed fairly based on contribution to the Company.



Both RCWE and IHC believe that when the Company is profitable, these profits be shared with the employees at an attractive level rarely seen in the industry.

The Profit Sharing Plans have been structured to share our successes with a large pool of key contributors. They have not been reserved for just a select few.

Since we have an interest in securing an economic future for the Company and its people, profits are also used to invest in future opportunities, growth and to help secure IHC's competitive place in the industry by investing in its people and equipment.

Quality

Adopting, entraining and practicing the TQM philosophy is an integral ingredient in the continuing success of IHC. TQM focuses on improving every aspect of the Company, not just technical advances or systems improvement. TQM teaches us that problems need to be addressed openly and in a timely manner and that problems are not a reflection on management, but an opportunity to improve ('Continuous Improvement' - Low Cost Producer).

Meeting or exceeding the quality expectations of our customers requires having systems in place that will reliably measure our product against a given standard. Providing our customers with superior service involves many factors. Product quality is of primary importance to IHC. IHC promotes and maintains the highest quality standards in the industry. IHC's standard of excellence is, in most cases, significantly more stringent that the level required by the external customer.

1.3.5 Ethics

Ethics are a code of conduct determined by public expectations.

We have just established our ethical standards by identifying our values and beliefs.

We consider any illegal activity to be unethical.

1.4 The IHC Team

You are now a part of the IHC Team and with that comes certain responsibilities to your fellow employees:

Be at work on time Treating others fairly and with respect Promoting safety and quality each and every day Maintaining your equipment and keeping a clean work site Helping your coworkers create and maintain a successful team

Every job is important and each member of our team is vital. We expect all employees to give their best towards the success of IHC.



2.0 LeadershipWhat is a good leader? Is it someone who empowers their employees? Or maybe it’s someone who gives clear direct orders and takes charge of their employees? Actually, being a good leader boils down to one thing – a good leader is someone who gets results. He or she is someone who knows how to find the right tool and use it to maximize results.

2.1 Characteristics of a Good Leader

Exemplary Character

A good leader is someone who can be trusted to lead others. They are known to live their lives with honesty and integrity. They do what needs doing and have earned the right to be responsible for others. They lead through respect, not through fear.

Enthusiastic

A good leader shows enthusiasm for both their company and for their position as a leader. People respond more zealously to someone who shows dedication and passion for what they’re doing. Leaders need to be a source of inspiration and motivation for their employees in order to effectively influence them in the direction of the set goals. Enthusiasm can also be shown when a leader is willing to roll up his or her sleeves and jump into the trenches with the employees.

Confident

A confident leader is one who not only portrays confidence in him or herself, but is also one that shows confidence in his or her employees and their ability to reach the goals that are set. A leader who shows confidence in the goals motivates the team to put forth their best efforts.

Positive Demeanor

The leader is the person employees look to in situations of uncertainty and disorder so this person must be capable of remaining calm and portraying a positive, upbeat, “We can do it” attitude.

Tolerant

Good leaders ride out crises and storms with calm and tolerance. They stay focused on the main purpose and don’t let ambiguity distract them. They consider these drawbacks to be part of the journey to the goal and tolerate them with serenity and an unruffled manner.

Analytical

A good leader is able to see the forest and the trees. He or she is capable not only of looking at the situation as a whole, but of breaking it down into its component parts for a closer look. A good leader takes the goal and breaks down the process of



attaining it into small, measurable steps, making progress more evident and easily rewarded.

Committed to Excellence

Success is always on the mind of a good leader. He or she is never willing to settle for second best. The good leader not only strives to meet current standards of excellence, but also works to set and meet ever higher standards. Over delivering is the standard operating procedure for this leader.

These characteristics can all be found within a good leader. Some may be more evident than others, but keep in mind – all of these can be developed and improved upon. A good leader will make it their goal to do so during their leadership role.

2.2 Roles of a Leader

Liaison With External Stakeholders

External stakeholders are anyone outside the immediate team. These can include upper management, other internal teams, customers and suppliers. It’s the responsibility of the team leader to interact with these people in order to secure resources, clarify the team’s goals and gather information.

Trouble Shooter

The team leader is usually the “go to” person when there is a problem the team members can’t solve on their own. It’s rare that the problem is technical in nature because usually the team members know more about what’s being done on those levels than the team leader does. The team leader is more likely to be a catalyst, helping the team talk through problems, and getting needed resources from external stakeholders. Examples of trouble shooting might be getting more personnel because a team is shorthanded or locating a needed piece of equipment the team might be lacking.

Conflict Manager

Team leaders often find themselves acting as arbiters. They’re responsible for guiding opposing sides to a suitable compromise. Team leaders step in and help process the conflict. They look at the source of the conflict, who’s involved, what the issues are, what solutions are available, and what the advantages and disadvantages of each are. The leader, refocusing the team on these issues, rather than the conflict itself, minimizes the disruption to the team and the loss of productivity.

Coach

A leader ensures that each team member’s role is clear. He or she also acts as a teacher, cheerleader, or whatever else is needed. It’s the responsibility of the team leader to offer the support necessary for the team members to improve their work performance.



2.3 Goal Setting

Goals can be a major source of motivation – if goal setting is done appropriately. There are four basic characteristics of goal setting:

Specificity Difficulty Feedback Participation

Specific goals lead to increased performance and difficult goals, when reasonable and accepted, result in higher performance. These types of goals produce a higher level of output than a generic “do your best” statement. It’s also desirable to get employee participation in goal setting. Employees are much more likely to believe a goal is achievable if they have some say in setting the goal. They are also likely to set a more difficult goal for themselves then would be set if they aren’t involved. It’s also imperative that the team receive feedback as they progress toward their goal. Sympathetic feedback, whether the team is being informed that they’ve strayed from the path or being told they’re right where they need to be, is a great source of motivation and encouragement.

Setting goals is a process. It’s simplest to think of it as having six distinct parts that go from a more general view to a more detailed outline:

i. Vision

Vision consists of what the leader wants his or her team to look like. The leader’s vision must coincide with the bigger picture of the organization’s goals. Some examples include trying to picture what the team would look like if it were perfect; or what the most perfect way to accomplish a project might be, or perhaps, how to create the same quality project if the budget were cut by 10 percent. Once the vision is achieved it needs to be communicated to the team in general terms. Let the team then participate in developing the objectives, the concepts, and the resources necessary to accomplish the vision.

ii. Goals

This is where the team steps in. Goals are still generalizations and stated in immeasurable terms such as “The team must reduce aggregate costs”, but they are more focused than the vision. This begins establishing the framework the team will work within to accomplish the vision.

iii. Objectives

Setting objectives is when the leader begins guiding the strategy that is necessary to turn the vision into reality. These are the bridge between the vision and the reality of what you want to accomplish. Objectives are concrete and measurable. An example of this would be “By the end of next quarter we want all fine aggregates must come from a single supplier and all coarse



aggregates must come from a single supplier.” Get buy-in from the entire team.

iv. Tasks

The fourth step is to determine who will be doing what. Tasks are how objectives get accomplished. They are measurable precise actions that must occur. For instance, specify one person to obtain detailed costs for fine aggregate from 10 suppliers and do the same for a second person who will handle coarse aggregate.

v. Time Lines

Establish a priority for the tasks. Some tasks, obviously, need to be completed before others. Time lines enable the team to prioritize the tasks and get them accomplished in the appropriate order and by certain dates. An example would be, “The quotes will be obtained by the end of next week.”

vi. Follow Up

Make sure the team is doing what is needed and what was agreed to. This kind of interaction tells the team that the priorities and goals are worthy of action. It also confirms that the leader wants to see the project through to a successful conclusion. This is not micro-managing. Micro-managing removes team members from a position of trust; following up places them in a position of trust. Following up means the manager trusts the team members are doing what is needed, however they do it. He or she is simply checking it off the list.

2.4 Inspiring Employees

Be Passionate Get Employee Participation in the Decision-Making Process Know What IHC Is About

2.5 Training and Coaching

Training is a formal lesson that teaches an employee the skills necessary to perform a task. Coaching, however, is designed to help the employee improve their job performance through increased competence and overcoming barriers. In other words, training is technical and coaching is motivational. The two go hand-in-hand and, together, create the conditions that enable the employee to learn and develop.

2.6 Learning

The team member must be motivated to learn. The team member must be involved in the process. People can rarely pay

attention for longer than 30 minutes. If the task is complex, break it down into small parts. Speak for 10 or 15 minutes then enter a hands-on phase.

Provide feedback throughout the practice period. It keeps the team member motivated.



2.7 Power and Leadership

There is a basic difference between power and leadership. Power is the ability to force someone to achieve a goal. Leadership is the ability to influence others to want to achieve the goal. Leadership power is the better of the two as it results in better production, more motivation, and higher goals.



3.0 Benefits

3.1 Insurance

Currently, IHC provides medical, dental, life and accidental death and dismemberment (AD&D) insurance coverage to our hourly employees through coverage carried with CNIC (ChoiceNet InterCare Health Solutions).

Overview

Enrollment for the medical coverage includes $10,000 life benefit and two times that amount for AD&D coverage. All claims should be submitted to the following address for payment:

CNIC Health SolutionsP.O. Box 3559

Englewood, CO 80155-3559(303) 770-5710 or (800)426-7453

Enrollment Requirements

Eligibility for this coverage is the first of the month following 90 continuous days of employment. Although this plan is available to all employees, it must be requested by the employee by signing an enrollment form. If an employee does not enroll at this time, they may enroll only during the ‘open enrollment’ period currently in June of each year subject to pre-existing condition limitations.

Premiums

Cost of the premium is shared between the employee and IHC. Premiums are as follows:

Single Coverage Family Coverage

Non Prevailing Wage Projects $75.00 $105.00

Davis-Bacon Projects $150.00 $210.00

Payroll deductions will be made once per month. When possible, the premium will be withheld the third week ending of each month. For Davis Bacon jobs, the premium is withheld the first and third week. During layoff periods, employees must submit payment by the 1st of the month for the month's coverage. Premium deductions will be made in advance to cover anticipated winter layoffs.

Availability

This plan is available to each eligible employee but will only go into effect if the employee requests the coverage by signing an enrollment form. Participation in the plan is voluntary.



In the event this handbook information conflicts with the actual terms and conditions of coverage, the latter governs.

3.2 Family and Medical Leave Guidelines

Eligibility for Leave

Any employee, who has been employed by the Company at least twelve (12) months and has worked at least 1,250 hours during the twelve (12) months preceding the commencement of a leave of absence, is eligible for family or medical leave of absence if certain conditions are met. An employee, except for certain highly compensated employees, will be returned to the same or equivalent position.

An eligible employee may take a leave for one or more of the following reasons:

Medical Leaves

The inability of the employee to perform the functions of his or her position due to a serious health condition or pregnancy disability.

Family Leaves

Father’s attendance at birth of child Parent’s care of a newborn son or daughter, if within twelve (12) months

following birth of child Placement of a son or daughter with employee for adoption or foster

care, if within twelve (12) months after date of placement Care for a spouse, child (under 18 years or disabled) or parent of the

employee who has a serious health condition

Length of Leave

Each eligible employee may be granted an unpaid family or medical leave for a period up to twelve (12) weeks during a twelve (12) month period as defined by the Company, except where both spouses work for the Company. The twelve (12) month period is measured forward from the date the employee’s first Family and Medical Leave begins. In this case, the spouses are limited to twelve (12) weeks of leave in total during this twelve (12) month period unless the leave is necessitated by the serious health condition of the employee or that of the employee’s spouse or child.

Scheduling a Leave of Absence

If the necessity for the leave is foreseeable, an employee must notify the Company of the request for leave 30 days in advance. But in any case, notice is required as soon as practicable. If the leave is foreseeable based on a planned medical leave, the employee also must make a reasonable effort to schedule treatment so not to unduly disrupt Company operations.

If the leave is unforeseeable, the employee is expected to give notice to the employer of the need for FMLA leave as soon as practicable under the circumstances, i.e., within no more than one or two working days.



An employee requesting a foreseeable leave must complete an “Application for Leave” and provide appropriate documentation, as may be requested, to verify the reasons for the leave. Any request for leave based on a serious health condition, whether it involves the employee or a family member, must be made in a timely manner and be supported by appropriate medical certification. Documentation confirming family relationship, adoption or foster care may be required.

If the leave stems from an employee’s medical condition, the medical certificate must specify that the employee is unable to perform the functions of his or her job, including the duration of such a work restriction. For leaves stemming from the medical condition of a family member, the medical statement must specify that the employee is needed to care for the family member.

In all cases of leave for serious health condition, the Company reserves the right to request a second medical opinion at Company expense. Failure to provide notification and appropriate medical certification in a timely basis may result in delayed approval.

Compliance

Employees are required to use their available vacation time or accrued sick days at the beginning of a Family or Medical Leave of Absence unless collecting worker’s compensation or disability payments. Vacation, holidays and sick leave will not accrue during the leave.

A leave of absence is without pay when earned sick leave, vacation and eligible short term disability benefits are exhausted.

While on leave, the employer may require the employee to report periodically on their status and intention to return to work.

Return From Leave

An employee (except for certain highly compensated employees) upon returning from leave will be reinstated to the same or an equivalent position subject to the rules of FMLA. Medical certification is required verifying an employee’s ability to return to work from medical leave. Failure to return to work on the day after the expiration of leave will result in termination of employment.

Employees will not be deprived because of the leave taken of any benefit already accrued prior to the beginning date of the leave. However, vacation or other benefits will not continue to accrue during the period of the leave.

Employees on leave of absence will not have any rights or benefits above what is provided for current active employees. If the employee’s department, crew or classification has ceased operations during the absence, the employee will be treated the same as if they had not taken a leave of absence. In this case, no return position is guaranteed.



Reduced Work Schedule/Intermittent Leave

In a limited circumstance as described below, an employee who is eligible for family or medical leave may be permitted to work a reduced schedule or receive periodic time off from work.

In cases of a serious health condition of the employee or a family member, such leave may be permitted in circumstances when it is medically necessary. Appropriate medical certification will be required. However, where a reduced work schedule or intermittent leave is foreseeable based on planned medical treatment, the Company reserves the right to temporarily transfer the employee to a comparable position that better accommodates the employee’s recurring periods of leave.

In other cases in which employees are eligible for family or medical leave, such as pregnancy disability and child care, adoption or placement of a child, the Company may review the individual circumstances involved in considering reduced schedule or intermittent leave requests. The Company may take into account the employee’s length of service, number of requests, duties, work load and employee’s job performance in making such decisions.

Any time-off permitted, based on a reduced work schedule or intermittent leave, will be treated in the same manner as absences under the family and medical leave policy, and such absences will be applied against the leave permitted under such policy.

Health Insurance and Long-Term Disability

An employee on an unpaid family or medical leave of absence will be retained on the Company health plan the same as active employees, except that the employee must make arrangements with the corporate office for payment of the employee’s portion of the coverage premium. If the employee is on paid leave, appropriate deductions for health insurance will be made from the employee’s paycheck.

In the event that an employee fails to return from family or medical leave, the employee will be liable for the premiums paid by the employer to maintain insurance coverage unless: (1) the employee’s failure to return to work stems from the continuation, recurrence, or onset of a serious health condition of the employee or a family member; or (2) the failure to return stems from circumstances beyond the control of the employee.

Short-Term Disability Plan

Employees who are eligible for the Short Term Disability Plan, and who have an illness, injury or pregnancy related disability, may not take an additional twelve (12) weeks of unpaid leave after they have used maximum benefits under the Short Term Disability Plan. The Family and Medical Leave Act covers a total period of twelve (12) weeks combined paid and unpaid leaves.



3.3 Retirement Plan

IHC currently offers a retirement plan for each of our hourly employees working on Davis-Bacon or “Prevailing Wage” projects. The plan, in cooperation with Prevailing Fringe Benefits, Inc. and The Contractors Plan (formerly Plan Benefit Services, Inc. and Invesmart, Inc.) of Austin, Texas, is described as follows:

This program is designed to provide you with income after you retire. IHC will, on your behalf, make an hourly contribution based on a predetermined amount.

You are always entitled to all monies that are placed in your individual account. This means, in pension language, that you are always 100% vested in your account from day one.

Current interest rates are guaranteed for short periods but can change, up or down, depending on the interest rate declared.

You will receive your own personal annuity policy. You may call the toll-free telephone number below any time Monday through Friday to check on the status of your account.

Administrator Name and Address:The Contractors Plan11910 Volente RoadAustin, Texas 78726

(800) 531-5225

At the discretion of IHC management, this program may apply to any project that you are on while employed at Interstate Highway Construction.

This program is also transferable to any other employer for whom you might work who is a participant of this program.

The contributions that are going to be made on your behalf are on a tax-deferred basis. This means that the amount of hourly contributions that are paid to the trust, rather than to you, not only reduce your current income tax, but the earnings from the interest income are also tax deferred until you withdraw the money from Prevailing Fringe Benefits, Inc.

This program is designed as a retirement plan and not an “in-and-out” savings account. There will/can be IRS penalties assessed to you if you withdraw your funds prior to retirement.

You may withdraw or “Cash In” your account if you:1. Wait until 60 days after you have left the Company.2. Take the funds out as retirement income (59 1/2), on a monthly,

quarterly or annual basis according to the Company's settlement options.3. Die or are permanently disabled.

Contributions to your retirement plan will be made based upon weekly payrolls.



Administrative Fees

The fees are currently as follows; however, they are subject to change:

$2.75 per month At the time of withdrawal, there is a distribution fee of $82.50 for

contributions received at any date.

Example

Year DepositAdministrative Fees Per Year

Earnings at 6% (est.)

Account Balance

Tax Savings at 28% Rate

1 $1,000.00 $(33.00) $57.00 $1,024.00 $280.00

2 $1,000.00 $(33.00) $119.00 $2,110.00 $280.00

3 $1,000.00 $(33.00) $185.00 $3,262.00 $280.00

4 $1,000.00 $(33.00) $254.00 $4,483.00 $280.00

5 $1,000.00 $(33.00) $327.00 $5,777.00 $280.00

Total $5,000.00 $(165.00) $942.00 $5,777.00 $1,400.00

Retirement

Normal retirement will be the monthly date coincident with or next following an employee's 65th birthday. Early retirement can be taken when an employee attains age 59 1/2 or has become an inactive participant in the plan for two years or more. Retirement may be deferred beyond the normal retirement date, as long as the employee is working for Interstate Highway construction or another participating employer, benefits will continue to accrue to his account in the normal course of business. New contributions will increase the ultimate retirement benefit the employee or his beneficiaries will receive.

Termination of the Plan

Interstate Highway Construction reserves the right to change, modify or discontinue participation in this program. However, this will in no way affect the benefits that have previously been accrued in favor of each employee. These benefits will continue to accrue interest as long as they are left with the trustee. Failure by Interstate Highway Construction or any subsequent employer to contribute to the trust in any year or on any project does not result in a discontinuance or termination of the plan and Interstate Highway Construction will not be liable for such failure to contribute.

Remember, as long as you leave monies in the plan, you are not taxed on the interest earned and the contributions are free from taxation. However, when you receive your cash, it is taxed by “Uncle Sam” for income but not Social Security. Due to the mobility of the construction business, this may be the only retirement plan you have. “Keep it so the benefit will be all yours. ”



Guarantees in the Plan

The Plan assets are invested by an A.M. Best “A+” rated company.

The Plan assets are invested by a legal reserve company audited by the IRS to maintain a legal reserve.

Cash is held separately for you, not in a pool like most plans. You take the program with you, and all monies and benefits

belong to you.

Summary Plan Description

A summary plan description prepared by the Administrator is available for all employees. In the event this handbook information conflicts with the actual terms and conditions of coverage the latter governs.

We are enthusiastic about being able to provide this program for you in the spirit of helping you plan and succeed in your retirement.

3.4 Mechanic’s Truck/Tool Reimbursement

3.4.1 Trucks

In some circumstances it may become necessary for the Company to provide reimbursement for a truck, welder, compressor and/or tools, etc. from employees. Since a wide arrangement of various setups for trucks and tools exist, it will be at the discretion of the Project Management Team and the Vice President of Equipment's approval to determine each individual employee's truck/tool reimbursement.

There will be two (2) classifications of mechanics trucks:

a. Class I: Vehicles less than 1 tonb. Class II: Vehicles of 1 ton and greater

IHC will also provide reimbursement for vehicles equipped with a manufactured boom (hydraulic or electrical) with a capacity of 1 1/2 ton or greater.

Class I/ Monthly Class II/ Monthly

Truck $575.00 $640.00

Tool $61.00 $61.00

Welder $46.00 $46.00

Air Compressor $22.00 $22.00

Boom $46.00 $46.00

Total $750.00 $815.00

The daily rate for Class I vehicles will be $19.00 per day.



The daily rate for Class II vehicles will be $21.00 per day.

If the employee wants to provide any one or all of the above, they must have prior approval from the Division Manager before purchasing in order to qualify for the appropriate compensation.

Maintenance of small tools will be determined and/or adjusted the same as for vehicle maintenance provided by the employee.

Employees receiving truck reimbursements under this policy are subject to all other provisions of the Company Guidelines.

3.4.2 Tools

Following is a minimum list of tools required for individuals (other than mechanics) in order to receive tool reimbursement. Before tool reimbursement is offered to any individual, prior approval must be granted by the Division Manager and the Vice President-Equipment.

Plant Operators

3/8" complete socket set with 5/16" to 7/8" standard and deep well sockets along with ratchets, etc.

1/2" complete socket set with 3/8" to 1 1/4" standard and deep well sockets along with ratchets, etc.

3/4" complete socket set with 7/8" to 2" standard sockets along with ratchets, etc.

Combination wrenches from 1/4" to 1 1/2" Complete set of screwdrivers: phillips and flathead Crescent wrenches: 8", 10", 12", and 15" Allen wrench set up to 1/2" Hacksaw Vise grips: 5", 7", and 10" Wire stripper/cutters Pliers: side cutter, needle nose, channel, locks, regular Punches and chisels: one set Hammers: 1 lb, 2 lb, 4 lb, and 8 lb Pipe wrenches: 14" and 24" Pry bars: 1 large and 1 small Wheel grinder: 5" disc

Oilers and Others

3/8" complete socket set with 5/16" to 7/8" standard and deep well sockets along with ratchets, etc.




3/4" complete socket set with 7/8" to 2" standard sockets along with ratchets, etc.

Combination wrenches from 1/4" to 1 1/2" Complete set of screwdrivers: phillips and flathead Crescent wrenches: 8", 10", 12", and 15" Allen wrench set up to 1/2" Hacksaw Vise grips: 5", 7", and 10" Wire stripper/cutters Pliers: side cutter, needle nose, channel, locks, regular Punches and chisels: one set Hammers: 1 lb, 2 lb, 4 lb, and 8 lb Pipe wrenches: 14" and 24" Pry bars: 1 large and 1 small

Foremen


Combination wrenches from 1/4" to 1 1/2" Complete set of screwdrivers: phillips and flathead Crescent wrenches: 8", 10", 12", and 15" Allen wrench set up to 1/2" Hacksaw Pliers: side cutter, needle nose, channel, locks, regular Hammers: 2 lb and 8 lb Pipe wrenches: 18" Pry bar

Reimbursement will be $25.00 per month.

3.5 Hourly Travel Incentive

Pay Schedule I

Project more than 35 miles from employee’s assigned base and travel to and from the project on a daily basis can reasonably be expected.

If the Division Manager determines that the project’s prevailing wages qualify the project for ‘Hourly Travel/Incentive’ then the employee will be paid $.50/mile for the miles traveled in excess of 35 miles to and from the employee’s assigned home base to the closest limits of the project for each day worked. Example (project 65 miles from



assigned base – Corporate Office) = 30 miles (65 miles – 35 miles) x 2 ways x $.50/mile = $30.00 each day worked.

Pay Schedule II

Project more than 50 miles and less than 125 miles from employee’s assigned base and travel to and from the project on weekends can reasonably be expected.

If the Division Manager determines that the project’s prevailing wages qualify the project for ‘Hourly Travel/Incentive’ then the following Schedule II will be paid.

Pay Schedule III

Project more than 125 miles and less than 200 miles from employee’s assigned base and travel to and from the project on weekends can reasonably be expected.

If the Division Manager determines that the project’s prevailing wages qualify the project for ‘Hourly Travel/Incentive’ then the following Schedule III will be paid.

Pay Schedule IV

Project more than 200 miles from employee’s assigned base and travel to and from the project on weekends can not reasonably be expected.

If the Division Manager determines that the project’s prevailing wages qualify the project for ‘Hourly Travel/Incentive’ then the following Schedule IV will be paid.

Hourly Travel Incentive Schedule

Employee Classification Schedule II Schedule III Schedule IV

Weekly Monthly (Memo Only)



Class AA $140 $602 $160 $688 $220 $946

Class A $140 $602 $160 $688 $220 $946

Class B $120 $516 $140 $602 $200 $860

Class I $100 $430 $120 $516 $180 $744

Class II $80 $344 $100 $430 $160 $688

Class III Mgmt Discretion Mgmt Discretion Mgmt Discretion

Driver Class I (Employee is Constantly Traveling

$50/day $50/day $50/day



The employee will receive their incentive check the Friday following the week worked (same system on which payroll is paid).

Original Assignments

For all project assignments, travel incentive will begin on the day the employee arrives at their original job assignment and ends on the day when the employee leaves the project. Because project requirements dictate the schedule, advance notice may not be possible for project start or completion.Unexpected Reassignment

Expenses to cover unexpected reassignments will be handled on a case by case basis with the approval from the Division Managers and the President.

Mileage for Travel Between Projects

For Class II and above, if no truck reimbursement policy applies, mileage will be paid at the standard IHC mileage rate when moving is required from one project location to another during the season. If truck reimbursement policy applies, then IHC pays for gas only. Travel to the first project of the season, and travel home from the last project of each season, is at the employee's personal expense.

Management Discretion

When in the opinion of management an employee does not qualify under this policy or currently does not qualify at a level to fulfill the intent of the policy, but is necessary to properly staff a remote project, then management with the permission of the Division Manager and the President may reclassify, on a one time basis, the employee for this project.

3.6 Hourly Incentive Bonus

Purpose

IHC provides an hourly incentive bonus to reward employees who remain with IHC throughout the construction season. The incentive is paid in a lump sum year-end payment.

Hourly employees who stay with IHC through the completion of a particular job or until the completion of a construction season, with the exception of certain Davis-Bacon jobs, are eligible.

Definitions

Project Completion: When, in the determination of management, the services of the employee are no longer required on that project (laid off).

Year: January 1 to December 31

End of Season: (one of the following, whichever occurs first)



a. When weather conditions force the Company to lay off personnel and shut down operations for the year.

b. Completion of the project when it is too late in the season to feasibly start another project that year.

c. December 31 in any year.

Change of Project Location: When an employee changes living quarters due to a change in project location, it will be considered as a change of project location. Rule of thumb – if the project is eligible for travel incentive, it qualifies as a change of project location. When this occurs an employee must work more than 80 hours at the new project before receiving credit for a change in location.

Payment of Non-Deferred Portion: IHC will mail accrued incentive bonus to the employee's residence or make it available for pickup at the construction site within ten (10) days after the end of the season or the project's completion.

Payment of Deferred Portion:

a. One-third will be paid on or before the first April 1st occurring after one year expires from the payment of non-deferred portion.

b. One-third will be paid on or before the first April 1st occurring after one year expires from the payment described in “a” above.

c. One-third will be paid on or before April 1st, one year from the payment described in “b” above. (Example - If incentive bonus is calculated in 1997, the non-deferred portion would be paid 12/31/97. Then the first deferred payment would be due 4/01/98, the second payment on 4/01/99, and the third on 4/01/00, if the employee qualifies below.

Qualification for Incentive Bonus: An employee will qualify for receiving current and deferred payments of incentive bonus only if working or on temporary layoff on the payment date.



3.7 Hourly Incentive Bonus Handout

Intent – What is the purpose of the plan? IHC provides an hourly incentive bonus to reward employees who remain with IHC throughout the construction season. The incentive is paid in a lump sum year-end payment.

Eligibility – How do you qualify? It is available to all hourly employees who stay with IHC through the completion of a particular job or until the completion of a construction season. This plan does not apply to certain Davis-Bacon jobs.

You must stay with IHC until either the end of a particular job or the end of the construction season to qualify. Depending on whether you finish the particular project or the entire season effects how much you will receive.

How much can you receive? You can receive a certain amount for every hour you have worked while employed by IHC in a given year. That certain rate per hour is affected by how many hours you work, whether you finish the construction season with IHC, and if you are required to move to a different project location (approximately 50 miles away).

Hourly Rates – The first amount is paid at the end of the season to qualified employees. The second amount is deferred and paid over three years to qualified employees.

Current Deferred

All Classes Class AA Class A Class B

You work until the last project you were assigned to is complete and have worked more than 1,250 hours for the year . If you have:

1) Worked at two or more locations, and work until the project ends

.60¢ $1.50 $1.20 .90¢

2) Worked at one location, and work until the project ends

.50¢ $1.50 $1.20 .90¢

You work until the last project you were assigned to is complete and have worked more than 1,000 hours for the year . If you have:


.50¢ $1.50 $1.20 .90¢


.40¢ $1.50 $1.20 .90¢

You work until the last project you were assigned to is complete and have worked



less than 1,000 hours for the year. If you have:


.40¢ $1.50 $1.20 .90¢


.30¢ $1.50 $1.20 .90¢

If you work until the project you are on is complete, and wish to receive your incentive bonus before the end of the year, you may receive an interim payout if you qualify. However, if you receive an interim payout, and move on to the next project as an IHC employee, you will receive your vacation at the lower rate per hour as if you are working on your first location with no previous hours accrued.

Class AA is eligible for deferred portion on all jobs including Davis Bacon projects.

This handout is a summary only. Please refer to the complete Incentive Bonus Plan for details.



3.8 EBS Flexible Benefits Plan

Purpose

Currently, this plan allows IHC employees, through Section 125 of the IRS Code, to pay for medical premium, medical expenses and child care with pre-tax earnings. By taking advantage of this plan, you can lower your federal, state and FICA taxes and increase your take home pay. IHC pays all administration fees and expenses. There is no cost to the employee for participating.

The Flexible Compensation Plan is described in detail on the following pages including a list of eligible expenses, answers to frequently asked questions, an explanation of advantages, child care expense considerations, a summary plan description, enrollment and reimbursement forms. Make sure you read and understand the plan before enrolling.

Eligibility

The plan year for the EBS - Flexible Compensation Plan begins on April 1st each year. Every employee who is eligible for the health insurance plan is also eligible for the EBS - Flexible Compensation Plan.

Enrollment forms should be completed prior to April 1st. For employees on layoff at April 1st, enrollment forms should be completed when they return to work or at the time of enrollment in the health insurance plan.

When completing the enrollment form, the following should be noted:

i. All employees are eligible and all employees must sign the enrollment form, either accepting or declining flexible compensation benefits. If you enroll in the IHC health insurance plan, you must accept for your portion of the insurance premium.

ii. Complete all employee information at the top of the form. No amounts should be entered on line 1 (Eligible Group Premium) of the enrollment form. Health insurance premium amounts will be filled in by the corporate office for employees enrolled in the group plan.

iii. Complete line 2 (Eligible Medical-Related Expenses) to indicate withholding for other medical expenses (see attached list). Complete line 3 (Dependent Care) for a child care deduction. Please note that the first column is "per pay period" and the second column is "plan year total".

iv. Each expense category must remain separate throughout the plan year. (Medical expenses cannot offset child care expenses, etc.

v. After the April enrollment, according to IRS regulations, estimated deduction amounts can not be increased or decreased except under the following conditions

Change of employment status for you or your spouse (quit, layoff, termination or starting a new job).



Change in family status (marriage, divorce, birth or death in family).

vi. Estimate expenses conservatively! Any excess amounts remaining at the end of each plan year will be lost according to IRS regulations.

In the event the handbook information conflicts with the actual terms and conditions of coverage, the latter governs.

3.9 Hourly Savings Plan

Purpose

The purpose of the plan is to allow hourly employees to create a personal savings plan through automatic payroll deductions. Money in the savings plan would be available at any time (for example; special occasions, a family emergency, vacations or layoff). The funds will be held in your name at IHC in a non-interest bearing account. IHC will make no contributions to the plan.

Enrollment in the Plan

Contact payroll department at corporate office for enrollment form. Written authorization is required before deductions will begin.

You may elect a lump sum amount to be withheld each pay period or an amount for each hour worked.

After enrolling, you can change your automatic deduction amount no more than one time during the season. You may cancel your automatic deduction at any time.

Withdrawal of Funds

Written authorization is required for withdrawal of funds. Forms are available at the corporate office.

Indicate on the form the amount of the withdrawal and where to send the funds - to the job site, mailed to address on the form or hold at corporate office.

Please allow approximately one week for processing withdrawal of funds.

3.10 Referral Incentive Plan

Intent

To provide an incentive to IHC non-union employees for referring qualified individuals hired by IHC.

Qualification

An employee will qualify for receiving the referral award only if the referral is hired. The bonus will be paid if both employees are still employed with IHC after 90 days of employment.



Payment Amount and Schedule

Award Upon Hire Bonus After 90 Days Employment

Non-Skilled $0 $100

Semi-Skilled $50 $200

Skilled $50 $300

Supervisory/Management $50 $400

Payment Timing

Payment should be processed the week following a successful hire and after completion of the 90 day waiting period.

Guidelines Determination

The category for reimbursement will be determined at the sole discretion of management. Guidelines to be considered are experience and demonstrated skills directly, related to their expected duties at IHC. Examples of semi-skilled positions include truck drivers, cement masons, line-form setters, and standard equipment operators. Examples of supervisory/management positions include foreman, superintendents, project managers, project administrators, and project engineers.

Referrals must be listed on the Employee Referral Form found at the end of this manual.

Referrals are not a guarantee of employment for the applicant with IHC.

Referrals must follow the same application/hiring process as other applicants.

The referring employee’s name must be listed on the application as the person who referred them.

This program can be modified, suspended or discontinued at any time without notice.



4.0 Safety

4.1 Overview

4.1.1 IHC Safety Philosophy

Zero Accidents

All accidents, injuries, and environmental events are preventable. The elimination of human suffering, due to disabling injury or loss of life, is a worthwhile goal in itself and a company held belief.

Zero Tolerance

No IHC employee will walk past a recognized or questionable unsafe act or condition without taking some positive step to correct or bring proper attention to it.

Safety Contributes

Demonstrated excellence in safety, health and environmental protection, manifested in performance and experience, indicates superior management, workforce, and product; which promotes business and contributes to the continuing growth and success of IHC.

4.1.2 Asset Protection

Worker Safety and Well Being

To protect IHC’s most valuable asset, its employees, by creating the environment leading to the prevention of personal injuries and accidents.

Preventing and Controlling Losses

To reduce production and operating costs resulting from lost time and increased insurance rates resulting from accidents.

Equipment, Property and Manuals

To protect company assets from waste, damage, abuse, theft, or improper maintenance and management; and the subsequent unnecessary associated costs.

End Product

Demonstrating commitment to quality is important in that whenever additional and/or re-work is required to repair damage or for quality purposes, this work potentially exposes employees to accidents/injuries that had previously been avoided.

Business Viability

Performing safely makes sense, is normally a contractual requirement, and maintains and improves IHC as a business entity.



4.2 Commitment to Safety

IHC is committed to the reduction of personal injuries, occupational illnesses and damage to equipment and property in all of its operations; to the protection of the general public whenever it comes in contact with the Company’s work and to the prevention of pollution and environmental degradation.

Company management and field supervision plan safety into each work task in order to avoid preventable occupational injuries or illnesses. Although the ultimate success of IHC’s safety, occupational health and environmental protection programs depends upon the full cooperation of each individual employee, management is responsible to see that applicable rules and procedures are established and enforced and that effective training programs are employed to the best advantage.

Safety, occupational health and environmental protection must never be sacrificed for production. These elements are integral parts of quality control, cost reduction and job efficiency. Each supervisor must be personally concerned with the performance demonstrated by the employees relating to these elements under his or her supervision.

IHC has an outstanding safety record and is proud of its achievements in accident prevention. However, to maintain that record, every IHC employee must do his or her part to create and maintain a safe and productive working environment.

The objective is the elimination of all-preventable accidents and environmental incidents from our operations. There are three sound reasons for this:

a. The elimination of human suffering, due to disabling injury or loss of life, is a worthwhile goal in itself and one we all must strive to achieve.

b. A good safety and health record indicates superior management and a superior work force; it promotes business and contributes to the continuing growth and success of the Company.

c. Poor accident experience and pollution of the environment increases costs, contributes to deterioration in job performance and reflects negatively on our entire Company.

IHC’s management at every level is responsible for translating this Company objective into positive productive actions.

4.3 Safety Program Guidelines

All employees are required as a condition of their employment to follow all safety guidelines. Any violation of these guidelines may result in disciplinary action, up to and including termination. Because guidelines are set only as a minimum performance requirement, all employees are expected to abide by these guidelines at a minimum and should be aware of other opportunities for safety.



The following guidelines are meant for illustrative purposes of minimum safety compliance. The list is meant for illustrative purposes and is not all inclusive. Every employee is obligated to behave in a safety conscious manner.

Company and Job Site Safety Guidelines

You must follow all safety guidelines and work according to good safety practices as posted, instructed, and discussed in previous safety meetings.

You must have a clear understanding of your job and any hazards which may exist. (If you do not understand your job, or any of the safety guidelines, ask your foreman.)

Do not use, carry, or possess intoxicants or nonprescription drugs on company premises or during working hours, or report to work under the apparent influence of intoxicants, narcotics or any drug which hinders performance.

Do not participate in horseplay, practical jokes and other hazardous conduct. Do not disregard safety guidelines or instructions, or refuse to use safety equipment.

Practice good housekeeping from the beginning of the job until final clean up. Clean up excess materials, trash, etc. immediately. Do not leave materials or objects in aisles, on walkways, on stairways, in roads or any other area where they may become a hazard.

Report injuries and/or sickness sustained while on duty (regardless of how minor they may appear) to your foreman immediately.

Report to the IHC designated physician or clinic when instructed to do so following an injury. In the event you fail to obtain medical treatment from a designated physician, you may be personally responsible for the cost of medical treatment provided.

Report unsafe conditions to your immediate supervisor. Wear eye, face, and head protection where there is danger from

falling or flying objects or particles, such as when grinding, chipping, burning, welding, dumping concrete trucks, moving supplies, etc.

Wear appropriate work clothes to cover and protect the body, i.e., gloves, shoes or boots, long-sleeved shirts, etc. Loose clothing and jewelry must not be worn.

Properly care for, and be responsible for all personal protective equipment.

Do not operate machinery if you are not an authorized operator.

Report to foreman any machine not having all guards and safety devices in place and in proper operating condition. Do not attempt to repair or tamper with equipment or remove from equipment any parts without authorization from the foreman and/or mechanic.



Keep all tools in safe working condition. Never use defective tools or equipment.

Be alert and keep out from under overhead loads. Do not ride material hoists or other moving equipment except

on seats provided. Place ladders on a substantial base and do not use ladders with

broken, split or missing rungs or rails. All ladders are to extend at least three feet above the landing platform and be securely fastened. All ladders are to be made of wood to eliminate problems around electrical motors and lines.

Do not go up or down a ladder without the free use of both hands. If material or tools have to be handled, use a rope to lift or lower them. Always face the ladder when climbing or descending.

Never lift a load that is too heavy or too large - get help. Have a firm footing, bend your knees, keep your arms straight, and keep your back straight-up-and-down when lifting any load.

Store and transport gasoline in authorized cans only; gasoline engines must be shut off when refueling.

Secure compressed gas cylinders in an appropriate and chained position.

Keeps a fire extinguisher close by when burning or welding is being done.

Mark all drinking water containers as such or as potable water. Individual or disposable cups will be available and disposed of in an attached trash container.

Visitors to the job site must report at the office. Authorization to visit further will be given by the project officer in charge. Visitors may be required to wear hard hats.

All posted safety guidelines must be obeyed and must not be removed except by management's authorization.

Comply at all times with all known Federal, state, and local safety laws, employer regulations, and guidelines.

Be a safe worker off the job as well as on.

Remember the three “Rs” of accident prevention:

R ecognize hazards R eport hazards R emove hazards

If it doesn’t look right, it is probably an accident waiting to happen.

Common Hazards and the Associated Safety Precautions

Falling objects / head injuries – wear your hard hat at all times!



Truck, equipment and automobile traffic – wear your safety vest and stay alert!

Dust from sweeping, sawing, grinding – wear a dust mask! Splashing concrete, flying objects – wear your safety glasses! Pinched fingers and cuts – wear your gloves and keep your hands

clear of danger! Cement burns – wear rubber boots and wash skin soon after

exposure! Loud noises – wear your ear plugs when working near equipment! Auto accidents – wear your seat belt at all times while driving. Trip and falls – take pride in keeping your work area clean. Back injuries – get help or use equipment to lift heavy materials.

Unsafe behavior will not be tolerated – stop and report it to your supervisor immediately. Every IHC employee must do his or her part to create and maintain a safe and productive working environment. Any violation may result in disciplinary action up to and including termination.

4.4 Drug-Free Workplace Policy

IHC is committed to a safe, healthy, and productive work environment for all employees, free from the effects of illegal or non-prescribed drugs and alcoholic beverages. Abuse of drugs and alcohol impairs employee judgment resulting in increased safety risks, employee injuries, and faulty decision-making. Therefore, the possession, use, sale, or reporting to work with drugs in the employee’s system or under the influence of alcohol on Company premises or during Company time is strictly prohibited.

Testing is an important element in the Company’s efforts to ensure a safe and productive work environment. The Company has issued a separate statement for this testing program. Please refer to this separate statement, your supervisor, or the corporate office if you have specific questions.

Additionally, in accordance with the Drug-Free Workplace Act of l988, the Company prohibits the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance during Company time or on Company premises or other work sites.

Excluded from this policy are prescribed controlled substances when used by the person for whom prescribed and when used in the manner, combination and quantity prescribed. Employees who must use a medically prescribed or over-the-counter drug that may adversely affect their ability to perform work in a safe manner must notify their supervisor. After proper inquiry, management will decide if the employee can remain at work and what work restrictions, if any, are deemed necessary. The employee may be required to take a medical leave of absence or disability leave for the duration of the prescription.



Illegal use of drugs off duty and off employer premises or work sites is not acceptable. It can affect on-the-job performance and the confidence of the public, the government and our clients in the employer's ability to meet its responsibilities. Such use may subject the employee to disciplinary action, up to and including termination.

Convictions

Any employee who is convicted, or pleads guilty or no contest under a criminal drug statute for a violation occurring in the workplace must notify the Company within five (5) days of such conviction or plea.

Testing Provisions

Pre-Employment Drug Testing

The employer will utilize pre-employment drug testing as part of the selection and hiring process. Job applicants who do not pass a drug screening test will not be eligible for employment.

Employee Testing

a. Reasonable Suspicion Testing

When a supervisor or manager suspects that an employee is unfit to work due to the use of drugs or alcohol, the employee will be asked to submit to testing for the presence of drugs and/or alcohol. Refusal to cooperate in such testing is grounds for termination. If reason to suspect the presence of drugs exists, the Company may search any area of Company premises, including the personal property of an employee. Refusal to cooperate in such searches may result in termination. The Company may also refer such matters to the appropriate law enforcement agencies.

b. Random Testing

Random urine drug screens will be conducted on all employees where the nature of the work places the employee in a position where the use of drugs and/or Alcohol poses a potential risk to the safety of either employee, company assets, or the public. These employees include, but are not limited to, all personnel exposed to construction operations, including supervisory workers and all employees who drive vehicles or operate equipment on company business at any time.

For drivers with CDLs, the total number of tests conducted during the twelve (12) months shall equal at least fifty percent (50%) of the drivers subject for drug testing and twenty-five percent (25%) of drivers for alcohol testing.

i. A driver with an alcohol level of at least .02, but less than .04, must be removed from a safety sensitive position for at least eight (8) hours.

ii. A driver with an alcohol level of .04 must be removed from a safety sensitive position and referred to an EAP program for consultation until released by a SAP.



c.Post-Accident Testing

The Company reserves the right to require a drug/alcohol screening test immediately after a job-related accident, regardless of injury to person or damage to property, for the purpose of confirming or refuting drug or alcohol use as a possible cause.

In the event an employee is so seriously injured the employee cannot provide a urine specimen at the time of the accident, the employee must provide the necessary authorization for IHC to obtain hospital reports and other documents that would indicate whether there were any controlled substances or alcohol in the employee’s system.

d. Use of Results

A positive result to a drug or alcohol test will result in disciplinary action up to and including termination.

e. Drivers with CDLs:

i. All drug testing must be reviewed by a qualified (MRO) Medical Review Officer.

ii. All alcohol testing must be done by a Certified BAT (Breath Alcohol Tester) and reviewed by a SAP (Substance Abuse Professional) if the result is .04 or higher.

iii. Definition of MRO – a licensed doctor of medicine or osteopathy, the same doctors who are qualified to give the medical exams.

iv. If IHC elects to use saliva testing for alcohol, positive results should be confirmed by a breath, urine or blood test within twenty (20) minutes.

v. Training Requirements – Department of Transportation requires that all Interstate drivers, supervisors, and company officials undergo a sixty (60) minute training program on the subject of the use and abuse of controlled substances.

IHC’s EAP Training Program should consist of an effective training program for its supervisory personnel and all drivers. The program covers the effects and consequences of controlled substances and alcohol abuse on personal health, safety and the work environment. The manifestations and behavioral changes that may indicate controlled substance use or alcohol abuse and documentation of training given to IHC’s drivers and supervisory personnel.

f. IHC’s corporate office should retain in the driver’s qualification files the following:

i. The types of controlled substances and/or alcohol breathalyzer testing for which the driver submitted a urine specimen.

ii. The date of the collection.iii. The location of such collection.



iv. The identity of person or entity performing the collection, analysis of the specimens and serving as MRO.

v. Whether the test was positive or negative and, if positive, the controlled substances identified.

g. IHC’s corporate office should maintain an annual summary of the records related to the administration and results of the controlled substances and alcohol testing program.

Treatment/EAP Statement

IHC supports sound treatment efforts. Whenever practical, the employer may assist employees in overcoming drug, alcohol and other problems which may affect employee job performance. More information regarding availability of treatment resources and possible insurance coverage for treatment services is available from your supervisor or the corporate office.

This policy in no way modifies the “At Will” status of the employer’s employees and in no way implies, infers, or guarantees continued employment for any definite term.

4.5 Hazardous Materials Training Summary

As an employee of IHC, you may be asked at times to work with hazardous material, curing compound, epoxy, gasoline, oils, etc. There are certain things that you should be aware of in the handling of these products.

Know the product (read and interpret the label). Material Safety Data Sheets, MSDS, explain all there is to know about the

product. Its flammability, health hazards, reactivity, etc. MSDS are always on site and always kept in the construction trailer. It is

important to know the place where the MSDS are kept as you may have to review them.

You can ask for a copy of an MSDS at any time and one will be provided for you.

Practice good hygiene during use of any hazardous product. Report spills or exposures immediately.

Personal protective equipment (safety glasses, hard hats, orange vest, dust masks, etc.) may be required. These will be provided by IHC as necessary or on request.

New products introduced to the jobsite may be reviewed during toolbox meetings. Ask questions as to what hazards may accompany the product.

The details of the Hazardous Communication Program may be reviewed with you before you start work and a copy will be made available upon request.



4.6 Hazard Communication Program

Orientation of New Employee for Field Personnel

_______ 1. Describe what possible hazardous products may be on site.______ 2. Describe what is an "MSDS" and where can they be found on site.______ 3. Inform employee of their right to read the MSDS.______ 4. Inform employee of personal protective equipment that the company will

provide.______ 5. Demonstrate and explain the labeling system.______ 6. Inform employee that information about hazardous material is in the

hourly manual and is available to the employee.

Sample Tag



4.7 Spill Prevention Control and Countermeasure Plan

This plan is necessary any time a facility has above ground oil storage exceeding 1,320 gallons. It is designed to prevent water pollution as a result of any size oil spill. You are an integral part of this plan.

Things to Watch and Do

Oil drums are to be kept in a bermed area, on pallets and far enough apart so that the labels can be read.

Fuel truck is to be parked in a bermed area when not in use. Driver of fuel truck is to chock the wheels before transferring fuel

to the truck. Wheel chocks are to be in place until all the lines are disconnected. Do not lock out automatic shut-off valves and fuel nozzles. Look for any leaking or spills around any equipment or storage

tanks. Notify foreman if anything needs to be fixed or corrected.

In Case of Spill

Stop the source of oil and contain the spill. If fire is present, your personal safety is first. Try to put out the fire

if possible. Control of the spill is secondary. If the spill is less than 25 gallons

Place absorbent over the spill to collect the oil. Transport the used absorbent to a fuel farm and place it in an empty 55-

gallon drum. Note : absorbent is to be available for use at the fuel farm and on the fuel

truck. If the spill is 25 gallons or greater

Contact the Project Superintendent for the appropriate cleanup measures.

Any size spill is to be reported to the Project Manager and the Project Superintendent. Report these details:

Any injuries or damages caused by the spill Location, rate and volume of the spill Type of material spilled Surface on which the oil spilled (concrete, asphalt, soil, etc.) How long the containment will keep the spill from water drainage Cause of the spill If an evacuation is required Any other details that will assist in the cleanup



By paying attention, we can keep spills and cleanup to a minimum!

Other Items

All tanks, drums, and 5-gallon buckets should have readable labels. All chemical and oil storage containers, full or empty, should be stored in a

bermed area. All containers should be on pallets in the bermed area. Batteries are to be kept inside until taken off-site for recycling or disposal. All gasoline containers should be stored in a nonflammable cabinet.



5.0 EnvironmentNeed to add content here.

5.1 Spill Prevention Control and Countermeasure (SPCC) Plan

An SPCC plan is necessary anytime a facility has above ground oil storage of over 1,320 gallons. Oil is defined as anything that has oil in it. The SPCC plan is an integral part of our effort to be environmentally friendly. The plan is designed to prevent water pollution as a result of any size oil spill.

5.1.1 Things to Watch and Do Oil drums are to kept in a bermed area when not in use. Fuel truck(s) to be parked in a bermed area when not in use.

Driver of fuel truck(s) to chock wheels before transferring fuel to truck. Wheel chocks are to be in place until all lines are disconnected.

Do not lock out automatic shut-off valves on fuel nozzles. Look for any leaking or spills around any equipment or storage tanks. Notify foreman if anything needs to be fixed or corrected.

5.1.2 In Case of a Spill

Stop the source of the oil and contain the spill. If fire is present, your personal safety comes first. Try to put out the fire if

possible. Control of the spill is secondary. Spill is less than 25 gallons

Place absorbent over the spill to collect the oil. Transport used absorbent to the fuel farm and place in an empty 55-

gallon drum. Note – absorbent is to be available for use at the fuel farm and on the

fuel truck.

Spill is 25 gallons or greater

Contact the Project Superintendent for appropriate cleanup measures.

Report all spills to the Project Manager and Project Superintendent. The report must include the following details:

Any injuries or damages caused by the spill Location, rate and volume of the spill Type of material spilled Surface on which the oil spilled (concrete, asphalt, soil, etc.) How long the containment will keep the spill from water drainage Cause of the spill Evacuation required, if any All other details that will assist in the cleanup



Paying attention keeps spills and cleanup to a minimum!

5.2 Spill Kit

Every project should have a spill kit available and every employee who may come in contact with a spill should know where it as and how to use it. The spill kit should include:

5.3 Clean Water Act

The Clean Water Act of 1972 is the principal federal statute protecting navigable waters and adjoining shorelines from pollution. Since its enactment, the CWA has formed the foundation for regulations detailing specific requirements for pollution prevention and response measures. Section 311 of the CWA addresses pollution from oil and hazardous substance releases, providing EPA and the U.S. Coast Guard with the authority to establish a program for preventing, preparing for, and responding to oil spills that occur in navigable waters of the United States. EPA implements provisions of the Clean Water Act through a variety of regulations, including the National Contingency Plan and the Oil Pollution Prevention regulations.

You should also be familiar with the penalties for violating the Clean Water Act and what is considered a violation of that Act. There are three noncompliance classes: Minor, Moderate and Major.

Minor noncompliance is defined as violations that have only a minor impact on the ability of the respondent to prevent or respond to worst case spills through the development and implementation of a plan. Examples include failure to review plan after 3 years; failure to amend plan after minor facility change; failure to have amendment certified. In most cases these changes are up to the safety director. A minor noncompliance can result in a fine ranging from $500 - $3,000.

Moderate noncompliance is defined as violations that have a significant impact on the ability of the respondent to prevent or respond to worst case spills through the development and implementation of a plan. Examples of this include unavailability of the plan during the normal work day; inadequate or incomplete implementation of the plan; no plan, but adequate secondary containment, etc. A moderate noncompliance can result in a fine ranging from $3,000 - $8,000.

Major noncompliance is defined as violations that basically undermine the ability of the respondent to prevent or respond to worse case spills through the development and implementation of a plan. Examples of this include no SPCC plan at all, failure to implement the plan, inadequate plan resulting in hazardous site conditions, and so on. A major noncompliance can result in a fine ranging from $8,000 - $20,000.

There are also penalties for the impact on the environment should a spill occur. Those penalties, as you can see, increase with the size of the spill and how much of an impact there is on the environment.



A minor impact results in the entry of oil or a CWA hazardous substance into navigable waters or upon an adjoining shoreline in a reportable quantity.

A moderate impact poses a significant threat to navigable waters other than actual or potential drinking water supply, adjoining shorelines, or vegetation other than a sensitive ecosystem.

A major impact poses a significant threat to human health, an actual or potential drinking water supply, a sensitive ecosystem, or wildlife – especially endangered species.

Environmental Impact Penalty Table

Potential Impact

Quantity Discharged (Barrels/RQ)

Less than 5 5 to 19 20 to 79 80 to 125 More than 125

Minor $400 - $2,000 $1,000 - $6,000

$5,000 - $12,000

$9,000 - $20,000

$100 - $250 per barrel/RQ

Moderate $2,000 - $7,000

$6,000 - $12,000

$10,000 - $25,000

$16,000 - $45,000

$250 - $500 per barrel/RQ

Major $7,000 - $12,000

$12,000 - $30,000

$18,000 - $55,000

$45,000 - $90,000

$500 - $1,000 per barrel/RQ

5.4 Emergency Planning

5.4.1 Emergency Response

Emergency response within a 24-hour period or $100 per hour penalty.

5.4.2 Non-Emergency Response

Non-emergency response within 5 calendar days or $500 per day penalty.

5.4.3 Correction Plan

Not following the correction plan may result in $1,000 per day penalty.



6.0 Quality

6.1 Statement

Quality Control, second only to safety, is one of the most important attributes IHC can provide to our customers and the traveling public. Quality has always been a cornerstone of IHC’s mission to provide the best service possible to its customers. In that pursuit we subscribe to the following principles:

A job well done is a job to be proud of. Our team is known throughout the industry for providing quality

workmanship. It takes teamwork. Your coworkers take pride in their work. Take

pride in yours – do the job right the first time. Our goal is no rework. Do not start any work without knowing the quality tolerances of

the work you’re building. If you don’t understand or know how to do something the correct

way, ask! You are a skilled craftsman. Your work should reflect that. Continuously strive to become better as individuals and as a team!

Working together we can achieve excellence in quality.

6.2 Quality Control

Minimum Requirements

Meeting contract obligations Exceeding owner expectations Exceeding state-of-the-art

Quality control is a vital part of IHC’s business and applies to every aspect of IHC.



7.0 Total Quality Management

7.1 Overview

For many years the success of IHC has been attributed to people like yourself with good ideas. These good ideas have allowed IHC to continuously improve and become the Company it is today. Our Total Quality Management (TQM) program gives you a way to put your good ideas to work.

Definition of TQM

TQM is a systematic approach to continuous improvement. TQM works throughout an organization, which uses the power of all employees to generate ideas, which result in opportunities.

Purpose

TQM provides the means for the Company to maintain a competitive edge. TQM helps the Company respond to challenges and establishes a corporate culture that attracts and retains the best people. TQM helps the Company improve on safety, quality, cost, customer satisfaction, job satisfaction and overall, will benefit the Company, its associates and our customers.

7.2 Process

a. Promote the TQM philosophy of continuous improvement by continually looking for a better way.

b. Use the OFI form to write down your ideas whether they have or have not already been implemented. Forms are available in the jobsite office.

c. Give your OFI form to your Division Manager, Department Head or the jobsite office person who will see that it gets to your Division Manager.

d. If your idea is implemented and beneficial to the Company, you will be recognized for your contribution. You may also receive certificates, plaques or awards for contributing to the success of IHC.

Steps for Completing the OFI Form (found in English and Spanish at the end of this manual)

a. Please print and fill in non-shaded portion only.b. Put the date, your name and employee number in designated places.c. Put the job location or job number in its designated place.d. Put the name of your immediate supervisor in its designated place.e. The most important part of the OFI is your idea. Write down your idea in simple

terms, but be specific enough so the person reading it will understand. If additional room is needed, use the back of the form.

f. The last section of the OFI form is optional. This section is to explain the implementation or proposed solution that could make your idea happen. If you



have any ideas, please write them down. Your ideas or thoughts are wanted and welcome.

g. The last thing to do is to put the OFI in an envelope addressed to your Division Manager or Department Head. If giving the OFI to your DM or DH is not possible turn the envelope in at your field office and they will see that the DM or DH get its.

7.3 Awards Program

The intent of the TQM Awards Program is to recognize and reward those that participate in the program and to help IHC maintain its competitive leadership role in our industry. Each year IHC will review implemented OFIs to determine value and/or benefit to the company. Awards will be determined according to the following guidelines.

Award Categories

Level I – Award for submittal of OFI.

Anyone who submits an OFI will receive a TQM hat, a hard hat sticker and will be recognized in our newsletter.

Level II – Award for implementation of an OFI.

Anyone who has an idea implemented will receive a framed Certificate of Appreciation.

Level III – Award category: Creative Excellence

The Creative Excellence Award is an award for an individual who continually goes above and beyond what is expected. The recipient of this award will be one who’s spirit for continuous improvement continually shines through.

The award for Creative Excellence will be:

Personal plaque of recognition. A check for $50.00.

Level IV – Award categories: Outstanding Hourly for Each DivisionOutstanding Salary for all DivisionsOutstanding Corporate Office

Awards for Outstanding Hourly, Outstanding Salary and Outstanding Corporate Office will be:

Name and year placed on plaque displayed in the corporate office. Personal plaque of recognition.


IDEA OFI FORM DM or DH


A check for $200.00.

Level V – Award categories: Grand Award - Hourly Company WideGrand Award - Divisional Salary / Corporate Office

In-order to qualify for the Grand Awards you must first win the level IV category.

Awards for Grand Hourly and Grand Divisional Salary/Corporate Office will be:

Name and year placed on plaque displayed in the corporate office. Personal plaque of recognition. A check for $750.00.

Award Judging

Award levels III, IV and V will be judged annually and may or may not be awarded in any given year. Levels III, IV and V will be determined based on merit, value and/or benefit to IHC and its associates.



8.0 OperationsAttain an in-depth knowledge of the plans, specifications, site conditions and requirements for the work which is assigned to you. With your immediate supervisor, jointly develop an understanding of the dollars and units/MH per the Daily Performance Report allotted in the bid to build the work assigned to you. Review with your immediate supervisor the limits of your work items for which we have contracted. Do not do more work than the plans require without approval from the Project Manager/Superintendent.

With your immediate supervisor, jointly perform the following preplanning functions for your assigned items of work. Before you start, know your units/manhour optimum.

i. Schedule your items of work and determine which items you are assigned are controlling items of work. Also, determine on your assigned items how much float time is available on the non-controlling items. Coordinate your assigned pay items of work with the optimum progress schedule.

ii. Determine the most cost effective methodology to be employed in completing your assigned pay items of work.

iii. Determine optimum productivity achievable for assigned work items.iv. Determine the manpower loading required to attain optimum productivity and

maintain schedule. Use scheduled float for balancing manpower loading.v. Determine the equipment required to perform the work. Match equipment

with productivity and schedule demands.vi. Determine the lead time required to prepare for your work; i.e., equipment

preparation, manpower acquisition, etc.vii. Determine what basis of measurement will be utilized for reporting work

performed. All daily revenues are to be turned in on the "Foreman’s Daily Report" and submitted to the project office by 8:00 a.m. the following day.

viii. With your immediate supervisor, jointly calculate the units/manhour bid for your items of work on a daily basis. Also, calculate the units/manhour optimum from your optimum budget. Convert to dollars labor savings between bid and optimum; this is your goal!

ix. The above preplanning process will be typewritten unless otherwise approved. Copies will be distributed to the corporate office and yourself, with the original retained in the project field files.

Utilize the people and equipment assigned to you. Know your assigned crew each day and have work lined up for them before they start. Make sure all equipment and tools are ready before your crew starts.

If you will need additional equipment and/or people, ask the Project Manager/Superintendent adequately in advance. All movement of people and equipment between crews will be handled by the Project Manager/Superintendent. If you have too many pieces of equipment or too many people, notify the Project



Manager/Superintendent. Do not dismiss equipment or people at the end of a shift without first notifying the Project Manager/Superintendent.

Establish rapport with the inspectors and maintain an effective working relationship with them. Become familiar with their primary areas of concern and respond to them actively.

Keep your work area neat and clean - look out for unsafe conditions.

i. Safe working tools.

Safe clothing and personal protection. If an employee refuses to wear protective equipment or work in an

unsafe condition, do not let that person work..ii. Constantly stress quality and then constantly push for production.iii. Think ahead - order materials, equipment and people you will need well in

advance.



9.0 Equipment

9.1 Overview

To do your job well your assigned truck or equipment must be kept in good shape. It is your responsibility to make sure it is greased and the general maintenance is performed.

The appearance of our equipment is a reflection on us all. Take pride in keeping your assigned piece of equipment clean and treat the equipment as if it were your own.

Performing daily walk around inspections allows you to ensure your truck or equipment is safe and maintained. Report unsafe equipment to your supervisor immediately.

Ask for proper training if you do not know how to operate a piece of equipment.

9.2 Functions

a. Utilize the equipment in a safe, efficient manner.b. Make sure the equipment has been serviced and fueled before it is started and

before your shift begins.c. Notify the Project Manager/Superintendent of any mechanical problems. This is

mandatory at the end of each shift, along with each piece being properly cleaned!

d. Take care of your hand tools and make sure they are picked up and stored properly when not in use. Assign the tools to your people and make sure they are returned to you daily.

e. Make sure you have the tools you need when you leave the yard.f.Make sure the operating hours are turned in on a daily basis. For equipment that

does not have an assigned operator (i.e., air compressor, rental pieces, etc.), make sure you record the operating hours.

g. At least once a month, or as determined by project management, perform a walk-around survey of your assigned equipment in conjunction with the Project Equipment Foreman. From the walk-around survey, schedule the required repairs with the Project Manager/Superintendent and Equipment Foreman.

9.3 Inspections

9.3.1 Daily

a. All drivers of vehicles over 10,001 GVW or combination of truck and trailer over 10,001 GVW must make out a qualified (396.11) daily vehicle inspection report at the completion of each day’s work.

b. The driver should list Interstate Highway Construction as the carrier. The location would be the current job the driver is working at. The date and time of



inspection. The truck and trailer (if applicable) equipment number and odometer reading.

c. There are several items to be inspected. If you find a defect or deficiency that would affect the safety of operation of the vehicle or result in its mechanical breakdown a check mark should be made next to the listed item that was inspected and a description of the defect written in the comment lines.

d. If no defect or deficiency is discovered, the checkbox toward the bottom of the report stating that he condition of the above vehicle is satisfactory needs to be checked and the driver needs to sign below it.

e. If a defect of deficiency is discovered that would likely affect the safety of operation of the vehicle then the repair must be done. The person completely the repair must certify on the inspection report by signing and dating that the repair was completed.

f. Before driving a motor vehicle the driver must review the last vehicle inspection report and sign the report only if defects or deficiencies were noted by the driver who prepared the report, to acknowledge that is a certification that the required repairs have been performed.

g. If a defect or deficiency is discovered that would not affect the safety of operation of the vehicle then the box next to the line stating that the above defects need not be corrected for safe operation of vehicle must be checked.

h. The inspection report is in duplicate. The original (white) copy needs to be sent into the corporate office to be filed and retained for 90 days. The vehicle copy (yellow) needs to be kept in the vehicle and may be discarded after one week. It is the responsibility of the employee to give the original copy to his/her supervisor to send to the corporate equipment department.

9.3.2 Road Side Inspections

a. If a repair is required at a roadside inspection (DOT Port) the mechanic or person doing the repair must document (daily inspection report) that a repair was completed.

b. Copies of all roadside inspections must be sent to the corporate office Equipment Department. It is the responsibility of the driver to give the roadside inspection report to his/her supervisor who is then responsible for sending it to the corporate office.

9.3.3 Annual Vehicle Inspections

a. An annual vehicle inspection performed by a qualified inspector is required at least once during the preceding twelve months. The original report must be sent to the corporate office to be retained for 1 (one) year and the vehicle copy (hard copy) must be kept in the vehicle.

b. IHC must ensure the individuals performing the annual inspection are qualified and must keep a signed qualification inspector acknowledgement in its file for each inspector. This file is maintained by the equipment department and kept at the corporate office.



This equipment is your tool to help you do your job. It is your responsibility to take care of it. IHC will do it’s best to furnish you with good reliable, well maintained, good looking equipment, but we need your help. We take pride in our equipment and we want you to take pride in it also.

If there is anything you do not understand, have questions or wish additional training, contact your immediate foreman or the equipment foreman.

9.4 Scheduled Maintenance

9.4.1 Objective

To reduce downtime by providing a scheduled lubrication program, extend useful life, maximize production capabilities, reduce maintenance cost and improve availability for all IHC equipment and selected rental pieces.

9.4.2 Purpose

The purpose of the IHC Scheduled Maintenance Assignment/Compliance Notice is twofold:

a. To provide notice of specific equipment maintenance functions that are due to be performed.

b. To provide a means to report back to the corporate office when the specific maintenance function has been performed.

9.4.3 Distribution

Jobsite locations and to individuals driving company-owned vehicles not located on a jobsite.

9.4.4 Frequency

As required.

9.4.5 Responsible Parties

Project Manager/Engineer, Project Equipment Foreman, Oilers and individuals driving company-owned vehicles.

9.4.6 Instructions

This form utilizes a side-by-side perforated paper. The left hand portion gives specific instructions for a particular maintenance function. The form also provides a place to enter total units, date, signature of oiler, odometer readings and hour meter reading. The total units column on both sides of the form should be ignored. The field person need only fill in the current date on both sides of the form when the maintenance function is performed. He should sign the Compliance Notice and note the odometer or hour meter reading. The left hand portion of the form should be retained at the project and the right hand portion should be returned to the corporate office.



9.4.7 Special Considerations

Field personnel are to make corrections on the Compliance Notices. EXAMPLE: If it is discovered a filter number is incorrect, please fill in the correct number on the Compliance Notice.

Send the Compliance Notices to the corporate office on a weekly basis.

There may be a situation where a Compliance Notice cannot be fully completed. A filter has to be backordered or there is a scheduling problem on when the machine can be taken out of production to be serviced. Please do as many items as possible and then turn the Compliance Notice into the field office so it can be mailed to the corporate office.

We are constantly faced with the problem of Compliance Notices crossing in the mail. A completed Compliance Notice is sent to the corporate office the same time we send one to the field saying items that were just completed are still overdue.

A file should be maintained of all completed scheduled maintenance assignments in machine-number order. When a new Compliance Notice is received in the mail, check the file to see if the equipment may have just been serviced. If it has, please return the Compliance Notice, noting the date that it was done.

There may be a need to perform a maintenance item before a scheduled Compliance Notice is received. If this is the case, please fill out an Unscheduled Compliance Notice (obtain from your supervisor), noting the date, what was done and your signature.

9.5 Minor Repairs

9.6 Rental Equipment

9.6.1 In-House Rental

Rental rates are established for equipment owned and operated by IHC. Standard pieces of equipment owned by the company but not available, due to previous demands, may be rented by the project with assistance from the Equipment Department. Final approval, per rental policy must be approved by the Equipment Department. No equipment is to be rented from third parties without the approval of the Equipment Department if IHC equipment is idle. IHC equipment is not to be rented to outsiders without the approval of the IHC Equipment Department.

Rental Period

Rental starts the day the Division Manager has requested that the equipment be on-site and ends the day the equipment is made available ("EAV"). To discontinue rent by releasing a piece of equipment, the equipment must be available to be moved from the jobsite. There is no release for job storage. When early shipment ("EEM") or on-site storage is elected by the Equipment Department, rent will not be charged to the jobs before the date required.



The maintenance of equipment is the responsibility of the project management from the day a piece of equipment arrives on the job until the day the equipment leaves the job. Before a piece of equipment can be released, all preventive maintenance must be performed and the equipment must be cleaned. If records do not indicate that preventive maintenance has been performed, rent will be backcharged from the date the equipment was released until the service was performed.

Equipment may be released for repair, providing the Corporate Equipment Department has been notified and steps are being taken to repair the equipment.

Repairs

Definitions as addressed in this manual are as follows:

Recondition - Bringing a piece of equipment back to good working condition during periods of project non-assignment.

Maintenance - General upkeep (i.e., cleaning, lubricating, welding for structural fatigue, etc.) during periods of project assignment.

Modification - Alter for specialty project use whether assigned or unassigned to the project.

Assembling and Disassembling - Taking apart or putting together of component pieces for shipping or setting up.

Repair - Put together or replace broken part.

Rebuild - Extensive structural repair.

Replace - Change out.

Fabricate - To build new entity that cannot be capitalized.

Preventative Maintenance - General upkeep during periods of project unassignment.

Equipment is expected to be shipped to the project in good working condition. If a piece of equipment arrives in poor working condition, due to neglect, misuse or abuse, the cost to bring the equipment up to good working condition will be backcharged to the previous project. It is important to notify the Equipment Department upon receipt if these types of repairs are required, otherwise, the repairs will be charged to the new project.

Modifications to Equipment

Prior approval from the Equipment Department must be obtained before any modifications are made to a piece of equipment. Modifications made to a machine for a particular project will be a project cost.

Major Repair

Major repairs to equipment must be approved by the Equipment Manager before the repair is made, otherwise, it will be charged to the project.



Major repairs will be defined as follows:

i. Reconditioning of a complete machine not just a single component.ii. Replacing or rebuilding a single component that requires more than one day's

aggregate work for an individual.

Examples of major repairs that are charged to the Equipment Department:

i. Relining mixer drums concrete plants.ii. Reconditioning agitor bodies.iii. Rebuilding a gear box on a horizontal drum.iv. Replacing an engine in an autograder.v. Replacing a transmission in a loader.vi. Replacing a belt on a conveyor. vii. Relining a float pan on a paver.

Minor Repairs

All labor expense associated with minor repairs to equipment will be charged to the project. Minor repairs will be defined as follows:

i. Maintenance - includes upkeep of equipment, cleaning, lubrication, welding, etc.

ii. Replacing or rebuilding a single component that requires less than one day's aggregate work for an individual.

Examples of minor repairs that are chargeable to the project.

i. Repairs to tires.ii. Replacing broken hydraulic lines.iii. Rebuilding a starter.iv. Rebuilding vibrators.v. Replacing a hydraulic motor/pump.vi. Replacing a radiator in a vehicle.

All parts for major and minor repairs will be charged to equipment except for ground engaging tools, parts for rental equipment/leased vehicles, non-numbered IHC equipment, small tools and supplies, core charges and parts required to perform repairs caused by misuse or abuse. Please refer to the following chart for further explanation:



Equipment Repair/Maintenance Chart

MaintenanceModificationFabricationAssemble & Disassemble

Minor RebuildReplace – 1 Day

Ground Engaging Tools

Small Tools & Supplies

Abuse and NeglectParts for Rental

EquipmentCore Charges

Radios

Preventative Maintenance

ReconditioningMajor Replace

Rebuild + 1 Day

Rebuild/ReplaceReconditioning

Preventative Maintenance

Abuse

Repairs caused by, but not limited to, operator error, use of equipment in a manner inconsistent with manufacturer instructions or capacity, or failure of project personnel to perform normal periodic or basic service, is considered abuse. Determination of abuse is the sole responsibility of the Vice President-Equipment and the President.

Loss, Theft, or Vandalism Damage

In the event of loss, theft, or vandalism damage to equipment, the project must notify the Corporate Equipment Department and local law authorities immediately by telephone and confirm in writing in order to recover the expense through our insurance company.

Mobilization and Demobilization Charges

1. When equipment is moved from one project or shop to another project or shop.

a. The cost of demobilization (disassembling, loading, etc.) is charged to the project or shop where the equipment is presently located and has been used.


EQUIPMENT REPAIR/MAINTENANCE

CHARGES

PROJECTCHARGES

EQUIP. DEPT

CHARGES

LABOR PARTS LABOR PARTS


b. Once the equipment is loaded, the actual cost of moving the equipment is charged to mobilization of the receiving project or shop.

2. If equipment remains in storage on a project for economic reasons and is later moved to the shop or a new project:

a. Since there will be no project personnel available to actually handle the demobilization of this equipment when we decide to move it to a storage area or another project, as "estimated" demobilization figure will be agreed upon by the Equipment Manager at the end of the project. The estimated cost will be charged to the project immediately and credited to the Equipment Department. Once actual demobilization begins, all charges for demobilization will be absorbed by the Equipment Department. This allows us to close a project and eliminate charges filtering in over an extended period of time.

b. The actual cost of mobilization will be charged to the receiving project.

c. If management elects to leave equipment in storage on a project, rather than move it to a storage area, all associated costs, (i.e., site rental, guard service, etc.) will be billed to the Equipment Department.

Short-Term and/or Emergency Equipment Needs

Periodically, equipment will be required for either a short-term (less than 30 days) or an emergency requirement. In these instances, refer to the procedures for renting outside equipment.

9.6.2 Renting from External Sources

IHC rents equipment from outside sources only when it is of benefit to the project or the company. IHC rents equipment when it is not available from IHC stocks or when it is not economically feasible to supply it from the IHC equipment fleet.

The following procedure should be followed once the need for renting outside equipment has been established:

A) If the rental duration is greater than two weeks or the rental rate is greater than $500 per month, approval is required from the Division Manager and the Corporate Equipment Department. If the rental is less than the above limits, authority is granted by the Division Manager. In either case, the following steps should be taken to secure the rental piece.

1) Acquire competitive bids to assure the most economical rental situation.2) Try to acquire lease/purchase terms. Include in these terms the

acquisition cost, interest rate and percentage applied toward purchase.3) Secure a thorough understanding of who pays for repairs.4) Note the rental rates associated with a particular rental duration and do

not commit to a rental period longer than the project’s anticipated use of the machine. Make sure there is an understanding of the overtime



charges. Most rates are established on a normal usage basis, (Example: 8 hours per day, 40 hours per week, 176 hours per month.)

5) Secure flexibility during rental rate negotiations, i.e., reduced rates during idle periods, a determination as to who pays mobilization charges, etc.

B) When all rental information has been obtained and a thorough understanding exists for all terms and conditions, prepare a detailed purchase order and send a copy to the Corporate Equipment Department. The following information should be included.

1) Name and address of vendor.2) Contact person.3) Hour meter or odometer meter reading, if available.4) Basic terms of agreement.5) Any accessories that accompany the machine (Example: headache ball,

spare tires, etc.)6) Pre-inspection information, including damages, tire or track wear,

missing parts, general condition of machine. The equipment Inspection Report may be used for this.

C) When the equipment has been received, accurate field ledgers must be maintained, including description (with serial number), utilization per period defined by terms, downtime, beginning and ending hour meter readings, and any other information necessary to protect our investment. Submit regularly to Corporate Equipment Department approval of units for period indicated.

D) If we elect to rent operated equipment, ensure copies of valid driver’s license and insurance are put on file.

E) Forward all lease agreements to the Corporate Equipment Department for final approval and signature. All other necessary paperwork required to finalize the transaction will be executed by the Equipment Department.

F) Return all rental machines that are no longer needed, along with the accessories, in the same general condition as received. Cancellation notice and return date should be documented on the Field Ledger and the Utilization Summary Report.

G) Contact the Corporate Equipment Department prior to return of any rental machine with purchase option terms.

9.6.3 Renting to External Sources

IHC has two objectives when renting equipment to sources outside the company. They are 1) to generate income for IHC and 2) to protect IHC’s interests and ensure timely collection of invoices. The following procedure explains how to successfully rent IHC equipment to outside sources.

1. Every rental of IHC equipment requires a signed Lease Agreement on IHC's standard form.



2. The standard Lease Agreement must be signed prior to delivery of equipment. The completed Lease Agreement and certificate of insurance must be faxed to the corporate office before the rental period begins.

3. The operating division will be responsible for negotiating all lease terms under corporate guidelines (duration and rate, pickup or delivery, overtime rates, payment schedule, deposits, etc.) with assistance from the corporate office. The Equipment Manager will be available to assist and train as needed.

4. Upon request by the operating division, the Equipment Manager will perform any part or all of the steps required from initial contact through final paperwork. As a general rule, it is preferred that the operating division handle negotiations.

5. The operating division is responsible for collection of all unpaid invoices with weekly information and assistance provided by the corporate office.

6. IHC will charge interest at 1.5% per month on all invoices unpaid after 30 days. Statements will be sent to renters at the end of 30 days to document the additional charge.

7. Invoices unpaid at 60 days will receive a courtesy letter requesting payment within 10 days or we will be forced to file a lien.

8. The corporate office will file a lien with assistance and approval from the Division Manager if payment is not received.

9.7 Accident Reports

Need to add content here.

9.8 Utilization Reporting

Objective

To accumulate operating and mechanical downtime units in an effort to maximize return on investment, develop true cost per operating unit information, enable the most accurate allocation of Equipment Department expenses to the projects, determine preventive maintenance intervals, predict component failures, and make intelligent rent/buy and buy/sell decisions.

Purpose

The purpose of the IHC Equipment Utilization Report is to summarize, on a daily basis, the operating units for which each piece of equipment was utilized, whether it be by the day or by the hour. The Utilization report, generated by the Utilization Program will also compute and generate the IHC Equipment Charges applicable for the given week.

Reporting

The Equipment Utilization Program is a field computer based program which is to be used for utilization reporting. All pieces of equipment which are assigned to each crew will be listed in each crew’s equipment utilization computer file. Utilization, downtime,



and the appropriate coding are reported for each piece residing on the project for each day.

For the entire time any project has pieces of equipment residing at it, a utilization report is generated by the Equipment Utilization Program, and sent to the corporate office. In the event that a project does not have access to a computer, usually in a project’s early or late stages, utilization will be recorded by hand and reported to the corporate office. Equipment Utilization is reported to the corporate office on Monday of each week.

A comments line is available for use for each piece for the week. This space should be used to alert the corporate office of equipment transfers between projects, projected dates of equipment availability, or other such items of pertinent information.

Assigned Equipment

The Equipment Department will provide to each crew an Equipment Utilization Program with all pieces currently assigned to the given crew. This program (file) should be updated as equipment transfers between crews occur. Pieces should not be removed from or added to this file without the consent of the Equipment Department to assure that equipment is neither double counted nor omitted between crews.

Units of Reporting

Each piece of equipment which is assigned to each crew will have utilization reported by either the day or by the hour. This will be indicated in the “Units to Report” field for each piece of equipment in the Utilization File. Pieces reported by the “DAY” can be reported in increments of ¼ day (i.e., .25, .50, .75, or 1.00). However, the total reported utilization and downtime for a day must equal 1.00. Pieces reported by the “HOUR” can be reported in increments of ½ hour (i.e., .50).

Coding

A system of coding is used to indicate the current (daily) status of each piece of equipment to be used for charging purposes as well as for historical costing information. The valid cost codes to be used for this purpose with their related descriptions are as follows:

EUT – Equipment was utilized on a particular day. This code is used if the equipment worked at all, regardless of the number of actual hours worked. (Exception – for pieces qualifying as “EUR” as defined below.) This code will generate a daily charge to the project.

EUR – Equipment was under repair. “EUR” is to be used whenever a piece qualifies under the “DOWNTIME” definition as defined below, AND if the total number of “Downtime” hours is greater than the number of total hours actually utilized for a given day. This code will not generate a daily charge to the project.



EID – Indicates whether a piece of equipment was idle on a particular day. This code should be used only if the piece was idle for the entire day. This code will generate a daily charge to the project.

EAV – Equipment has been assigned to a project, but is no longer needed on that project for the duration of the job. This code will not generate a daily charge to the project.

EEM – Indicates a piece of equipment which was moved onto the project before the requested delivery date. This code will not generate a daily charge to the project.

N/C – Indicates a piece of equipment which does not fall into one of the above categories and for which no charge will be accrued. This code should be used primarily for pieces of equipment rented to or rented from others. This code will not generate a daily charge to the project.

Downtime Defined - Any hours, or days, which a particular piece of equipment “would have worked” had it not been under repair. The following examples illustrate this distinction:

Assumptions

The project schedule provided for a paving operation to last 10 hours in a given day.

On that day, paving operations started at 7:00 a.m. and at 1:00 p.m. the paver broke down and remained down for the duration of the day.

Downtime Reported

The paver is reported for Utilization purposes as: utilized for 6 hours, down for 4 hours (10 – 6 = 4) and the day is coded to “EUT” (6 hrs utilized is greater than the 4 hrs down).

The plant is reported for Utilization purposes as: utilized for 6 hrs, down for 0 hours (because it would not have worked those last 4 hours because the paver was the limiting piece) and the day is coded to “EUT”.

Assumption

A stockpiling loader had broken down the previous day and was still under repair.

Downtime Reported

The stockpiling loader is reported for Utilization purposes as: utilized for 0 hours, down for 6 hours (it would have worked only as long as the plant and paver worked), and the day charged to “EUR”.



Assumption

A backhoe broke down at 12:00 p.m.

Downtime Reported

The backhoe is reported for Utilization purposes as: utilized for 5 hours, down for 5 hours (it would have worked the full 10 hours because it is not limited by paving operations), and the day charged to “EUT” because 5 hours down is not greater than the 5 hours utilized.

Project Charges

Equipment expense is charged to the project based on a 7 day week. Each day for which a piece of equipment is coded to “EUT” or “EID” the project will be charged 1/7 of the piece’s weekly charge. The week runs from Sunday to Saturday. For example, if the piece was idle Sunday, the project worked the piece Monday through Wednesday, it was down (under repair) Thursday and Friday and the piece was idle again Saturday, then the project is charged five sevenths (5/7) of the weekly charge for Sunday, Monday, Tuesday, Wednesday and Saturday (3 days to “EUT” and 2 days to “EID”) and 2 days are credited to “EUR” with no charge to the project.

Rental Equipment

Equipment rented from others will be assigned a 99 series equipment number and should be treated for utilization purposes in the same manner as an IHC owned piece of equipment. The equipment numbers assigned to rental pieces of equipment will begin with 99- and will then be followed by the last four digits of the equipment’s serial number (i.e., 99-2345).

On occasion IHC will rent a piece of equipment with the intent to buy it at a later date. The Equipment Department may elect to assign these pieces of equipment a 98 series number designating it as a piece with a purchase option. These pieces will also have a four digit number following the 98-, however, these numbers will be assigned by the Equipment Department. These pieces will also be treated for utilization purposes in the same manner as an IHC owned piece of equipment.



10.0 Production

10.1 Performance Reports


10.2 Quotas and Status


10.3 Pre-Work




11.0 Reporting

11.1.1 Time Cards

Timecards covering the previous days work must be submitted to the Project Manager/Superintendent before you leave the yard in the morning or at the end of the last shift for the week.

Timecards must be cost coded, using the code given you for the type of work you performed and attached to a coded Daily Job Record.

Do not accept timecards from your employees unless they are signed and completely filled out. Equipment hours and employee hours must be correct.

Employees must fill out their own timecards.

11.1.2 Daily Reports

You must fill out this report daily and turn it in with your Daily Job Record.

Record the quantities of work completed by your crew daily (code, description, unit, start/end stations).

List the embedded materials that have been incorporated into the product - daily.

11.1.3 Field Work Orders

You must fill out this report for extra work, time and material work, and backcharges.

Record date, who the work was for, address, project number, location and nature of work performed.

List employees, trade and hours per day for work performed. List equipment, equipment operator, equipment number and hours use per

day. List materials, description and quantity used in work. Any extra work to be performed must have prior approval from Project

Manager/Superintendent. Be sure to get an authorized signature from a representative of the entity

for which the work was performed.

11.1.4 Delivery Tickets

Any delivery tickets you received during the day must be checked against the receivers for accuracy and the receivers must be turned in daily to the field office. This includes:

Gas receipts. Rental equipment receipts. Rental truck receipts. Material receipts.



11.1.5 Daily Project Diary

Use the standard form found at the rear of this binder, unless otherwise authorized.

Each supervisor will execute a "Daily Project Diary" for every day he/she is project-assigned. This will be submitted the following day, along with the "Daily Job Record".

It is imperative that this form be complete and accurate to ensure total documentation of all events impacting the project.

Converse on a regular basis with your immediate supervisor about disputes, unique characteristics to the project, etc., that will require special documentation.

11.2 Personnel Functions

a.Administer corporate policies in a fair and uniform fashion. Hold periodic meetings with your crew, educating them on company policies and procedures. Inform them as to their personal status and the crew's compliance with such policies and procedures.

b. Strive for the ultimate in a highly-skilled workforce.

Train motivated and productive personnel. Cross train. Turn over unmotivated and nonproductive personnel.

c.Motivate your people.

Be an example. Evaluate subordinates’ performance and potential regularly.

Recommend hiring, firing, promotion or periodic adjustments in direct compensation in conjunction with the overall compensation plan. Counsel subordinates regularly, offering constructive criticism that will correct and/or improve the subordinates’ performance. Document all actions.

When appropriate, delegate selected duties to improve their development.

Compliment your people on work well performed. Get to know your key people. Ask advice from your people; make them feel a part of the team. Remember that no two people are alike. Try to make the work "fun" and profitable at the same time.

d. Hold and participate in company mandated meetings.

Participate in annual EEO and safety meeting at the beginning of each project.

Conduct weekly "tool box" safety meetings.



Participate in the monthly Safety and Accident Review Committee.

NOTE: Responsibilities may vary in accordance with the nature and scope of each individual project. The DM will be responsible for each supervisor's particular responsibilities as they are required for an individual project.

11.3 Revenue


11.4 Subcontractor Back Charges


11.5 DOT Compliance


11.6 Representing IHC at Public Functions


11.7 Dress Code


11.8 Threats and Violence

Our goal is to strive to maintain a work environment free from intimidation, threats, or violent acts. This includes, but is not limited to, intimidating, threatening or hostile behaviors, physical abuse, vandalism, arson, sabotage, use of weapons, carrying weapons onto Company property, or any other act, which, in management’s opinion, is inappropriate to the workplace. In addition, bizarre or offensive comments regarding violent events and/or behavior are not tolerated.

Employees who feel subjected to any of the behaviors listed above should immediately report the incident to any supervisor or Company representative. Complaints will receive attention and the situation will be investigated. Based upon the results of the inquiry, action will be taken which management feels is appropriate.

Employees who observe or have knowledge of any conduct listed above should immediately report it to Company management. We will investigate these events and look to employees for support of this process. Employees should directly contact proper law enforcement authorities if they believe there is a serious threat to the safety and health of others.

11.8.1 Searches

We reserve the right to conduct at any time, without notice, searches and inspections of employees, employees’ personal effects, or employer-provided material. This may include, but is not limited to: lunch pails, boxes, thermoses, purses, lockers, desks,



personal computer files, cabinets, file drawers, packages, or vehicles. Your supervisor may specify a storage location for personal belongings.

Any illegal and unauthorized articles discovered may be taken into custody and will be turned over to law enforcement representatives. Any employee who refuses to submit to a search will be subject to disciplinary action up to and including termination.

11.9 Employee Evaluation and Termination

Good management dictates that each employee should have his or her performance reviewed on an annual basis. A formal scorecard of one type or another should be used to ensure that all employees are judged on the same items.

Affirmative Action commitments require that an annual inventory and evaluation of at least all minority and female employees be made. Promotional opportunities must be based on an employee's performance and ability. This evaluation will prove to be a valuable tool to all supervisors. It is also required by Executive Order No. 11246.

The Record of Evaluation/Termination of Employment also reviews employee status as to the Hourly Incentive Bonus, health insurance coverage and unemployment eligibility.

This form must be prepared upon termination of an employee or in the case of continuous employment, annually. Remember that documentation of reasons for termination are the key to limiting IHC's continuing liability for unemployment benefits and worker's compensation benefits.

11.10 Field Purchasing

11.10.1 Objective

The pre-numbered purchase order is the principal document in establishing that field purchases are initiated only on the basis of appropriate authorizations and provides a record of commitments that transactions have been executed in accordance with authorizations. They establish the basis for proper payment and appropriate costing of field purchases.

11.10.2 General

Numerically controlled purchase order books will be assigned to the Project Engineer/Manager and other employees so designated. All employees designated as purchasing agents on each project will maintain and be responsible for their own numerically controlled purchase order books. Purchase order books will be assigned by the corporate office accounts payable department.

Purchase orders must be prepared for any field purchase.

Prior to the start of the project the Project Engineer/Manager and other project designated purchasing agents will review known field purchasing requirements, i.e.,



gas, oil, parts, supplies, etc., to provide themselves with appropriate lead time to properly "SHOP THE MARKET", utilizing national buying contacts established corporately where prudent.

Purchase orders prepared by Project Engineers/Managers and other designated field purchasing agents are not authorized for use in the purchase of permanent materials which require Material Purchase Agreements or any products for personal use or ownership.

11.10.3 Project Designated Expenses

Repair and maintenance to IHC owned equipment maintained on the project. Major repairs, defined as a substantial cost in comparison to the value of the piece of equipment, require review by corporate equipment personnel prior to any repair authorization.

Miscellaneous supplies such as shovels, rain gear, water coolers, ice, plywood, etc. and were considered in the bid estimate.

Field office supplies such as paper, pencils, staplers should be purchased with a Purchase Order. Copiers, calculators, desks and other permanent items are purchased only with review by the corporate accounting department prior to purchase authorization.

11.10.4 Procedures

11.10.4.1Purchase Orders

Purchase orders are required to be prepared for all field purchases. Preparation of a specific purchase order will determine which of the following are applicable.

Job No. - Project that purchase is required for. Date Required - Date item needed if not picked up. For - IHC employee requesting the item. Terms - Special terms if payment in month following receipt is not

satisfactory. Date - Date purchase order prepared. Ship Via - Carrier transporting parts, if required. Vendor - Name and Address. Ship To - Special shipping instructions. Equipment - Equipment number that parts are being ordered for. Quantity - Quantity ordered. Back Order - Quantity not received. Description - Description should include part # when applicable. Unit Price - Price of item you are purchasing.



Authorized Signature – Project Engineer signs or initials all project purchases.

Note: Presently, component number, work order number and repair type are not being utilized.

Designated purchasing agents are responsible for every purchase order, by number.

a. Pink copy should remain attached in purchase order book. b. Yellow copy of the purchase order is to be fastened immediately to the back of

the receiving ticket. c. Original copy goes to the vendor.

11.10.4.2Purchase Log

All designated purchasing agents will be responsible for maintaining a Daily Purchase Log which is simply a numerical summary of all purchase orders written. The log will include purchases by date, P.O. number, vendor name, invoice number (if any) and a description of items purchased or comments if back ordered. All purchase logs, with attached receiving documents and P.O.'s are to be submitted twice weekly to the corporate office.

11.10.4.3Receiving documents

Documents designating receipt of goods may be in the form of an invoice or shipper/receiver. Receiving documents require signature approval that quantity and description of goods ordered per the purchase order agrees to the items received in good condition. Rubber stamps for approving invoices will be distributed. Specific information required:

Approval signature Job number. Job costing codes. Equipment number. Date of receipt.

11.10.4.4Weekly Payables

a. Expense reports.b. Special fuel agreements.c. Relocation checks.d. Utility and phone bills.e. Special trucking agreements. f. Other special agreements.

Special agreements - These are agreements made for special terms of payment, rates or other provisions. They must be in written form and forwarded to the corporate office.



Certain expenses, such as utilities, that are beyond the normal purchase order routine should be billed directly to the job site and the invoices approved by the Project Manager/Engineer. Approved invoices are shipped weekly to corporate accounting. These invoices must contain the same required information as purchase orders using the rubber stamp with each.

Any weekly payable falling under any of the above mentioned categories must be received by the payables department no later than Tuesday of the week payment is promised. This means, in Express Mail no later than Monday. Any payables which are promised payment in the current week which are not received by Tuesday noon, will not be paid until the following week. Responsibility for this falls entirely upon project management and NOT the payables department.

11.10.4.5Permanent Materials

Permanent materials are those materials which are incorporated into the product itself. They include materials such as cement, stone, sand, steel, latex, etc. These materials require daily control and documentation of goods received.

11.10.4.6Procedure

a.Proper written documentation must accompany each delivery.

Bills of lading - usually accompany steel deliveries and are usually referenced by number. The quantities listed on these bills of lading must be verified by actual count of delivery before signing.

Other receiving documents - must show, at least, quantity delivered and must be verified as to accuracy.

Load tickets - usually for aggregates and cement; show gross, tare, net weight.

b. Load tickets must be sorted daily by: Type of material. By date.

c.Load tickets are added daily:

By type, date. Adding machine tapes are checked against tickets for accuracy. Adding machine tapes are fastened to corresponding tickets. Inventory records are updated from adding machine tapes.

d. Project Engineer reviews:

Bills of lading - for signature by authorized IHC personnel and for reasonableness.

Other receiving documents - same as bills of lading.



Load tickets - to spot check that tickets are sorted correctly and that tons match inventory entries.

e.Project Engineer approves:

Bills of Lading - with accounts payable approval stamp. Other receiving documents - same as above.

f. Load tickets with tapes attached, approved bills of lading documents and other approved receiving documents are submitted to corporate office weekly.

11.10.4.7Summary

The efficient processing of a large volume of payable documents from job sites and vendors across the country requires teamwork and communication between the job sites and corporate accounting. We can achieve this goal with your help. Please fully complete and submit, promptly, all purchasing data to corporate accounting.



12.0 Administrative Policies

12.1 EEO Policy

Equal Employment Opportunity Policy Statement

It is the policy of Interstate Highway Construction, Inc. not to discriminate against any applicant for employment, or any employee because of age, color, sex, disability, national origin, race, religion or veteran status.

Interstate Highway Construction, Inc. will take affirmative action to ensure that the EEO policy is implemented, with particular regard to: advertising, application procedures, compensation, demotion, employment, fringe benefits, job assignment, job classification, layoff, leave, promotion, recruitment, rehire, training, termination, transfer, upgrade and working conditions.

Interstate Highway Construction, Inc. will continue to make it understood by the employment entities with which it deals, and in employment opportunity announcements that the foregoing is company policy and all employment decisions are based on individual merit only.

All current employees of Interstate Highway Construction, Inc. are requested to encourage qualified disabled persons, minorities, special disabled veterans, and Vietnam Era veterans to apply for employment, on the job training or for union apprenticeship. It is the policy of Interstate Highway Construction, Inc. to satisfy reasonable special accommodations for qualified disabled individuals.

It is the policy of Interstate Highway Construction, Inc. that all company activities, facilities, and job sites are non-segregated. Separate or single-user toilet and changing facilities are provided to assure privacy.

It is the policy of Interstate Highway Construction, Inc. to ensure and maintain a working environment free of coercion, harassment, and intimidation at all job sites, and in all facilities at which employees are assigned to work. Any violation of the policy should be immediately reported to your supervisor or the company EEO Officer.

Corporate EEO Officer: John D. MedberryAddress: P.O. Box 4356

Englewood, CO 80l55-4356

Project EEO Officer:

12.2 EEO Complaint Procedure

Employees are encouraged to take all complaints to the Project EEO Officer in order to get action on complaints at the jobsite. The Project EEO Officer is to immediately document this complaint.



The Project EEO Officer should contact the Corporate EEO Officer and request his/ her presence at the jobsite for assistance in settling the EEO complaint.

All employees are encouraged to contact the Corporate EEO Officer or the Corporate Sexual Harassment Officer directly, particularly in the event the EEO complaint is against the Division Manager, Project Manager/Engineer or Project EEO Officer.

The Project EEO Officer must maintain complete documentation in all cases of the original complaint and what actions have been taken to resolve the complaint. This information should be sent to the Corporate EEO Officer.

Any employee who is unable to resolve his equal employment complaint with the Project EEO Officer and project management, or the Corporate EEO Officer, shall be notified that outside resolution resources are available at the local Federal Equal Employment Opportunity Office, the Office of Federal Compliance, or the State Civil Rights Commission office.

The Corporate EEO Officer: John MedberryThe Project EEO Officer: The Corporate Sexual Harassment Officer: Brenda Smith

12.3 Sexual Harassment / Inappropriate Conduct

IHC is committed to maintaining a positive working environment. This refers to a workplace which is free of inappropriate conduct, including offensive verbal and written communication of a sexual nature.

Sexual harassment does not mean occasional compliments which are socially acceptable. Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitute sexual harassment when:

Submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment,

Submission to or rejection of such conduct by an individual is used as a basis for employment decisions affecting such individual, or

Such conduct has the purpose or effect of substantially interfering with an individual’s work performance or creating an intimidating, hostile, or offensive working environment.

An employee who feels sexually harassed should take the complaint directly to the Corporate EEO Officer, John Medberry, or the Sexual Harassment Officer, Brenda Smith. Complaints will receive prompt attention, and appropriate action will be taken against the offender.

12.4 Patents and Copyrights

During the course of your job you may develop a new procedure, equipment design or modification. Because you are paid by IHC and use IHC materials and are on IHC



time, any new development, whether patentable or not, is the property of IHC. It may not be used in any business that is not part of IHC.

12.5 Problem Solving

Employees who disagree or are dissatisfied with a Company practice should promptly discuss the matter with their immediate supervisor, when appropriate. Normally, this discussion should be held within 3-5 days of the incident, or in a reasonable time period. The majority of misunderstandings can be resolved at this level.

If the solution offered is not satisfactory, or if it is inappropriate to go to the supervisor, then employees are encouraged to take the problem to their supervisor’s boss. If the problem still cannot be resolved, employees may submit a written complaint to the President for review and final decision about the situation.

12.6 Discipline / Discharge

Occasionally performance or other behavior falls short of our standards and/or expectations. When this occurs, management takes action which, in its opinion, seems appropriate.

Disciplinary actions can range from a formal discussion with the employee about the matter to immediate discharge. Action taken by management in an individual case does not establish a precedent in other circumstances.



13.0 Disclaimers

13.1 About the Manual

This manual is designed to acquaint you with IHC and provide you with information about working here. The manual is not all inclusive, but is intended to provide you with a summary of some of IHC's guidelines. This edition replaces all previously issued editions.

The language used in this manual is not intended to constitute a contract of employment, either express or implied. Employees have the right to end their work relationship with the organization, with or without advance notice or cause. IHC has the same right.

Only the President has the authority to enter into any agreement of employment for any specified duration. Such employment agreement will only be valid and binding on IHC when the agreement is expressly set forth in a written document signed by the employee and by the President.

No employee manual can anticipate every circumstance or question after reading the manual, if you have questions please talk with your immediate supervisor or the Human Resources Department. Also, the need may arise to change the policies, benefits and guidelines described in the manual. IHC, therefore, reserves the right to interpret them or to change them at any time without prior notice.



14.0 Project Codes

14.1 Job Costing Codes for Project Budgets

IHC utilizes the Construction Management Accounting System (CMAS) for job costing accounting on all projects.

In CMAS, all job expenses are coded by Job Number, Pay Item, Cost Code and Cost Type. A Pay Item can be a 1 to 3-digit, alphanumeric code (i.e., A06, CF or 801) used to categorize project costs for management control, forecasting and future data base purposes. The Cost Type is a mandatory single letter designating the expense as L for Labor, E for Equipment, O for Other, M for Material, R for Rental and S for Subcontract.

All IHC pay items are derived from one of three groups:

Standard DJO Pay Items (A01 through A99) which are used to expense items which are of job over-head nature or are not easily tracked in a specific work pay item.

Standard Permanent Material Pay Items (801 through 899) which are used for all materials incorporated into the work.

Specific Work Pay Items (B-- through Z--) are used for work functions defined and grouped for control of the project productivity, to help forecast completed cost projections and to develop historical information for improving future bids.

The first letter or number of the pay item will be uniform for various types of work, as follows:

8......Permanent Materials (see additional details)A......Standard Incidental or DJO Expenses (see additional details)B......Bases and SubbaseC......Concrete Pavement (see additional details)D......Drainage Structures (inlets, manholes, etc.)E......Excavation or DirtworkF......Flatwork (curbs, gutters, sidewalks, etc.)P......Pipe (storm, water, sanitary)R......Removals and DemolitionS......Structures and BridgesZ......Miscellaneous

Please refer to the Operations Manual Reference Section under "Format of the IHC Preconstruction Summary (PCS)" and the following pages for detailed information regarding utilization of these IHC standard cost codes for DJO, materials and specific work.



14.2 Standard Codes for Direct Job Overhead

14.2.1 A01 Mobilization

Authorized Cost Types: L - O

Total cost of transportation of equipment and people to the project. Loading or unloading at either end should NOT be charged to A01. It should be expensed to A02 or A03.

Other ("O") expenses include fuel, FOG, permits, teamster travel expense, employee travel reimbursement & commercial carrier billings.

The Direct Cost Budget will often be based on all moves being made by commercial carrier with an "O" budget only. If moves are made with IHC lowboys, "L" charges should be expensed to A01 and "E" charges should be expensed to the job number only with no pay item. As the project progresses, the CCP should reflect favorable "O" variances for commercial moves not required, offset by unfavorable variances for "L" & "E" expenses.

Maintenance & repairs to IHC haul equipment should not be coded to A01.

14.2.2 A02 Setup and Utility Installation


All expenses involved in preparation for doing actual items of contract work. Expenses done by others including utility or service companies, or other contractors, should be coded to cost type "O".

Includes: Stripping and stabilizing, with materials necessary for plant, stockpile, yard, and plant area haul roads being coded to "O".

Utility installation costs including power (440 & 110), telephone, and water.

Costs of unloading and setting up all equipment with rental cranes coded "O".

Costs of setting up water systems for work, i.e., wells, pumps, electrical, piping, digging or lining surge ponds.

Intermediate setups of equipment during the job such as paver width changes.

Moving of paver on project after project has started (i.e., from one end of the project to the other).

Comments: "Routine" setup of equipment only should be expensed to A02. Maintenance & repairs of equipment arriving in poor condition should be discussed with corporate equipment for coding.



14.2.3 A03 Demobilization-Restoration and Teardown


All expense involved with restoring the yard and plant area, disassembling and loading equipment out, burying or spoiling concrete & rubbish, grading, topsoiling, seeding, repairing fences, & haul roads.

Does not include general project cleanup which should be accomplished on a regular basis with the specific pay items of work.

General punchlist items and cleanup required to "sell" the project should be coded to "A35".

14.2.4 A04 Engineering and Material Testing

Authorized Cost Types: L - O - R

Includes all engineering services other than survey and layout, i.e., preliminary mix designs, quality assurance testing, testing required by Contract, CPM or other special scheduling requirements.

Rental of testing equipment would be coded "O".

"L" would be IHC employees doing, or assisting in, these activities.

Subsistence for a full-time IHC testing employee should be coded to A04-"O" with truck allowance to A04-"R".

Special lab trailers or testing facilities, not utilized by Owner, would be coded to A04-"O". If required by Contract to be supplied for Owner's use, the same equipment would be coded to A08-"O".

14.2.5 A05 Survey and Layout


All expenses incurred for layout of the work including establishing control, line and grade, redesign of grades or alignment as may be necessary, etc.

"L" is for all IHC salaried or hourly employees who are used in this activity. Subsistence for survey personnel, salaried or key hourly, should be coded to A05-"O" with their truck allowances coded to A05-"R".

Rental of survey equipment should be coded "O".

If surveying is a Contract item of work and an official fixed price Subcontract is executed, it should be coded to A25-"S". Otherwise all services provided by a contract surveyor will be coded "O".



Supplies such as stakes, paint, pins, books, flagging, lath, etc. should be coded "O".

14.2.6 A06 Project Staff and Office Supplies


"L" is burdened labor (except employee medical & life coded A14-01-"O" and disability insurances coded to corporate overhead accounts) for all salaried supervisors (not including surveyors coded to A05 or testing personnel coded A04) and office clerks or secretaries.

"R" is truck allowance for all salaried supervisors coded to A06.

"O" is for contract clerical services and general office supplies including copy machine rental and drinking water.

14.2.7 A07 Utilities and Rent

Authorized Cost Type: O

Includes all operating expenses (initial hookup charge to A02-"O") for utilities including telephone, water, electricity, gas, and sanitary.

Rental (including mobilization & setup charges if done by others) of office trailers for IHC use should be costed to A07-"O". IHC labor, if required, for mobilization, setup, or teardown, should be coded to A01-"L", A02-"L", or A03-"L" respectively.

Includes monthly or lump sum payments for property easements or land use.

14.2.8 A08 Facilities Supplied to Others


All expenses associated with providing facilities to owner agency or engineer as required by Contract, or for others by special agreement.

Includes same type of expenses as A07 provided for others by IHC.

IHC labor, if required, for mobilization, setup, or teardown, should be coded to A01-"L", A02-"L", or A03-"L" respectively.

14.2.9 A09 Subsistence:

Authorized Cost Types: O - R

Payments made under IHC standard subsistence policies for salaried and key hourly employees (except survey or testing employee subsistence which should be coded A04 or A05) should be coded "O".

"R" is for truck allowances not coded to specific pay items described elsewhere including requirements for hourly foreman, specialist, truck boss, etc.



14.2.10 A10 Administrative Travel Expense


All travel and entertainment expenses for Division Manager (DM) or his authorized representative including food, lodging, airfare, rental car, gas, and job related entertainment.

Expenses associated directly with a prebid or bid trip are not job related and should be coded to the proper administrative overhead accounts.

14.2.11 A11 G-Gas – D-Diesel – Fog-Filters, Oil and Grease


All gas, diesel and FOG expense except those related to mobilization of equipment which should be coded A01-"O".

Cost codes are used to further designate costs -

A11-G-"O" Gasoline A11-D-"O" Diesel A11-FOG-"O" Filters, Oil, & Grease

Costs for installing fueling systems should be coded to A02.

14.2.12 A12 Bonds


Actual cost of performance, payment or other type bonds required by Contract written in favor of the Owner. These will be coded in the Corporate office.

Expense incurred for reimbursement of a Subcontractor for supplying bonds written in favor of IHC should be coded to A12-"O".

Back charges to Subcontractors for their portion of Contract bond shall be a credit to A12-"O".

14.2.13 A13 Association Dues


AGC local and state paving association volume dues and base dues if IHC is a new member. For associations which IHC currently belongs the base dues are a Corporate overhead expense.

Back charges to Subcontractors for association dues shall be a credit to A13-"O".



These charges will be coded from billings to the Corporate office.

14.2.14 A14 Insurances


Standard cost codes for A14 are:

A14-O General Liability Insurance A14-01-O Health Insurance/Salaried and Hourly A14-02-O Safety Incentive A14-03-O Other Insurance/Railroad, etc.

Includes general liability (revenue & labor based), salaried and non-union hourly employee medical and life insurance, railroad protective, builders risk, extra umbrella, or other special insurances which may be required by the Contract.

14.2.15 A15 Financing


This is for "unusual" expense in providing working capital to the project. It is primarily an estimating checklist item to consider at bid time the bottom line effect of long term negative cash flow anticipated due to Contract conditions beyond the control of IHC. Factors affecting include risk of schedule, mobilization, retainage, escrow possibilities, stockpile requirements, vendor and Subcontractor payment terms, payment "profile" of Owner or Prime.

Normally the expense will never be recorded against the project, but will reflect favorably to the bottom line in the Completed Cost Projections.

14.2.16 A16 Penalty


All expense incurred doing something "twice" (other than situations beyond the control of project management such as reworking of wet subgrades due to weather) because of non-compliance with specification or for repairs required to "sell" the product. This would include the costs of removing and replacing a defective product.

Grinding, resawing, resealing, grooving, or other services provided by others or official Subcontractors redoing their work due to IHC problems, should be coded to "O".

Additional Permanent Materials required due to a penalty situation should be coded to their normal 8__-"M" codes; however, separate job ledgers should be kept to determine the quantities and expense of all materials that were required because of the penalty. These ledgers will be useful in forecasting CCP and in providing important historical data base on materials stockpile and other loss.



Budgets for anticipated revenue reductions due to liquidated damages or for non-compliance in strength, thickness, gradation, surface tolerance, etc., shall be given cost type "O" in the PCS and shall be identified by line item whenever possible. Please note the CCP should reflect forecasted unfavorable revenue offset by favorable A16-"O" expense for the specific consideration.

Effort should be made to code penalty expenses accurately to A16 using a sufficient number of cost codes, so that historical database will be meaningful.

14.2.17 A17 Miscellaneous Project Expense

Authorized Cost Types: O – Except for A17-05 which might have some labor associated with it.

Standard cost codes for A17 are:

A17-O Miscellaneous Expenses A17-01-O Rental Equipment Repairs & Parts A17-02-O Tire Repair, Tires Replaced Because of Abuse

Tubes, Mount, Dismounts, Etc. A17-03-O Ground Engaging Tools A17-04-O Radio Purchase & Maintenance A17-05-L & O Equipment Modification A17-06-O Mechanic Van Inventory-Nuts, Bolts, Hydraulic

Fittings, Hyd Hose, Electrical Terminals, Etc. A17-07-O Oxygen and Acetylene and other Welding Supplies A17-08-O Small Tool Rental A17-09-O Small Tool Purchase and Repair A17-10-O Safety Equipment and Supplies

Expense incurred which does not fall into any other category and which is not significant enough to be assigned a specific pay item would be coded to A17-“O”. Extreme discretion should be used to not use these codes as a catch-all for expenses not easily categorized.

14.2.18 A18 Security


Any project expense incurred in providing security for the project, including access restriction, protection of equipment, property, OR final product.

"L" would include direct IHC labor for gate guards or other security measures.

"O" costs include contract security services, supplies such as signs, lights, alarms, fences, etc.



14.2.19 A19 Traffic Control

Authorized Cost Types: L - O – R

All expense associated to maintain effective and safe movement of traffic through or around the project whether required by Contract, safety or productivity consideration.

"L" would be IHC employees providing traffic control functions.

"O" would be for flagging or other traffic control services provided by others, as well as supplies required such as signs, barricades, flags, lights, portable concrete barriers, etc.

"Significant" expense associated with rental of portable traffic barrier, with authorization, may be costed to A19-"R" (See PCS to see if the budget is "R" or "O"). Minor expense of rental of traffic devices should be coded to A19-"O".

If traffic control is a Contract pay item(s) and an official fixed price Subcontract is executed, it shall be coded to A25-"S".

14.2.20 A20 Potential Subcontractor Backcharge (Receivable)


IHC labor, equipment, supplies, materials, or rental equipment used by other contractors in performing work outside the scope of IHC work as defined by the PCS, the Contract, and applicable Subcontracts. This would include "loan" of equipment or men, IHC doing Subcontractor's work upon their request (or their default upon due notice), or supplying materials to a Subcontractor which was not included in the original agreement.

This is a force account or time and material account. As such, all costs should balance with credits equal to at least the direct costs of providing these services to others.

These accounts are set up so that project management can keep track of services provided. They should be backcharged appropriately on a routine basis.

IHC owned or rented Equipment and IHC Permanent Materials utilized for the Subcontractor's benefit should be coded to "normal" budget codes, and a separate ledger and billing system must be used to track, forecast, and recover these expenses through billings or "backcharges".

It is recognized that all "backcharges" in this account will not be recoverable. Project management should keep a "mental" or more formal ledger of offsetting benefits received from a Subcontractor, and through the CCP, should reflect the estimated $$’s recoverable as a credit offset (coded to A20-"O") to costs incurred in A20.

14.2.21 A21 Authorized Non-Contract Extra Work




Expense associated with any work done for others that is not an official Contract Change Order (See A22).

Work shall be authorized and priced by the Division Manager, and a binding "contract" defining scope and payment terms should be executed.

IHC owned or rented Equipment and IHC Permanent Materials utilized in performing the extra work should be coded to "normal" budget codes, and a separate ledger and billing system must be used to track, forecast, and recover these expenses through proper billings.

14.2.22 A22 Authorized Contract Change Order


Work outside the scope of the original Contract for which a unit price, lump sum, or time and material (force account) change order has been executed by Owner and IHC.

IHC owned or rented Equipment and IHC Permanent Materials utilized in performing the extra work should be coded to "normal" budget codes, and a separate ledger and billing system must be used to track, forecast, and recover these expenses through proper billings.

Cost codes should be used to identify the "specific" change order.

Extra work, by definition, indicates that additional revenue is due beyond original contract revenues, and these should be billed appropriately and recorded as favorable revenue in the CCP offsetting the costs in A22 and generating OP.

14.2.23 A23 Special Cleanup


This code should be used to include items of cleanup not associated with A03 general plant restoration, A24 haul road maintenance or A35 punchlist activities; i.e., a pickup broom at airports required on a continuous basis. It should be used for other incidental items of cleanup required by the contract.

14.2.24 A24 Haul Road Construction and Maintenance


Includes building, maintaining, and restoration of batch haul roads.

Other "O" expenses would include haul road maintenance contracted to others such as an operated rental blade by the hour or purchase of aggregates to stabilize the haul road.

"L" would be IHC direct labor used in haul road construction and maintenance.



14.2.25 A25 Subcontract

Authorized Cost Type: S

For expense incurred by a Subcontractor according to the terms and conditions of an official Subcontract.

Normally Subcontracts are written for specific items of work tied directly to Contract pay items and the risk of cost overrun without compensating revenue is minimal. The Subcontractor is responsible for the item complete in place unless otherwise noted in the Subcontract Special Provisions. It is very important for project management to know the scope of each Subcontract and any interfaces of IHC activity. Cost codes are used to identify different Subcontractors.

14.2.26 A26 Maintain Access

Authorized Cost Types: L – O

For the maintenance required to insure that property owners along a project have access to their drive ways. Some things that might be required would be blading, gravel, temporary asphalt, etc. IHC labor would be coded to “L” and material and supplies would be coded to “O”. This would be used more in the metro market than in highway work.

14.2.27 A27 Legal Expense


Any "unusual" legal expense associated directly with the project. Most routine legal expenses are considered as corporate overhead. Any decision to incur legal expense on account of a project must have prior approval of the President. Only in rare occasions will legal expense be budgeted to a job.

14.2.28 A28 Hourly Vacation Bonus

Authorized Cost Type: L

This is the direct cost of the IHC Hourly Incentive Bonus to the project. It will be recorded in Corporate Administration.

14.2.29 A29 Special Taxes


Any special taxes on the project including special use, property (Michigan Single Business), gross receipts, etc.

Does NOT include sales tax which should be coded to the specific materials and supply accounts.



14.2.30 A30 Mechanics

Authorized Cost Types: L - R

All mechanics time expended on the project for routine maintenance only. Refer to Authorized Equipment Charges in the Equipment section of the Operations Manual for costing of parts & labor other than routine maintenance.

Mechanics time for setup & tear down of equipment should be coded to A02 and A03 respectively.

Nuts & Bolts, Oxygen & Acetylene, and other mechanics supplies should be costed to the specific supply account.

"R" is for mechanics truck and tool allowance.

14.2.31 A31 Support

Authorized Cost Types: L - R

Expenses incurred by IHC employees providing services not related directly to specific pay items of work, or provided for elsewhere in the DJO A-- codes.

Examples of those functions normally budgeted to A31 include: Fuel Man-Service Man-Parts Chaser.

"R" is for Parts Chaser's truck allowance.

14.2.32 A32 Non-Productive Time

Authorized Cost Type: L

Any labor paid without effective progress towards accomplishing a specific item of work or productively spent on an A-- code, including shut-downs associated with equipment breakdown, weather (show-up time), cure time delays, or other unforeseen factors.

Cost codes may be used to define the reason for the non-productive expenses as follows:

A32-M-"L" Mechanical Breakdown A32-W-"L" Weather Related A32-O-"L" Other or not defined

Considerations in budgeting for A32 include union contract relative to show-up and half shifts, general risk of the local labor force, and discontinuities in the manpower loading due to anticipated project scheduling.

This code is for IHC labor only. It is not to be used for rental trucks or contract labor standing by. This type of standby time would be expensed to the specific function they



will be performing when they begin work or the function they were performing before they were stopped.

14.2.33 A33 Cold Weather Protection


Any expense involved with specific cold weather paving operations including:

"Winterizing" plant & support systems Covering and uncovering pavements or subgrades Extra labor involved in startup or shutdown of equipment. Reworking of subgrades Providing & operating boilers for water

"O" would include any burlap, poly, straw, curing blankets, supplies for "winterizing" the plant or equipment, etc.

In some cases blankets and water heating systems may be capitalized and charged to the project with "E" cost types. (This decision will be made by Corporate Equipment.)

14.2.34 A34 Hot Weather Concreting


Any extraordinary expense associated with hot weather concreting such as ice or other cooling systems, shading, etc.

14.2.35 A35 Sell Project


Any expense associated with general project cleanup or "punch" list items required to "sell" the project.

14.2.36 A36 Forms

Authorized Cost Type: L - O

Rental or purchase of paving forms excluding lumber. Purchase of new forms may be a capitalized expense with a IHC "E" expense involved. (This decision will be made by Corporate Equipment.) Expenses such as form pins should be coded to “A17-O”, not A36.

Direct labor expended in preparation or repair of rented or IHC forms prior to work or before return should be costed to A36-"L". Day to day routine cleaning and minor repairs should be costed to the CF pay item. Mobilization and return of forms should be costed to A36, not A02.



14.2.37 A37 Lumber


All lumber purchase for project use including forms.

14.2.38 A38 Stockpiling and Material Handling


Includes all costs involved with stockpiling of aggregates, including loaders, stackers, wash and conveyor systems, rail head handling, etc.

Stockpiling services by others (i.e., hourly rental of loader) should be costed to "O". Loaders that are used primarily for batch charging, but doing some part time stockpiling, should be coded to the CM (Material Production) specific pay item.

14.2.39 A39 Lighting


This code should be used for any special lighting which may be required by the contract or for any lighting which may be required to accomplish pay items at night. Light required for security should be coded to A18 and those required for traffic control to A19.

14.2.40 A40 Incidental Rework/Pumping


This code should be used to identify costs which are specifically related to correcting conditions to the point that normal pay items activities can continue. Costs of reworking for a specific pay item to achieve density should not be coded to A40 but, rather, to the pay item itself.

14.2.41 A41 Demo Sawing


This code should be used to identify the cost of demolition sawing required to construct the project.

14.3 Standard Codes for Permanent Materials

Permanent Materials are those materials which are incorporated into the final product. They do not include supplies consumed in production of the product.

All permanent material will have an 8—pay item and all will have a cost type of “M”.

“Blank” Cost Code Delivered to the Jobsite, FOB Jobsite “M” Cost Code Material FOB Supplier Yard “T” Cost Code Transportation to Jobsite



The following standard pay items will be used:

Cement Concrete Coarse Aggregate #1 Concrete Coarse Aggregate #2 Concrete Fine Aggregate Water Reducer Air Entraining Agent Curing Compound Epoxy Paving Steel (loose bars, mesh or mat) Embedded (dowels, tiebars, baskets, etc.) Ready Mix Concrete Flyash Lime

Miscellaneous Aggregates (Processed – bases – subbases, etc.)

82-

Dirt (Borrow, topsoil, select borrow, pit-run sand, etc.)

83-

Pipe (All pipe and end sections)

84-

Precast Drainage Structures and Castings

85-

Pavement Joint Materials

Hot Pour Rubber Asphalt (HPRA) Preformed Compression Sealant (including adhesive) Cold Seal Silicone Sealant Expansion Fiber Miscellaneous (backer rod, foam, tape) Misc. Other

14.4 Standard Concrete Paving Codes

14.4.1 Pay Item C-

First position will always be C.



Second position is standard and will indicate a major function to be performed in concrete paving, as follows:

CM...Concrete Paving – Material Production. All cost associated with production of concrete; i.e., plant crews.

CD.. .Concrete Paving – Dowel Placement. To include transverse dowel baskets or placers and drill and grout of longitudinal joints. Does not include construction headers which would be coded to CP.

CF....Concrete Paving – Forming – Includes costs of setting, stripping and cleaning forms.

CG.. .Concrete Paving – Grade Preparation. Includes all grade preparation costs associated with a newly or previously graded section, such as trimming only, minor balance, shape and compact or milling. Does not include “significant” grading which would be coded to E--.

CJ.....Concrete Paving – Joints. Sawing and sealing transverse, longitudinal construction and expansion joints. Also includes forming or tooling of joints other than normal edging which would be included in CP.

CP....Concrete Paving – Placement – The CP code will be a three to seven digit alphanumeric code with the following designations:

The first two digits will always be CP designating concrete placement.

The third digit will be numeric and will be an indicator type and average length of placement as follows:

CP1.....Slipform – Average Length – Greater Than 2500’CP2.....Slipform – Average Length – 501’ to 2499’CP3.....Slipform – Average Length – Less Than 500’CP4.....Clary Placement – AllCP5.....Bidwell Placement – AllCP6.....Slipform W/Mono Curb-Ave Length – Greater Than 2500’

(Mono One or Both Sides)CP7.....Slipform W/Mono Curb-Ave Length 501’ to 2499’CP8.....Slipform W/Mono Curb-Ave Length Less Than 500’CP9.....Formed Work W/Mono Curb

Note that the length of the placement is what is deemed to be available, not what is actually achieved.

The fourth digit is alpha and will designate as follows:

Below is used with CP1 thru CP9 as appropriate to indicate the width of placement category for slipform or bidwell pours, with or without mono curb.

W.....Wide – Greater Than 25’M.....Medium – Greater Than 12’ and Less Than 25’



N......Narrow – Less Than 12’ and Greater Than 6’S.......Shoulder – Less Than 6’

Below used with CP1 thru CP4 as appropriate to indicate a category of miscellaneous concrete.

A......1B (18”) Curb (i.e. CP2-A15 is SF 1B Curb, Average Placement Length 501’ to 2499’

B......2B (30”) CurbC......Special CurbD......Sidewalk/BikepathE......Barrier WallF.......Special FlatworkZ......Fourth digit if none of the above apply (i.e., CP4-Z24-L not CP4-

24-L for Clary Handwork

Numeric fifth & sixth digit to represent the thickness of concrete rounded to nearest centimeter (1 inch = 2.54 cm), i.e.

----23 represents a 9” or 22.86 cm thickness rounded to the nearest cm.

CS....Concrete Paving – Steel Placement. Includes placement of distributed or continuous reinforcement. Does not include tiebars which would be coded to CP, as it coincides with concrete placement.

CT....Concrete Paving – Trucking. Trucking of wet batch concrete only. Aggregate trucking would be coded to 8—codes for permanent materials. Rental trucks to be coded to this code with the cost type “R”.

It is important that each pay item cost code combination is adequately described so that proper coding is maximized.

A unique cost code is typically assigned for each specific crew. Therefore, to properly code, the supervisor must consider:

The pay item designation; i.e., CP – Concrete Paving – Placement which is standard and uniform for all jobs. This simplifies communication as a concrete placing crew will always code CP or a plant crew will always code CM.

14.4.2 Cost Type

At the present time, the concrete paving standard computer pay items are primarily used to track labor costs; therefore, the preponderance of budget items are for Labor. There are some exceptions.

CT – Concrete Paving – Trucking includes cost type “R” for wet batch rental trucks, as well as cost type “L” for IHC labor.



Operated rental heavy equipment is always expensed to the specific work pay item as an “R” cost type (Example: EMG-01-R – Rough Grade or ESU-01-R – Undercuts). IHC operated rental heavy equipment is coded to the job number and cost type “R” (no pay item or cost code).

Specific supplies are sometimes coded to cost type “O” – other. An example would be CJ – Concrete Paving – Joints where saw blades would be coded to CJ1-BLA-“O”.

IHC equipment costs are not to be coded to concrete paving or other specific pay items. All IHC equipment is costed to job number and cost type “E” (no pay item or cost code).

Fuel cost is coded to A11 cost type “O”.

Even though equipment and fuel are expenses as above, detail for these expenses, as estimated, are included by crew and contract pay item in the Crew and Productivity Section of the Preconstruction Summary under each specific crew.



15.0 Forms/Reports



15.1 Acknowledgement of Receipt of Drug-Free Workplace Policy

IHC - DRUG-FREE WORKPLACE POLICY WITH TESTING PROVISIONS

ACKNOWLEDGMENT

I have received a copy of IHC's Drug and Alcohol policy and understand that in order to continue my employment with this employer I must abide by the terms of this policy. I agree to notify the employer of any criminal drug statute conviction or plea for a violation occurring in the workplace within five (5) days after such conviction or plea.

I UNDERSTAND THAT THIS POLICY IN NO WAY MODIFIES MY STATUS AS AN AT-WILL EMPLOYEE AND IN NO WAY IMPLIES, INFERS, OR GUARANTEES MY CONTINUED EMPLOYMENT FOR ANY DEFINITE TERM AND THAT I MAY BE DISMISSED AT THE DISCRETION OF THE EMPLOYER FOR OTHER REASONS THAN FAILING TO FOLLOW THE TERMS OF THIS POLICY.

Employee Date



15.2 Issued Safety and Other Equipment

INTERSTATE HIGHWAY CONSTRUCTION, INC.ISSUED SAFETY AND OTHER EQUIPMENT

It is the policy of Interstate Highway Construction, Inc. to furnish employees with any equipment needed for the safe and proficient performance of their duties. This equipment will be issued on the date of signup on an as-needed basis and will be signed for by the employee. Any equipment that is not serviceable will be replaced by IHC at the time it is returned to point of issue. At any time when the employee leaves the employ of IHC, such equipment shall be returned to the employer in the same condition, subject to reasonable wear and tear. In the event it is not returned, the cost shall be paid by the employee and will be deducted from his/her last paycheck.

Employee Name

Date Issued: Date Returned:

Employee Signature Employee Signature

Equipment Description

Unit Price

Date Equipment

Issued

Date Equipment Reissued Reason For Reissue

Date Equipment Returned

Respirator

Goggles

Rainsuit

Raincoat

Rubber Boots

Hard Hat

Gloves



15.3 Pre-Work/Mass Meeting Safety Checklist

JOB NO. ______________________________ MEETING DATE ________________________

REQUIRED ATTENDANCE: ALL EMPLOYEES AT LOCATION(SEND AROUND SIGN-IN SHEET FOR ATTENDANCE RECORD)

Topics to Discuss Discussed1.IHC Policy Statement: It is the goal of this Company to provide a healthy and safe

workplace for all employees. IHC will abide by all federal, state and local regulations pertaining to the construction industry, safety and health and follow good, safe working practices at all times. Our safety program is a very important part of the company’s total effort of economy, efficiency and production...............................

2.Employee Obligation: As an employee of IHC, you must comply with all federal, state, and local safety and health laws and use safe working practices at all times. It is not only the responsibility of the company, but also your responsibility to see that your fellow workers, and the public, the equipment and public utilities are safe and free of hazardous and dangerous conditions...............................

3.Commitment to Safety: (See that everyone has received an hourly employee manual. It is in there.) As an employee, you will be required to abide by this policy and its provisions. Willful disregard will be subject to disciplinary action up to and including termination..............................................................................................

4.On a weekly basis your foreman will hold a brief safety meeting or tool box talk. This talk will include general and site specific safety/health hazard training. You will be required to attend these meetings and participate in helping to provide a safe work place for all those involved.....................................................................

5.All hazards or unsafe conditions should be reported to your foreman promptly. All IHC employees, when in doubt, must ask the foreman or safety officer how to safely perform their jobs and use chemicals involved........................................................

6.All accidents or injuries, no matter how slight, must be reported to your foreman promptly. You must use IHC’s designated physician or clinic or you may be personally responsible for the cost of treatment.....................................................................

7.It will be mandatory that protective equipment such as eye protection, hearing protection, rubber boots, dust masks and respirators, safety belts and lanyards, or whatever the situation requires, be used. If you are assigned a task that requires protective equipment, ask your foreman for it..........................................................

8.You will be required to practice good housekeeping and keep your work area free of hazards at all times..............................................................................................................

9.Remember safety is an attitude that all of us need to continuously think about and practice....................................................................................................................................

10. Other items discussed: _____________________________________________________________________________________________________________________________________

11. Questions or comments:____________________________________________________________________________________________________________________________________

Meeting held by:_________________________________________________________________(Send copy to corporate office with attendance record.)



15.4 Employee Accident/Injury ReportPERSONNEL INFORMATION:

Name (full, legal):_____________________________________ Emp. #______________ Job #___________________Date of Accident:_______________ Day of Week:_______________________ Time_________________AM/PMPosition/Title at Time of Accident: ________________________________ Date of Hire Was Employee Performing His/Her Regular Job Assignment: Yes No____________________Describe Resulting Injury and Part of Body Affected:_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________(i.e., foreign body rt. eye; laceration left forearm, fracture left lower leg, etc.)

ACCIDENT DESCRIPTION AND RELATED INFORMATION:

Exact Location Accident Occurred:__________________________________________________________________Employee Claims Accident Occurred as follows:___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Machine, Tool or Thing Causing Injury:______________________________________________________________List any Unsafe Conditions or Contributing Factors:__________________________________________________________________________________________________________________________________________________Name Safety Appliance or Regulation Provided (if any):_______________________________________________________________________________________________________________________________________________Was Proper Training or Instruction Given:____________________________________________________________State Anything That Could be Done to Prevent Recurrence:____________________________________________________________________________________________________________________________________________Failure to Use Safety Device: Yes No Failure to Obey Safety Rules: Yes No Intoxication of Employee: Yes No

TREATMENT INFORMATION:

Was Any Medical Attention Received: Yes No If Yes, Give Name and Address of Hospital/Physician:______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Date of Service:_________________________________________________________________________________Date Employer was First Notified if Different than Accident Date:_________________________________________Has Employee Returned to Work? Yes No If Yes, When?__________________________________________________________________________________If No, Probable Length of Disability:________________________________________________________________

OTHER:

Names and Phone Numbers of Witnesses (Indicate if None):____________________________________________________________________________________________________________________________________________Foreman: _______________________________________________ Date of This Report: ______________________Injured Employee Signature:_________________________________________________Date of This Report______________________________ Reviewed by (DM, PM, PE):________________________Comments:___________________________________________________________________________________________________________________________________________________________________________________FAX COPY TO CORPORATE OFFICE THE SAME DAY



15.5 Supervisor's Work Injury Progress ReportEMPLOYEE NAME DATE OF INJURY

Telephone Calls – (Supervisor should call within four days.)

Date Called

Person Making Call

Does injured believe that medical treatment is satisfactory? Yes No

If no, did injured request change of doctors or treatment? Yes No

Additional Comments:____________________________________________________________________________

______________________________________________________________________________________________

______________________________________________________________________________________________

List follow-up telephone calls – Dates and Comments ___________________________________________________

______________________________________________________________________________________________

______________________________________________________________________________________________

Get-well card sent? Yes No If yes, date mailed_________________________________

Home visits are suggested after seven days of disability on all serious injuries (joint visit Supervisor and Manager recommended).

Was a visit made? Yes No

Attitude of Injured – List comments_________________________________________________________________

______________________________________________________________________________________________

______________________________________________________________________________________________

Were insurance benefits explained to injured? Yes No-------------------------------------------------------------------------------------------------------------------------------------------

Date Injured Total Days off work, includingReturned to Work____________________ weekends and holidays_________________________

____________________________________________Supervisor’s Signature Date



15.6 OFI – English

OFIOpportunity for Improvement

(Suggestion Box Ideas)

Employee Instructions

1. Print all information.2. Fill in non-shaded portion only.3. Place in sealed envelope addressed to: Division Manager or Department Head4. Give envelope to DM or DH or job site field office and they will see that your Division

Manager gets it.

Employee Name:___________________________ Date:________________________________

Project Location:___________________________ Supervisor:___________________________

My Idea for Making My Job or the Project Easier or Better Is:_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

Do You Have Any Ideas or Solutions That Could Help Make This Happen?_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

Comments:

Log #:



15.7 OFI – Spanish

OFIOportunidad Para Mejorar

(Caja de Sugerencia de Ideas)

Instrucciones Para El Empleado

5. Escriba toda la información que se pide.6. Llenar únicamente en las partes no sombreadas.7. Poner en un sobre cerrado dirigido a: Gerente de División o de Departamento.8. Entregar sobre al Gerente de Div. O Depto., o a la oficina de obra y ellos se encargarán

de que lo reciba.

Nombre del Empleado:______________________ Fecha:_______________________________

Ubicación de la Obra:_______________________ Supervisor:___________________________

Mi Idea Para Hacer Mi Trabajo O La Obra Mas Facil O Mejor Es:_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

¿Tiene Alguna Sugerencia O Solucion Que Pudiera Hacer Realidad Su Idea?_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

Comments:

Log #:



15.8 Operators Daily Equipment Inspection Report

This report MUST BE completed before the machine is put to work and turned in at the end of each shift.

ODOMETERDATE_______________UNIT NO.______________HOUR READING_____________________

_______________________________________________________________________________

√ = O.K. NA = N/A O = REPAIRS REQUIRED_______________________________________________________________________________

RemarksCheck all fluid levels_____________________________________________________________Check fluid leaks_________________________________________________________________Check instruments & gauges_______________________________________________________Check lights & signals____________________________________________________________Check mirrors & glass____________________________________________________________Check door & window operation____________________________________________________Check back up alarm______________________________________________________________Check horn_____________________________________________________________________Check air cleaner indicator_________________________________________________________Check air intake hoses & clamps____________________________________________________Check exhaust pipe & mounts______________________________________________________Check washer & wipers___________________________________________________________Check safety equipment___________________________________________________________Check battery & connections_______________________________________________________Check grease gun & tools__________________________________________________________Check parking brake______________________________________________________________Check apply brakes_______________________________________________________________Check for body damages___________________________________________________________Check for cracks & breaks_________________________________________________________Check cutting edges & side bits_____________________________________________________Check ground engaging tools_______________________________________________________Check for wear pins/bushings_______________________________________________________Check tires/undercarriage__________________________________________________________Check service due label in windshield________________________________________________Machine was greased_____________________________________________________________Machine was cleaned inside & out___________________________________________________

Operator Making Report__________________________________________________(signature)

Foreman’s Initials___________



15.9 Equipment Inspection/Estimated Repair Cost ReportEquipment No.___________Description____________________Date_________ Equipment Condition Evaluation Guide

Hour Meter/Miles______________Location_____________________________ No. % of Wear Remaining

Inspected By____________________________________________________ 10 91 to 100% New machine or component part

9 80 to 90% Normal wear or result

Total Estimated Hours 8 71 to 80% Average wear

Total Labor Cost 7 61 to 70% Average wear

Total Parts Cost 6 51 to 60% Average Wear

Total 5 41 to 50% Requires rebuilding

4 31 to 40% Requires rebuilding immediately

3 21 to 30% Salvage – marginal

2 11 to 20% Beyond economical repair

1 0 to 10% Junk

Engine √ % of Wear

Time Estimate

Labor Cost

Parts Estimate Notes

1. Engine Compression2. Engine Blow-By3. Engine Power4. Engine Mounts5. Water Pump – Seals, Leaks6. Fan – Bearings, Damages7. Vee – Belts8. External Leaks – Oil, Fuel,

Coolant, Air9. Exhaust System – Muffler,

Pipes, Hangers, Manifold, Missing Bolts, Raincaps

10. Valve Covers – Leaks, Gaskets, Bolts, Breather

11. Turbo-Charger – Leaks, Tubing12. Air Cleaner – Seals, Holes,

Plugged, Indicator13. Radiator – Mounts, Hoses,

Exterior Damages, Caps14. Gauges – Broken, Inoperable,

Hour Meters15. Air Compressor16. Fluid Levels17. Engine Shut Down System18. Adjust Valve Lash19. Injectors20. Points, Plugs, Condensor

Totals

Additional Remarks________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________



Electrical System √ % of Wear

Time Estimate

Labor Cost


1. Battery – Levels, Terminals, Clamps, Covers, Cables

2. Alternator – Connectors, Mounts, Bolts

3. Regulator – Connectors, Mounts

4. Starter – Connectors, Mounts5. Charging System6. Lights – Broken, Bulbs, Wiring7. Wiring – Connectors, Bare

Wires, Damaged Cables, Corroded, Oil Soaked

Totals

Additional Remarks__________________________________________________________________________________

Drive Train √ % of Wear

Time Estimate

Labor Cost


1. Universal Joint Flange2. Universal Joint Bearings3. Drive Shaft Slip Joint4. Mid Ship Carrier Bearing5. Articulate Bearings6. Center Shift Pins, Bushing, Ball

Joints7. Track Rollers – Leaking Seals8. Sprockets and Idlers9. Drive Chains10. Pins and Bushing

Totals


Differential & Suspension √ % of

WearTime

EstimateLabor Cost


1. Input Seal – Leaking2. Differential Flange Bolts –

Missing, Loose, Leaking3. Vent – Missing, Broken,

Plugged4. Axle Seals – Leaking5. Springs – Broken Leafs, U-

Bolts, Center Pin, Shackles6. Steering Linkage – Loose,

Damaged7. Tie Rod Ends – Loose, Bent8. Walking Beams – Mounts,

Bushing9. Planetaries – Leaking, Seals,

Vents10. Drive Housing Bolts – Missing,

Loose11. Fluid Levels

Totals

Additional Remarks______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________



Clutch √ % of Wear

Time Estimate

Labor Cost


1. Adjustment2. Linkage Wear3. Return Spring4. Noisy Throw-Out Bearing

Totals


Transmission √ % of Wear

Time Estimate

Labor Cost


1. Mounts – Bolts, Missing, Damaged, Loose

2. Bell Housing Bolts – Loose, Missing

3. Shift Tower – Dust Shields, Rubber Boots

4. Output Shaft Seal – Leaking5. Leaks – Pan, Filter, Gaskets,

Lines6. Linkage – Worn, Tightness7. Fluid Levels

Totals


Brakes √ % of Wear

Time Estimate

Labor Cost


1. General Performance – Adjustment

2. Air or Fluid Leaks3. Stack Adjusters and Shafts4. Parking Brake5. Brake Lines

Totals


Hydraulics √ % of Wear

Time Estimate

Labor Cost


1. Oil Cooler – Leaks, Damages, Mounts, Lines, Plugged

2. Hydraulic Pumps & Motors – Seals, Lines, Bolts

3. Drive Belts – Worn, Loose, Cracked

4. Hydraulic Drive Couplings – Worn, Set Screws

5. Control Cables – Lubricated, Free

6. Lines & Hoses – Worn, Rubbing, Leaking

7. Hydraulic Cylinders – Leaking, Scored

8. Hydraulic Tank – Leaks, Mounts, Level

9. Hydraulic Gauges – Broken10. Hydraulic Filters – Housing,

Leaks, Plugged11. Positioner and Kickouts


IHC General Foreman’s Guidelines12. Hydraulic Pressures

Totals


Tires √ % of Wear

Time Estimate

Labor Cost


1. Left Front – Damages, Tread, Studs, Clamps

2. Right Front3. Left Front Inside Dual –

Recappable4. Left Front Outside Dual5. Left Rear Inside Dual6. Left Rear Outside Dual7. Right Front Inside Dual8. Right Front Outside Dual9. Right Rear Inside Dual10.Right Rear Outside Dual

Totals


Wear Items √ % of Wear

Time Estimate

Labor Cost


1. Pins and Bushings2. Cutting Edges – End Bits,

Teeth3. Mold Board and Face4. Ripper Shanks and Teeth5. Auger Shanks and Teeth6. Auger Flighting and Caps7. Circle Adjustment8. Scarifer Shanks and Teeth9. Lift Cylinder Pins, Bushing, Ball

Joints10. Track Pins and Bushing11. Track Pads12. Sprockets and Chains13. Drum Liners and Paddles14.Float Pans15. Screeds16. Side Forms17. Pullies18. Chute Liners and Paddles19. Wear Surfaces

Totals


Miscellaneous √ % of Wear

Time Estimate

Labor Cost


1. Breakd and Cracks2. Broken Glass3. Gear Boxes – Leaks, Vents,

Noisy4. Body Damage5. Bearings – Worn, Loose Noisy6. General Appearance – Clean,

Paint


IHC General Foreman’s Guidelines7. Loose Bolts and Hardware8. Missing Guards and Covers9. Safety

Totals


Servicing √ % of Wear

Time Estimate

Labor Cost


1. Engine Oil2. Hydraulic Oil3. Transmission Oil4. Grease5. Other Lubricants6. Oil Filter7. Air Filter8. Fuel Filter9. Hydraulic Filters10. Transmission Filter11. Other Filters12. Anti-Freeze

Totals

Additional Remarks__________________________________________________________________________________Total Estimated Hours________________________________________________________________________________Total Parts Cost__________________Total Labor Cost____________________Total______________________________



15.10 Auto/Liability/Equipment Accident ReportPERSONNEL INFORMATION:

Name(s): Emp. # Job # Exact Location of Accident: Date of Accident: Time of Accident AM/PM

EQUIPMENT:IHC Equipment Involved? Yes No Equipment #

IHC Equipment Description: Other Equipment Description:Make Make Model Model Serial # Serial # License Plate # License Plate #

Driver: Other Owner/Driver:Name Name D/License # D/License # Address Address Telephone # Telephone # Extent of Damage Extent of Damage

Describe Accident in Detail: Unsafe Act or Conditions Contributing to Accident: Preventive Measures: Names, Addresses and Phone Numbers of Witnesses (Indicate if None): Foreman in Charge of Area Where Accident Occurred:

Date of This Report: Prepared By:

Police Report Attached? Yes No

Repair Estimate Attached? Yes No

FAX COPY TO CORPORATE OFFICE THE SAME DAY


15.11 Equipment Utilization Report

EQUIPMENT UTILIZATION Job #:_______________________Date:_______________________Foreman:____________________

EQ ID Units EQ Description EQ ID Units EQ Description

12-10 hrs 85 Cat 140G Mtr Grader 51-74 days 93 G.Z. Final Finisher

16-21 hrs 86 Cat 966D Wheel Loader 52-74 hrs 93 Self-Propelled Core Machine

16-22 hrs 88 Cat 966E Wheel Loader 84-33 hrs 71 Rex 12YD AGG Batcher

16-23 hrs 92 Cat 966F Wheel Loader 55-16 hrs 80 Port Conveyor w/Bin 30"X80"

20-66 days 94 Chevy S-10 Blazer (SS) 55-19 hrs 86 Port Conveyor w/Bin 30"X80'

21-63 days 89 Ford ½ Ton 4X4 55-22 days 75 Stacking Radial Conveyor21-78 days 94 Ford ½ Ton 4X4 (JY) 55-23 days 75 Unload Hopper21-79 days 94 Ford ½ Ton 4X4 (JP) 55-24 days 84 Horz Conveyor 30"X45'22-17 days 79 Ford Van Lube Truck 55-25 days 84 Horz Conveyor 30"X45'

24-28 hrs 81 Ford 10YD Agitor Truck 55-27 days 92 60' Conveyor 30"X60"

Truss

25-18 hrs 82 Ford Dump/Water Truck 55-29 days 92 60' Conveyor 30"X60'

Truss

25-22 hrs 89 Ford 4000G Dp/Wtr Tk w/Spray 55-31 days 92 60' Conveyor 30"X30'

Truss26-12 days 78 Ford 3000G Fuel Truck 56-05 days 90 Port Dust Collector

29-14 days 90 Ford 1-Ton Truck 60-01 hrs xX10 Power Screen 2 Deck Wash

29-17 days 88 Ford 1-Ton Truck 60-02 days CMI 10x90' Truck Scales29-18 days 93 Ford 1-Ton Truck 61-14 hrs Waldon Sweepmaster Broom41-10 days 735 Dorsey Gen Trailer 64-19 hrs 94 Cat 446 B Load/Backhoe

42-51 days 72 40’ Tandem Axle Trailer 70-63 days 95 R—CO Elec CEM Blower

42-53 days 46' Semi Mech Van 70-99 days 89 Gomaco Work Bridge

45-21 days 92 P.J. Burlap Trailer – 16ft 72-20 hrs 86 Cat 600 KW Gen Set

51-54 hrs SF-550 Slipform (18'-50" Paver) 72-22 hrs Cat 90 KW Gen Set

51-71 hrs 92 CMI 38' Belt Spreader 73-11 days Wild NA – 2 Level51-72 hrs 94 GZ 38' Dowel Inserter

LIST RENTALS BELOW(BEGINNING WITH 99 + THE LAST 4 NUMBERS OF ITS SERIAL NUMBER)

99-1100 hrs Generator

99-3145 days Storage Container

99-6236 hrs 28 Tone Grove Crane

99-7814 days Stacking Crane

99-9322 days Stacking Crane

15.12 Weekly Time SheetINTERSTATE HIGHWAY CONSTRUCTION, INC.

Weekly Time SheetQ – Quit; L/O – Layoff; F-Fired

JOB NO.________ W/E________SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY

TOTAL HOURS

TRUCK HOURS

TERM REASON &

DATE

NAME CLASS EMPL. NO. REG. OT REG. OT REG. OT REG. OT REG. OT REG. OT REG. OT REG. OT REG. OT

Subtotal - This Page

Weekly Total - All Pages


15.13 Foreman's Daily Report

INTERSTATE HIGHWAY CONSTRUCTION, INC.Job #:_______________

FOREMAN'S DAILY REPORT Date:_______________Foreman:_______________

Crew Type: Paving, Grade, OtherCost Items:

Pay Item Cost Code Description of Work Item Location Unit Daily

Qty Comments

Revenue Items (If measured or paid differently from cost)

Revenue Item # Description of Work Item Location Unit Daily Qty Comments

Extra work and backcharges: A20 = Extra cost created by others which was within their scope or responsibility (owner, prime, sub)A22 = Extra work or revenue added to original scope of contract (owner, prime, non-contract)Who directed or approved work or backcharge? Was speed memo issued? Yes No (circle)

List employees and equipment below or attach detail filed work order sheet.

Reg O.T. Total Hours

Employee Name or Equip # Trade Comments

List Materials and Other:

Metric Conversion Table:

English Metric English to Metric Metric to English Unit Unit (Multiply by) (Multiply by) ____

Sy M2 0.8361 1.1960Cy M3 0.7646 1.3080Lf M 0.3048 3.2808Yd M 0.9144 1.0936Sta Msta 0.3048 3.2808Mi Km 1.6093 0.6214Gal Liter 3.7854 0.2642Lb Kg 0.4536 2.2046Ton Tonn 0.9072 1.1023


Description of Work Performed

15.14 Field Work OrderINTERSTATE HIGHWAY CONSTRUCTION, INC.FIELD WORK ORDER

DATE:_________________________

OWNER/SUBCONTRACTOR: _________________________ IHC JOB No. :___________________

PAY ITEM/COST CODE: ____________________________________________ PAGE:__________ OF ____________

LOCATION AND DESCRIPTION OF WORK PERFORMED:_____________________________________________

LABOR

EMPLOYEE NAME TRADE TOT. HRS REG. HRS O.T. HRS COMMENTS

EQUIPMENT

DESCRIPTION HOURS RATE FUEL $ PER GAL/TOT COMMENTS

MATERIALS

DESCRIPTION UNIT QUANT. $ PER UNIT EXTENSION COMMENTS

FOREMAN:__________________________________________


15.15 Daily Project DiaryInterstate Highway Construction, Inc.

Daily Project DiaryWeather:

High Temperature Contract Days (WD or CD) Project No.

Low Temperature Additional Days Authorized Location

Precipitation Days remaining on contract Day & Date / /

Grade Condition Days protested to date Executed By

Circle the contractor performing the controlling item of work. Worked Workday Work

AreasComments on:

Contractor Today Lost Completed Performance, Progress, Compliance, Communication, Etc.

IHC1

Y 3/4NTP INS N 1/2

Y N Y N 1/41

Y 3/4NTP INS N 1/2

Y N Y N 1/41

Y 3/4NTP INS N 1/2

Y N Y N 1/41

Y 3/4NTP INS N 1/2

Y N Y N 1/41

Y 3/4NTP INS N 1/2

Y N Y N 1/41

Y 3/4NTP INS N 1/2

Y N Y N 1/41

Y 3/4NTP INS N 1/2

Y N Y N 1/41

Y 3/4NTP INS N 1/2

Y N Y N 1/41

Y 3/4NTP INS N 1/2

Y N Y N 1/4


Job No. Date / /

WithinContract

ProvisionsSpecifying Comments on:Agency Written or verbal directives, communications, etc. Y N

Quality

W/in Spec? W/in Spec? W/in Spec? Comments on Quality Assurance Y N Y N Y N Strength Profilo/St. Edge

Cores Steel Placement

Texture Edge Slump

Material Supplier AgreementExecuted? OnSchedule? W/InSpec? BackCharges

Comments on:Progress, Schedule, Communication, Etc.

Y N Y N Y N Y N

Miscellaneous comments and/or problems.


15.16 Record of Evaluation/Termination of Employment

INTERSTATE HIGHWAY CONSTRUCTION, INC.

P.O. Box 4356 - Englewood, Colorado 80155

(303) 790-9100

RECORD OF EVALUATION/TERMINATION OF EMPLOYMENT

Name ________________________________________________ Date

Reason for Termination (check one): Employee # ____________________ __________1. Layoff - Reduction in Workforce Job Title _________________________________2. Quit Job Number__________3. Fired; Give Reason, Be Explicit

Above BelowGood Average Average Average

1. Quality of Work _______ 2. Quantity of Work _______ 3. Attendance _______ 4. Punctuality (on time) _______ 5. Ability to Perform Work _______ 6. Attitude* _______ 7. Promotional Potential _______

*If attitude is below average (as compared to other crew members) ________________________________ ______________________________________________________________________________________If Quit - explain why _____________________________________________________________________If Fired - explain why and give dates of warnings ______________________________________________ ______________________________________________________________________________________Is this employee subject to rehire? Yes No Is this employee entitled to Hourly Incentive Bonus at this time? Yes No

FOR ALL NON-UNION WORKERS:

If the employee intends to return to the Company's employ, the following must be read and completed:

1. It is the intent of the employee to return to work for IHC, when called; and I wish to participate in a contributory program for the IHC Health Insurance while laid off. Yes No

2. It is my understanding my share of the monthly premium is due before the first of the month for the month the premium is due. EXAMPLE: Premium for December insurance should be received by the corporate office before November 30th.

3. It is also my understanding, if during this period of time the corporate office does not receive my share of the premium, insurance will be cancelled.

(Check One) Class of Employment I II III (Check One) Premium Amount Family Single

Approved by:


________________________________________ ________________________________________Foreman or Supervisor Employee's Signature

Send a copy to the corporate office within three days.


15.17 Purchase Order

INTERSTATE HIGHWAY CONSTRUCTION, INC.PURCHASE ORDERAN EQUAL OPPORTUNITY EMPLOYERCORPORATE HEADQUARTERSP.O. Box 4356 Englewood, CO 80155 (303) 790-9100

PURCHASE ORDER NO.

0 9 7 8 0 5

JOB # DATE REQIRED FOR G/L # DATE SHIP VIA SALESMAN PHONE #

VENDOR SHIP TO

______________________________________________________ ________________________________________________________________________________________________________ __________________________________________________

EQUIPMENT NUMBER

PAYITEM

COSTCODE

COSTTYPE

QUANTITY BACK ORDER

DESCRIPTION UNIT PRICE

INTERSTATE HIGHWAY CONSTRUCTION SHCEDULES PAYMENTS FOR MONTHLY ACCOUNTS BY THE 30TH OF THE FOLLOWING MONTH FROM DATE OF INVOICE

AUTHORIZED SIGNATURE


BILL TO

15.18 P.O. Log

Date Job # PO # To Amount


15.19 Weekly Expense ReportInterstate Highway Construction, Inc. Name Vendor # Weekly Business Expense Report Date

COMPANY CREDIT CARD PURCHASESGeneral Job Pay Cost Cost Equipment

Date Vendor/Description Ledger #Numbe

r Item Code Type Number Amount

OUT-OF- POCKET EXPENDITURES General Job Pay Cost Cost Equipment

Date Vendor/Description Ledger #Numbe

r Item Code Type Number Amount

Approval Total $

Address Less Advances $


(if mailed) Amount Due $


15.20 Time and Materials Change Order Reporting FormINTERSTATE HIGHWAY CONSTRUCTION, INC.TIME AND MATERIALS CHANGE ORDER REPORTING FORM

IHC JOB #

AGENCY C.O. ID. #

DATE BILLING PERIOD

FINAL BILLING Y N

SUMMARY OF TIME AND MATERIALS EXPENSES:

PRIOR CUMULATIVECURRENT

REPORTING

TOTAL FROM _____ TO _____

CUMULATIVE TOTALS

Material Expense

Labor Expense

Other Expense

Rental Expense

Equipment Expense

Subtotal

Material Mark-up

Labor Mark-up

Other Mark-up

Rental Mark-up

Equipment Mark-up

Subtotal

Overhead Expense/Mark-up

Subtotal

Profit

Grand Total

Revised – 2/98 29 MP-0029

INTERSTATE HIGHWAY CONSTRUCTION, INC.TIME AND MATERIALS CHANGE ORDER REPORTING FORM

IHC JOB # AGENCY C.O. ID. # DATE PAGE OF

EQUIPMENT EXPENSE:HRS./

DATE EQ. # DESCRIPTION PERIOD RATE EXTENSION

Page Total _________________Cumulative Total ________________

Revised – 2/98 30 MP-0030


IHC JOB # AGENCY C.O. ID. # DATE PAGE of

RENTAL EXPENSE:HRS./

DATE INV. # DESCRIPTION & VENDOR PERIOD RATE EXTENSION


Revised – 2/98 31 MP-0031



LABOR EXPENSE:HOURS RATE

DATE EMPLOYEE NAME REG. O.T. REG. O.T. EXTENSION


Revised – 2/98 32 MP-0032



SUBCONTRACT:DESCRIPTION

OFDATE NAME INV. # WORK PERFORMED AMOUNT


Revised – 2/98 33 MP-0033



MATERIAL:

DATE VENDOR INV. # DESCRIPTION AMOUNT


Revised – 2/98 34 MP-0034



OTHER:

DATE VENDOR INV. # DESCRIPTION AMOUNT


Revised – 2/98 35 MP-0035

15.21 Theft/Vandalism ReportINCIDENT INFORMATION:

EXACT LOCATION OF INCIDENT: _______________________________________________________________

_____________________________________________________________________________________________

DATE OF INCIDENT: ___________________________________________________________________________

IHC JOB # _____________ APPROXIMATE TIME: __________ A.M./P.M.

EQUIPMENT:

IHC EQUIPMENT INVOLVED? YES_________ NO__________ EQUIPMENT # ________________

EQUIPMENT DESCRIPTION:

MAKE: ___________________________________________

MODEL: ___________________________________________

SERIAL #: ___________________________________________

DESCRIPTION OF OTHER EQUIPMENT:________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

INVESTIGATING POLICE DEPARTMENT: ________________________________________________________

OFFICER’S NAME: _____________________________________________________________________________

FOREMAN IN CHARGE OF AREA WHERE INCIDENT OCCURRED: __________________________________

DATE OF THIS REPORT: ____________________ PREPARED BY: ____________________________________

POLICE REPORT ATTACHED? YES _____ NO _____

COST ESTIMATE ATTACHED? YES _____ NO _____

FAX COPY TO CORPORATE OFFICE THE SAME DAY

Revised – 2/98 36MP-0036

15.22 Temporary Traffic Control Daily Checklist

Interstate Highway ConstructionTemporary Traffic ControlDaily Checklist

Job # ____________________Week Ended______________

a. Check appropriate box if all temporary traffic control devices are set in accordance with the traffic control plan as outlined in the plans and specifications or as approved in writing by the specifying agency.

b. Check if all signs and barricades are properly maintained (i.e., clean, clearly visible to the motoring public, operating properly, anchored, etc.)

c. Check if all idle equipment (IHC’s and subcontractors) is removed from any exposure to the motoring public, stored in a safe location and properly barricaded, at the conclusion of each operating shift.

d. Check if all tools and supplies are stored in a safe location that will not interfere with the safety of the motoring public.

e. Check if all work areas are restored to a safe condition at the conclusion of an operating shift (shoulders backfilled or barricaded, excavation sites protected, etc.).

f. Please explain any deficiencies above or any other existing safety hazards that need to be addressed to the specifying agency.

Sun Mon Tue Wed Thu Fri SatDateTime CheckedCertified By

Revised – 2/98 37 MP-0037

15.23 Project Bulk Storage Fuel Consumption ReportInterstate Highway Construction, Inc.Project Bulk Storage Fuel Consumption Report

Project No. Project Description Period Covered

Date EQ No. EQ Description Gallons Diesel

Gallons Gasoline

Used On Highway

Used Off Highway

Fueler's Initials

Subtotal/Total

Revised – 2/98 38 MP-0038

15.24 Material LedgerINTERSTATE HIGHWAY CONSTRUCTION, INC.MATERIAL LEDGERJOB NO:______________

MATERIAL TYPE BUDGET UNIT VENDOR NAME PMA UNIT PRICE BUDGET QUANTITY FRT. INCLUDED? YES _____ NO _____

RECEIVED USED INVENTORYDATE DAILY CUMULATIVE DAILY CUMULATIVE THEORETICAL PHYSICAL COMMENTS

Revised – 2/98 39 MP-0039

15.25 Production Ledger

INTERSTATE HIGHWAY CONSTRUCTION, INC.PRODUCTION LEDGER

JOB NO.

BUDGET PAY ITEM BUDGET QUANTITY BUDGET UNIT/MH PROJECTED QUANTITYPAY ITEM DESCRIPTION

DATE DAILY CUMULATIVE COMMENTSQUANTITY MANHOURS U/MH INDEX QUANTITY MANHOURS U/MH INDEX

Revised – 2/98 40 MP-0040

15.26 Employee Master File Update – English

Revised – 2/98 41 MP-0041

15.27 Employee Master File Update – Spanish

Revised – 2/98 42 MP-0042

15.28 EBS Enrollment Form

Revised – 2/98 43 MP-0043

15.29 InterCare Benefit Enrollment Form – English

Revised – 2/98 44 MP-0044

15.30 InterCare Benefit Enrollment Form – Spanish

Revised – 2/98 45 MP-0045

15.31 US Department of Justice I-9

Revised – 2/98 46 MP-0046

Revised – 2/98 47 MP-0047

15.32 Contractor and Employee Plan Enrollment Form

Revised – 2/98 48 MP-0048

15.33 Time Card

Revised – 2/98 49 MP-0049

15.34 Mechanic's Daily Time Record

Revised – 2/98 50 MP-0050

15.35 Employment Warning Notice

Revised – 2/98 51 MP-0051

16.0 Hourly Manual

Revised – 2/98 1 MP-001