2015 Ernest N. Morial Convention Center • New Orleans • Louisiana

Raise Your AWP IQ: Managing Your Aerial Work

Platform Equipment

Sunday, Feb. 22, 2015

1:45 p.m. – 3:15 p.m.

Presented by

Kevin Gern, Best Line Equipment, Harrisburg, Pa.

Maura Paternoster, AIC, ARM, RWCS, ARA Insurance, Kansas City, Mo.

Gavin Shafer, Hertz Equipment Rental Corp., Winnipeg, Manitoba, Canada

Jeff Stachowiak, Sunbelt Rentals, Fort Mill, S.C.

James Waite, Esq., Winters & Waite, Denver, Col.

American Rental Association 1900 19th St., Moline, IL 61265 800-334-2177 ARArental.org

1

Raise Your AWP IQ:

Managing Your

Aerial Work Platform Equipment

Sunday, February 22, 2015

1:45 – 3:15 p.m.

Kevin Gern, Best Line Equipment, Harrisburg, Pa.

Maura Paternoster, AIC, ARM, RWCS, ARA Insurance, Kansas City, Mo.

Gavin Shafer, Hertz Equipment Rental Corp., Edmonton, Alberta

Jeff Stachowiak, Sunbelt Rentals, Jacksonville, Fl.

James R. Waite, Esq., Winters & Waite, Denver, Colo.

Moderator/Panelist

Maura Paternoster, AIC, ARM, RWCS

Risk Manager

ARA Insurance

Kansas City, Mo.

Equipment People

Customers Contracts

2

Maintenance-related Accidents

Bucket of boom lift flipped and tossed operator into a tree.

Renter used handrails to extend scissor lift platform, stops were missing, renter fell 15’.

Outrigger collapsed and lift fell over.

Maintenance-related Accidents

Chain bolts failed inside boom of telescopic lift, last section of lift collapsed, renter was slammed into bucket breaking his back and both legs.

Pothole protection failed to deploy, renter injured when scissor lift was driven into a drain hole and tipped over.

Maintenance-related Accidents

Lift descended too quickly, operator’s chin was split open from striking top of guardrail.

Lift broke off at its base because majority of bolts were missing.

3

Gavin Shafer

Maintenance Manager

Hertz Equipment Rental Corp.

Edmonton, Alberta

Determining the Right Equipment

• Get the details! • It is not just about how high do you need to go!

– Always ask the height they need to work at not the height they need the machine to go to.

– Industry standard is platform height then add 6’ or 2M to get the listed working height.

• What is the load? – How many people? – What is they total weight?

• Is it being used inside or outside? – What fuel is available on site? – What is the temperature where the unit is being used?

Determining the Right Equipment

• What could be in the way? – Are there restrictions on the height, length, width, weight at the

location or before the machine gets to the location? – Overhead obstructions? Power lines, Awnings, etc? – Roads? – Buildings?

• What is the surface it is being used on? – Ground prep? – Floor loading? – Surface material?

• What are they doing? – Do they need power? – Do they need a welder, air, water, etc? – Pipe or panel cradles?

4

• Slab Scissor Lift

Determining the Right Equipment

• Rough Terrain Scissor Lift

• Articulated Boom Lift

Determining the Right Equipment

• Straight Boom Lift

• Towable Boom Lift

Determining the Right Equipment

• Vertical Mast Lift

5

Select a Vendor Some things to consider are: • What is there support like?

– When it breaks down will support be available 24/7? • Does your customer base need that?

– Do they have a local sales and service rep?

• Do they offer training? – Sales? – Service? – Operation?

• Where are the parts located? – When the unit breaks down where are the parts coming from? – What are the fill rates?

Select a Vendor

Some things to consider are:

• How does the warranty process work? – What is covered and for how long?

– Do you need to pay for the parts upfront and claim the warranty after?

– Who is authorized to do warranty repairs?

– What is the warranty labour rate?

– What is the warranty on service parts?

• It is not so much the manufacture as it is their representative that makes the equipment GREAT!

The regulations vary from country to country make sure you read them, ignorance is no defense.

Every manufacture lists the minimum requirements you need to maintain the machines they produce, make sure you use the serial number specific manual to complete the inspections.

Keep your service/maintenance records!

Now You Need to Maintain It!!

15

6

Inspect the unit every time it leaves the yard even after a “quick rental”!

Every safety decal must be clearly legible.

Make sure the unit is sent out with the operators manuals.

Get training on each new piece you add to your fleet, although they may be similar they are not the same.

Now You Need to Maintain It!!

16

Questions?

Equipment People

Customers Contracts

7

Employee Accident Examples

Rental company employee moving a boom lift in a parking lot struck a vehicle causing damage and injuring the vehicle occupants.

Lift struck a customer’s vehicle while an employee was moving it out of the shop.

Kevin Gern

Director of Safety

Best Line Equipment

Harrisburg, Pa.

What We Need To Know About

AWPs

8

Is the Customer Renting the Right Equipment for the Job?

• Ask basic questions to get a good understanding of what the customer needs to do with the equipment

• Make sure we understand the customers expectations of the equipment before we send it out on rent

• Avoid costly repairs and accidents by ensuring the customer knows the do’s and don'ts

Fall Protection

• Required by OSHA in Boom Lifts at all times

• Customers may require this for Scissor Lifts on their job sites

• Make sure we inspect it and it is in good working condition

• Importance of proper wear and adjustment

9

Modifications to AWPs

• Be aware of customer made modifications

Delivery Drivers Importance

• The delivery driver gets the most questions on how to operate the equipment

• Important to know the equipment and how it works as well as safety features

• Lead by example

– Safe Operation

– Fall Protection

– Proper Startup and Shutdown

Loading and Unloading

• One of the most dangerous activities with AWPs

• Majority of accidents are tied to delivery drivers and are in the “Slips, Trips and Falls” category

10

Questions?

Equipment People

Customers Contracts

Customer Accidents

Renter placed outrigger on landscaping block to level it, it tipped over and operator was injured.

Renter using lift to trim trees, branch fell onto power line, then hit basket causing electric shock.

Lift was positioned against a garage door, which opened automatically when a car pulled up, causing the lift to tip over.

11

Customer Accidents

Lift operator’s head was pinned between the guardrail and an overhead beam.

The weight of a lift caused granite pavers to crack.

Operator drove boom lift into an open hole.

Customer Accidents

Renter alleges boom lift would not go down, fell trying to climb out.

Renter was pushing a lift down a ramp when it ran over him.

A crane hit an extended scissor lift, causing it to tip over, operator fell 19’ to concrete floor.

Jeff Stachowiak

Director of Safety Training

Sunbelt Rentals

Jacksonville, Florida

12

Customers

• What are you/we required to

provide the customer when

renting an AWP?

Customers

• What is required?

– Offer Training

– Familiarization upon delivery

– Manuals, Operator’s and

ANSI Manual of Responsibility

– A maintained AWP

• By Whom?

– ANSI/SAIA A92

– OSHA?

Offer Training

• ANSI requires the Dealer to offer training

– Can be your training course or

– A third party trainer

– Typically a 4-8 hour course

• See Statement of Best Practices of General Training and Familiarization for Aerial Work Platform Equipment

13

Provide Familiarization • 5.8 Familiarization upon Delivery

– Upon delivery by sale, lease, rental or any form of use, the dealer shall have the responsibility with the person designated by the receiving entity for accepting the aerial platform to:

(1) Identify the weather resistant compartment (for manual(s) storage)

(2) Confirm that the manual(s), as specified by the manufacturer, are on the aerial platform

(3) Review control functions

(4) Review safety devices specific to the model aerial platform being delivered

Manually Propelled A92.3

(5)Review loading and unloading procedures and the use of tilt-back feature(s) when applicable

Provide Manuals • 5.2.1 Machine Manual(s). Dealers shall keep and maintain a copy(ies) of

the:

(1) Operating manual

(2) Maintenance manual

(3) Parts manual

(4) Repair manual

• The operating manual and maintenance manual shall be provided with each

rental, lease, or sale delivery and shall be stored in the weather resistant

storage compartment on the aerial platform. Manual(s) are considered an

integral part of the aerial platform and are vital to communicate

necessary safety information to owners, users and operators. In addition,

repair and parts manuals should be provided with each sale delivery.

• 5.2.2 Manual of Responsibilities. The current Manual of Responsibilities

for dealers, owners, users, operators, lessors, lessees and brokers of

boom-supported elevating work platforms shall be provided and stored in

the weather resistant storage compartment.

ANSI/SAIA A92

• American National Standards Institute

– Scaffold & Access Industry Association is

Secretariat

– Membership is open to any interested parties

– Used by all industries as well as

– The legal community

– Design, Training and Safe Use

14

OSHA

• OSHA’s mandate is to protect works from

injury

• The employer of the employee is the

responsible party as far as OSHA is

concerned

• OSHA Regulations for AWP’s are

Scaffolds Subpart L 1926.451 and

1926.453 (written in 1970)

Questions?

Equipment People

Customers Contracts

15

Contract-related Claims

Renter maneuvered lift into power line, received severe shock. Rental contract listed a different unit than one provided.

Outrigger sunk in soft soil, lift tipped over and injured operator.

faced by

Lessors of Aerial Equipment in Today’s

Legal and Economic Environment

By:

“What’s the Worst that Could Happen?” (Actual Cases – Included on a Plaintiff’s Lawyer’s Website)

• $1.3 Million Settlement: Carpenter fell through roof opening at a Aerial Lift site.

• $5 Million Verdict: Aerial Lift worker falls to ground caused by unsafe scaffold.

• $870,000 Settlement: Electrician falls off unsecured ladder at Aerial Lift site causing multiple injuries.

• $3.5 Million Settlement: Aerial Lift worker crushed by falling wall.

• $2 Million Settlement: Death of a Aerial Lift worker asphyxiated by methane gas.

• $12 Million Settlement: Aerial Lift worker paralyzed when he was struck by falling Aerial Lift materials

(866) 582-2586

16

“What’s the Worst that Could Happen?”

Economic damages

End-of-life-expenses

Exemplary damages

Future medical bills

Loss of benefits

Loss of consortium

Loss of earning capacity

Loss of parental care

Lost wages (past and future)

Pain and suffering

Punitive damages

Medical costs

Mental anguish

Monetary compensation

Non-economic damages

Physical impairment

Loss of spousal support & companionship

Construction Injury victims are typically seeking one or more of the following types of “damages.”

(866) 582-2586

MEDIAN(1)

AND AVERAGE PERSONAL INJURY JURY AWARDS BY TYPE OF LIABILITY, 2010

Liability

“What are the Damages?”

Source: Thomson Reuters.

(866) 582-2586

What is Products Liability? Definition:

A legal theory which permits injured parties to sue not only the product manufacturer but all parties in the

“chain of distribution” (including the distributor and the lessor), for injuries and damages arising from or in

connection with the use of an allegedly defective product. James R. Waite, Esq.

In Other Words:

The plaintiff now doesn’t necessarily need to show that you did something wrong. He/she only needs to

show that he/she was harmed by a defective product and that you were in the “chain of distribution.”

Restatement (Second) of Torts, § 402A

(866) 582-2586

17

What is Products Liability? Alleged “defects” may exist in the design, manufacture, advertising and/or distribution of equipment.

Such defects support plaintiffs’ claims for:

(a) Negligence: Breach of a legally recognized duty owed to the Plaintiff which caused the Plaintiff to suffer

injuries and/or damages (basically, you didn’t do something you were supposed to);

(b) Breach of Warranty.(1) Breach of an express or implied promise to the Plaintiff which caused the

Plaintiff to suffer damages (“you said or ‘implied’ the product would perform a certain way and it didn’t”) – MOST IMPORTANTLY, the implied warranty of “merchantability” (Per UCC §2A-212, “…fit for their ordinary purpose(s) and would pass without objection in the trade in which they are used…”), which can be waived through a properly written contractual waiver.

(c) Misrepresentation: A false statement which induced the Plaintiff to enter into a contract or take some

other action (or refrain from doing something he/she otherwise would have).

(d) “Strict” Liability (without proving anyone was at fault) when a product is rendered “unreasonably

dangerous” as a result of:

i. Design Defects: (Unreasonably unsafe design when there is a reasonable alternative that would not create the same level of danger)

ii. Manufacturing Defects: (Departure from Design)

iii. Warning Defects (Failure to Warn of potential dangers)

Important: Depending the state, “joint and several” liability may apply, making you 100% responsible for the damage claim, even if you had only limited participation.

(1) Warranties are statements by a manufacturer, seller or lessor concerning a product in a transaction. Warranty claims historically required “privity” (direct dealings) between the injured party and the manufacturer or seller.

(866) 582-2586

What Can You Do Contractually?

The Question:

What can equipment dealers and lessors do contractually in an effort to limit and/or

avoid some of the risks associated with renting aerial equipment?

(866) 582-2586

What Can You Do Contractually?

Answer: Quite a bit. Following are some examples:

WARN customers of potential/inherent dangers

Notify customers of ANSI/SIA/OSHA PFPE Requirements

Document Customer’s Selection, Inspection and Acceptance (or declination) of Equipment and PFPE

Document familiarization of customers with proper operation

Document offer (or customer’s receipt) of Training

Acknowledge Customer’s Receipt of Manufacturers’ Instructions

Acknowledge Customer’s Receipt of Use and Safety Warnings

Provide Safety Rules

Prohibit Assignment and Subleasing

(866) 582-2586

18

What Can You Do Contractually? Answer: Quite a bit. Following are some examples:

Include Use/User Requirements, Limitations and Restrictions

Covenants (require customers to comply with Instructions and Applicable Laws, Rules, Regulations, etc.)

Malfunctions: Require Immediate Notice and Cessation of Use

Include Insurance Requirements

Include Customer’s Assumption of Risk

Include an upper limit of liability

Include Customer’s Indemnity, Defense and Hold Harmless Obligations

Acknowledge customer’s receipt of “consideration”

Use a Separate Addendum to Clearly Acknowledge each of the Above.

(866) 582-2586

What Can You Do Contractually? Final Notes: Don’t Forget:

Document everything

Stay local (jurisdiction and venue) if possible

Apply your Terms and Conditions to “future” rentals

Require signatures on all documents

Consider requiring personal guarantees from small contractors

Include an e-signatures acknowledgment

Retain original signatures whenever possible

Save documents electronically (originals are often lost or destroyed)

(866) 582-2586

Questions?

19

• Rental/Sale Contracts: Addenda: • Construction Equipment * Acceptance Certificate

• Homeowner Equipment * Damage Waiver

• AWPs/Lifts * Tier 4 / Stage IV

• Vehicles and Trailers * Trailer Safety Rules

• Master (Long-Term) Contract * Dangerous Equipment

(866) 582-2586

Questions?