1.IND 911 Energy Resources Navigating the Landscapeof Risk Speakers:Gabriel LugoMike AmadorMel CauserCynthia Vickers Bill Siebenaler April 28, 2008San Diego, CA

2. Role PlayInsured: Gabriel Lugo Insurer: Mel Causer 3. Q Market InsurerAdvantages A Program Structure 4. Construction ContractsRisk Allocation &Insurance IssuesRisk Allocation & Insurance Issues Bill SiebenalerBill Siebenaler 5. Risk Allocation & Insurance Contract IssuesOwner Issues Are there standard provisions? What are the fall back positions whencontractors cannot or will not comply? What are the delegations of authority? What effect will the requirements have on thecost of the project? What are the local restrictions? 6. Risk Allocation & Insurance Contract IssuesOwner Issues What is the business climate? Is the language too long and complicated? What is expected of subcontractors? What type of additional training is available to contract specialists? What resources are available to help with difficult contracts? 7. Construction Contracts Preparation Identify Key Stakeholders Define Authorities Train Decision Makers 8. Construction Contracts Preparation Insurance & Risk Mgmt Key Stakeholders Procurement Legal Project Leadership Authorities Partners Training 9. Construction Contracts Preparation Key Stakeholders Local vs. Central Authorities Standardization ExceptionsTraining 10. Construction Contracts Preparation / Execution Key StakeholdersAuthorities Model Contracts Training Consistency 11. Construction Contracts Risk Allocation IssuesWho Should Bear the Risk? The party providing the service/product ? The party in control of the work ? The party in the best position to prevent the loss/accident ? The party in the best position to manage the financial consequences ? A combination ? 12. Construction Contracts Risk Allocation Issues Take time to understand the risks Yours Theirs Others outside the contract Be consistent with underlying contracts Know your counterparties needs Be aware of enforceability issues Anti-Indemnity Statutes 13. Construction Contracts Risk Allocation Issues Typical Allocation Options Mutual Hold Harmless Negligence Based Combination First Party & Third Party People Property Consequential Loss 14. Construction Contracts Insurance Issues What types and amounts of insurance should be required of contractors? What should subcontractors be required to carry? Are there company standard insurance provisions? What deductibles should be allowed? What level of self insurance should be allowed? Will and OCIP or CCIP be used? What are the options for solving an impasse? 15. Construction Contracts Insurance Issues Purpose of Insurance Clauses Help ensure that transferee has funds available to pay liability assumed under indemnity clause Can give the transferor some specific rights under transferees policies Specify the types and limits of insurance transferee must buy -- a measure of viability Can cover some liability not covered by the indemnity Do not always cover all obligations in the indemnity provisions 16. Construction Contracts Insurance Issues Project Risks & Indemnities Review the particular exposures and risks related to the contract and how they are allocated in the indemnity and other sections. Make sure all risks are accounted for. Financial Strength of Contractor - Appropriate limits are determined case-by-case and are subject to compromise. Ask for the higher-end of reasonable. Cost of Coverage Each requirement carries a cost which in many cases is passed back in the form of a higher contract price. 17. Construction Contracts Insurance Issues Insurer financial strength - Determine what you are comfortable with. If rated, ask for insurers with a high rating from A.M. Best or Standard & Poors Terminology - Use current insurance terminology rather than obscure legal terms or outdated insurance terms. Retentions Allow appropriate deductibles or self insurance based on the financial strength of the contractor and need to support indemnities in anti- indemnity jurisdictions. 18. Contractor Insurance Limit Guidance Step 1 For each type of insurance coverage listed in the model, determine whether or not there are any risks in the project which could be the subject of such coverage. Step 2 For each type of coverage for which risks have been identified, determine both the hazardous nature and the potential size of those risks and classify them as High, Medium or Low Risk taking geographical factors into consideration. Step 3 Once the risk level, if any, has been determined, select the appropriate base levels of coverage to be inserted into the contract requirements. For large, financially stable contractors, these limits may be changed. 19. Key Insurance Provisions Additional Insured Status Waivers of Subrogation Other Insurance Primary vs. Excess Evidence Certificates, Policies, etc. Option to Self-Insure Option to Purchase for Contractor (OCIP) 20. Risk Allocation & Insurance RecapOwner Issues Are there standard provisions? What are the fall back positions when contractorscannot or will not comply? What are the delegations of authority? What effect will the requirements have on the cost ofthe project? What are the local restrictions? 21. Risk Allocation & Insurance RecapOwner Issues What is the business climate? Is the language too long and complicated? What is expected of subcontractors? What type of additional training is available tocontract specialists? What resources are available to help withdifficult contracts? 22. Raffle - IPOD 23. Building your ConstructionPlacement Michael T. Amador, ARM 24. RIMS 2008 Construction PlacementsTopics Discussed Today I) Houston, We Have a Project II) Insurance Planning & Technical Data Mania,oops, Mining III) Let the Placement BeginIV) Selected Coverage Issues and Recent Placements V) Energy Market Indicators 25. RIMS 2008 Construction Placements I) Houston, We Have a Project 26. RIMS 2008 Construction Placements Houston, We Have a Project Headlines Headlines, Read All About It Super, duper mega amazing zillion barrel discovery !!!! 27. RIMS 2008 Construction Placements Houston, We Have a Project And inside the Risk Managers Head he begins to ponder the profound project mysteries such as.... 28. RIMS 2008 Construction Placements Houston, We Have a Project Oops, lets try againand down the hall in the savvy's Risk Managers office, he knows well what may transpire: A discovery is made, well see if it is commercial to develop (A new asset may be constructed or an add-on to an existing asset) Studies and teams formed Front-end engineering undertaken A plan of development Contracting Long-lead items ordered Permitting and licenses obtained Approval process Project Sanction received Construction works begin 29. RIMS 2008 Construction Placements Houston, We Have a Project Oops, lets try againand down the hall in the savvy's Risk Managers office, he knows well what may transpire: A discovery is made, well see if it is commercial to develop (A new asset may be constructed or an add-on to an existing asset) Studies and teams formed Front-end engineering undertaken A plan of development Contracting Long-lead items ordered Permitting and licenses obtained Approval process Project Sanction received Construction works begin 30. RIMS 2008 Construction Placements Houston, We Have a Project The Risk Managers checklist early on. Where could the development be located ? Who may be the Operator ? Is there a joint venture & a division of interest ? Who are the stakeholders ? Meet & cultivate relationships with key people on the project team Try to determine what type of physical asset the project might be 31. RIMS 2008 Construction Placements Houston, We Have a Project The Risk Managers checklist early on.(Continued)Early Risk Assessment: form ideas of what risk characteristics the project may have Begin considering an appropriate risk transfer program Sourcing needed technical data Possible insurance issues including local insurance regulations and service providers Develop a preliminary rough timeline 32. RIMS 2008 Construction Placements II) INSURANCE PLANNING &TECHNICAL DATA MINING 33. RIMS 2008 Construction Placements Insurance Planning Critical Insurance Issues to Consider - Size of project Capacity Constraints ?Project Location Flood & Windstorm Exposure ?Other Operations/Projects in the Area Aggregation Issues ?Local Insurance Regulations Local Insurance Fronting Required ?Loss History at the Project Site or Area How to Market It ? 34. RIMS 2008 Construction Placements Insurance Planning Critical Insurance Issues to Consider -Your Joint Venture What is Their Appetite for Risk & Risk Philosophy ? State of the Insurance Market Is it in a Hard or Soft Cycle ? Recent Energy Losses Will they Impact Your Project ? Project Capex Budget How Much to Insure ? Major Project Contractors - Are they in Good Standing with the Market ? 35. RIMS 2008 Construction PlacementsPlanning for Windstorm Coverage in Your CAR Placement 36. RIMS 2008 Construction Placements The reinsurance market - the great divide ....US windstorm Remainder of portfolio Reinsurers have required Gulf of Mexico cover to bea separate tower ofcoverage, with the rest of the account splitUS windstorm 37. RIMS 2008 Construction Placements Named Windstorm ActivityAs of April 9, 2008; next forecast May 31, 2008)Forecast by Colorado State University Forecast Parameter1950- 20052006 2007 20082000 Ave ActActActFC Named Storms 9.6239 14 15 Named Storm Days49.1 1035070 80 Hurricanes 5.9135 78 Hurricane Days24.5452035 40 Intense Hurricanes 2.37 2 34 Intense Hurricane Days5 173 89 Net Tropical Cyclone 100% 249% 85% 140160% Activity (NTCA)*% 38. RIMS 2008 Construction Placements Named Windstorm CoverageWhen Considering Wind Risk Transfer - Do you need it ? Requesting it will place capacity constraints on your placement How much do you need ? Value at risk deductibles: % of value at risk Coverage trigger: Review definition of Named Windstorm Major exclusions: Is flooding covered ? Stand Alone Placement Premium: 2% - 5% of sum insured 39. RIMS 2008 Construction Placements Technical Data Preparation 40. RIMS 2008 Construction Placements Technical Data PreparationBegin by accepting that gathering a high volume of quality technical data is no longer optional but mandatory to successfully place construction insurance for large projects - especially at the best terms and conditions. 41. RIMS 2008 Construction Placements Technical Data Preparation Critical Data Which Will Be Requested - Latest project budget statement Insurance application Hurricane preparedness procedures specific to the project Fire prevention (hot works procedures, fire brigade training, etc.) General company overview information Explanation of how your companies property conservation programs with tie into your contractors Major contractors loss experience on large projects Maximum wind design for the asset 42. RIMS 2008 Construction Placements Technical Data Preparation Critical Data Which Will Be Requested (Continued) - Flood and hurricane action plans specific to the project Construction Underwriting Report EML calculations Detail on the construction process Delay and Start-Up data if DSU quote desired Cargo transits Major Contract (EPC, etc.) Wording Company & contractor QA/QC procedures and management 43. Technical Data Preparation The Engineers Are Coming 44. RIMS 2008 Construction Placements III) Let the Placement Begin 45. RIMS 2008 Construction Placements Placement Planning General Considerations - How will the placement be managed ? Will you conduct a Call For Tender ? Who will be invited ? What is your placement strategy? Limits, Coverages, Buybacks How can you best generate competition ? Brokers, Markets, PlacementStructure 46. Number of energy insurers world-wide120100 80Offshore60Onshore 40 20 no significant changes since 20020 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006Source:Aon Limited 47. RIMS 2008 Construction Placements Placement Planning The Call For Tender - Develop a Calendar To Attach Cover at the Appropriate Time Cover Letter Inviting Brokers Scope of Work Basic Project Information Broker Deliverability Instructions Qualifications Response on the basis of a desk quotation only Form of Proposal Details Risk Manager expectations of what information Broker will provide related to the policy placement, Broker personnel & experience and the Broker fee. Broker Award Confidentiality Agreement Broker Engagement Letter Service agreement including indemnities and insurance requirements 48. RIMS 2008 Construction PlacementsInsurable Limits 49. RIMS 2008 Construction PlacementsPlacement Strategy - Insuring Limits Full ECV Versus A Loss Limit The Daddy Big Bucks ProjectFull Estimated Contract Value (ECV)$ 1,500,000,000Estimated Premium Calculation2.5% $37,500,000 50. RIMS 2008 Construction PlacementsPlacement Strategy - Insuring Limits Full ECV Versus A Loss LimitThe Daddy Big Bucks ProjectFull Estimated Contract Value (ECV)$ 1,500,000,000Estimated Premium Calculation2.5% $37,500,000 Risk Manager's Option: Insure a Loss Limit CFT $750,000,000Technical Report Estimated Maximum Loss (EML)$500,000,000Delta Between Loss Limit Option & EML$(250,000,000)Credits Hoped For - Loss Limit Option2.5% $ (6,250,000) 51. Placement Strategy - Insuring Limits Full ECV Versus A Loss Limit The Daddy Big Bucks ProjectFull Estimated Contract Value (ECV) $ 1,500,000,000Estimated Premium Calculation2.5% $ 37,500,000 Risk Manager's Option: Insure a Loss Limit CFT$750,000,000Technical Report Estimated Maximum Loss (EML) $500,000,000Delta Between Loss Limit Option & EML $(250,000,000)Credits Hoped For - Loss Limit Option2.5% $(6,250,000) Underwriting Response to Risk Manager's Loss Limit Option Option 1: Loss Limit Option$ 750,000,000Underwriter Loss Modelling EML$800,000,000Delta Between UWR EML & Loss Limit Option $ 50,000,000Credits Quoted For Loss Limit Option 2.5%NIL 52. RIMS 2008 Construction PlacementsPlacement Strategy - Insuring Limits Full ECV Versus A Loss Limit Decision: Insure Full ECV 53. RIMS 2008 Construction Placements Presentation Site Map 54. RIMS 2008 Construction Placements IV) Selected Coverage Issues andRecent Placements 55. RIMS 2008 Construction Placements Selected Coverage Issues 56. RIMS 2008 Construction Placements Coverage Issues - OffshoreWELCAR - Special Conditions for Other Assureds It is a condition precedent for any party identified in Other Assureds definition clause iii. and iv. above to benefit from the Other Assureds status under the Policy that they perform their operations according to Quality Assurance/Quality Control systems(s) which comply with the Quality Assurance/Quality Control provisions passed on by the Principal Assureds through each and every written contract awarded within the scope of insured works as scheduled under the Policy.The interest of the Other Assured(s) shall be covered throughout the entire Policy Period for their direct participation in the venture, unless specific contract(s) contain provisions to the contrary. The rights of any Assured under this insurance shall only be exercised through the Principal Assureds. Where the benefits of this insurance have been passed to an Assured by contract, the benefits passed to that Assured shall be no greater than such contract allows and in no case greater than the benefits provided under the insuring agreements, terms, conditions and exclusions in the Policy. 57. RIMS 2008 Construction Placements Coverage Issues - Offshore WELCAR - Waiver of SubrogationUnderwriters agree to waive rights of subrogation against any PrincipalAssured(s) and/or Other Assured(s). The Assureds shall not grant any waiverof subrogation to drilling contractors and/or their sub-contractors withoutobtaining Underwriters agreement to a specific endorsement to this Policyprior to the commencement of operations. As a condition precedent to their benefiting from the automatic waiver ofsubrogation in this clause, Other Assureds must perform their operationsaccording to Quality Assurance/Quality Control system(s) that comply withthe Quality Assurance/Quality Control provisions passed on by the PrincipalAssureds through each and every written contract awarded within the scopeof insured works as scheduled under the Policy. Note: should be modified to reflect deletion of QA/QC and waiver ofsubrogation to drilling contractors. 58. RIMS 2008 Construction Placements Coverage Issues - OffshoreWELCAR - Policy LimitUnderwriters total liability under Section I for all claims arising out of any oneOccurrence shall not exceed 125% of the latest agreed Schedule B values,including payments made under the sue and labour clause, the additional workclause and the removal of wreckage and/or debris clause (each of which isseparately limited under the appropriate coverage clauses). In the event of escalation as provided under clause 5 of Section I,Underwriters total liability under Section I for all claims arising out of any oneOccurrence shall not exceed 150% of the initial Schedule B values, includingpayments made under the sue and labour clause, the additional work clauseand the removal of wreckage and/or debris clause, and the Escalation Clause(each of which is separately limited under the appropriate coverage clauses). Notwithstanding anything contained herein, Underwriters maximum limit ofliability in respect of Section I shall not exceed the Schedule A value in theaggregate. 59. RIMS 2008 Construction Placements Coverage Issues - OnshoreOnshore Construction Hot Buttons Contractor Requirements Design Error, Extended Maintenance, Contractor Soft Costs: Each of these items often are contractually required by contractors in the current market and can be critical in the final costs for a Builders Risk policy. Although LEG 3/96 (faulty part coverage) is available, it does have an impact on cost. Extended Maintenance coverage as required by many contractors is often not commercially available in the US. Many underwriters take the position that after a Builders Risk policy expires following hand-over, new occurrences become a 3rd party liability issue and not insurable under the Builders Risk (which is a property policy.) Delay in Start-Up: This coverage is often heavily scrutinized by underwriters with burdensome documentation and a long waiting period that sometimes makes the coverage not very cost effective for owners. 60. RIMS 2008 Construction Placements Coverage Issues - Onshore Onshore Construction Hot Buttons continued Inland Transit: This coverage extension although traditionally covered without many questions is coming under increased scrutiny by some underwriters. Owners should be prepared to provide details similar to what one would normally expect on an Ocean Marine placement. This is a critical coverage and owners should carefully evaluate contracts to determine the level of inland transit coverage actual needed under a CAR / EAR policy. Liquidated Damages: Although very challenging and expensive to place (generally not considered economically practical), many contracts have a provision for owners to insure LDs. Underwriters sometimes may agree to write a limited LD cover, there are usually many questions around the issue of moral hazards when contractors know there is insurance for LDs provided to them. 61. RIMS 2008 Construction PlacementsSome Recent Placements 62. RIMS 2008 Construction PlacementsUltra Deep Offshore PlacementConstruction "All Risks" / Liability InsuranceLead Quote on Welcar Form Description Limits CostCAR - Includes Windstorm$444,146,376ECV $ 8,200,000 1.8%$150,000,000CSL 5.5%Sub-LimitsCancellation$5,000,000Standby $ 10,000,000$ 70,000Forwarding$2,500,000Testing $2,500,000Buyback: Faulty Part Coverage $ 20,000,000$445,000Third Party Liability $100,000,000$470,000Sub-Total Insurance Cost$ 9,185,000 Deductibles - Staged from $1,000,000 - $5,000,000 63. RIMS 2008 Construction PlacementsLARGE ONSHORE PROJECT DescriptionMarket Quote Description 2Coverage Full Project ValueDesign Error Provision LEG2/9612 Months Maintenance YesDSU & Extra ExpenseNo CoverWindstorm Limit$100,000,000 In the aggregate for the term of the policy Flood limit$100,000,000 In the aggregate for the term of the policy Earth Movement $250,000,000 Annual aggregate Inland Transit No CoverDeductiblesWorks$500,000Hot Test and Commissioning$1,000,000Named Windstorm3% VARATOL minRate 0.40% 64. RIMS 2008 Construction PlacementsV) Energy Market Indicators 65. $bn20 So how did 2006 turn out? 181614Source:Willis/Aon Energy Loss Database 1210 8 Losses excess US$1m6Estimated Worldwide Premium (US$)4 2 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 66. Energy insurer capacities & average rating levels The Supply & demand curve US$m % of 2001 rates 6,000 120 5,000 100 4,000 80 3,000Offshore 60 Capacities2,000 40OnshoreCapacities 1,000 2000 2001 20022003 20042005 2006 Source: Aon Limited 67. RIMS 2008 Construction PlacementsCapacities of Major ReinsurersReinsurer20062008AIG$150m$200m Swiss $120m$100m + Zurich$75m $100mACE$80m $150m ARCH$75m $100m Liberty $100m$150m 68. RIMS 2008 Construction Placements Underwriter ProfitsInsurer2005 20062007Allianz6.57 10.53 12.00Berkshire Hathaway 8.53 11.0213.2Zurich 3.33 4.63 5.63Ace2.01 2.31 2.58Munich Re4.13 5.30 5.85Axis 0.09 0.93 1.05AWAC -0.160.44 0.47Arch 0.26 0.69 0.83AIG10.4814.056.20XL -1.291.72 0.36Swiss Re 2.07 4.10 3.78Lloyd's-0.207.14 April 08 69. $bnSo how does 2007 look?201816141210 8 Losses excess US$1m6Estimated Worldwide Premium (US$)4 2 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Source:Willis/Aon Energy Loss Database 70. Energy insurer capacities & average rating levels + the supply & demand curveUS$m % of 2001 rates 6,000 120 5,000 100 4,000 80 3,000Offshore 60 Capacities2,000 40OnshoreCapacities 1,000 2000 2001 20022003 2004 2005 2006 2007 Source: Aon Limited 71. Energy insurer capacities & average rating levels + the supply & demand curve, end of Q1 08US$m% of 2001 rates 6,000 120 5,000 100 4,000 80 3,000Offshore 60 Capacities2,000 40OnshoreCapacities 1,000 2000 2001 200220032004 2005 2006 2007 2008 Source: Aon Limited 72. Source: Business Insurance 4/7/08 73. Source: Business Insurance 4/7/08 74. RIMS 2008 Construction PlacementsThank-You ! 75. Atomic Ergonomics Cindi Vickers, ARM 76. What is Ergonomics?From the National Safety Council:Ergonomics is the study of human characteristics for the appropriate design of the living and working environment. 77. What is Ergonomics?Solutions to ensure safety and productivity of workersInvolves changing tools, equipment, materials, work methods, work place:Engineering controlsSafe work practicesPPE 78. What is Ergonomics? Reduce Work- RelatedUse principles of Musculoskeletal Disorders:Ergonomics: Gripping Redesign tools, equipment, Kneeling materials, or work Liftingprocesses Repetitive movements Bending Twisting Using vibrating equipment Squatting Overreaching 79. Musculoskeletal Disorders(MSDs) Involve nerves, tendons, muscles, and supporting structures such as intervertebral discs Represent wide range of disorders from mild to severe chronic and debilitating conditions 80. Common MSDs Carpal tunnel syndrome Low back pain Eyestrain Tendonitis Trigger finger De Quervains disease Rotator cuff tendonitis Herniated disk Hand-arm vibration syndrome 81. MSD Characteristics Severe and debilitating symptoms Reduced worker productivity Lost time Temporary or permanent disability Inability to perform job tasks Increase in workers compensation costs 82. MSD Signs Less strength for gripping Less range of motion Loss of muscle function Inability to do everyday tasks 83. Outward MSD Signs Swelling or inflammation of joints Vigorously shaking hands Massaging hands, wrists, or arms Cradling arms Limping Stiff back 84. MSD Symptoms Back and neck shooting pain, stiffness Shoulders pain, stiffness, loss of mobility Arms and legs shooting pains, numbness Elbow and knee joints pain, swelling, stiffness, soreness 85. MSD Symptoms (cont.) Hands and wrists swelling, numbness, loss of strength Fingers jerking movements, or loss of strength, mobility, and feeling Thumbs pain at the base Feet and toes numbness, tingling, stiffness, burning sensation 86. Risk Factors Repetitive motion Stress on muscles, nerves, and tendons Forceful exertion Inflammation of tendons, nerves, joints Awkward posture Stress on muscles and tendons Contact stress (pressure points) Pressing against or grabbing a hard object Vibration Affects tendons, muscles, joints, nerves 87. Risk Factor - RepetitiveMotion Stress on muscles, nerves, and tendons Contributing factors: Frequency of repetition Duration and speed of the repetitious movement Number of muscles involved Required force 88. Risk Factor - Forceful Exertions Inflammation of tendons, nerves, and joints Contributing factors: Type of grip Weight of object Body posture Type and duration of the task Presence of vibration 89. Risk Factor Awkward PosturesStress on muscles and tendons Contributing factors:Overhead reachingMaintaining awkward position Lifting while twisting, turning, or reaching 90. Risk Factor Contact Stress Pressing against or grabbing a hard object Pressure on nerves, tendons, and blood vessels Contributing factors Repetition Duration of contact Strength of grip required 91. Risk Factor Vibration Affects tendons, muscles, nerves, and joints Contributing factors: Restriction of blood supply to hands and fingers Prolonged grip No dampening device on tool 92. MSD Relation to Risk Factors De Quervains disease Forceful gripHand-arm vibration syndrome Prolonged vibrationRotator cuff syndrome RepetitionThoracic outlet syndromePostureTrigger fingerContact stress 93. No mouth - cant complain about the constant pain from Long flexible neck - to see over workpoorly placed machine controls Built-in computer - easilySteel cable in back - cant beprogrammed for boring injured by heavy liftingrepetitive workSuper strong arm - whenExtra long arm - can quality assurance requires easily reach supplies on brute force to make parts fitthe highest shelvesEasily replaceable wrist unit - Wrist Springs-never needs expensive carpal absorb the shock of tunnel surgery vibrating power Telescoping legs - no needfor adjustable heightworkstations 94. Identifying Hazards and Controlling Through Ergonomics Identify potential hazards and degree of risk Devise control strategy Implement control measures Train employees 95. Workstation Design Workspace layout Work surfaces Standing and walking surfaces Seating Storage Work fixtures Work environment 96. Workstations Computer Workstations KeyboardThin and detachable MonitorPositioned lowSlightly below eye levelViewing angle 30 degrees Mouse or trackball Viewing distance 18-24 Within easy reach Same height as keyboard 97. Workstations Computer Workstations (contd.) Seating Adjustable back support, seat and padded arms Adequate support for back and legs Rolling, five-pronged base for stability Workspace Layout Adjustable Worker should be able to maintain neutral position Adequate leg room Adequate space for tools and equipment 98. Workstations Work Surfaces Proper height and angle Permit neutral postures Adjustable Walking and standing surfaces Designed to prevent slipping Provide adequate traction and comfort 99. Workstations Storage Organized Heavy items stored between knee and shoulder height Frequently used items close to worker Work Fixtures Use mechanical devices Hand tools should fit employees hands Use pneumatics tools with vibration dampening Provide personal protective equipment (PPEs) 100. Workstations Work EnvironmentIsolate equipment or operations that produce loudor distracting noiseProper lightingIsolate hands and feet from coldReduce whole-body vibration while riding invehicles or standing near equipmentIsolate workers from excessive heat 101. Workstations Management ControlsSafe proceduresBroadening or varying job contentTraining in recognition of risk factorsRequiring use of PPEsReducing shift length or curtailing overtimeRotating workersScheduling frequent breaks 102. Key Points Basic Ergonomic Principles Examine work conditions on case-by- case basis Minor ergonomic changes can make significant improvements Involve workers in discussions before changes are made 103. References National Institute for Occupational Safety and Health www.niosh.gov Occupational Safety & Health Administration www.osha.gov National Safety Council www.nsc.org 104. Risk Managers Roundtable Discussion 105. Raffle - GPS