Florida: Preparing for Disasters: Boy Scout Lessons for Owners and Contractors
 
September 21, 2005
 
Heather Pinder Rodriguez- Orlando

The following article was sent out as a Construction and Design alert on July 6, 2005. Given the recent impact of Hurricane Katrina, we are re-publishing it in this newsletter.

Recent natural disasters, such as tornados, tsunamis, hurricanes, floods, storms and mudslides, and even the threat of terror attacks, have given new importance to the Boy Scout motto: “Be Prepared.” It is not enough to simply hope for the best; rather, owners and contractors must prepare for the worst. Such preparations include calculated written plans to address the potential consequences, before, during and after the potential disaster.

A comprehensive Emergency Response Strategy (ERS), will alleviate much of the confusion and insecurity associated with an impending disaster, such as a hurricane, and will coordinate efforts to protect life and property during and after the disaster. Most importantly, a thorough ERS will help reduce cost, damage, delays, liability and lost manpower on the job.

Preparing for the Disaster

Consider and address the following before disaster strikes:

• Review and assess insurance coverage. Keep insurance policy and contact information in a safe and accessible location. Consider keeping multiple copies in different places.

• Review and assess current and future contracts to determine if a written ERS is required or should be required as part of the bid package or contract performance.

• Review and assess current and future contracts to determine who will bear the risk of loss associated with a natural disaster or Act of God, such as (1) delays, (2) material and labor shortages, (3) increased costs, (4) insurances claims, and (5) long term effects, such as mold and mildew claims.

• Prepare a list of key personnel and multiple contact numbers in the event of an emergency.

• Secure a telephone number out of your area that can be used to coordinate disaster response efforts and, if necessary, project management after the disaster if phone lines or electricity is out of service for an extended period of time. For small to mid-size companies, this could be a relative or business associate outside the area. Larger companies may consider obtaining a toll-free number with voicemail capabilities.

• Address security risks prior to, during and after a disaster.

• Develop a plan to secure the job site, protect work and equipment, remove debris and temporarily halt material deliveries prior to an impending disaster, such as a hurricane.

• Develop a plan to re-open the job site after the disaster.

• Obtain emergency contact numbers for all subcontractors and suppliers.

• Formulate a plan to address employee needs both prior to, during and after the disaster.

• Back up important electronic information.

• Maintain necessary cash reserves to operate your business for a few days after the disaster.

• Assess equipment, such as generators, tarps, plywood, first aid kits, bottled water and flash lights, that may be necessary during a disaster and purchase them in advance. Identify where such items will be stored.

• Store necessary back-up office supplies (e.g., toner, printer cartridges, paper, etc.) in the event supplies are not available for some time.

• Identify important project documents and where they will be stored.

• Formulate a plan for responding to media inquiries.

• At least annually, evaluate your company’s ERS, to assure compliance, and consider necessary revisions as your company’s needs change.

Responding to the Impending Disaster

If you know a natural disaster is impending, such as a hurricane, formulate a plan to take the necessary steps immediately prior to and during the disaster, such as the following:

• Inspect the site and document, preferably with photographs or video, work completed and equipment on the site.

• Secure the job site to limit vandalism and looting immediately prior to and after the disaster.

• Remove debris, scaffolding and dumpsters.

• Protect and/or secure work and equipment.

• If possible and prudent, accelerate and complete work that may prevent damage to the project.

• Temporarily halt material deliveries.

• Contact the owner, general contractor, or subcontractor to coordinate efforts to secure the job site and obtain or confirm contact information for after the disaster.

• Protect computers and electronic records.

• Protect important documents, such as insurance policies, blue prints, drawings, contracts, etc.

• Address employee needs and concerns.

• Buy gas and charge batteries, such as cell phones, before the storm.

• Ensure adequacy of supplies and compliance with the ERS.

The Aftermath

Once the danger has passed and law enforcement allows travel and access to the site, plan to take the following steps:

• Inspect the job site and document damage, preferably with photographs or video.

• Immediately and reasonably mitigate damage to prevent further damage.

• Contact your insurance agent and document all communications.

• To the extent possible, secure the job site to avoid further damage, looting, or vandalism.

• Contact the owner, general contractor, subcontractors and suppliers to coordinate relief and repair efforts.

• Address employee needs and concerns. Ensure the safety of employees on the job site after the disaster.

• Formulate plan to repair damage. Document repair efforts and associated delays, including labor and material shortages and increased costs, incurred as result of the disaster.

• Protect damaged structures from water intrusion and remove any water intrusion immediately to avoid subsequent mold and mildew claims.

• If necessary, retain outside inspectors or experts to assess storm damage and efforts to repair same.

Conclusion

In the end, being a Boy Scout before the disaster will provide you, your company and your job site with some security in the aftermath of a natural disaster, and most importantly will dramatically reduce and limit your company’s liability.

Sources: Emergency Management Guide for Business & Industry, Federal Emergency Management Agency (FEMA) (Oct. 22, 2004); Hurricane Preparedness for Builders, Toolbase Services (Sept. 2003).

Author’s Note: Heather Pinder Rodriguez practices in our Orlando office, and along with our construction clients, endured three of the four major hurricanes of 2004. Ms. Rodriguez also provided pro bono legal services to low income hurricane victims through FEMA/Florida Bar disaster relief efforts, and was recently appointed as the 2005-2006 Florida Bar YLD Board of Governor’s liaison to FEMA and the ABA on disaster preparation and relief efforts.

For more information, e-mail Heather Pinder Rodriguez at heather.rodriguez@hklaw.com or call toll free, 1-888-688-8500.