CFA Studies Self- Insurance
How much do you pay annually in Workman’s Compensation, General and Property Liability insurance premiums? Is it twenty-five thousand, fifty thousand, a hundred thousand dollars or more? Chances are, most of you would be elated to pay this much for insurance. A quick survey of CFA Board of Director members found that, on average, their companies were each paying over $250,000 per year in premiums.
What would it be worth to you if you could save 30%, 40%, or more on those premiums? Certainly the price of membership in CFA – several times over! You can implement improvements, risk management, and a host of other strategies to reduce your premiums but it is doubtful you will still save that much money. One of the problems with insurance companies is that they must spread varied risks of a huge pool of customers. So even when you reduce your risks, you don’t get the full benefit of your improvements. Insurance companies must cover catastrophic losses such as hurricanes; they have shareholders who demand huge profits; and then there are all those edifices to construct and maintain.
Many CFA member companies are too small to create your own self-insurance pool, but a trade association with all its members involved in the same type of business, is well-suited for this type of venture. The CFA is in the early stages of determining what it would take to form its own “captive” or self-insurance pool. Large corporations, municipal governments, schools, hospitals, and other organizations have been doing this for decades. It’s the only way to control their costs. It is not as common, however, in the construction industry. One organization that has taken the step is the Concrete Sawing and Drilling Association, a group similar in size, scope, and risk to the CFA. They are in their 6th year of self-insurance and their participating members are saving between 30% and 70% off their insurance premiums. This could be just the edge needed to separate your business from the competition. In addition, their association generates income from the administration of the effort helping to keep dues under control.
The details of the program are far more complicated than can be explained in this short article. Reinsurers, overlays, complexities of Workman’s Compensation in multiple states, and hundreds of other questions must be addressed. These questions, and the details, are the responsibility of a paid consultant. It could take 6 months or even several years before it is implemented and it would be a members-only program. If the decision is to proceed following a half-day question and answer session following the board meeting this spring, a feasibility study will be commissioned. During this study, the insurers, reinsurers, and a host of other details will be worked out.
If you want to be kept abreast of these developments, or would like to serve on the task group charged with the development of the program, contact CFA offices? The task group met during the CFA Spring Meeting in Coralville, Iowa and voted unanimously to proceed to the next step in furthering the process of creating this program.
Ed Sauter, Executive Director, CFA esauter@cfawalls.orgPROVIDE UP TO 8 FEET OF HYDROSTATIC HEAD PROTECTION …UP TO 8 TIMES GREATER THAN COMPETITION Breakthrough Product Formulations
Tremco Barrier Solutions, North America’s leading provider of residential new construction waterproofing, is taking basement waterproofing performance to a new level by protecting below-grade foundation walls from up to eight feet of water pressure!
New TUFF-N-DRI® H8 is the industry’s first and only national brand of polymer-modified asphalt emulsion membrane with the ability to withstand up to eight feet of hydrostatic pressure. That’s more than eight times greater than comparable waterproofing membranes.
Additionally, new WATCHDOG WATERPROOFING® H3 offers up to three feet of hydrostatic resistance – more than triple the ability of other polymer-modified asphalt emulsion waterproofing products.
“It’s about better waterproofing performance under hydrostatic head pressure, and a clear opportunity for contractors to increase value to their builder customers,” says Mark Patterson, vice president and general manager for Tremco Barrier Solutions. “By applying our expertise to the re-formulation of the TUFF-N-DRI and WATCHDOG WATERPROOFING brands, we’re again leading the industry with innovative and effective products that provide our customers with clearly superior products and a sustained competitive advantage.”
Residential building codes define waterproofing as the ability of a membrane to prevent the passage of water under hydrostatic pressure. Triggered by periods of heavy rain or ineffective or failed drainage systems, this condition can occur against a foundation wall when water accumulates at the base of the wall and rises as moisture continues to drain through the soil. Significant hydrostatic pressure can develop, potentially pushing moisture through an inferior waterproofing membrane and into the basement through naturally occurring cracks in an improperly protected foundation wall.
Most waterproofing products available today are designed to withstand only 12 inches or less of hydrostatic pressure. A single heavy downpour could lead to a failed waterproofing membrane and a wet basement, which can result in a costly callback for the contractor.
“To be effective, it’s critical that a waterproofing membrane provide a uniform thickness of 40 mils cured,” says James R. Wells, Ph.D., technical director for Tremco Barrier Solutions. “TUFF-N-DRI H8 and WATCHDOG H3 offer exceptional hang strength, so they’re able to build easily and efficiently to the proper thickness. With this consistent 40-mil thickness, the membranes are able to provide up to eight feet of hydrostatic head resistance. That’s especially important when the membrane has to span a shrinkage crack in the foundation wall. It’s over these cracks that weaker membranes will fail.”
A waterproofing membrane that lacks the ability to hang on a foundation wall and build to a consistent thickness can leave large portions of the wall with even less than 12 inches of hydrostatic resistance. “A membrane’s ability to stop water under pressure declines drastically as the cured thickness decreases. For example, a 40-mil cured membrane that tests at 12 inches of hydrostatic head resistance will provide only about seven inches of resistance at 30 mils – a performance decline of over 40 percent with a thickness decrease of only 25 percent.”
SUMMER CONVENTION GETS BETTER EVERY YEAR
After wrapping up the CFA Summer Convention in New Mexico, I was extremely impressed with the energy and participation of all the attendees. Thank you’s need to go out to Ed Sauter and Jim Baty for what I believe is the best summer convention I have attended.
The content and theme “How to Survive a Down Economy” were timely and meaningful. The energy level and excitement by all was very rewarding. Although we had a low turn out this year and believe me, I understand why with the housing market the way it is, I would encourage all members of CFA to try to make next year’s summer convention at Amelia Island, Florida. The meetings continue to get better every year and next year promises to continue this trend. Most meetings provide me with something I have learned and that I can take back to my business, which pays for the cost and time of attending.
Some of the highlights of the summer convention were:
- The Initial Kick Off of CFA member Companies Certification, certificate testing, and CMU’s granted for the education. The testing was difficult, we wanted a program that has teeth and means something and we got it. We hope as CFA Company Certification grows and matures that it will have a major impact for CFA and our member companies.
- Secondly, participation in a committee meeting was outstanding and very productive. The major highlight of CFA Board planning retreat last fall was to encourage more participation on committee’s by non-board members. Well, we are off to a great start with the participation we saw at the summer committee meeting. To all of you that took part, thank you.
And finally, I would like to say thank you to Brad Schrock for his leadership and direction over the last two years as President of CFA. He has given me personally and the board a lot to live up to. Thank you again, Brad.
Dan Bromley, CFA President, ABI Corporation danb@abi-corp.comTHERMOMASS BUILDING SYSTEM
The THERMOMASS Building System is a patented, highly energy-efficient insulation system for concrete sandwich walls, developed and manufactured by Composite Technologies Corporation (CTC). The two components of Thermomass are rigid insulation and CTC manufactured fiber-composite connectors. They combine to create a load-bearing, durable, moisture resistant, highly energy-efficient concrete sandwich wall. This remarkable insulation system offers unlimited design flexibility and is durable and virtually maintenance-free.
PUTZMEISTER AMERICA, INC. INTRODUCES 70Z-Meter Truck-Mounted Boom Pump
PRODUCTION BEGINS ON WORLD’S LARGEST BOOM PUMP
Further expanding the reach and capabilities of its broad line of truck-mounted concrete boom pumps, Putzmeister America, Inc. will launch its innovative 70Z-Meter truck-mounted concrete boom pump in mid 2008. Continuing in the Putzmeister tradition, and as seen at the ConExpo-CON/AGG 2005 release of the BSF 63Z-Meter, the company will again take the industry by storm with the 70Z-Meter.
“We’re taking concrete placement to the extreme in 2008,” says Putzmeister America President and CEO, Dave Adams. “The new 70Z-Meter offers over 227 feet of vertical reach and nearly 213 feet of horizontal reach. It will not only be the largest truck-mounted boom pump in the market, it will feature technologies and support only available from Putzmeister.”
Standard on all models 52-meters and up, including the 70ZMeter, Putzmeister’s exclusive Ergonic® technology allows the operator to set parameters that control the boom, the pump and many other operational functions. The Ergonic Pump Control System (EPS) is just one of several modules in the Ergonic system. Ergonic Tele Service (ETS), offering realtime remote diagnosis of the unit operation in the field, and Ergonic Boom Control (EBC) with OneTouch™ are other exclusive technological features.
Big Capabilities in a Small Package!
The Trimble® LM80 Layout Manager is pocket-sized, personal layout manager that lets you carry, manage, work with, and lay out your jobsite blueprint, regardless of the method and instrumentation you use.
The LM80 lets you:
- input blueprint dimensions to build a digital replica of the layout plan
- guide the layout of the major points, add string dimensions on the print, or calculate diagonals or angles
- reduce your reliance on third-party specialists
- organize and standardize all layout activity for all layout equipment you currently use cut training costs
- increase flexibility if one instrument is unavailable – easily swap it out for another!
CFA SELF-INSURANCE PRESENTATION IN OHIO
My “From the Director” column two issues ago presented some of the details of the CFA initiative to form a CFA self-insurance “Captive”. The CFA Board of Directors is ready to move forward with the CFA Self-Insurance Captive, but we need member participation to make it happen. This has the potential to be the biggest single benefit for CFA members with regard to financial payback. It can save members anywhere from 5% initially on their insurance premiums, upward to 30% or more when the corporation has greater experience managing member risks (anticipated at 4-5 years).
The CFA itself will also make money from the enterprise, which will help keep dues under control and fund additional member benefits.
This insurance will include all coverages except for health insurance. Workman’s compensation will be covered in all states except those where it is mandated that companies must purchase Workman’s Compensation from the state (Ohio is one we are aware of ).
The concept is one that has been used by municipalities, hospitals, government agencies, and corporations for decades to reduce their insurance costs. It has only recently been introduced to the trade association industry. Our program will be modeled after the successful venture of the Concrete Sawing and Drilling Corporation (CSDA). CSDA is similar is size, scope and risk to our group and their members are realizing savings on insurance premiums of approximately 30% in their fifth year of operation.
We have two challenges to get the program started.
- First, the CFA members must match the start-up fees involved in establishing the Captive. The total start-up costs are projected to be between $120,000 and $130,000. Our consultant will contribute $60,000 of this cost in return for a 5-year agreement to manage the Captive. CFA members, acting as investors, must come up with the balance. We are researching the steps involved to establish a separate corporation for the Captive and the mechanism of raising the remaining $60,000-70,000.
- The second challenge is having a sufficient number of companies participate so that the minimum annual premium amount, estimated to be approximately $3,000,000, is met. We anticipate 25-30 investor/participant companies initially. This will reduce the risk and investment of the companies.
Board members have attended a presentation by the consultant and most of them will be participating in the venture but we want to make certain that all of our members have the opportunity to participate at the start-up phase. Investors in the effort are projected to get a return of at least their initial investment (in addition to their insurance savings) plus a yet-to-be-determined return at a time the Captive has sufficient funds.
The concept is too complicated to explain in a letter, but in its simplest terms, members pay the same insurance premiums they are currently paying but pay them to the Captive. This premium covers basic losses identified for the program and purchases additional insurance to cover the higher risk and catastrophic losses that could be incurred. The premise is that the Captive members are paying only for the risks that they are subject to, and thus have a better opportunity to control and manage their risks as opposed to paying into a pool that includes the broad spectrum of risks and claims that a typical insurance company must pay.
To better explain the concept and determine the level of participation by our members, our consultant will make a presentation at our meeting this fall in Columbus, Ohio. The presentation will take between 3-4 hours and we suggest that the person responsible for your insurance and/or the financial officer for your company attend the presentation. (Turn to the Fall Regional Meeting Information pages and registration on pages 8-11.) Our intent is to move forward by December 1 if there is sufficient interest.
Please feel free to contact me if you have any questions.
Ed Sauter, Executive Director, CFA esauter@cfawalls.orgPALFINGER TEAMS UP WITH NORTH AMERICA’S LEADING TRUCK MANUFACTURERS ULTIMATE IN POWER AND REACH
PALFINGER North America, a proven world leader in building truck mounted cranes, has teamed up with North America’s leading truck manufacturers.
The result is to offer the ultimate in power and reach with superior performance for extreme applications featuring the PK 85002, PK 100002 and PK 150002 knuckle boom cranes.
Palfinger engineers design each truck and crane to withstand the maximum torque and load to tackle the most demanding applications. This unique truckcrane product series will provide the strongest, most versatile crane on the market today.
The PK 85002 is Palfinger’s strong team player in the heavy-duty league. The PK 85002 stands out by virtue of maximum working speed, outreach and lifting capacity. Equipment features installed as standard include HPLS (High Power Lifting System), Paltronic 50, Power Link Plus and Dual Power System
The PK 100002 with fly jib sets the standard in its class and impresses by virtue of it geometry and numerous technical features. Equipped as standard with Paltronic 50, Radio Remote Control, Power Link Plus this crane stands out through its’ great maneuverability and universal deploy-ability.
Right at the top of the heavy duty crane class, the PK 150002 Performance crane sets completely new standards of quality, outreach and lifting capacity. Equipped with HPLS, Paltronic 50, Power Link Plus and Dual Power System, this crane also sets a new milestone in crane engineering.
Each of these units is equipped with load sensing hydraulics for outstanding control and overall efficiency. Also featured on the PK 100002 and PK 150002 (and offered as an option on the PK 85002) is the Integrated Stability Control system. The ISC system adjusts the crane’s lifting capacity according to outrigger and stabilizer positions at time of setup.
Please visit our website at www.palfinger-northamerica.com for more information on the large crane packages!
THE UN-COMFORT ZONE… Will You Freak-Out or Hunker Down?
by Robert Wilson
Sometimes motivation is forced upon us. We are thrust into the Un-comfort Zone. And, whether we sink or swim depends on how we respond to the situation. How do you react during a crisis?
Here are the stories of two men who faced a crisis late in life and how they dealt with it. One was a restaurant owner; the other a janitor. The former went into bankruptcy at an age when most people retire, and the latter was fi red from a job he’d had for nearly 20 years.
The restaurant owner enjoyed a successful business in a small town at the edge of the Appalachian Mountains. It was a great location along busy U.S. Route 25. And, because he offered the best food and service around, his eatery was jammed from sunup to sundown. But it wasn’t to last.
The janitor started his job at St. Peter’s Church in London as a teenager. Over the years he married and raised a family and enjoyed a perfectly predictable profession with solid job security. That is until the new vicar came along.
Over the course of 26 years, he was honored by the state governor for his recipes; and was praised by famous restaurant critic, Duncan Hines, in his column Adventures in Good Eating. Then in 1956, the new super highway by-passed the little town. It’s amazing the difference just a few miles can make. Two years later the restaurant was closed and the property auctioned off to pay creditors. At 64 years old, the restaurant owner was broke.
It was around the turn of the twentieth century when the new vicar, a stickler for decorum, took over St. Peter’s Church. When he learned that the janitor could not read, he gave him three months in which to learn. Quite depressed by the news, the man thought it might make him feel better if he smoked a cigarette.
Unable to afford the cost of opening another restaurant closer to the highway, he reviewed his assets. All he had left was his knowledge and the delicious recipes that made his food so popular. So, he got into his car.
As he walked home, the janitor searched for a tobacco shop. There was usually one on every block, but there were none near the church. He walked block after block without fi nding one. By the time he reached his house he knew exactly what he was going to do.
Town by town, he drove, stopping at every restaurant along the way. He told the owners they would be more successful if they served his secret recipes under his brand name and paid him a royalty. Two years later, in 1960, he had 400 restaurants serving his food. By 1963 he was making a profi t of $300,000 per year. And, in 1964, Colonel Harlan Sanders sold Kentucky Fried Chicken to investors for $2 million, plus a lifetime salary of $75,000 per year.
With his meager savings, he opened a tobacco shop near the church. It was an immediate success. His profi ts went to open a second, then a third and before long he had thriving tobacco shops all over London. Ten years later, he met with his banker about investing his earnings. The banker gave him some papers to sign. The man asked the banker to read the papers to him, explaining that he didn’t know how. Shocked, the banker exclaimed, “You are so successful, just think where you’d be today if you could read!” Albert Edward Foreman smiled and sighed, “I’d be the janitor at St. Peter’s Church.” (Based on a true story by Somerset Maugham)
Did you know that in Chinese, the symbol for the word “crisis” is the same symbol used for the word “opportunity?” Two sides of the same coin. In other words, it’s all in our perspective. Will you find the opportunity in your next crisis?
*****
Robert Evans Wilson, Jr. is a motivational speaker and humorist. He works with companies that want to be more competitive and with people who want to think like innovators. For more information on Robert’s programs please visit www.jumpstartyourmeeting.com.
“Tell me and I forget; Show me and I remember; Involve me and I understand.”
Robert Wilson 404-255-4924 robert@jumpstartyourmeeting.comWATER BASED FORM RELEASE AGENTS Tap Into The Benefits
Continually rising oil prices and stricter environmental and safety regulations are changing the way many contractors work. Water based form release agents are the clear choice in answering many of these challenges and Nox-Crete’s water based formulas offer benefits that are just not possible with petroleum based products:
- PERFORMANCE Nox-Crete’s continued research and development has produced water based form release agents with improved performance over traditional petroleum based products.
- SAVINGS Water based release agents cost less than petroleum based products. Contractors can save even more, up to as much as 50% over the cost of current oil based form release agents, by choosing one of Nox-Crete’s concentrated or super concentrated versions.
- SAFETY All Nox-Crete’s form release agents are manufactured using the safest ingredients available. Water based form release agents reduce employee exposure to hazardous materials and are virtually odor free – a big plus for workers exposed to form release agents on the job site every day.
- ECO-FRIENDLY Our water based form release agents are low VOC and easily meet all known state VOC requirements. Our water based form release agents are part of our Green Engineered™ program and are ideal for projects seeking official “green building” certifications or for construction processes mindful of our planet.
Poured wall contractors using aluminum forms can especially benefit from both the improved cost and performance of our super concentrated AlumI-cOn. Formulated specifically for aluminum forms, chemically active Alumi-CoN maximizes the savings potential with the economy of a concentrated product. Dilutable up to 6:1 with water, Alumi-CoN allows the user to customize product performance by adjusting the dilution rate to fit specific needs. Once diluted, Alumi-CoN stays well mixed for use throughout the day. When dry on form surfaces, Alumi-CoN is non-slippery and resists removal by normal rain showers. The variable dilution rates also allow Alumi-Con to be used as a maintenance coating for removing hardened concrete builup from form surfaces as well. Achieving the proper dilution rate is easily achieved when Alumi-Con is used in conjunction with Nox-Crete’s mix STATioN. The mix STATioN simultaneously dilutes and mixes Nox-Crete’s super concentrated form release agents in one easy step. Contractors dilute and mix only as much product as they need at a given time.
For workers, Alumi-Con is a welcome, low odor change from the smell of traditional petroleum based products. And, unlike oil based products, Alumi-Con dries quickly and doesn’t collect dirt and dust throughout the day, meaning workers go home cleaner than with petroleum based products.
When you’re ready to make the switch to water based form release agents, choose Nox-Crete. We are the industry leader in water based technology. For more information about the advantages of water based release agents, contact Nox-Crete at (800) 669-2738 or visit www.nox-crete.com. Full product data sheets for the Mix Station, Alumi-Con and all water based release agent options are available online.
