Bank and Financial Intitutions

Construction Safety Practices

Situation

The bank can be sued as a party to unsafe workplace conditions if a construction worker is injured or dies. The bank’s representative visits the site to see if further money can be advanced to the contractor. The construction contractor (recipient of the loan proceeds) is placing the bank (provider of the loan) in a situation where the is a potential liability resulting from unsafe construction practices. Nevertheless, a bank requires assurance that the money loaned is actually being invested into the construction, an assurance that requires a bank representative to visit the site.

On one construction site, DiGeronimo observed: unstable, make-shift wooden ladders as the only means workmen accessed multiple floors; openings in the multiple level floors lying unprotected as gaping sequential pits; and openings in exterior walls left as unclosed voids.

Solution

DiGeronimo assists the bank in the preparation of an agreement, signed by the recipient of the loan, to contractually mandate the construction contractor maintain a safe work environment. DiGeronimo inspects the work of the construction contractor for the duration of the distribution of loan proceeds.

Process

• Assess the contractor as maintaining a safe work environment, thereby limiting the bank’s liability in the case of worker injury or death
• Assure the bank that the contractor is performing in a workmanlike manner
• Certify Contractor’s Application for Payment
• Structure a schedule of Contractor incremental payments
• Assure the monies processed as spent are being spent investing into the construction of the project
• Certify that the Contractor’s third party debts have been satisfied and all liens removed
• Arrange a clear, orderly paperwork process during construction
• Account for money draw-downs requested by the contractor
• Certify the contractor monetary draw-downs represent funds invested in the progress of construction on the project
• Assure the bank that the contractor is performing