PRIMA Public Risk April/May/June 2025 by Moire Marketing Partners

Meet Steve LePock

PLATINUM

JUNE WEBINAR

JUNE 18 | 12:00 PM – 1:00 PM ET

SPEAKERS:

Chad Johnson, Protective Security Advisor, Department of Homeland Security/CISA

Josh Velasquez, Protective Security Advisor, Department of Homeland Security/CISA

Critical infrastructure faces growing risks from cyberattacks, natural disasters, and terrorism. Increased connectivity raises vulnerabilities that demand stronger security measures. Proactive planning and risk assessments help reduce disruptions, while public-private collaboration is key to addressing evolving threats and enhancing resilience.

ATTENDEE TAKEAWAYS:

1. Increased connectivity heightens vulnerabilities, requiring stronger security measures

2. Proactive planning and regular risk assessments are essential for reducing disruptions

3. Collaboration between public and private sectors is crucial for addressing evolving threats effectively

NEWS Briefs

quarters of a million people just northwest of the city. In 2024, there were 14 pedestrian fatalities, a figure that exceeds the average of 12 for the pre-pandemic years. In Cobb County, the best available information is that while just 0.2 percent of all car crashes involve fatalities, the number jumps to 10 percent when the victim is a pedestrian. The primary suspect is the roads. “These aren’t accidents,” one Cobb engineer has said. “They are a result of road design.” And the most lethal flaw in the design of the county’s broad arterial highways is the absence of safe places to cross the street: Over 11 years, 58 percent of fatally injured pedestrians were crossing outside a crosswalk.

Cobb County, to its credit, has been devoting a chunk of its resources to finding how and why these crashes occur. It has uncovered some compelling and distressing facts, in cooperation with the Georgia Department of Transportation and as detailed by the Marietta Daily Journal and the newspaper’s excellent transportation reporter, Hunter Riggall.

WHAT’S KILLING SO MANY PEDESTRIANS?

Experts argue about whether it’s mostly poor road design or dangerous drivers. But there’s no question that it’s gotten a lot riskier to travel on foot.

By Alan Ehrenhalt, Governing magazine

If you’ve ever taken a walk down an arterial road in the suburbs of Atlanta (a journey I don’t especially recommend), you’ll probably notice something puzzling and a bit disconcerting. There are scarcely any pedestrian crosswalks. You may have to walk a mile down the busy highway to find a place where you can cross the street legally and safely. Most

pedestrians don’t bother to do this. They cross in the middle of the road, braving the dangers inherent in dodging the speeding cars. There are also very few medians to make the ordeal of crossing an arterial a little safer.

This problem is on obvious display in Cobb County, the suburban behemoth of three-

Most of the fatal crashes occur at night. In 45 percent of the crashes, there were no streetlights to illuminate the pedestrians. More occur in winter, although the majority happen on clear roads. Driving under the influence accounted for a surprisingly small share of the fatal accidents, only about 3 percent, but distracted driving — mostly drivers using cellphones — is a worse problem. Over the decade from 2013 to 2022 in Cobb County, more than 40 percent of pedestrian deaths were thought to have involved distracted drivers.

Read more: https://www.governing.com/transportation/ whats-killing-so-many-pedestrians

TELL US A LITTLE BIT ABOUT YOURSELF.

I was born and raised in West “By God” Virginia, in a small town just outside Morgantown with a population of about 900 people. Growing up in a small town, I played baseball from an early age through high school. I dreamed of becoming a Major League Baseball player, specifically the shortstop for the Los Angeles Dodgers. When that dream didn’t pan out after high school, my backup plan was to be a game show host. Who wouldn’t want to be the next Bob Eubanks, Chuck Woolery, or Bob Barker?

These days, I love traveling, gardening, and hitting the beach. I’m always up for any kind of movement — hiking, running, and playing all sports. I’m also a big fan of Fantasy Baseball and Football. And most importantly, I clean up after dinner! My wife is the cook, and I’m the cleaner. In fact, Wolfgang Puck himself acknowledged my cleaning ability after signing a cookbook for us a few years ago. Much to my surprise, he sounded a bit like Arnold Schwarzenegger while saying it!

HOW DID YOU GET INTO YOUR CAREER AS A RISK MANAGER?

After high school, I initially pursued a degree in graphic art, but soon I realized it wasn’t the right path for me. I walked into my college’s Engineering Department and asked an advisor which field in the future would be in high demand. He pointed me toward safety engineering, a decision that would shape the rest of my professional life. After six years of balancing full-time work at a grocery store with full-time studies, I proudly earned a Bachelor of Science in safety engineering from Fairmont State University in 1990.

Following graduation, I moved to Virginia Beach, VA where I began my career in a laboratory setting before becoming the safety and environmental director at a metal casting facility. This role provided invaluable experience in managing high-risk operations and gave me the confidence to lead in complex, hazardous environments. I knew the OSHA and EPA standards like the back of my hand.

My next career move brought me into the public sector, a shift that would define the next

When I first joined the Board of Directors, I had no intentions of becoming PRIMA President. But once I began to understand the inner workings of the organization, something changed. I became genuinely enthusiastic about the organization. I was sold! This accomplishment is truly the pinnacle of my career. “ “

chapter of my life. I joined Virginia Beach City Public Schools after a devastating fire at one of the district’s high schools, underscoring the need for a dedicated safety and risk manager. Tasked with building the program from the ground up, I established and now lead a comprehensive Risk Management Department that serves the fourth-largest school district in Virginia.

For the last 25+ years, I’ve been responsible for overall risk, safety, and health compliance for more than 13,000 employees and 65,000 K–12 students across 103 facilities. My office oversees workers’ compensation, third-party claims administration, insurance procurement and renewals, occupational safety, transportation fleet safety, facility use policies, certificate of insurance tracking, and emerging risk consultation. Not bad for a country boy from West Virginia.

I’m still active with my local state chapters as well. I’m a past president and current treasurer of the Virginia Public Risk Management Association (VA PRIMA) and a past president of the Greater Tidewater Chapter of the American Society of Safety Professionals (ASSP). I continue to find meaning and purpose in protecting the people and places that support student success.

WHAT IS YOUR FAVORITE PART OF THIS INDUSTRY?

I’ve conducted numerous risk and safety training sessions throughout my career. Recently, I incorporated some motivational safety themes from personal life experiences into my presentations. I’ve come a long way from seeing someone fall asleep during one of my presentations to getting standing ovations and a line of employees waiting to tell me they enjoyed it.

WHAT IS YOUR LEAST FAVORITE PART OF THE INDUSTRY?

It’s when an employee gets injured on the job. Overseeing the workers’ compensation program, I see the impact of these incidents daily. I take great pride in my role and hold a deep sense of responsibility for our employees’ well-being. I strive every day to ensure that each person who comes to work leaves in the same condition they arrived — safe, healthy, and whole.

WHAT HAS BEEN YOUR BIGGEST HURDLE TO OVERCOME IN THE PAST YEAR?

From saying “no” to saying “yes, if…” It’s been a proactive shift in risk management.

In the past, our approach to field trips and school events was often seen as highly restric-

their young minds are exposed to educational sessions, experienced risk managers, and other resources designed to encourage and support them in their pursuit of a profession in risk management.

MENTORING

Mentoring is another powerful tool for cultivating new risk managers. Experienced professionals can provide guidance, share insights, and offer support to newcomers, helping them navigate the complexities of the field. Through one-on-one interactions, mentors can help potential risk managers develop their skills, build their professional networks, and gain a deeper understanding of the risk management landscape.

INTERNSHIPS AND VOLUNTEER OPPORTUNITIES

Internships and volunteer positions provide valuable hands-on experience for aspiring risk managers. Working alongside seasoned

Through one-on-one interactions, mentors can help potential risk managers develop their skills, build their professional networks, and gain a deeper understanding of the risk management landscape.

professionals, interns and volunteers can gain practical exposure to real-world risk management challenges and solutions, grow their knowledge through experience, and advance their career. Internships also help public entities identify and nurture promising talent, creating a pipeline of future risk managers who are familiar with the organization’s culture and operations.

Developing future risk managers requires a multifaceted approach that addresses the

challenges facing the field while leveraging education, mentoring, and interning opportunities. By investing in the risk management field, the public sector can ensure that the risk management torch is successfully passed to the next generation of professionals.

Shannon works for Arthur J. Gallagher as the Operations Director of its Public Sector and K-12 Education and Global Education Practices, and as a Senior Consultant for Enterprise Risk Management.

Public Risk Manager of the Year

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tracking methodology of injury costs can be used to report and track rework costs.

Risk managers and safety professionals began tracking and reporting the hidden costs of injuries decades ago by providing executives and construction teams with financially reliable data that detailed the direct and indirect costs of incidents. This led to action and resulted in a reduction in incident rates and costs. The construction industry measures safety differently today than 30-40 years ago.

Love and Matthews suggest risk managers track rework costs using a worksheet like the one found at qualitysafetytimes.com/ tracking-costs-of-rework/. To truly appreciate the cost impact of claims, add a cost multiplier identifying how much additional work or service must be completed to offset the total loss. For example, at three percent profit, a $50,000 claim requires $333,333 of additional billables to offset the loss. In the public arena, financial profit is not the goal; however, staying within budget should be. To state the obvious, reducing loss (rework) allows resources to be allocated to other priorities.

THE PARALLELS BETWEEN INJURY PREVENTION AND QUALITY CONTROL

CRAFT INJURY AND REWORK

Recent research has confirmed a symbiotic relationship between poor quality and project safety incidents. This research discovered a positive linear relationship between the recordable injury rates per 200,000 workers and the number of worker hours related to rework per $1 million scope of project completed.2 See Figures 1 and 2 excerpted from this research.

CONSISTENT AND MEANINGFUL COMMUNICATION AND ITS ROLE IN REWORK PREVENTION

Safety procedures have included weekly toolbox talks as a method of communication, training, and overall information sharing for many years. These toolbox talks also serve as opportunities for team building, story sharing and proactively driving safety culture. Quality control communications typically occur in leadership meetings and through procedural documentation, excluding construction craft

workers. Most quality control programs do not incorporate communication with or train construction craft workers in this manner.

The authors did not identify a single contractor with trade-specific, weekly craft-level training in their research. This is like having a great safety program with no weekly safety crewlevel meetings and no communication or training for the crews doing the work.

SUBCONTRACTOR DEFAULT

Subcontractors default for three primary reasons:

1. Lack of labor and inability to maintain the schedule

2. Financial insolvency

3. Quality control problems.

INJ 1 vs. Q 5

Recordable

INJ 1 vs. Q 6

Recordable Injury Rate

Subcontractor default insurance claims are a low frequency and high severity type exposure, according to River Steenson, Senior Vice President with NFP. Quality issues generate about 20 percent of all the costs to cure a sub-default insurance claim. That represents a massive opportunity to reduce the size of a claim by just focusing on each subcontractor’s quality on the project site.

SAFETY AND QUALITY IN CONTRACTS

The safety of persons and property has long been part of the standard American Institute of Architects (AIA) contract. This language requires owners to take reasonable precautions and promptly remedy damage and loss. AIA indicates that quality control is “… an indispensable aspect of construction contracts…”

Training and certification are key components to meet contract requirements. This includes training, certifications, and continuous education specifically for professional staff. Most training is on-the-job, which can make sharing quality information difficult. The question is how can training be completed.

AIA recommends that training and certification be key components of quality control in contracts. The challenge is how owners can implement meaningful quality control training for crews, and the answer is simple. You should contractually require weekly, construction trade-specific, quality control meetings.

WILL THE OWNERS PAY?

During the October 2024 presentation at the IRMI Construction Risk Conference, Silas Nigam, President of S+B James Construction, was asked if the owners would pay. The question referred to the cost of onsite quality staff and additional related quality programs. Nigam replied, “They are not only paying for it, but they are also contractually requiring it,” referring to his firm’s contracts with Kaiser. In fact, the U.S. Army Corps of Engineers has long required quality control staff on projects.

COMMERCIAL UNDERWRITING

As the co-presenter at the above-mentioned IRMI Conference, Travis Davis, Sr VP at Alliant Insurance, stated, “We’re all familiar with the rapidly rising costs of construction

Safety procedures have included weekly toolbox talks as a method of communication, training, and overall information sharing for many years. These toolbox talks also serve as opportunities for team building, story sharing and proactively driving safety culture.

claims. What is getting the most carrier attention are claims related to quality of work. Top construction underwriters often have the authority to adjust liability premiums up to 40 percent based on a subjective evaluation of each company’s commitment to risk management. In my experience, the best path for an owner to maximize this pricing advantage is to demonstrate a top-down commitment to quality and a bottom-up training program centered around frequent craft training on quality. This proven formula has improved job site safety over the past several decades.”

RECOMMENDATIONS

1. Starting with responses to Request for Proposals, the owner’s quality control programs should identify prevention steps to reduce rework with project-specific examples. Embracing the industry problem of the cost of rework and communicating with the owner what will be done on this project to reduce costs related to any rework.

2. During the prequalification process of trade partners, you should have less emphasis on claims defense and more focus on prevention of rework. Require project-specific pre-qualification plans that identify specific areas of concern with planned controls, relying less on trade partners being corporate or third-party prequalified.

3. Have contract language that requires trade partners to have weekly, trade-specific, craft-level quality training. In other words, it is about sharing lessons learned.

Over the last few decades, the industry has proven that improved project safety happens when we measure and share results, communicate clear expectations during pre-construction, enhance prequalification processes, and engage and train craft employees.

Owners benefit from focused efforts on engaging craft employees in injury prevention and will benefit equally when construction craft employees are asked to engage in quality control. Doing so reduces both injuries and rework. An owner’s quality control program benefits budget, schedule, and worksite morale because skilled construction professionals strive to build it right the first time.

Brian Clark, CSP, is Managing Member with GEWllc.

1 “State of Science: Why Does Rewor k Occur in Construction? What Are Its Consequences? And What Can Be Done to Mitigate Its Occurrence?” by Peter Love, Jane Matthews, et al. published in the Journal of Construction Engineering and Management in March 2023.

2 “Relationship between Construction Safety and Quality Performance” by Wanberg, Harper, Hallowell, and Rajendran, published in the Journal of Construction Engineering and Management in 2013.

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