During the 2004 Construction Symposium, sponsored by ChevronTexaco, experts from the equipment, technology and insurance sectors gave presentations on how you can extend the life of equipment through high-tech maintenance management, and how to lower insurance premiums. Approximately 50 construction industry professionals attended the two-day event.
At a presentation on preventive maintenance and engine oil trends, Gary Parsons, manager of engine oils at ChevronTexaco Global Lubricants, discussed how off-highway motor oil and coolant trends will be affected by new EPA engine emission regulations. By 2010, all distillate fuel has to be reduced to 15 parts per million sulfur, for on- and off-road vehicles and equipment. This raises the issue of lubricity, since sulfur is a lubricating agent. Parsons said the reduction of sulfur will force the industry to come up with some new technology to solve minor problems.
“Once we get the sulfur out I think that will open up some new technologies that we didn’t have in the past,” Parsons told attendees. “So embrace the change.”
During another presentation, Kevin Cunningham, president of Chicago-based Special Risk Services Group, led a discussion on risk management techniques to reduce insurance costs for contractors. Cunningham said liability rates are the highest they’ve been in five years. Construction companies could lower their premiums by paying more attention to their insurance coverage and providing more details about their equipment maintenance and safety programs.
When shopping for insurance, you should know what the hazards are for equipment. The top hazards are fire, collision, overturn, theft, vandalism and boom collapse. “In that order, that’s where the claims are coming from,” Cunningham said.
To reduce the claims costs, he suggested making sure debris is cleared from around equipment, fire extinguishers are placed on all equipment, operators are trained thoroughly and a strong theft prevention program is adopted.
“Your losses drive your (insurance) costs, so your (loss) reductions take out your cost,” Cunningham said.
