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Tucson, Arizona | Published: 05.21.2007
Big builders are not responsible for the unsafe practices of their subcontractors, according to a federal board's decision.
The ruling reverses more than 30 years of precedent, but it's unclear whether it will apply fully to Arizona.
Local industry leaders had mixed reactions to the decision.
The ruling from the U.S. Occupational Safety and Health Review Commission applies in situations when a subcontractor is caught breaking a safety rule. In the past, the general contractor was seen as the job site authority, responsible for the safety of all workers no matter who signed their paychecks, and both employers could be cited and fined for rule violations.
It's a win for the general contractors, who have been fighting the old policy for decades, said Charles Keller, an attorney with Snell & Wilmer in Phoenix.
But "it's absolutely awful" for subcontractors — and for workplace safety, said Jim Kuliesh, executive director of the Alliance of Construction Trades.
And the Arizona Division of Occupational Safety and Health said the federal ruling won't change a state inspector's ability to cite and fine two employers for one hazard, because Arizona's safety agency is independent of the federal agency.
"We intend to continue with business as usual, and we'll continue to issue citations to controlling employers when circumstances warrant that," said director Darin Perkins.
When the safety division issued citations and fines to roofing subcontractor U.S. Carpentry Tucson twice last year, general contractors D.R. Horton Inc. and Richmond American Homes of Arizona also were fined.
Half a dozen companies cited under the multiple-employer policy already have tried to use the new ruling as a defense, Perkins said.
"A big deal" locally
Builders think "it's a big deal for us locally, but it's going to have to play out through the courts," said Jon Fast, chairman of the Southern Arizona Home Builders Association's safety committee and owner of Rincon Safety Consultants.
Attorney's fees for such a fight would run more than $15,000, and the typical fines for violating safety rules might be a tenth of that, Fast said. So builders will settle for the Arizona policy until someone can afford to appeal a citation, he said.
At the federal level, the Arkansas builder who brought the issue to the review board had the financial backing of the National Association of Home Builders.
It has been the general contractor's responsibility to make sure the workplace is safe for everyone, said Keller, the attorney. But that policy wasn't always fair, he said.
Builders contract with specialists, such as masons and plumbers, to do jobs that require expertise, he said. Sometimes general contractors don't have the same level of skill themselves, or they may not be on site when a subcontractor is at risk, Keller said.
Many general contractors already had written indemnification provisions into their contracts with specialists, he said, which allowed the builder to force any OSHA fines onto the subcontractor if the specialist was caught breaking rules.
General contractors' power
But Kuliesh said the provisions plus the old policy gave general contractors authority to stop unsafe practices of subcontractors.
"Let's say a plumbing subcontractor happens to look over and the drywall contractor is doing something very unsafe. For the plumber's man to go over to the drywall man and say, 'This is unsafe,' they're not going to listen. There's no authority there," he said. "When the general contractor's superintendent comes in, they're the ones who can say, 'Stop work immediately and fix this.' They have the power.
"There has to be someone with authority," Kuliesh said.
Keller said all builders are worried about employees' getting hurt — or about getting sued because of injuries.
Builders aren't skirting the rules, he said, but rather individual workers who try to speed up work by taking shortcuts cause safety hazards.
● Contact reporter Becky Pallack at 573-4224 or at bpallack@azstarnet.com.
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