Recommendations

Long-Term

1) An overall safety and loss management program should be implemented,

including, but not limited to, these basic elements:

- Management leadership, commitment, and accountability

- Objectives, targets, and standards
- Incident investigations and trend analysis
- Field inspections and action plans
- Effective organization and communication
- Field safety practices
- Training (at all levels of the organization)
- Task analysis, risk analysis, and risk management
- Rules, regulations, and guidelines
- Emergency preparedness and community awareness
- Performance, stewardship, and reward systems
- Contractor program
- Pace and dedication to the program

The following recommendations outline some of these basic elements.

2) A company policy statement on safety and loss management should be

written, ensuring that employees at all levels of the organization understand,
and are committed to, these new policies.

Suggested Timeline: Two months and ongoing

Estimated Cost:

This recommendation falls into the category of management, leadership, and

accountability, as well as objectives, targets, and standards of the basic elements
in the safety and loss management program listed above. Ultimately, it is
management’s responsibility to set the policies on safety and ensure that all
employees, including themselves, are complying with these standards.

3) Implement a safety culture in which safety is always considered a greater

priority than profits.

Suggested Timeline: Immediately and ongoing

Estimated Cost: Wide-ranging, dependant on possible loss of revenue

Making safety the top priority in a company is an example of field safety

practices. It should be made known to all employees, even management, that the
safety of people and assets should be the governing hand in every task that is
 performed and in every decision that is made. The fear of revenue loss should
never be a larger concern than the safety of thousands of employees and
customers.

4) A team should be formed whose sole responsibility is to ensure that safe work
practices are being conducted and that the rules outlined in the new policy
statement on safety and loss management are being implemented.

Suggested Timeline: Three months and ongoing

Estimated Cost: $300,000/year

This particular recommendation falls under the realm of two basic elements of the
suggested safety and loss management program: field safety practices and task
analysis, risk analysis, and risk management. The purpose of this team would be
to make sure that field safety practices are being followed on a regular basis and
that any possible risks associated with any given job are eliminated or reduced to
a satisfactory level.

5) Safety inspections during construction and throughout operation of the

building will be performed on a regular basis and infractions found during
said inspection should be rectified in a given time frame.

Suggested Timeline: Three months and ongoing

Estimated Cost:

The recommendation that safety inspections be conducted exemplifies the field

inspections and action plans element. This is an extremely important element in
this particular case, because had field inspections been carried out throughout the
construction of the building and any time after, it would have been well
documented that the building was doomed for collapse. Therefore, should this
recommendation be carried out, any incidents of this magnitude will easily be
prevented.

6) The opinions of hired contractors and engineers must be held with the
upmost consideration and respect.

Suggested Timeline: Immediately and ongoing

Estimated Cost: Nil

This recommendation falls under the effective organization and communication

and contractor program elements of a risk management program. It is extremely
important that all opinions and suggestions in a company are taken seriously and
respectfully. It is even more critical that there is open communication when
dealing with a contractor or hired engineer. Disagreeing with the professional
opinion of a hired engineer should not be done so lightly, especially when there
are safety concerns.
 7) Hired management employees must be responsible and competent.
Management must be able to make decisions that best serve the safety of
both employees and customers if/when hazardous conditions arise. Training
may be required to ensure this is the case.

Suggested Timeline: 6 months and ongoing

Estimated Cost: $300,000

This mainly refers to the training element of a successful safety and loss
management program. All employees, including management, must be equipped
with the knowledge and training to be able to analyze a situation and determine
the best course of action. Management must be able to make decisions that will
ensure the safety of employees and customers when situations like this arise.

8) Risk analyses must be conducted when confronted with a possible hazard,

especially one of great magnitude, and decisions to accept a given risk should
not be made lightly.

Suggested Timeline: Immediately and ongoing

Estimated Cost:

This recommendation falls under the category of task analysis, risk analysis, and
risk management. When a potential hazard is identified, a risk analysis should be
conducted, and if it is decided that a risk is acceptable, it should be managed in a
way that minimizes its impact should an incident occur. If a possible outcome of
any given risk is catastrophic, as was the case for this incident, the risk should not
be acceptable no matter how small the probability of its occurrence might be.

9) An evacuation plan should be created and tested so that all employees and
customers can safely exit the building in the case of an emergency.

Suggested Timeline: 1 month and ongoing

Estimated Cost: $10,000

In the case that all other basic elements of a risk management program fail, the
element emergency preparedness and community awareness is aimed at ensuring
an incident is dealt with in a safe and timely manner so that its damage to people
and assets is at a minimum. The above recommendation refers to this element,
and is ultimately the last line of defence in managing losses.

Short-Term

1) During the construction of a building, any changes that are made to the
engineering design must not jeopardize the integrity of the building and must
 comply with government standards (i.e. changing the purpose of an upper
level floor from a roller rink to a restaurant).

Suggested Timeline: Immediately

Estimated Cost: Wide-ranging, dependant on the financial impact those changes
might have on the ability to generate revenue

The above recommendation is best exemplified by the objectives, targets, and

standards and field safety practices. If any design changes are made, it is
absolutely necessary to redo any engineering calculations that are affected by the
change, that way it is possible to determine whether or not the new design
complies with government standards. As a side note, it is beneficial to a company
to exceed the standards set by government.

2) The building should be constructed with materials that are approved by

government and company standards, and used in a manner that also
complies with said standards (i.e. using concrete mixed with freshwater
rather than saltwater).

Suggested Timeline: Immediately

Estimated Cost: $1,000,000 per building to be constructed (as opposed to ‘cutting
corners’ with building material)

Again, the above recommendation refers to the objectives, targets, and standards
and field safety practices elements of a safety and loss management program.
Building material standards are set by the government and should be followed at
all times. It is the responsibility of management that these standards are being
met.

3) Any additional changes after the original construction must not, in any way,
degrade, or render inadequate, any load-bearing structures (i.e. columns).

Suggested Timeline: Immediately

Estimated Cost: Wide-ranging, dependant on the financial impact those changes
might have on the ability to generate revenue

Similar to the above two recommendations, this falls under the categories of
objectives, targets, and standards and field safety practices. Again, any design
changes that might affect the stability of a building requires the recalculation of
engineering equations in order to determine whether or not it complies with
government standards.

4) Any large-scale procedures must be done so in a fashion that maximizes the

safety of people and assets, even if this course of action proves more difficult
 or more expensive (i.e. moving large air conditioning units on the roof with a
crane rather than sliding them on rollers).

Suggested Timeline: Immediately

Estimated Cost: $10,000 - $50,000

The above recommendation exemplifies the safety and loss management program
elements field safety practices and task analysis, risk analysis, and risk
management. Before any task is performed, small- or large-scale, a risk analysis
should be carried out in order to determine whether or not completing the task is
worth the risk. In addition, as mentioned in one of the above recommendations,
management must show, through their actions, that safety takes priority over cost.

5) Upon sight of structural degradation of a building or facility, proper risk

analyses should be conducted in order to ensure the safety of the employees
and customers inside.

Suggested Timeline: Immediately

Estimated Cost:

This recommendation mainly falls into the category of the Task analysis, risk
analysis, and risk management element of an effective safety and loss
management program. Proper risk analyses must be performed on any new
hazard that is identified so that the proper course of action can be carried out. A
risk should never be acceptable if it could potentially cause the kind of destruction
found in this incident, regardless of how improbable the event may be.