UPDATED FM Data regarding Contractors and Hotwork...

3.1.8 Outside Contractors

Many hot work operations are performed by outside contractors, these include cutting, welding, joint soldering, paint removal, reroofing, etc. The tendency is to relax rigid procedures for contractors assuming they know their jobs. However, this practice has produced a discouraging loss history. Hot work by itself is a hazardous process. When outside contractors are involved, the risk of fire increases simply because contractors don’t understand the hazards at the plant. FM Global loss history shows the risk of fire can increase over 100% when outside contractors are involved in hot work without facility supervision. Between 1995 and 2000, contractors have accounted for 66.5% of hot work losses at FM Global insured properties. Continuing hot work losses show that contractors often don’t understand the fire hazards within a customer’s facility or how the hot work they perform can initiate those fires. (See Table 1.)

Table 1. Fire Causes vs. Contractor Involvement1

Cause                 Percent due to Contractors
Hot work                            74.0
Electricity                            6.5
Arson                                  6.7
Hot Surface                         4.3
Smoking                              4.8
Burner Flame                       3.4

1- Based on a FM Global study over a twenty-year period.

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