MANAGING RISKS IN VACANT AND IDLE BUILDINGS

Transcription

1 STRATEGIC OUTCOMES PRACTICE TECHNICAL ADVISORY BULLETIN May 2010 MANAGING RISKS IN VACANT AND IDLE BUILDINGS I 1999, a pair of firefighters etered a burig, vacat cold storage warehouse i Worcester, MA to look for a homeless couple reportedly livig there. A short time later, the firefighters radioed they were lost i heavy smoke ad were ruig out of air. Four more firefighters rushed i to rescue them. All six became trapped ad died withi miutes. As it tured out, the fire was started by a burig cadle used by the couple, who left the premises after the fire bega. This piece of firefighter lore serves as a tragic remider of the risks iheret i vacat ad idle buildigs. Lately, the risks have rise, as the ecoomic dowtur has forced may orgaizatios to cut back or shut dow operatios ad abado buildigs. Several key factors make idle or vacat facilities especially vulerable. A uoccupied facility is a easy target for arso, vadalism, trespassig ad burglary. Idle or vacat facilities are ofte igored ad buildig maiteace slips. Utilities ad other buildig services are sometimes cut off without careful cosideratio of the cosequeces. THE PERILS FIRE The most promiet ad costly peril facig a idle or vacat facility is fire. Betwee 2003 ad 2006, the U.S. Fire Admiistratio (USFA) estimated a average of 31,000 structure fires occurred i vacat buildigs resultig i a average of 51 deaths, 4,500 firefighter ijuries ad $642 millio i direct property damage each year. A Natioal Fire Protectio Associatio (NFPA) 1 study foud that approximately 43% of reported vacat buildig fires were itetioally set. Vacat facilities are appealig arso targets because, uless caught, arsoists ted to try repeatedly to bur buildigs, ad vacat facilities are usually easier to eter uchalleged. A additioal hazard arises whe vacat buildigs are used for storage of combustible materials. The risk of fire with a sigificat loss of life ad/or property, is great. Vacat buildigs also pose a fire threat to earby buildigs ad structures. Whe vacat facilities lack a moitored alarm service ad/or o-site guards, fires ca spread before they are reported. I 1994, embers from a burig vacat warehouse i Illiois igited a

2 plat a mile away causig major damage. Because the local firefighters were busy at the vacat warehouse, the plat employees had to use portable fire extiguishers util firefighters from aother commuity arrived. Eve if a vacat buildig is adequately isured ad the buildig ower is reimbursed for property damage from the fire, the ower risks tarishig its reputatio ad commuity stadig due to the damage the fire may have doe to the commuity, especially if loss of life is ivolved. Liability questios way arise as well. VANDALISM AND THEFT The ext most promiet threats to idle or vacat facilities are vadalism ad theft. Vadalism is the willful markig upo, defacig ad damagig of property. Whether a purposeful crime or a prak, vadalism ca result i sigificat cost, especially if the vadals cause a more serious problem such as a fire. I additio, a vadalized property ca cost the buildig ower sigificat amouts of moey to restore the buildig to sellig coditio if the property is placed o the market. Approximately 90% of theft i idle ad vacat facilities ivolves copper electrical or plumbig materials. 2 The theft of these materials has bee tredig upwards for the last three years. I oe isurace compay s aalysis, there were 22 such losses i 2006 totalig over $2.1M. 3 By 2008, the total amout of copper theft losses was up to $9M, mostly from vacat retail locatios. 4 I the vacat plat of a Pittsburgh-area compay, a copper thief cut ito a live wire ad fell to his death. The compay was evetually foud resposible for the death of the thief for ot properly securig the vacat property. 5 BAD WEATHER The same severe weather that ca damage a operatig plat ca do the same, ad ofte worse, to a idle or vacat plat. A vacat plat, for example, whose utilities have bee cut off, is more susceptible to froze pipe breakage tha a heated, occupied plat. Sometimes whe a sprikler pipe breaks due to freezig ad the temperatures rise agai, water may flow udetected for days or weeks because waterflow alarms are either out of service or have bee discoected. 31% 20% 1% 48% Regular ispectios ad/or buildig maiteace are sometimes reduced or elimiated i uused structures, creatig dagerous situatios with catastrophes waitig to happe. Lack of roof ispectio, for example, could lead to collapse durig a heavy raifall or sowstorm because of clogged drais ad/or excessive loadig. Lack of regular maiteace could lead to progressive deterioratio of the buildig itself makig repairs more expesive or eve impossible. FIRE ARSON/VANDALISM/THEFT ANDALISM/THEFTALISM/THEFT WEATHER OTHER 2

3 PROTECTION STRATEGIES MAINTAIN FIRE PROTECTION SYSTEMS The most effective protectio a facility ca have agaist fire regardless of how it starts is automatic spriklers. It is critical that sprikler systems be maitaied i good workig coditio log after the plat has bee shut dow. If maitaiig a miimum temperature of 40 degrees F i all areas of the buildig is a problem, the steps should be take to esure that sprikler pipes (or ay other water pipes for that matter) are properly isulated agaist freezig. Sprikler systems are useless without a adequate water supply. All valves should be locked i the ope positio ad ispected ad tested per NFPA 25. For water supplies that rely o fire pumps, esure that the fuel or power to these pumps is maitaied ad that the pump itself is properly maitaied ad tested per NFPA 25. Alarm systems coverig sprikler system waterflow alarms, automatic fire detectio, valve tamper alarms ad fire pump alarms must remai i service ad moitored by a approved cetral statio alarm compay. Oce agai, the alarms should be maitaied ad tested per NFPA 72. Other thigs you ca do to prevet a major fire loss iclude elimiatig uecessary combustibles i the buildig as well as igitio sources. Also, if there are ay fire doors i the buildig, they should be closed to limit fire ad smoke spread. Outside the buildig, remove ay storage or combustible waste materials i the yard. Removig all the weeds ad brush aroud the buildig ot oly helps prevet fire spread but also gives a eat appearace to the property. This could deter vagrats ad trespassers, sice they will see that someoe is lookig out for the property. Laws ad bushes should be kept mowed ad groomed as well. PROVIDE PLANT SECURITY To protect agaist vadalism ad theft, plat security is more importat tha ever i vacat ad idle plats because you ca o loger rely o the eyes ad ears of employees as i a occupied plat. Itrusio detectio alarms cosistig of cotacts for vulerable widows ad doors should be istalled. Motio detectors effectively moitor large areas. As with the fire alarms, itrusio alarms should also be moitored by a approved cetral statio alarm compay. A acceptable alterative to moitored alarms is 24/7 guard service that icludes coductig recorded rouds. If oly complete alarm service is provided (fire ad burglary) with o o-site guard, the vacat buildig should be ispected at least oce a week. I additio to alarms ad/or guard service, the perimeter of the buildig as well as the yard should be properly secured. Groud level ad below-grade widows should be secured. All exterior doors should be fitted with deadbolts. Whe doors ad widows have bee secured, the roof ca be used to gai access. Make sure that roof hatch ad vets are locked ad provided with corrosio-resistat screes. 3

4 Provide ample outside lightig i the yard especially ear etry poits to the buildig. Istallig several visible CCTV cameras also deters would-be vadals or trespassers. If feasible, cosider a perimeter fece if oe does t already exist ad make sure that gates ad other etry poits are chaied ad locked. BE PREPARED FOR BAD WEATHER As with a operatig plat, the best protectio agaist severe weather for a vacat facility is pre-emergecy preparatio ad plaig. Coduct regular roof ispectios to esure that drais ad scuppers are ot clogged. Look for ay uusual roof coditios as well, such as saggig or podig. Both could be sigs of serious problems that will oly get worse. After a witer storm, ispect the roof for sow accumulatio. Oe of the leadig causes of idle ad vacat plat losses i severe weather is roof collapse. It is advisable to have a moitored temperature alarm istalled to alert someoe whe buildig temperatures fall below 40 degrees F. If the vacat buildig is located i a high wid hurricae area, widows with glass should be boarded up durig the hurricae seaso to prevet the glass from breakig ad water eterig the buildig. Ay broke widows ad/or doors should be immediately repaired to prevet further damage ad to properly secure the buildig from uauthorized etrace. A complete ispectio of the buildig should be coducted after every major hurricae to check for ay damages. BEFORE SHUTTING DOWN Whether the plat is to be shut dow ad vacated or idled with productio machiery remaiig i place, developig ad executig a well thought out pla is crucial i avoidig a major loss while the plat is idle or vacat. I aticipatio of plat closigs ad mass layoffs, compaies should be aware of potetial security issues durig such times. Some employees may be disgrutled eough to try to cause harm to the property before he or she is laid off. It is a good idea to icrease security durig this crucial time util the plat is completely shut dow or vacated. As various departmets clear out, access to these vacated areas should be limited. Maagemet eeds to exercise tight cotrol of keys ad access cards. Key card access for uauthorized or termiated employees should be deprogrammed immediately. Keys, parkig ad buildig passes must be collected from employees immediately upo termiatio. Closely supervise the removal of equipmet. If torches or ay other equipmet must be utilized, proper hot work procedures must be eforced icludig the use of hot work permits. Itellectual property should be carefully guarded agaist theft or sabotage. Restrict access to compay computers ad ivalidate passwords as soo as the employee is termiated. It may also be appropriate to istitute a policy that gives security the right to ispect suspicious packages ad post this policy where it ca be see by employees. If the plat is to be idled with most of the machiery i place, appropriate steps should be take to properly secure ad protect the machiery to esure that they 4

5 will be i good coditio whe it comes time to place it back i operatio. Shut dow the power to machieries by turig off circuit breakers as early as possible whe they are o loger eeded. If ecessary, cosult with the equipmet maufacturer for guidace o log-term shutdow of valuable ad/or sesitive machies. Drai ay taks cotaiig liquids ad take appropriate actios to prevet tak corrosio ad/or deterioratio. Remove ay flammable, combustible ad ay other hazardous liquids ad gases from the plat. THE WEEKLY IDLE PLANT VISIT Assumig the idle or vacat facility has adequate alarms (fire ad burglary), a miimum of oe weekly recorded visit should be coducted if o o-site guard service is provided. The followig is a checklist of what should be icluded i the weekly report (as applicable): BUILDING AND YARD SECURITY All the doors ad widows are i good coditio ad locked All the roof hatches ad vets are properly secured Burglar alarms are i service Alarm compay regularly tests alarms ad cofirms receipt of sigals CCTV cameras are i service If ecessary, boards for widows are provided (hurricae seaso) Yard lightig is adequate ad i good workig order All the gates are chaied ad locked Perimeter fece is adequate with o sig of breaches Local fire ad police departmets have bee otified of the status of the buildig 5

6 FIRE PROTECTION SYSTEMS All automatic sprikler systems are i service Water supply is i service (public or fire pump ad tak) Automatic spriklers system pressure gauge(s) idicate adequate pressure All fire protectio valves are locked i the ope positio All fire alarms (waterflow, valve tamper, smoke detectors, heat detectors ad fire pump alarms) are i service Alarm compay regularly test alarms ad cofirms receipt of sigals; fire pump(s) are i service ad started weekly Fire pump is i automatic mode Fire pump fuel tak is full Suctio tak has adequate water If applicable, fire pump room ad suctio tak are adequately heated Fire protectio systems are ispected ad tested per NFPA 25 Hydrats are i good coditio ad are accessible Fire doors are closed HOUSEKEEPING AND MAINTENANCE The iside of the buildig is free of trash ad combustibles All areas of the buildigs have bee ispected for ay sigs of vadalism ad/or itrusios All areas of the roof were ispected icludig the roof drais ad scuppers All o-essetial power has bee discoected Buildig heat is i service as eeded. Temperature alarm is i service, regularly tested ad cofirmed receipt of alert sigals Yard is free of combustibles or trash Law ad bushes adequately trimmed CONTACTS If you would like additioal iformatio o this or other risk cotrol topics, cotact your local Willis Property Risk Cotrol represetative or: Archie Martiez Seior Property Risk Cotrol Cosultat Strategic Outcomes Practice archie.martiez@willis.com You may also visit our website at willis.com. Joe Stavish, P.E. Natioal Techical Director Property Risk Cotrol Strategic Outcomes Practice joe.stavish@willis.com The objective of our publicatio is to provide a geeral overview ad discussio of issues relevat to loss cotrol. The commets ad suggestios preseted should ot be take as substitute for advice about ay specific situatio. 1 Mary Ahres, Vacat Buildig Fires, NFPA Fire Aalysis ad Research, 4/09, iv. 2 Charlie Bauroth ad Taya Gilbreath, Whe Vacacy Is uwelcome: Vacat Buildigs offer ope ivitatio to vadals ad mother ature, Axo Group, Gale, Cegage Learig, Ibid. 4 Ibid. 5 Joatha Katz, Lockig Out Idled Threats, Idustry Week Magazie,