PAPERWORK REDUCTION ACT OF 1995 SUBMISSION
SUPPORTING STATEMENT
Annual Inspection Record of Cranes or Derricks Used in Construction
29 CFR 1926.550(a)(6)


Federal Register Federal Register [06/08/1998] #63:31231-31232
Annual Inspection Record of Cranes or Derricks Used in Construction


A. Justification

1. Explain the circumstances that make the collection of information necessary. Identify any legal or administrative requirements that necessitate the collection. Attach a copy of the appropriate section of each statute and regulation mandating or authorizing the collection of information.

The Occupational Safety and Health Act of 1970 authorizes the promulgation of health and safety standards necessary or appropriate to provide safe or healthful employment and places of employment. The statute specifically authorizes information collection by employers as necessary or appropriate for the enforcement of the Act or for developing information regarding the causes and prevention of occupational injuries, illnesses, and accidents.

Section 1926.550 (a)(6) requires a thorough annual inspection of cranes and derricks. Cranes and derricks used in construction are subject to hostile environments, deterioration from worn components, flaws and defects that develop during use, and accelerated wear when a defective or normally worn component causes misalignments of connecting systems and components. Components are also subject to malfunction due to oxidation, corrosion, and accumulations of oil and dirt. Documented annual inspections are necessary to implement an effective inspection, preventative maintenance and repair schedule.

The annual inspection record is usually a part of a check list designed for the machine. OSHA requires retention of this inspection report to ensure that on subsequent annual inspections, the inspector has a tool to determine the degree of wear, deterioration and misalignment. This is essential to prevent harm to employees who work with or in proximity to the crane or derrick.

2. Indicate how, by whom, and for what purpose the information is to be used. Except for a new collection, indicate the actual use the agency has made of the information received from the current collection.

The record of inspection is used by employers, employees, and OSHA compliance officers. The employers and employees use the record to establish service schedules, maintenance schedules, re-inspection times, and machine repair. It enables the employer to schedule and perform the various services in a timely manner to prevent equipment failures. The employer also reduces lost time when inspection and recording procedures are followed.

The OSHA compliance officer can review the record and determine if the employer is ensuring that machines are safe. If the yearly inspection of cranes or derricks was not performed and the record of the latest inspection not kept, workplace safety would be compromised.

3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses, and the basis for the decision for adopting this means of collection. Also describe any consideration of using information technology to reduce burden.

Inspection results and dates may be stored and retrieved electronically.

4. Describe efforts to identify duplication. Show specifically why any similar information already available cannot be used or modified for use of the purpose described in item 2 above.

If a local jurisdiction requires the same inspections and records, employees may use those inspections and records to meet this requirement.

5. If the collection of information impacts small businesses or other small entities (Item 5 of OMB Form 83-I), describe any methods used to minimize burden.

The number of cranes varies with the size and scope of the employer's business. The burden ultimately depends on the number of projects the employer is involved with.

6. Describe the consequence to Federal program or policy activities if the collection is not conducted or is conducted less frequently, as well as any technical or legal obstacles to reducing burden.

If this information were not collected, OSHA compliance officers would be hindered by having to make more extensive and lengthy investigations to determine if the machine is safe.

If the information collection were done less frequently, machine defects or deteriorations that are not detected during the annual inspection would not be found in a timely manner and would result in unsafe machines being used.

7. Explain any special circumstances that would cause an information collection to be conducted in a manner:
  • requiring respondents to report information to the agency more often than quarterly;

  • requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it;

  • requiring respondents to submit more than an original and two copies of any document;

  • requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records for more than three years;

  • in connection with a statistical survey, that is not designed to produce valid and reliable results that can be generalized to the universe of study;

  • requiring the use of a statistical data classification that has not been reviewed and approved by OMB;

  • that includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or

  • requiring respondents to submit proprietary trade secret, or other confidential information unless the agency can demonstrate that it has instituted procedures to protect the information's confidentiality to the extent permitted by law.

The requirements are within the guidelines set forth in 5 CFR 1320.6.

8. If applicable, provide a copy and identify the data and page number of publication in the Federal Register of the agency's notice, required by 5 CFR 1320.8(d), soliciting comments on the information collection prior to submission to OMB. Summarize public comments received in response to that notice and describe actions taken by the agency in response to these comments. Specifically address comments received on cost and hour burden.

Describe efforts to consult with persons outside the agency to obtain their views on the availability of data, frequency of collection, the clarity of instructions and recordkeeping, disclosure, or reporting format (if any), and on the data elements to be recorded, disclosed, or reported.

Consultation with representatives of those from whom information is to be obtained or those who must compile records should occur at least once every 3 years -- even if the collection of information activity is the same as in prior periods. There may be circumstances that may preclude consultation in a specific situation. These circumstances should be explained.

To date, no major problems have been identified with the paperwork requirements in 29 CFR 1926.550(a)(6). As required by the Paperwork Reduction Act of 1995, OSHA is publishing a notice in the Federal Register soliciting comments from the public and other interested parties on the information collection requirements in 29 CFR 1926.550(a)(6). The Agency will then review and address any comments received in response to the notice before obtaining OMB approval of the paperwork requirements.

9. Explain any decision to provide any payment or gift to respondents, other than remuneration of contractors or grantees.

No payments or gifts will be provided to the respondents.

10. Describe any assurance of confidentiality provided to respondents and the basis for the assurance in statute, regulation, or agency policy.

No elements of confidentiality are involved in this rulemaking.

11. Provide additional justification for any questions of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private. This justification should include the reasons why the agency considers the questions necessary, the specific uses to be made of the information, the explanation to be given to persons form whom the information is requested, and any steps to be taken to obtain their consent.

No such information is required to be reported under this rule.

12. Provide estimates of the hour burden of the collection of information. The statement should:
  • Indicate the number of respondents, frequency of response, annual hour burden, and an explanation of how the burden was estimated. Unless directed to do so, agencies should not conduct special surveys to obtain information on which to base hour burden estimates. Consultation with a sample (fewer than 10) of potential respondents is desirable. If the hour burden on respondents is expected to vary widely because of differences in activity, size, or complexity, show the range of estimated hour burden, and explain the reasons for the variance. Generally, estimates should not include burden hours for customary and usual business practices.

  • If this request for approval covers more than one form, provide separate hour burden estimates for each form and aggregate the hour burdens in Item 13 of OMB Form 83-I.

  • Provide estimates of annualized cost to respondents for the hour burdens for collections of information, identifying and using appropriate wage rate categories. The cost of contracting out or paying outside parties for information collection activities should not be included here. Instead, this cost should be included in Item 14.

This provision requires an annual inspection of cranes and derricks to be made by a competent person, or by a government or private agency recognized by the U.S. Department of Labor, and that the employer maintain a record of the dates and results of inspections.

Estimated Burden Hours

Total number of construction cranes
In 1995, OSHA estimated that the number of cranes in use in 1993 in the construction industry was 113,000. The number of jobsites per crane in 1993 was approximately 12:1. OSHA estimates that the number of construction sites increased 4.1 percent between 1993 and 1995. The jobsite to crane ratio is estimated to have remained constant. With a 4.1 percent increase in jobsites, there would be an increase in the number of active cranes of approximately 4,500. Therefore, OSHA estimates that the current total number of active construction cranes is 117,500.

Usual and customary business practice
Based on industry sources and OSHA personnel familiar with the industry, OSHA estimates that approximately 80 percent of these cranes are owned and operated by crane or equipment rental companies: 80% of 117,500 = 94,000 cranes. Based on OSHA enforcement experience and the presence of tort liability concerns for these crane rental companies, OSHA estimates that for 90% of these 94,000 cranes, it is the usual and customary business practice to conduct annual inspections and maintain records of the inspections. 90% of 94,000 = 84,600. Therefore, the information collection burden applies to the remaining cranes: 117,500 - 84,600 = 32,900 cranes.

Number of hours to inspect and record
According to industry sources, the majority of construction cranes are the smaller types of cranes (up to 60 ton capacity). These sources indicate that, on average, it takes between 2 ½ and 3 hours to inspect this size of crane, and that it takes 3 to 4 hours to inspect the larger cranes. OSHA therefore estimates that the average inspection time for the smaller cranes is 2.75 hours, and the average time for the larger cranes is 3.5 hours.

OSHA estimates that 2/3 of the 32,900 cranes are 60 tons or less: 2/3 of 32,900 = 21,911. The remaining 10,989 are over 60 tons. The inspection burden hours are:


60 tons and under: 21,911 X 2.75 = 60,255 hours
Over 60 tons: 10,989 X 3.5 = 38,462 hours
Total, inspection time 98,717 hours


OSHA estimates that it takes approximately 30 minutes to record the inspection dates and results for each annual inspection: .5 hour X 32,900 = 16,450 hours for recording

Total Burden Hours, Crane Inspections and Records
The total burden hours are 98,717 (inspections) + 16,450 = 115,167 Total Hours

115,167 Total Burden Hours X $28.41 = $3,271,894. OSHA estimates that there is a 1:1 ratio between the number of respondents and the number of these cranes. Therefore, there are 32,900 respondents.

Total capital and start-up cost component: None.

Total operation and maintenance and purchase of services component: None.

Cost to the respondents
115,167 Total Burden Hours x $28.41* = $3,271,894.00
*Does not include Overhead and Profit
The inspection and employees pay rate was derived from adding the average pay rate for the hourly cost for each pay level of the tradesmen involved. There are at least four levels of pay for the employees who participate in the inspection activity for hoisting machinery. Usually there are at least two persons involved. These persons vary in job classification from one employer to another in the following manner.

An operator and his assistant (usually an oiler, apprentice or helper depending on the hiring practice of the employer) will perform the inspection and recording of the findings for some employers. A master mechanic and operator will perform these services for some employers. In other cases an inspector from a recognized agency will make the inspection and use an operator or helper to move the machine and assist in various ways to complete the inspection.

The employer pay costs and method of cost determination are as follows:


1. Equipment Operator, Master Mechanic $27.55
2. Equipment Operator, Crane or Shovel -Under 100 ton rating $26.75
3. Equipment Operator, Medium Equipment $25.70
4. Equipment Operator, Oiler-Helper $33.65
  $113.65

$113.65 divided by four: Average Cost for hourly employee = $28.41(1)

13. Provide an estimate of the total annual cost burden to respondents or recordkeepers resulting from the collection of information. (Do not include the cost of any hour burden shown in Items 12 and 14).
  • The cost estimate should be split into two components: (a) a total capital and start-up cost component (annualized over its expected useful life); and (b) a total operation and maintenance and purchase of services component. The estimates should take into account costs associated with generating, maintaining, and disclosing or providing the information. Include descriptions of methods used to estimate major cost factors including system and technology acquisition, expected useful life of capital equipment, the discount rate(s), and the time period over which costs will be incurred. Capital and start-up costs include, among other items, preparations for collecting information such as purchasing computers and software; monitoring, sampling, drilling and testing equipment; and record storage facilities.

  • If cost estimates are expected to vary widely, agencies should present ranges of cost burdens and explain the reasons for the variance. The cost of purchasing or contracting out information collection services should be a part of this cost burden estimate. In developing cost burden estimates, agencies may consult with a sample of respondents (fewer than 10), utilize the 60-day pre-OMB submission public comment process and use existing economic or regulatory impact analysis associated with the rulemaking containing the information collection, as appropriate.

  • Generally, estimates should not include purchases of equipment or services, or portions thereof, made: (1) prior to October 1, 1995, (2) to achieve regulatory compliance with requirements not associated with the information collection, (3) for reasons other than to provide information or keep records for the government, or (4) as part of customary and usual business or private practices.

Costs under this item for complying with this standard are included under those costs in item 12.

14. Provide estimates of annualized cost to the Federal government. Also, provide a description of the method used to estimate cost, which should include quantification of hours, operational expenses (such as equipment, overhead, printing, and support staff), and any other expense that would not have been incurred without this collection of information. Agencies also may aggregate cost estimates from Items 12, 13, and 14 in a single table.

The cost to the Federal Government is the OSHA compliance officer's hourly wage rate ($25.56 average for GS-12 employee compliance officer) multiplied by the time it takes to ask for a collection of information records (5 minutes or 0.08 hour) or $2.04 per document per visit. Other operational expenses, such as equipment, overhead, and support staff expenses, would have occurred without these collection of information requirements and are considered normal OSHA operating expenses.

15. Explain the reasons for any program changes or adjustments reporting in Items 13 or 14 of the OMB Form 83-I.

The reduction in costs from the previous estimate results from a reduction in the estimate of the total number of burden hours. There is an adjustment of -102,923 hours from the previous inventory. The reduction in the estimate of hours is based on estimating the percentage of small capacity versus large capacity cranes used, and more accurate data on the amount of time it takes to inspect each size category.

16. For collections of information whose results will be published, outline plans for tabulation, and publication. Address any complex analytical techniques that will be used. Provide the time schedule for the entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions.

This question is not applicable as this information will not be published for statistical use.

17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate.

OSHA is not seeking approval to not display the expiration date of OMB's approval of this collection of information.

18. Explain each exception to the certification statement identified in Item 19, "Certification for Paperwork Reduction Act Submission," of OMB 83-I.

OSHA is not seeking exceptions to the certification statement in Item 19.

B. COLLECTION OF INFORMATION EMPLOYMENT STATISTICAL METHODS

The agency should be prepared to justify its decision not to use statistical methods in any case where such methods might reduce burden or improve accuracy of results. When Item 17 on the Form OMB 83-I is checked "Yes", the following documentation should be included in the Supporting Statement to the extent that it applies to the methods proposed:

  1. Describe (including a numerical estimate) the potential respondent universe and any sampling or other respondent selection methods to be used. Data on the number of entities (e.g., establishments, State and local government units, households, or persons) in the universe covered by the collection and in the corresponding sample are to be provided in tabular form for the universe as a whole and for each of the strata in the proposed sample. Indicate expected response rates for the collection as a whole. If the collection had been conducted previously, include the actual response rate achieved during the last collection.

  2. Describe the procedures for the collection of information including:

    • Statistical methodology for stratification and sample selection,

    • Estimation procedure,

    • Degree of accuracy needed for the purpose described in the justification,

    • Unusual problems requiring specialized sampling procedures, and

    • Any use of periodic (less frequently than annual) data collection cycles to reduce burden.

  3. Describe methods to maximize response rates and to deal with issues of non-response. The accuracy and reliability of information collected must be shown to be adequate for intended uses. For collections based on sampling, a special justification must be provided for any collection that will not yield "reliable" data that can be generalized to the universe studied.

  4. Describe any tests of procedures or methods to be undertaken. Testing is encouraged as an effective means of refining collections of information to minimize burden and improve utility. Tests must be approved if they call for answers to identical questions from 10 or more respondents. A proposed test or set of tests may be submitted for approval separately or in combination with the main collection of information.

  5. Provide the name and telephone number of individuals consulted on statistical aspects of the design and the name of the agency unit, contractor(s), grantee(s), or other person(s) who will actually collect and/or analyze the information for the agency.

    This is not applicable since there is no requirement for the collection of information employing statistical methods.

Footnote(1) The figure of $28.41 (does not include W.C. Ins. nor Overhead & Profit, which would increase the rates by 33-43%) was derived by using the average of the hourly wage rates of the various trades, and are based on union wages averaged for 30 major cities (from Means Building Construction Cost Data, 1996, 54th Annual Edition -by R. S. Means Co., Inc. Kingston, MA) (Back to Text)