Grading and Excavation Contractor

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If you cannot prevent the crime, you can at least recover your losses.

By Paul Hull

Stealing from construction sites is infuriating for everybody and the amount of construction equipment stolen nationwide can be reckoned in the billions. Is most of this caused by dishonest workers at the site? No, most of the theft of our valuable equipment is managed by thieves. Let’s put that in capitals. THIEVES. They are not teenagers with nothing to do. They are professionals. Their business is stealing equipment and supplies. They do it because it can be most profitable for them. Stealing our equipment, tools and supplies will not stop until we put the thieves out of business.

A point made by thieves is that heavy construction equipment is easy to sell. That means that somebody is willing to buy it. Some stolen equipment goes abroad, swiftly transported from the construction site to a port and the waiting freighter, or simply across a border. But the “somebody” involved may be somebody you know, another contractor, who buys stolen goods, sometimes quite innocently, sometimes with a good idea of what is being sold. Any time you come across an equipment deal that is too good to be true, it probably is. How does one put this nicely? Don’t buy stolen equipment, if only because the next item for sale may be yours.

From conversations with contractors, law enforcement officers, and representatives of the insurance industry, it is clear that common sense and simple precautions are too often neglected by those who just can’t believe it when their unlocked, unsecured, uninsured equipment is stolen. Some practical preparation is recommended. The thieves have their own trailers on which to carry your equipment, so anything you can do to make movement of parked equipment too difficult—or impossible—to move or load will be a good preventative technique. Don’t be like some contractors who leave their backhoes and loaders on trailers for the weekend. Remember the old westerns and circle your wagons. Put the more easily moved equipment (like pumps and compressors) in the middle of the heavier machines. Make it difficult! The National Insurance Crime Bureau (NICB) offers several recommendations. That bureau is a trusted not-for-profit, insurance industry–supported fraud and vehicle theft investigation organization. Its Web site (www.nicb.org) is worth a visit for free information and advice.

“Use hydro locks to fix articulated equipment in a curved position, preventing them from travel in a straight line,” advises Frank Scafidi, director of public affairs for NICB. “Use sleeve locks to fix backhoe pads in an extended position, keeping the wheels off the ground. Install a system that disables the equipment’s electrical and ignition system if universal keys are used. Install a tracking transmitter system in each unit, designed for construction and heavy-duty equipment.” He added some good advice that can help prevent theft and, if a theft occurs, identify items when they are located. “Take good pictures of each unit and keep them in a safe place. Mark the equipment in several areas with owner-applied numbers (OAN), stenciled company unit number, inventory number, company name, company phone number, stamped owner’s driver’s license number. Keep official documents relating to purchase, warranty work, additional attachments purchased, if purchased used, identification from the seller. Use a unique spray paint on the wheels, bucket, dashboard, rollover protection system uprights, radiator housing et cetera. Spray-paint the unit number on top of the ROPS [rollover protective structure] so it can be seen from the air.” The foundation of good thief-stopping, then, involves common sense and some practical steps to make it difficult for those who’d like to make their profits from your investments.

The terminology is important. If there is a theft, give law enforcement personnel the proper nomenclature of the equipment. This accurate identification of equipment can be a problem because so many people see a piece of heavy equipment, referring to it as a tractor or dozer when it is something quite different to a contractor. “It was one of those big, yellow digger things,” may not be a sufficient description for tracing your missing equipment.

Tracking the Fugitives
There’s a twofold decision to be made, say many users. Do we wait till equipment is stolen and then be sure that we can track it and recover it, or do we attach something to the equipment to prevent its being stolen in the first place? Like most decisions in our business, it is one of personal preference and cost. Can you estimate the likelihood of your equipment being stolen? There are certainly some parts of the country where theft of construction equipment seems higher than others. There are items that seem more saleable, and therefore more stealable. Your insurance agent should be able to give you reliable advice on such matters. One thing is sure. You should have your equipment properly insured.

In this battle against thieves, can we win? Yes, indeed. In less than one week the Stolen Vehicle Recovery System from LoJack Corp. helped police to uncover four chop shops and one international theft operation in five different states. The chop shop is where the thieves turn your equipment into some other saleable item or package of items. The people who work there are skilled, not just big guys with sledgehammers and wrenches. They have state-of-the-art equipment and tools for undoing and reassembling equipment. They can change a car in 30 minutes. That week’s work with LoJack rescue techniques included recovery of 17 cars and four motorcycles along with the many pieces of construction equipment. Eleven suspects were arrested. “Uncovering a chop shop maximizes the effectiveness of the LoJack System, enabling law enforcement to recover multiple mobile assets at one time,” comments Richard T. Riley, chief executive officer and chairman of LoJack. “These recoveries highlight the versatility of our proven radio-frequency technology. It enables police in both helicopters and vehicles to track and recover mobile assets. Some were found inside a steel shipping container, some in chop shops, and others in the open.”

It’s virtually impossible to recognize a chop shop when you see one. They don’t have signs or billboards advertising their trade. A Texas State Trooper picked up a LoJack signal and located a stolen pickup that had been reported stolen parked in front of a “normal” auto parts and repair service business. Further investigation led the State Motor Vehicle Theft Service and the San Antonio Police Department to 11 additional stolen vehicles on the premises. They were worth just under $200,000. The owner of the business was arrested. Don’t think a chop shop must be some ramshackle facility just out of town. Not long after the owner of a skid-steer reported its theft from his Florida construction site, a deputy from Polk County Sheriff’s Office started to receive a signal emitted from the skid-steer. He tracked the signal to a fenced-in yard behind a private home. There were other pieces of stolen equipment there, too, with a value around a quarter of a million dollars. The home-owner was arrested.

In October 2007, reports to the Cherokee County Sheriff’s Office in Georgia resulted in the recovery of several construction machines. Some of the machines were missing their product identification numbers (PINs) and it looked as if some stamped numbers had been altered. With the help of the National Equipment Register (NER) the theft victims of several machines, including an excavator and loader, were identified. Seven of eight captured machines can be returned to their legal owners. The replacement value of the recovered machines is estimated at more than $400,000.

In that brief time period, NER assisted in the discovery and recovery of excavators in Pennsylvania, Washington, North Carolina, and New York, along with loaders in Illinois, Florida, Connecticut, Maryland, and Pennsylvania, a motor grader in Mississippi, and a light tower in Georgia. And that’s just a fraction of the recoveries.

Fighting Back, Before and After a Theft
Some thefts are committed by employees. The stolen items are those that can be carried (innocently) off the site. More than one contractor with whom I spoke told me he had never been on a site where nothing was stolen. It may be a set of socket wrenches, a power tool, even little things that make you wonder whether some employees steal something just for the thrill of it and not because they need something or intend to sell it. “It’s as if our culture tells us today that stealing and cheating are clever and good if you get away with it,” said Ed Carr, a contractor with more than 35 years experience in our industry.

You don’t have to wait for a theft before you fight back. “What if you post a watchman on every piece of equipment you own, wherever it goes, 24 hours a day?” asks Tony Nicoletti, of DPL America, a company with a 32-year history of innovation and success in remote monitoring solutions for all mobile assets in the construction industry, on- or off-road. “When crooks can easily get to your equipment, start it, and get a significant head start, your chances of recovery can be slim. The deck is stacked in the thieves’ favor, but today you can swing the advantage back to your side. You can use GPS and telemetry.”

Equipment-tracking equipment, explains Nicoletti, involves three basic parts. There is a transponder unit mounted on the asset, a communication medium to transmit the data, and a user interface where the manager can view the data in a usable format. The transponder (about the size of a large ashtray) houses the GPS receiver and wireless radio. Wireless networks like those used for mobile phones provide communication between the transponder on the machine and the manager at the computer. The unit calls (literally, just as you do with your phone) information such as location, on/off status, movement alarms, and unauthorized usage alarms, directly from the asset to the software in real time. Don’t be put off by the technical jargon. Imagine the transponder on your grader calling you to tell you it’s being tampered with. That is exactly what it’s doing. Or the manager may call the unit from the software and ask for an update of the data at any time.

Since theft typically occurs after hours or on weekends when there are few witnesses around, your telemetry unit will set up a curfew on your equipment at that time. (Telemetry is not another school subject you tried to avoid like geometry and trigonometry. Telemetry is simply the sending of messages to a distant receiver or station. Your phone does it; your television does it.) With your grader, for example, the telemetric technology lets it call your cell phone, pager, PDA, or drop an e-mail, if somebody tries to start the machine or moves it during those off hours. It is, as Nicoletti mentioned above, as if you have a watchman there. The system can even automatically disable the equipment from running at that time. Here’s a true example.

A contractor in Tracy, CA, received a call on his cell phone, late one Sunday afternoon, indicating that somebody was trying to start his backhoe during the curfew time. When he arrived at the yard, he confirmed remotely the backhoe’s location, via the Titan System. He found his guard dogs poisoned, but all his equipment intact. The yard next door lost an identical backhoe. “By immobilizing the equipment with a curfew, the target was hardened and the vandals were deterred,” comments Nicoletti.

The obvious question for these helpful equipment guardians is: How much do they cost? The hardware cost for a telemetry system will be anywhere from $400 to $1,000 per unit, with a monthly messaging charge of $5 to $30 per unit. There are important considerations before purchase. A rugged design is imperative. Many users recommend a metal enclosure rather than a plastic version, because the latter “tends to wear down over time.” Be sure to ask about the supplier’s warranty and replacement policy. Antitamper features are most practical for the contractor. What happens if a thief finds the protective unit and smashes or removes it? Some models disable the machine, prevent it running, and some do nothing if they are compromised. Check on that. Thieves aren’t stupid and they know anti-theft devices and even where you might put them.

“We discovered the value of DPL’s Titan System after recovering only two pieces of equipment,” observes a contractor in Maryland (who prefers to remain anonymous to protect his equipment from further attempts at theft). “And when you’ve recovered your equipment and you see it coming back to the yard, you realize you’d be willing to pay a lot more for the protection.” Some insurance companies will reduce your rates if you have your equipment protected by GPS technology, reduce the rate by 20% or more.

Insurance
One aspect of construction insurance is obvious. The details are important. Some excellent materials and advice were given to us by Zurich America, which has an estimated 40% market share of the residential construction industry insurance and a growing market for commercial risks. “If it’s being built, remodeled or installed, we want to take a look at it,” notes Rebekah Muse on behalf of the company. “We offer several policy options. There is the one structure “one shot” policy or you could opt for a monthly or annual “reporting form” policy. The reporting can be online and there is no deposit premium required. You know, by talking to representatives like Muse, that the insurance companies have researched all the possibilities for problems in grading, excavation, building and cleanup, so the policy that will suit your particular needs on a particular project is certainly available. The insurance of your equipment for the project is generally included in your policy but, just as the insurers have done their homework, you should also make sure that all your potential problems are covered. If you local agent seems to have inadequate knowledge, get him to find the answers, or find another agent.

Your insurance policy can cover items such as the property of subcontractors, the theft of building materials, the cost of debris removal, your profit, and change orders. What about your property while it is in transit? Theft of scaffolding and construction forms? Glass? Sewers and drains that back up? Testing? Can you get the replacement cost of your equipment? (Expect that only if the equipment is fairly new.) What equipment will the insurance company cover? Zurich America covers graders, excavators, generators, compressors, forklifts, bulldozers, loaders, pavers, small tools and many cranes. Think it again! If you want it covered, you have to mention it and describe it. Insurance policies are most detailed, for good reason. All the details are important so, if you’re not good at reading details (or they simply bore you), have an expert do it for you. Your agent should be right for that.

Gadgets, Gismos and Good Sense
Whenever problems arise to challenge us in our business or social life, there are always companies or individuals who come up with just the right solution. We become skeptical about such technologies, thanks to bombardments on television. Can I really toss a pancake without hitting the ceiling? Can my flat tire magically repair itself? Is this pill the solution to…everything related to diet, disease and boredom? We should remember, however, that nestled among yesteryear’s gadgets and gismos were the computer (“How could that ever become a reality?”) and the refrigerator (“Sure! The stuff stays cold! Tell me about it.”), and automatic transmission (“Oh, yeah! The car changes gear itself, huh?”). In my research into solutions for the theft of contractors’ equipment and vehicles, I have come across several that seem ingenious. Obviously, I’m not endorsing anything, but some solutions struck me as worth investigation and presentation to you. The homework was enjoyable, too.

Take EyeMax, for example. It comes from EyeMax Security Systems and it uses ground radar. “Smart crooks hide inside vehicles and machines in the yard and come out at night to steal items,” comments Bob Stanley, chief executive officer of the company. “We have not addressed the construction site market as yet, but the system can be used in any environment. The advantage of the EyeMax Solution is that, with radar, our guards can detect any movement within one mile radius, day or night. With our Friendly Force tracking system, we can differentiate employees from unauthorized intruders, and call the police, if necessary.” The system has been used extensively by Homeland Security and the military but is only recently available for commercial applications. “The system installed costs less than an onsite security guard and is much more reliable and cost-effective,” adds Stanley.

Contractors do not wish to identify themselves publicly when talking about equipment and vehicle theft. For this article, more than for any other I have ever written, contractors asked not to be identified, because their name and location could alert potential thieves to the whereabouts of valuable equipment. “Our big job site was broken into on a relatively regular basis,” observes one such contractor. “Despite padlocks, security fencing, and security cameras, our site suffered continual break-ins. After about four months, with several thefts involving thousands of dollars lost in materials and tools, we purchased a DeWalt SiteLock system. I was, frankly, pessimistic about it and doubted its ability to solve our security problem, but I was quickly proved wrong. In the first week after installation, I received a phone call from the local police to say they had arrested a trespasser. The thief, using a ladder, had entered the second floor of a building on the site. He set off an alarm there, one that sensed motion. We have not had a break-in since that success.”

In Illinois, the Will County Sheriff’s Department (working with the Tri-County Auto Theft Task Force) activated three units of another DeWalt product, Mobilelock, to monitor and protect mobile assets on job sites. Law enforcement officers placed the Mobilelock sensors on heavy construction equipment and rotated them frequently from one location to another, to identify regions of criminal activity. Within two months of installation, nine thieves were caught, with $237,500 of stolen construction equipment recovered.

Start-Smart is a device from Keytroller, specifically designed for outdoor construction equipment applications. “Its uses a sealed metal piezo keypad that has no moving parts, so it is exceedingly reliable,” comments Terry Wickman for Keytroller. “We have designed our wireless relay to prevent equipment from being hot-wired or even started with a good key. There is a wireless relay, 12- or 24-volt DC, hidden in the ignition circuit, the starter circuit, or the fuel pump circuit. Without this hidden wireless relay enabled, the engine will not start. The thief must find the hidden relay and remove or circumvent it.” Frustration at not finding it will impel the thief to easier targets. The wired dual-relay module is connected to leads on the ignition switch (power, ignition, and start). When a good code is entered, the operator presses the start key, which energizes both relays and the engine turns over while the operator presses start. When the engine starts, the operator removes his finger and the starter relay drops out. When he wants to stop the engine he presses the start key. The ignition relay drops out and the engine stops. “The primary advantage of this system from Keytroller is that there are no keys, because the start is directly from the keypad,” adds Wickman. “Only trained and authorized operators know how to use it. The Start-Smart is proactive. It prevents the equipment from even being stolen, as opposed to tracking it after it has been stolen.”

Basic but very effective is how you might describe the locks made by The Equipment Lock Co. in West Virginia. Among the locking devices produced for specific pieces of equipment you can find some for excavators (big and small), skid-steers, backhoes, and such peripheral equipment as storage containers, job site office trailers, and pull-behind trailers.

The Excavator Lock locks both drive controls in opposite directions. The Backhoe Lock can lock the steering wheel of all types of equipment in the turned position. It has also been successful as an antitheft device on shooting-boom forklifts, articulating loaders and trucks, rollers, and even agricultural tractors. The Ball and Ring Hitch Lock fits any size ball or ring/pintle type trailer hitch. With an impressively broad range of antitheft products, The Equipment Lock Co. certainly seems to have solutions to consider for securing your equipment. Basic, but most effective.

There are many devices and techniques for preventing theft of your valuable vehicles and equipment, and some most efficient ways of recovering anything that is stolen, but, as with all technologies, there is a degree of commitment required from the user. It’s not much good having a cell phone if you never use it, not much good owning an HD television if you never watch it. In the same way, it’s not much good having access to all kinds of anti-theft devices if you and your employees don’t take the trouble to activate and monitor them. When I was boy I knew a thief. When I asked him (innocently, believe me) how he managed to succeed in his chosen profession, he told me that people “just leave the things lying around for me to take”. I was shocked then, but what he said is still very true today.

Paul Hull writes on construction topics for several magazines.

GEC - May 2008

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