Class Code: 5040

Per NCCI's Scopes Code Description:

Code 5040 is applied to insureds engaged in the erection of iron or steel frame structures including assembling or fabricating at the job site. It contemplates the raising of the structural members into place using a crane or boom and securing by bolting, welding or riveting the frame or skeleton of buildings in excess of two stories in height, i.e., hotels, apartment houses, office buildings, automobile parking garages, factories, warehouses, etc. Specialist contractors engaged in the erection of concrete structural beams or girders, which have been cast by others, also fall within the scope of this classification as well as specialist contractors engaged in the connecting of bar joists to the steel framework.

Code 5040 also is applied to specialist contractors engaged in the erection of new exterior iron or steel balconies, fire escapes, staircases and fireproof shutters regardless of type of structure. It contemplates the hoisting of prefabricated sections and securing by bolting, welding or riveting. Staircase erection by specialists ordinarily is undertaken after the structural steel frame is completed but prior to wall erection. The replacement of old iron or steel on the exterior of buildings, i.e., balconies, fire escapes and fireproof shutters, falls within the scope of this classification. Code 5040 additionally is applied to insureds engaged in the erection of iron or steel bridges or other bridges where the operations involve the erection of structural steel trusses, columns, or I-beams and steel decks.

It does not apply to the placing of reinforcing steel bars in connection with any reinforced concrete bridge construction. Steel erection begins when the abutments or piers, erected by others, are ready. The operations usually start at both ends working gradually to the center and involve the placement of the steel members by use of cranes and the securing of such members by bolting, welding or riveting. This classification has been applied to specialist contractors engaged in spinning and erection of suspension cables, cable clamps and suspenders in connection with bridge construction.

Lastly, Code 5040 is applied to insureds engaged in the erection of iron or steel radio and television towers, water towers, smokestacks and gas holders. The erection of spherical steel tanks mounted on steel supporting structures also is contemplated in its entirety within the scope of this classification.

These tanks are used to store highly volatile hydrocarbons. The height of the supporting steel structure will vary in relation to the diameter of the spherical tank. Although such supporting structures are not generally as high as those supporting water towers, the hazards of the work involved in erecting them are comparable. The operations include hoisting and the fastening in place of structural steel members and guy lines.

Water tower erection is assigned to either Code 3724 or Code 5040. The erection of water towers that consist primarily of iron or steel is assigned to Code 5040. The erection of water towers that consist primarily of other materials is assigned to Code 3724. It is the general practice to erect these towers from prefabricated parts and sections which are delivered to the job location. The framework is assembled by bolting sections together, following which the necessary pipes, fans, motors or other parts are installed.

Welding operations, whether performed by principal or specialist contractors, are considered incidental to the main iron or steel erection work and should be classified on the same basis as such work.

Please refer to Code 5403 for extra-territorial premium determination guidelines that may be applicable to insureds that have operations outside their headquarters’ state.

State Addendum
Massachusetts The scope of Code 5040 includes work performed at ground level for material staging, storage and sorting of steel, load preparation to ready structural steel members to be hoisted in place by hooking and unhooking payload, as well as the operation and maintenance of the hoisting device by members of the steel erection crew. Code 5040 encompasses all tasks (e.g., bolting, riveting and welding) related to connecting steel members, joists, girders and trusses, including the process of lining, levelling and plumbing of the steel frame members by performing the final bolt tightening and shimming to ensure proper positioning. Code 5040 also contemplates installing bracing members and connections, such as purlins, ties and knee braces, used to add stability during the erection and deck concreting. The installation of metal decking, which serves (1) to provide a work platform at each floor level, (2) as a crash deck to protect workers on lower levels from falling objects, and (3) as the form work necessary for pouring the concrete floors, is considered incidental to the main iron or steel erection work and should be classified on the same basis as such work whether performed by principal or specialist contractors. The installation of edge protection, utilizing structural steel rail systems that are positioned during the erection phase to all perimeters and internal voids to prevent falls from heights, is also contemplated under Code 5040. All direct jobsite supervision responsible for the oversight of the above steel erection tasks falls within the scope of Code 5040.

In the event that a steel erection contractor is awarded a separate Miscellaneous Metals Package to install ornamental steel components (e.g., architectural steel, stairs, railings) at the same location, these operations are to be separately rated under Code 5102—Iron or Steel: Erection: Iron, Brass, or Bronze Erection—Not Structural—Interior.

The erection of pre-engineered steel buildings that exceed 30 feet in height is also included under Code 5040. These buildings typically consist of warehouses, self-storage buildings, hangers, and garages. They are fabricated in factories in kit form. The framing members are completely formed in the factory, typically including punching or drilling screw holes, which are used to attach the siding components and roof panels. The siding components and roof panels typically consist of roll-formed or corrugated sheet metal. Erection of these buildings involves screwing or bolting the prefabricated, pre-engineered components together. This includes all tasks (e.g., bolting, riveting and welding) related to connecting steel members, joists, girders and trusses, including the process of lining, levelling and plumbing of the steel frame members by performing the final bolt tightening and shimming to ensure proper positioning. The siding components and roof panels are then screwed to the framing members. Code 5040 includes work performed at ground level for material staging, storage and sorting of steel; load preparation to ready structural steel members to be hoisted in place; operation and maintenance of the hoisting device by members of the erection crew; and installation of the siding components and roof panels. All direct jobsite supervision responsible for the oversight of the above erection tasks falls within the scope of Code 5040.

Additionally, Code 5040 is applied to insureds engaged in the erection of iron or steel bridges or other bridges where the operations involve the erection of structural steel trusses, columns, or I-beams and steel decks. Code 5040 does not apply to the placing of reinforcing steel bars in connection with any reinforced concrete bridge construction. Steel erection begins when the abutments or piers, whether erected by principal or specialist contractor, are ready. The operations usually start at both ends working gradually to the center and involve the placement of the steel members by use of hoisting devices, such as cranes, and the securing of such members by bolting, welding or riveting. This classification applies to specialist contractors engaged in spinning and erection of suspension cables, cable clamps and suspenders in connection with bridge construction.

Code 3365—Welding, etc., Code 9534—Mobile Crane, etc., Code 5059—Iron or Steel—Erection—Construction of Dwelling Not Over Two Stories in Height, and Code 5538—Sheet Metal Work, etc., shall not be assigned at the same job or location to which Code 5040 applies.

Rate per $100. of Renumeration: $ 7.22

Construction Exemption Required: Yes