Class Code: 8227

Per NCCI's Scopes Code Description:

Code 8227 is applied to entities that maintain open or enclosed construction or erection permanent yards for the storage of material or the storage and maintenance of equipment used by these businesses in their construction or erection operations. The material stored at permanent yards and the equipment maintained depend upon the construction or erection work undertaken by the particular contractor.

Code 8227 is a construction or erection classification but is not available for division of a single employee’s payroll during a single day.

Code 8227 is not available for employees who are properly classified to another construction classification loading and unloading the day’s materials, equipment, and tools or performing maintenance on equipment or vehicles. Code 8227 is also not available for employees who prefabricate portions of the construction work in the yard prior to assembling or installing them at the job site. The type of work noted above is incidental to the employees’ governing construction classification and must not be assigned to Code 8227.

Unless excluded by specific classification phraseology, Code 8227 is available for construction and erection codes that include shop operations in their phraseologies as well as those that do not. Codes 3365 and 5183 are examples of two codes that include shop in their phraseologies. We distinguish between Code 8227 operations and shop operations in the following manner: Code 8227 operations consist of labor that maintains, repairs and stores an insured’s materials and equipment. Shop operations consist of labor (usually skilled) that engages in operations in a shop that are specifically related to the work contemplated by the construction or erection code applicable to the business. Examples of shop work that is contemplated by construction or erection codes include but are not limited to the manufacture or repair of forms, the cutting or bending of pipes and the cutting of tile.

Garage-type work performed by a risk on its own vehicles is normally assigned to Code 7380 (Drivers, Chauffeurs and Their Helpers NOC—Commercial) or to the classification otherwise applicable to drivers. When a risk qualifies for Code 8227 and maintenance or repair of its own vehicles is performed by garage employees in the risk’s permanent yard, such operations shall be assigned to Code 8227.

When the driver performs routine service work on the risk’s vehicles—such as washing vehicles, checking fluid levels, filling vehicles with fuel and similar activities (regardless of where performed), such activities shall be assigned to the classification otherwise applicable to drivers.

This classification is not available to yards at construction or erection sites or to temporary yards set up for one particular project even if such project is not completed for a number of years. Such temporary yards are assigned to the governing classification of the particular construction or erection project since they are maintained only for the project at hand and they cease to exist when the project is completed.

Employees at permanent yards engaged in mixing concrete prior to transit or loading trucks with ingredients to be mixed during transit are assigned to Code 8227, as are employees engaged in the repair or maintenance of metal or wood concrete forms that are used from job to job. Specialists engaged in reconditioning and leasing forms for concrete construction also fall within the scope of Code 8227.

Work performed in permanent yards by key personnel (e.g., superintendents, foremen or engineers) of construction or erection firms, for periods during which no jobs are in progress, is appropriately assigned to this classification on the basis that the work of such key personnel while they are in the yard constitutes a change of employment. Personnel who ordinarily are assigned to Code 5606 may also be assigned to Code 8227 under the above conditions since “change of employment” does not come under the division of payroll rule as described in the footnote for Code 5606 in the Basic Manual.

When terms such as “all employees,” “all other employees,” “all operations” and “all operations to completion” appear in the phraseology of a construction or erection operation applicable to an insured, Code 8227 may also be assigned in those instances when a qualifying permanent yard is maintained unless the construction or erection operation applicable to the insured’s operation includes yards.

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

CROSS-REF.  CONCRETE—FORMS—RECONDITIONING AND LEASING

(N/A MA, TX)

Note:  Erection of forms to be separately rated.

Rate per $100. of Renumeration: $ 3.95

Construction Exemption Required: Yes