QUANTA SERVICES INC, QUANTA SERVICES MANAGEMENT ...

Materials
Our customers typically supply most or all of the materials required for each job. However, for some of our
contracts, we may procure all or part of the materials required. We purchase such materials from a variety of
sources and do not anticipate experiencing any significant difficulties in procuring such materials.
Training, Quality Assurance and Safety
Performance of our services requires the use of equipment and exposure to conditions that can be dangerous.
Although we are committed to a policy of operating safely and prudently, we have been and will continue to be
subject to claims by employees, customers and third parties for property damage and personal injuries resulting
from performance of our services. Our operating units have established comprehensive safety policies,
procedures and regulations and require that employees complete prescribed training and service programs prior
to performing more sophisticated and technical jobs, which is in addition to those programs required, if
applicable, by the IBEW/NECA Apprenticeship Program, the training programs sponsored by the four trade
unions administered by the PLCA, the apprenticeship training programs sponsored by the CUSW or our
equivalent programs. Under the IBEW/NECA Apprenticeship Program, all journeyman linemen are required to
complete a minimum of 7,000 hours of on-the-job training, approximately 200 hours of classroom education and
extensive testing and certification. Certain of our operating units have established apprenticeship training
programs approved by the U.S. Department of Labor that prescribe equivalent training requirements for
employees who are not otherwise subject to the requirements of the IBEW/NECA Apprenticeship Program.
Similarly, the CUSW offers apprenticeship training for construction and maintenance electricians that requires
five terms of 1,700 hours each, combining classroom and on-the-job training, as well as training for powerline
technicians that also involves classroom and jobsite training over a four-year period. In addition, the Laborers
International Union of North America, International Brotherhood of Teamsters, United Association of Plumbers
and Pipefitters and the International Union of Operating Engineers have training programs specifically designed
for developing and improving the skills of their members who work in the pipeline construction industry. Our
operating units also benefit from sharing best practices regarding their training and educational programs and
comprehensive safety policies and regulations.
Regulation
Our operations are subject to various federal, state, local and international laws and regulations including:
• licensing, permitting and inspection requirements applicable to contractors, electricians and engineers;
• regulations relating to worker safety and environmental protection;
• permitting and inspection requirements applicable to construction projects;
• wage and hour regulations;
• regulations relating to transportation of equipment and materials, including licensing and permitting
requirements;
• building and electrical codes;
• telecommunications regulations relating to our fiber optic licensing business; and
• special bidding, procurement and other requirements on government projects.
We believe that we have all the licenses required to conduct our operations and that we are in substantial
compliance with applicable regulatory requirements. Our failure to comply with applicable regulations could
result in substantial fines or revocation of our operating licenses, as well as give rise to termination or
cancellation rights under our contracts or disqualify us from future bidding opportunities.
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