The nature of construction health and safety

1. Site Management and Safety
Lesson 2
Part A The nature of construction health and safety
Recent health and safety statistics
Textbook: №3 (p.21-26)
PhD, professor Iryna Rudnieva

2. Introduction
The Health and Safety Executive (HSE) gathers detailed, accurate
and reliable information on workplace injuries, across a range of
industries.
Despite this, only a proportion of injuries, accidents and hazardous
incidents are reported under statutory legislation. Within construction
this proportion is only around 40%.
This chapter outlines how information on accidents is gathered and
how this reveals the extent of reporting, level of risk, and accident trends
within the construction industry.

3. Collection of health and safety statistics in the United
Kingdom
The HSE conducts an annual Labour Force Survey (LFS) to gather
accurate and reliable information on workplace injuries across a range of
industry sectors. This information complements the data reported under
statutory health and safety legislation, for example The Health and Safety
at Work, etc. Act (HSE, 1974) and The Reporting of Injuries, Diseases and
Dangerous Occurrences Regulations (RIDDOR) 1995 (HSE, 1995).
Levels of reporting
It is well recognized in almost all industries, and within the construction
industry in particular, that only a small proportion of injuries, accidents and
hazardous incidents are reported under statutory legislation.
An example of this can be seen in the 1995—96 data which, to provide
more accurate figures, combines with data for the preceding and
succeeding years. The number of injuries reported in the LFS was 380,000
whereas the number reported to enforcing authorities was 150,000 (40 %).
Not all injuries, accidents and hazardous incidents will be admitted to the
Labour Force Survey. Many health and safety incidents are simply never
reported.

4. Within construction, the HSE suggest that in 1995—96 the reporting level
was 30 percent (HSC, 1996). For self-employed persons, and there are
many within the construction industry, the reporting level is suggested by
HSE to be less than 10 per cent. From the 11 industry sector types
recorded by HSE construction is listed sixth in the ranked order for levels
of reporting of occupational injuries. The topmost ranked industries were
energy and water industries, public administration (government), and
transport and communications.
Levels of risk
The data gathered by the LFS and RIDDOR give a good indication of the level of
risk to which a person is exposed within their respective industry. If 'manufacturing'
is used as a benchmark, and for comparative purposes assigned a value of 1.0,
other industries can be ranked according to their comparative level of risk. Table 3.1
shows 11 industry sectors ranked in order of level of risk. The data for 1995—96
(HSC, 1996) lists construction as having the second highest level of associated
risk behind the mining industry. A risk value of 1.51 indicates that the risk of injury to
an employee in construction is over 50 percent higher than in manufacturing.
Construction remains, therefore, an intrinsically hazardous industry.

5. Accident trends
Over the past decade, there has been a significant reduction in the annual
number of fatal and non-fatal injuries in virtually all sectors of industry. These
range from a 9 percent reduction to accidents in public administration
occupations to a 48 percent reduction in the energy and water supply
industries.
The profile indicates clearly that following the harrowing statistics
recognized in Blackspot Construction (HSE, 1988) and a peak rate in annual
fatal accidents in 1989—90, there a decrease of the level throughout the 1990s.

6. International perspective
Health and safety matters impinge upon construction when and where
it is carried out. Construction is a global business.
Health and safety is of international interest, generally where
organizations operate within their own domestic markets and
specifically where organizations transcend national business
frontiers.
While the UK construction industry enjoyed improved health and
safety performance throughout the 1990s the situation in other countries
has been somewhat different. It is inappropriate to even try to make direct
comparisons of industrial health and security between countries.
There will be considerable differences in, for example, economic
climate, market forces, political environment, construction methods, and
availability of resources. Any or all of these factors could make
comparison wrong.
In the UK construction industry three persons in every
1,000 are involved in an accident (HSC, 1996).

7. Research studies conducted in Hong Kong (Lingard and Rowlinson,
1998) noted that in 1991 a peak figure of 374 persons per 1,000 workers
suffered an accident while working on construction site.
Lingard and Rowlinson make the comparison that while nearly one-
third of all construction workers in Hong Kong were involved in an
accident this was more than twice the rate of construction accidents in
the USA (150 per 1,000), 25 times that of Japan (15 per 1,000) and 30
times that of Singapore (12 per 1,000).

8. A view on 'health' and safety
Much research focus on construction safety. Construction
health and welfare is, however, frequently given less attention. It is
often asked if construction is a 'safe place' to work, but,
rarely is it asked if construction is a 'healthy place' to work.
Construction takes place in temporary work situations which
are influenced greatly by the particular type of work being carried
out. Also, there are phys ical changes taking place continually
throughout the duration of the project which means that
conditions may be healthy and safe one minute and distinctly
hazardous the next.
Operatives on site are exposed to a wide range of physical,
chemical, biological, mechanical, and psychosocial
influences and difficult environmental working conditions.
Weather, temperature change, confined spaces and working
at heights can all take their toll.

9. It is asserted that 'health' should be considered equally as
important as 'safety'. Therefore, an effective health and safety
management subsystem must embrace this within its management
plans, procedures and working instructions.
Occupational exposures to adverse agents are well researched
and the damage they cause are regularly and comprehensively
reported by the HSE. Many diseases, illnesses and injuries can be
caused within construction occupations.
In addition, there can be a whole host of related problems
which can occur, for example, alcohol abuse, stress and physical
and mental side effects, The ECI (European Construction Institute)
Guide to Managing Health in Construction (Gibb et al., 1999)
presents comprehensive facts and figures for occupational health
matters.

10. Structure of accidents

11. Key points
This chapter has identified that:
• Only a proportion of injuries, accidents and
hazardous incidents are reported under statutory
legislation.
• The construction industry is recognized as having a
high level of occupational risk, construction is the
second most hazardous industry in which to work.
• There was a 30 percent decline in the recorded
number of fatal accidents occurring within the
construction of the late 1980s and the late 1990s.

12. Site Management and Safety
Lesson 2
Part A The nature of construction health and safety
The cost of construction accidents
Textbook: №4 (p.27-31)
PhD, professor Iryna Rudnieva

13. Introduction
This chapter focuses on the losses caused by construction
accidents. Accidents cost the construction industry millions of
pounds annually. Such is the magnitude of the problem that a
definitive cost has never been determined. Useful studies have been
carried out by the Accident Prevention Advisory Unit (APAU) (HSE,
1993a) in an attempt to identify the full cost of accidents. These
have raised awareness among organizations in many industry
sectors of the cost implications of accidents and this may serve in
the future to stimulate better health and safety practices.
The cost of accidents can be characterized by the HSE terms the
'accident iceberg'. While the tip of the iceberg reveals visible and
tangible costs, the submerged bulk of the iceberg harbours a great
many hidden and often indeterminate financial implications.

14. The cost of industry failures in health and safety
The Accident Prevention Advisory Unit of the Health and Safety
Executive suggests that 'the cost of failures in health and safety
management are high' (HSE, 1993b):
• 30 million days lost in a year from work-related injuries and ill
health (approximately £700 million per annum).
• A two-thirds increase in real terms of employers' liability
insurance costs over the past decade and a doubling of claims
since 1985.
• Uninsured losses from accidents (they can result in personal
injury or not) can cost anything between 8 and 36 times what an
organization normally insures for; in some cases making the
difference between profit and loss.

15. Detailed case studies performed by APAU (HSE, 1993a) for
developing a methodology to accurately identify the full cost of
accidents. Organizations from various different industries were
involved in the studies.
The results from the studies suggested that the accidents cost:
• one organization as much as 37 percent of its annualized
profits;
• another the equivalent of 8.5 percent of (the project's) tender
price;
• a third organization 5 percent of its (annual) running costs.
The accidents cost the UK economy billions of pounds each
year (HSE, 1993a). The costs to a single organization can also be
considerable and in a worst case scenario may make the difference
between a company continuing to trade or going out of business. In
addition, and of main importance, there is the cost in human lifes and
one cannot and should not put a price on a life.

16. When considering the costs and benefits of implementing the
Construction (Design and Management) Regulations 1994 (HSE, 1994) the
Health and Safety Commission (HSC) determined that the total cost to the
construction industry would be approximately £550 million.
The Commission recognized that the reduction in the level of accidents
would be the principal benefit. They assumed that on small to medium-sized
sites, the reductions in accidents would be 33 percent if the Regulations were
implemented, and on large sites, where safety management is usually better
developed, a 20 percent reduction in accidents could be expected. The
Commission concluded that the estimated benefit to the industry would be
£220 million each year.
(Joyce, 1995)
Construction health and safety costs

17. The cost of accidents, even when seen as a
potential saving to the construction industry, is
colossal, a millions of pounds annually.
It should be remembered that these costs are,
again, not the full cost of construction
accidents.
There are many indirect and hidden costs
resulting from accidents which are very difficult
to quantify, particularly in the construction
industry. Some costs are easy to see, others are
hidden and difficult to identify.

18. The visible and hidden costs of accidents
The full costs of any accident may be separated into two categories.

19. Visible (insured) costs to a construction organization can
include:
• employer's liability
• public (third party) liability
• damage to property.
Hidden (uninsured) costs as to the construction project
and corporate organization can include:
• investigation costs
• legal costs
• fines
• loss of reputation and image
• loss of business and goodwill
• sick pay
• loss due to damage of materials, plant and equipment
• replacement and repairs
• production schedule disruption and delays
• additional resourcing.

20. The true cost of construction accidents

21. Example
Your employee falls from a scaffold that
does not have adequate hand rails and is
seriously injured. Most workers on site stop
working. Some rush to give first aid to the
injured person, while others call for help.
When help arrives for the injured employee,
your employees don’t immediately return to
work. Perhaps they are continuing to help or
are remaining merely to watch. In this
situation, all idle work time is included as
part of the total accident costs.

22. Insurance isn’t always the answer!
People often try to minimize the costs of accidents by saying that they are covered
by insurance. Insurance, however, covers only a portion of the total accident cost.
Moreover, as accident losses increase, so will your company's insurance premiums. It
is clear that directly and indirectly, accidents reduce profitability.
You can compare your accident’s total cost to an iceberg. In other words,
there is a certain amount of ice (i.e. costs) below the sea depths that you do not
know, unless you check for them – or until you crash into them.
Examples of hidden costs
• Production loss/worker distraction
• Training costs/replacement worker
• Loss of skill/efficiency – slowed production
• Paperwork
• Administrative time
• Loss of morale
• Legal issues
• Medical expenses
• Salary
• Equipment
• Workers’ compensation

23. What to do next
As soon as the injured person receives proper medical
treatment, your next job is to investigate the accident.
Remember: You must include all the time you and any other staff
spend on investigating and reporting on the accident, as well as the salary
you pay to third person in the costs.
If the injured person misses work for only a short time, you
may be able to make up for the production loss by having the
rest of the shift work overtime. You will also include the
overtime wages you pay in your total accident costs. If the
injured employee is gone for months, you may have to employ
and train a replacement worker, and they may not be as
efficient as your previous employee. If equipment is damaged
in the accident and the job must be performed with less
effective equipment, your power will drop further. All this
reduced efficiency represents another indirect cost.

24. A good rule of thumb
The indirect costs of accidents are usually
greater than the direct costs. For a conservative
estimate, you can calculate them on a 1 to 4 ratio.
So for every one unit of currency in direct accident
costs, there are three units of currency in indirect
costs. Some studies indicate the hidden costs can
be four to 10 times the insured costs. And for
construction, studies have shown that it is SIX
times the insured cost.

26. 14 indirect costs you need to consider
1. Time lost from work by injured employee(s)
2. Loss in earning power
3. Economic loss to injured worker’s family
4. Lost time by fellow employees
5. Loss of efficiency due to break-up of team
6. Lost time by supervision
7. Cost of training a new worker
8. Damage to tools and equipment
9. Replacement of time damaged equipment
10.Spoiled work
11. Loss of production
12.Spoilage – fire, water, chemical, explosives, etc.
13.Failure to fill orders
14.Overhead costs (while work is disrupted)

27. It’s not all doom and gloom – there are also
five hidden savings to reap
Just as there are many hidden costs due to accidents,
there are hidden savings in accident prevention. Every
accident you prevent saves direct and indirect accident
costs – money that remains in your profits.
Benefits of accident prevention efforts include:
1. Employees will not be injured or killed.
2. Property and materials will not be destroyed.
3. Production will flow more smoothly.
4. You will have more time for the other management
duties of your job.
5. Increased employee security at work.

28. In the case studies undertaken by the HSE (HSE, 1993a) five different
fields of employment were examined. These were a construction site, a
creamery, a transport company, an oil platform, and a hospital.
It was stated that 'the participating organizations displayed average, or
better than average, health and safety performance in their industries. It is
likely that other organizations with less developed management systems
would have larger losses than those identified in these studies'.
Focusing on the construction site element, the main contractor was the
subject of study.
The project had a value of £8m and a duration of 13 months. It was
observed over a period of 18 weeks and involved 120 persons working on
site.
All accidents which met the definition 'an unplanned event that
resulted in injury or ill health of people, or damage or loss to property,
plant, materials, or the environment or a loss of business opportunity', met
a financial value of £5 or above and were considered by the contractor to be
'preventable' were recorded.

29. In the study period there were no major injuries (those resulting
in over three days absence of the person involved). There were 56
minor injuries (those which required first aid treatment) and
3,570 non-injury accidents. These incidents were estimated to have
cost the construction project a direct financial loss of over £87k.
Opportunity costs (those incurred where labour was paid but
without production) added over £157k to bring the total to over
£245k.
Over the duration of the contract the estimated total losses were
suggested to be £700k, or approximately 8.5 percent of the tender
price. The ratio of insured costs to uninsured costs incurred by
the main contractor was 1:11.
It was determined by the study that all of these accidents and the
costs incurred could have been avoided. Of the accidents that
occurred, 832 (23 percent) were adjudged to have been caused
by inadequate planning. Alone these amounted to over £41k (17
percent) of the total accident costs.

30. So, in the main, most accidents are avoidable,
particularly with care given to those activities that take
place within the construction process.
The principal theme developed in Part C of this
book is to incorporate appropriate care and
forethought within an effective health and safety
management system. Such a system will not only reduce
the cost of accidents and injury but meet health and safety
legislation, contribute significantly to accident prevention
and, moreover, save lives.

31. Key points
This chapter has identified that:
• Accidents cost the UK economy billions of pounds each year.
• A total cost on accidents occurring within the construction
industry is runs into millions of pounds per annum.
• The cost of any accident comprises two main components:
'visible' or 'insured' costs and the much greater proportion
of 'hidden' or 'uninsured' costs.
• Irrespective of how accident costs are presented or
interpreted it is paramount that one cannot and should not
put a price on a life.
• Research studies conducted by the Accident Prevention
Advisory Unit (APAU) of the Health and Safety Executive
reported that most accidents were avoidable.

32. Effective and Efficient Site
Management 32