Review your process and reduce your contractors insurance spend
No contractor wants accidents, injuries and worse happening on their sites Healthy workers are happy workers – and good workers
It’s a given that risk management matters, but how confident are you in your .company’s processes Unfortunately, even if the answer is “yes”, you could be setting yourself up for a fall
No matter how well thought-out a risk management policy, ‘under-the-radar’ perils are undermining contractors’ processes, despite their best intentions
If a contractor is feeling a false sense of security in a culture of poor risk management, the stage is being set for accidents And, of course, consequences
POOR RISK MANAGEMENT: THE HUGE COSTS
Construction risk management is big news Large personal injury claims are on the rise The ongoing skills shortage means inexperienced labour is being used to supplement the workforce, leading to an increased risk of accidents occurring
Payouts for injury claims are linked to the Ogden personal injury discount rate PIDR, which assists actuaries, lawyers and others calculate lump sum .compensation levels; this rate has been in flux in recent months, with serious implications for the amounts being paid out to successful claimants
As detailed above, the cost of health and safety investigations has risen since 2016
And if an accident triggers an investigation from the Health and Safety Executive, a construction .company could be left with serious expenses, court costs and even a criminal prosecution
Scrutinising its risk management – and the perils that could be undermining it – should be a regular practice for the benefit of both workers’ health and the financial wellbeing of a .company
THE HIDDEN PERILS AFFECTING RISK MANAGEMENT
#1: EGO CLASHES AND POOR COLLABORATION
When devising, implementing and maintaining risk management practices, buy-in is crucial from all levels, from management downwards
Organisations have clearly demonstrated better safety performance when they have leaders who are willing to be engaged, adaptive and who have awareness that senior management must lead safety
This information shouldn’t surprise anyone But all too often it’s not the case Despite good intentions, a collaborative approach could be lacking and it could cost a .company dear
Construction projects have varying degrees of stakeholders, each with their own willingness and resources to perform at sustainable, safe levels Owners, trades, general contractors and construction managers all have different perspectives regarding their role in ensuring a safe working environment
Further .complexities emerge in regions where consideration needs to be given to utilising union versus non-union labour Both of these challenges have proven to be strong elements affecting project performance
#2: COMPLACENCY AND AN UNWILLINGNESS TO CHANGE
Companies with integrated and streamlined safety processes have a significant .competitive advantage .compared to those with clumsy, poorly written safety manuals
Companies that recognise the need to have staff dedicated to manage safety do better than those that think safety “just happens”
Punitive measures reflect the seriousness of poor risk management But perhaps one of the biggest hindrances to adequate risk management isn’t a disregard of the law or a disrespect for good practice, but .complacency A belief from management that they’ve optimised their processes A conviction they’re doing enough
A humble approach is required Companies should take the time to understand what needs to be done to have real impact on the business There needs to be an open and honest assessment of safety processes and leadership
Managers should ask themselves if people are held accountable for utilising the systems/processes and if not, why not Asking why should initiate a deeper discussion concerning culture and leadership Management needs to clearly recognise the origins of their failures around these issues