Construction Update

Best Practices in Risk Management: Safety Programs

An effective safety program makes a contractor more competitive and reduces insurance costs.

More importantly, it protects employees — preserving the company’s most important asset. Employees develop loyalty toward employers who signal a genuine concern for their health and livelihood.

Complacency about injuries is not acceptable in today’s construction market. Project owners inquire routinely about contractors’ and subcontractors’ safety records, including lost-time accidents, experience modifiers and history of workers’ compensation claims. In such tests, safe contractors have an advantage over those with poor records.

The goal of all contractors should be no accidents, and in order to move toward that goal the entire company must adopt a zero tolerance policy. The following two principles guide the most successful safety programs:

1. Make leaders lead. Place primary responsibility for leading a safety program upon senior management. If management pays only cursory attention to safety, office and field personnel will adopt the same cavalier attitude. But if the leadership demonstrates that safety is a core value, that provides a basis for commitment by employees.

Realize, too, that safety programs cost money. Programs available through government and industry associations may ease the burden. But in any case, the most expensive option of all is to do nothing.

2. Train for the real world. A regular training schedule helps instill a culture of safety throughout an organization. But be sure the training is relevant to the work — a class on excavation precautions may not benefit a high-rise ironworker, for example.

Finally, implement the program where the work is performed. Make the job superintendent responsible for implementation — and for success or failure — starting with a meeting of the project team to identify potential safety hazards on the job.

For more information about our services to the construction industry, Contact:
Mark Lund, Parter-in-Charge of Construction Services at 713.297.6907.

The articles in this newsletter are general in nature and are not a substitute for accounting, legal, or other professional services. We assume no liability for the reader's reliance on this information. Before implementing any of the ideas contained in this publication, consult a professional advisor to determine whether they apply to your unique circumstances.