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Safety Management in Construction Research Study Preliminary Results—April 2013

Safety Management in the Construction Industry: Identifying Risks and Reducing Accidents to Improve Site Productivity and Project ROI

All information presented © McGraw-Hill Construction, 2013. All rights reserved.

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Types of Safety Practices

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Conduct Thorough Near Miss and Incident Investigations

Site Specific Training Pro-gram for Workers and

Subcontractors

Develop Site Specific HASP (Health and Safety Plan)

Appoint/Assign/Authorize Project Safety Personnel

Conduct Regular Project Safety Audits with Foremen/Workers

Establish an Open-Door Pol-icy for Workers to Report

Hazards

Analyze Potential Site Safety Hazards in Preconstruction

Include Jobsite Workers in Safety Process

47%

54%

63%

62%

63%

62%

60%

72%

68%

69%

75%

78%

81%

86%

89%

86%

General Contractor

General Contractors Report a Wider Use of Safety Practices than Specialty Contractors

Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

Specialty Contractor

Relative ranking for most practices are the same among General Contractors (GCs) and Specialty Contractors

The difference in use may reflect the role of GCs in promoting safety as “controlling employers” on a jobsite

Types of Practices Used to Promote Safety on Projects (by Firm Type)

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Conduct Regular Project Safety Audits with Foremen/Workers

Include Job Site Workers in Safety Process

Appoint/Assign/Authorize Project Safety Personnel

Analyze Potential Site Safety Hazards in Preconstruction

Develop Site Specific HASP (Health and Safety Plan)

7%

13%

17%

17%

25%

Developing Site Specific Health and Safety Plan (HASP) is Reported as the Most Effective Practice in Increasing Project Safety

Firms also report safety practices that start in the preconstruction stage to be most effective

Top Practices Found Most Effective in Increasing Project Safety

Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

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Fully Inclusive and Widely Observed

Not Fully Integrated Occasionally Conduct Safety Reviews With No Formal Pol-

icy

92%

8%

0%

76%

20%

4%

48%

35%

17%

Large Firms Report More Fully Integrated Safety Policies and Programs than Small Firms

Large firms are investing more in safety practices than small firms, possibly due to their larger budgets and access to resources

Level of Adoption of Safety Practices and Policies

Small Firms (1-49 Employees)

Medium Firms (50 to 499 Firms)

Large Firms (500 or More Employees)

Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

Influence Factors

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Concern About Worker Health and Well-Being

Insurance Costs

Liability Concerns

Avoiding Potential Business Disrup-tion

Owner/Client Demand

Regulatory Requirements

Desire to Improve Productivity

Past Incidents Involving Worker Health and Well-Being

Industry Leadership in Overall Safety Culture

Competitive Advantage

79%

78%

77%

65%

64%

63%

54%

52%

51%

50%

A High Number of Factors are Driving Adoption of Current Safety Practices

At least 50% report 10 different factors

In addition to worker health and well-being, top drivers stem from concerns over project cost and schedule

Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

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Reduced Insurance Rates is the Primary Factor Encouraging Investment in Safety Management Practices

Reduced Insurance Rates

Greater Client Requirements

More Data on Financial Impact of Improv-ing Safety

Stronger Regulations

Greater Enforcement of Regulations

78%

68%

54%

50%

50%

Reduced insurance rates play significant role in bringing project costs down

Clients more likely to seek contractors that control their risks through comprehensive safety management practices

Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

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Owners are Most Influential in Impacting Improvement of Safety Practices

For large firms, company leadership is most important, while small firms are more influenced by owners

Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

Communication and Education

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Estimators

Company Lead-ership

Project Management Team

Jobsite Workers

Foremen/ Super-visors

16%

21%

30%

20%

21%

15%

42%

47%

61%

64%

Safety Training Impacts Those Most Directly Involved in Day-to-Day Construction Activities

Impact of training is also substantial for the project management team and company leadership, demonstrating the importance of engaging the company leadership in addition to encouraging safety on the ground

Influence of Safety Training by Role at Contracting Firm

Somewhat Highly Influential

Highly Influential

85%

81%

77%

63%

31%

Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

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Online/ eLearn-ing

Authorized Jobsite Work-

ers

Classroom Training

On-The-Job Training

26%

52%

52%

82%

76%

86%

89%

95%

Firms Use and Value On-the-Job Training the Most

Large firms use and value classroom training significantly more than small firms, which are much more likely to outsource training

Level of Use and Value of Modes of Training for Jobsite Workers

Use Consider to be of Great value

Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

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Only When Required

Only When First Hired

Annually

Twice a Year

Once a Quarter or More

24%

9%

27%

15%

18%

11%

4%

28%

23%

34%

10%

8%

22%

6%

51%

Large Firms Offer Training to Jobsite Workers More Frequently

Large firms typically assume greater risk and liability than small firms and thus have a greater interest in emphasizing safety training

Frequency of Formal Safety Training for Jobsite Workers

Small Firms (1-49 Employees)

Medium Firms (50 to 499 Firms)

Large Firms (500 or More Employees)

Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

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Newsletter

Text Alerts

Email Alerts

Flyers with Paychecks

Chain of Command

Training

Toolbox Talks

1%

1%

2%

4%

13%

38%

41%

Toolbox Talk and Training are Most Effective Ways of Communicating About Safety

Direct forms of communication are considered far more effective, allowing workers to ask questions and avoid misinformation

Most Effective Means of Communicating About Safety With Employees

Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)