According to the National Safety Council, the average cost of a medically consulted injury is $32,000. In other words, everytime you prevent a significant work-related injury you avoid paying what basically amounts to an additional salary, except with no return on investment (ROI). Safe project sites help contractors save money, but it can take some convincing to invest in safety without a clear picture of what you’ll be getting in return.
In this article, the OSHA defense attorneys from Cotney Construction Law will cover a broad range of eye-opening statistics that illustrate exactly how safe project sites help contractors save money. By avoiding work-related injuries, you can save money, reduce the amount of time you spend dealing with claims, and boost your bottom line.
Can You Afford to Ignore Safety?
In 2016, work-related injuries resulted in 104,000,000 lost production days. During that same time, the construction industry was forced to empty its pockets of more than $668 billion to injuries that were entirely preventable. This time and money could have been used to scale operations, invest in green solutions, and train workers; instead, it’s been wasted. Construction-related fatalities can cost as much as one million dollars, which immediately limits your ability to generate a profit, so avoiding these types of tragedies is crucial for a successful project. One of the best ways to avoid work-related fatalities is to invest in safety. It’s been reported that for every dollar allocated to direct costs for safety, contractors can save four dollars in indirect costs.
Statistics Support Cost Savings on Safe Project Sites
For every one dollar you invest in a quality health and safety program, your business can potentially save eight dollars according to the American Society of Safety Engineers. That’s an extremely lucrative ROI for something as important as project site safety. Another way to examine the cost differential between injuries and safety and health programs is to examine the percentage of the total project cost they account for. Data shows that work-related injuries typically account for anywhere between 6 and 9 percent of total project costs. Safety and health programs only account for an average of 2.5 percent of total project costs. Furthermore, everytime a construction company has to pay $50,000 in injuries, illnesses, or damages, they must generate an additional $1,667,000 in revenue to maintain a 3 percent profit margin. This illustrates an important truth — a proactive approach to safety does, in fact, save money for contractors.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.