Page 145 - Urban Construction Project Management

104 Chapter Five
Vegas. With contractors trying to meet schedules, it seems that safety takes a back seat.
However, smart contractors realize that safe job sites not only create larger profits, but
also expedite projects in the end.

INJURY AND DEATH IMPACT ON THE CONSTRUCTION PROCESS

The deaths and injuries sustained in the construction industry have a profound
impact on the contractors whose workers are injured on the job site. A list of items
that affect the Construction Manager/General Contractor (CM/GC) is indicated in
Exhibit 5-26.

SAFETY AND COST IMPLICATIONS

CM/GCs may not always consider the actual cost of the items enumerated in Exhibit
5-26 when evaluating the cost of a project and the potential profit (or loss) of a particular
job. By evaluating some key elements of potential costs, the contractor can have a better
understanding of the cost impact of injuries at the job site.

Exhibit 5-26
1. Injury to valuable workers
Death and injury
2. Tragic deaths
impact on the
3. Liability insurance increases
CM/GC.
4. Builders all risk insurance increases
5. Workers’ compensation rate increases
6. Delay of the project
7. Investigation by local authorities
8. Investigation by OSHA
9. Potential lawsuits
10. Depositions that also require extensive time away from the project
11. Fines and penalties
12. Loss of productivity
13. Investigation reports required, which take valuable time away from the PM and
superintendent
14. Retention of new workers to take the place of injured workers (lost time for get-
ting up to “speed” on the work involved)
15. Training of new workers
16. Reschedule of work
17. Paying of wages while an injured worker is out on leave
18. Any repair or replacement caused by the accident
19. Increase in bonding premiums or total rejection by the bonding companies