A cost-benefit analysis of safety training as a measure to reduce accident costs in construction projects.

Abstract

Construction is one of the most dangerous land-based work sector in the world. Despite Uganda experiencing an increasing trend in construction accident occurrences over the years, the cost of these accidents hasn’t received much attention. In addition to this, they’ve failed to support the decision-making process in regard to construction health and safety measures. A formal, wellorganized and effective safety training forms part of this list of measures despite having no basis for its consideration. A cost-benefit analysis (CBA) methodology is presented that will enable contractors to assess the costs and the associated benefits of its implementation. The research investigated the costs and total benefits accrued as a result of performing construction safety training, with a view of reducing the cost of accidents experienced by contractors on construction projects. A quantitative research methodology was employed in investigating these costs and benefits within the construction industry of Uganda. The results of the ratio analyses indicate that when the cost of implementing construction safety training on a project are compared to the total benefit accrued due to its implementation, the benefits far outweigh the costs of implementation by approximately 10%, a benefit-cost ratio (BCR) of 1.1:1. The results also show that large contractors in Uganda implement this strategy on a more often basis than medium-sized and small contractors with the former doing so weekly. It also revealed that contractors who arrange monthly on-site induction programmes spend relatively more time, per session held, on construction safety training than contractors that do so weekly. It also revealed that in proportion to the overall cost of project executed, large contractors spend more on construction safety training at the same time derive greater benefits than medium-sized and small contractors. It further showed that that the cost of construction accidents experienced in Uganda lies in the range of 1.0-3.0% of the overall cost of project with cases even stretching to about 7%. It is concluded that this CBA provides a basis that contractors can rely on to consider construction safety training as an effective measure of accident prevention on construction projects. When acted upon, the method has the potential to effectively reduce the significant cost of construction accidents experienced in the construction industry of Uganda and possibly in other areas internationally.