Relationship between degree of risk, cost and level of compliance to occupational health and safety regulations in construction

Abimbola Olukemi Windapo

doi:10.5130/ajceb.v13i2.3270

Abstract

This paper investigates the role of statutory health and safety (H&S) regulations in managing construction project risks. The study examines whether the decision made by contractors to comply with the regulations, the cost of compliance and savings of H&S regulatory requirements is influenced by the degree or level of risk, which the regulations are trying to prevent. The rationale for the examination stems from previous studies which establish that building designers and contractors perceive the cost of complying with regulations as additional burdens, which they have to conform to, and which are in some cases unnecessary, and also the fact that construction related injuries and fatalities are on the increase. Qualitative and quantitative data obtained from a descriptive survey and H&S site audit by the Master Builder Association of the Western Cape (MBAWC) were used as the measurements of risk, level of compliance to regulations, cost of compliance and savings. By correlating the quantitative and qualitative data, there is empirical evidence to support a negative relationship between the degree of risk, level and cost of compliance and cost savings. Based on the study’s findings, this paper concludes that the decision made by contractors to comply with H&S regulatory requirements is influenced by the perceived cost saving on account of compliance and that cost savings are influenced by the probability of accident occurrence which is an element of the degree of risk which the regulation is trying to prevent or control.

Highlights

Construction industries worldwide are notorious for unacceptably high accident and fatality rates, both of which were noted by Ulang et al (2010), Sidumedi (2009) and Health and Safety Executive (HSE) (2004) in comparison to other industries
Breakdown of detailed Scores for Variables used in the study The detailed breakdown of overall scores for the level of compliance obtained from Master Builder Association of the Western Cape (MBAWC) records; relative importance index for cost of compliance and cost savings as a result of compliance, probability of accident occurrence and severity of accident; and composite risk index, computed from the data collected through the questionnaire survey and case studies are shown in Table 3 and Figure 2
Questions Posed Is OHSA implemented on site? Level of compliance with OHSA Is the project running within time? Is the project running within budget? Have there been any reports of accidents/ injuries?

Summary

Introduction

Construction industries worldwide are notorious for unacceptably high accident and fatality rates, both of which were noted by Ulang et al (2010), Sidumedi (2009) and Health and Safety Executive (HSE) (2004) in comparison to other industries. In South Africa, construction industry records show that work related deaths, occupational diseases and injury claims absorb a significant proportion of the Gross National Product (Benjamin and Greef 1997) even though there are concerns that the reports in South Africa fail to capture the full number of accidents (van Huyssteen et al 2009; and Sidumedi 2009). In instances of poor quality housing a high number of accidents and fatalities (Construction Industry Development Board (cidb) 2009a), building failure (Ayininuola and Olalusi 2004), failed or unfinished construction projects, which are common in the construction industry, suggest that construction industry stakeholders are not complying with regulatory requirements

Objectives

Methods

Results

Discussion

Conclusion