Safety Cost Analysis for Building in Construction Industry

Abstract

Abstract: The construction industry provides shelter for a variety of societies and for a variety of purposes. A security culture is concerned with ensuring safety and avoiding risks. A questionnaire is used to collect information for this project. The study's questionnaire included questions with fixed response categories as well as open-ended questions. Three ratios were calculated, and a graph was plotted for analysis. The Accident Loss Ratio (ALR), Safety Investment Ratio (SIR), and Accident Occurrence Index (AOI) are the three ratios calculated. An estimation of 0.672% of the contract amount was found to be the optimum safety investment for a construction project. It was found that the overall cost to the contractor (accident loss plus safety investment) was 1.148% of the total contract amount. It isn't intended to suggest the scary assumption that 0.672% is the optimum value and that a safety investment higher than 0.672% is not necessary. In actuality, 0.672% needs to be thought of as the very minimal amount to invest in safety in a construction project. The purpose of the graphical representation is to demonstrate the effect of safety investment in a project on the severity of accidents and accident loss occurrences on site, which ultimately reduces the contractor's profit margin. The main goal of the graphical representation is to understand the importance of safety investment in terms of both tangible and intangible benefits such as greater peace of mind for workers, a better image of the organisation in the market, and greater job satisfaction for employers and employees, as well as monetary benefits such as increased profit margins.