Improving workers' compensation management in construction

Hancher, D E; De La Garza, J M and Eckert, G K (1997) Improving workers' compensation management in construction. Journal of Construction Engineering and Management, 123(3), pp. 285-291. ISSN 0733-9364

Abstract

Workers' compensation is one of the most pressing problem areas in the construction industry. The industry, due to the nature of work involved and the demand for safety, is constantly challenged to improve its management of workers' compensation. The current costs of coverage and administration are often thought to be excessive in the industry, while the protection and benefits provided to employees are sometimes perceived as unsatisfactory. This paper was developed from the findings of a Construction Industry Institute (CII) research project that was conducted to identify improved methods of management by contractors for their in-house workers' compensation insurance program. The team members from industry had more than 200 years of experience in construction safety and insurance management with construction organizations. In addition to the expertise of the team members, guidance was also sought from other contractors and the insurance profession. A major finding of the research was that many contractors do not take an active role in workers' compensation management; therefore, this paper presents the research team's major suggestions for contractors to improve their workers' compensation management program. Some means of reducing the costs of workers' compensation insurance while improving the system are given with an estimate of potential cost savings. Cost savings are primarily derived from lower premiums due to the reduction in a contractor's experience modification rate (EMR). Therefore, some discussion of the EMR is provided with an evaluation of its validity as a measure of a contractor's safety performance.

Item Type: Article
Index terms: Construction Industry Institute, validity, construction organization, construction worker, cost saving, compensation, construction industry, estimate, profession, insurance, safety performance, construction safety, program
Subjects: economics, software systems, industry analysis, environmental health, occupational health and safety management, practitioner, institututions, dispute resolution, research organizations, evaluation and assessment methods, organization, economic analysis, financial and cost management
Topics: Sustainability, Roles and Professions, Research Practice, Health and Safety, Business Strategy, Cost Management, Digital Applications, Legal Issues
Descriptive scope: 4 PCTA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here