Hallowell, M R (2011) Risk-based framework for safety investment in construction organizations. Journal of Construction Engineering and Management, 137(8), pp. 592-599. ISSN 0733-9364
Abstract
The costs of construction injuries can have a substantial impact on the financial success of construction organizations and increase the overall costs of construction up to 15%. Following the Occupational Safety and Health Act of 1970, construction firms began to implement a variety of management techniques to reduce the frequency of injuries. Although these strategies decrease the cost of injuries, they consume time and other significant resources. Thus, it is imperative for construction organizations to objectively evaluate the cost-benefit of investments in injury prevention through formal and robust processes. This paper presents a risk-based framework that can be used to evaluate the incremental return on investment of a series of investments in highly effective injury prevention strategies. The framework was developed using foundational risk quantification and analysis techniques and is illustrated using a hypothetical case study that is based on archival data published by United States government agencies. The conclusion of this study is that the optimal investment strategy can be identified through a formal analysis and that optimization depends on the frequency and cost of injuries, the sequence in which the specific injury prevention techniques are implemented, the risk mitigated by each strategy, and the organization's attitude toward acceptable risk.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction management; contingent liability; finance; financial factors; liability; risk; risk management; safety |
| Index terms: | construction firm, investment strategy, strategy, liability, government agency, injury, United States, case study, construction organization, quantification, prevention, return on investment, occupational safety and health, risk management, financial factor |
| Subjects: | organization, data collection methods, risk assessment, economic analysis, management, financial risk, Geography, health conditions and diseases, measurement and scaling, occupational health and safety management, liability law, administrative law |
| Topics: | Geographical Context, Research Practice, Health and Safety, Business Strategy, Cost Management, Risk Management, Legal Issues |
| Descriptive scope: | 4 PCEA |
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