Optimum Injury and Illness Prevention Costs for U.S. Construction Projects

Abstract

Worker injuries and illnesses can affect the profitability of an organization. Regardless of the regulatory requirements for safety and health, many organizations prefer to see positive returns (i.e., better safety metric performance) on their safety investments (i.e., project costs associated with injury and illness prevention programs). Understanding the relationship between costs associated with an injury and illness prevention program of a construction project and project safety performance is critical to the future success of construction organizations in the United States. In evaluating this relationship, the authors’ goal was to identify an equilibrium point of injury and illness prevention program investment at which the relationship can be beneficial to contractors. Data collected from 93 U.S. construction projects were analyzed for the presence of a relationship between project spending and safety performance. Per the analysis, an injury and illness prevention program cost of 5–6% of the total budget may be adequate to maintain injury rates at low levels. This information can be used in developing or revising a contractor’s project-specific injury and illness prevention budget.