Construction Accounting Article -
Because You Can Never Be Too Safe - Tips on Building a World-Class Safety Program

Target Audience: Construction Industry Professionals, Accounting Consulting Interest, Contractors, Safety Programs Interest

On any project, safety is everyone’s business. But, as the owner of your construction company, the buck stops at your desk. So, you must do all you can to develop a quality safety program that not only reduces job-site injuries and workers’ compensation claims, but also speeds project completion and enhances revenues.

If your safety program has served you well, you may be tempted to think you’ve got things covered. But just as you can never have too much money in the bank, you can never be too safe on the job site. Here are some tips on building a world-class safety program.

Map It Out and Write It Down

When it comes to safety, being organized is key. Carefully map out your safety program to include:

• Policies that address the distinct risks to your construction company and specific procedures to minimize these risks,
• Training programs on every policy and procedure,
• Communication avenues, including who reports safety-related incidents to whom and what recordkeeping practices should be followed for safety-related incidents,
• A means for measuring success, and
• Resources needed to maintain safe job sites.

In every area, be sure your goals are clear, achievable and measurable. If you’re not sure where to start, decide where safety improvements are most needed and address those areas first. For example, if your program is basically going well but you still have some employees who aren’t cooperating fully, focus initially on training.

When you have your plans in place, develop a safety manual that details your policies and procedures as well as the consequences for noncompliance. You may not need to hire professional writers and designers to produce the manual, but make sure it clearly communicates your expectations. (Sometimes a few extra dollars spent on a proofreader can work wonders.)

Train Smarter

We’ve mentioned training a couple of times, but it still merits a more in-depth discussion. Many construction companies have good safety programs on paper yet don’t have good safety programs in practice. For example, do you train foremen and other supervisors before you train laborers? Maybe you should reconsider this line of thinking.

Instead, have senior managers (or outside training staff) train job-site workers before they train foremen and other supervisory personnel. That way, you can be sure transient workers and new employees with no safety knowledge are getting the benefit of the best training you have to offer. Then go up the ladder, rather than down.

In addition, contrary to conventional wisdom, your safety program doesn’t have to mean unreasonable additional costs. You’re already required to meet regulatory safety requirements, so build on those to get to the next level.

For instance, OSHA courses are a minimum. But this agency also offers “train the trainer” courses at education centers throughout the country, allowing you or one of your employees to teach the 10- and 30-hour courses to laborers and foremen, respectively. See OSHA’s Web site (osha.gov) for more information.

Plan (and work) Better

Make safety a part of your preproject planning process. In assessing the manpower, tools, materials and other components required for a job, look at the risks involved. (General contractors should also be aware that they may take on safety obligations under contracts with subcontractors and owners. Therefore, their safety programs should reflect these obligations.)

If you’re going to be working in a public area, for instance, consider what types of protection you’ll need to provide. Include the cost of the labor, materials and tools required to build or install proper protection in your preproject planning so you don’t need to scurry around at the last minute looking for chain-link fencing or scaffolding.

As the job gets underway, conduct site orientation for every worker. Walk employees through the site, pointing out and discussing potential hazards (and, of course, fixing any that you can). Low spots in the ground, for example, could retain water after a rain or cause someone carrying materials to stumble.

At the same time, emphasize your zero-tolerance attitude toward safety violations and review your safety manual — including your enforcement policies. Encourage ongoing compliance with on-the-spot training. Supervisors who see unsafe work practices should take the employees aside and offer training immediately. Doing so will improve safety as well as stress your commitment to it.

Commit Yourself

When it comes to safety, lip service or a quick-fix mentality won’t work. A world-class safety program entails careful planning, consistent execution and, most important of all, your commitment. By championing this effort you’ll help build a happier, more motivated workforce — and your bottom line.

Sidebar: Do You Need Employment Practices Liability Insurance?

A world-class safety program will protect employees from harm, but it won’t protect you from legal actions as a result of your employment practices. To mitigate this risk, insurers offer employment practices liability insurance (EPLI).

Essentially, EPLI protects you, your construction company and, often, your senior management team against expenses arising from employment-related lawsuits. Your insurer is generally obligated (barring certain exclusions and limitations) to defend you against employment-related lawsuits — even if they’re frivolous. You may even be allowed to select your own defense attorney.

Premiums for the coverage vary according to each company’s size, history, human resources policies and similar risk factors, as evaluated by the insurer. So, as with any potential purchase, you should scrutinize EPLI coverage before you buy it.

Look at whether the deductible applies per claim or per claimant; whether you can notify the carrier of “circumstances” rather than actual complaints; who within the company must be aware of complaints; and when you’re required to notify the insurer that a complaint might be filed.

Find out how our expertise in construction accounting can add value to your business. Email us or call us at 1 (888) 875-9770.

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