Controlling Workers' Compensation Costs In Construction

摘要

Worker's compensation costs in U.S. construction are a significant cost element. These costs for certain crafts in certain states can exceed $50 for every $100 of base labor costs. Worker's compensation costs have a strong tie to medical costs which have recently outpaced general inflation levels in the U.S. economy. This, in turn, has obviously led to increased costs for contractors. However, in discussions by the authors with those in the construction industry, a number of proven strategies have been found which can significantly lower these compensation costs. Some contractors have just taken compensation costs as a given cost factor. Proactive contractors instead have taken a multi-faceted cost-reduction approach. Effective safety and safety training programs obviously reduce exposures in the first instance. Screening of prospective employees through substance-abuse testing has been seen to yield substantial benefits. These proactive contractors take this further by screening their prospective subcontractors and third-tier subcontractors for lower experience modification ratings (EMR). Moreover, they encourage project owners to set EMR targets at better-than industry-average numbers to screen out unsafe contractors in the bidding competition for projects. These steps reduce multiemployer work-site issues. Knowledgeable owners will accept EMR specification requirements in order to reduce chances for third-party lawsuits and associated issues. Owners such as state DOT units have encouraged additional safety procedures in work zone safety by paying for such items as safety signs and barricades on a unit-price basis thereby discouraging contractors from cutting corners in these areas. Other owners have provided direct compensation for job-specific safety training. Constructability analysis to reduce safety exposure through increased pre-fab work and pre-assembly at ground level were some techniques found to provide a safer work environment. This ground-level work means fewer hours for personnel at height where fall risks are present. Proactive contractors have incorporated safety performance along with productivity, cost, and quality targets in their evaluation and promotion criteria. First-line and second-line supervision should be trained to understand both the direct and indirect costs of accidents along with the impact of supervision on EMR numbers.