Cost of safety in building construction?

With the development of the economy and trade globalization, the 1990s by the Western developed countries first put forward the concept of safety costs. However, countries, regions, enterprises due to differences in labor safety and health conditions, the corresponding production costs are different. This kind of "unfair competition" caused by insufficient investment in labor safety and hygiene and lower production cost is not accepted by the international community. After China's accession to the WTO, the concept of safety costs are gradually accepted by the majority of construction enterprises. The following is the main content of the building construction safety costs brought by Zhongda Consulting for reference.

Concept and composition analysis of safety costs

Concept of safety costs

Safety costs can be summarized as follows: in order to prevent accidents such as personal injuries in the production process and damage to equipment and facilities, and to ensure the safety and health of the workers in the production and safety of the surrounding environment, all the expenses incurred and all the losses due to safety problems.

Analysis of the composition of safety costs

Safety costs are composed of two parts: ① control costs. That is, the costs incurred to ensure safety and health. ② Failure costs. That is, the loss caused by the failure to achieve safety. Failure costs can be further divided into two parts: internal failure costs and external failure costs.

I have been engaged in building construction and construction safety management for many years, the construction enterprise safety cost composition of the initial exploration.

Control costs

Safety management costs

Safety management incurred by personnel salaries, office equipment, collecting information, setting standards, preparing documents, special program design justification, carry out inspections and other payments.

Safety training costs

The cost of all kinds of safety training (including internal and external training) for managers and operators in order to improve the quality of personnel.

Safety facilities

All kinds of scaffolding, guardrail, protective shed materials, electrical safety devices, mechanical equipment safety devices, fire-fighting equipment, labor protection supplies, such as the purchase and installation costs, site hardening costs.

Safety publicity expenses

Safety signs, slogans, posters, boards and other costs.

Safety Incentive Fees

All kinds of incentive fees paid to encourage safety standards and excellence.

Safety Inspection Fee

Expenses incurred for the inspection of safety protection supplies, facilities, devices, machinery and equipment

Accidental Injury Insurance Fee

Insurance fee for taking out accidental injury insurance for building construction workers.

Emergency Rescue Fee

Expenses incurred for emergency rescue equipment and drills.

Internal failure costs

Equipment and device damage costs

Costs incurred for the re-acquisition or repair of safety equipment, facilities, devices and protective gear after loss, failure or damage.

Accident Handling Fee

All the expenses incurred for emergency rescue, medical treatment, compensation, aftermath, and equipment repair due to safety accidents resulting in casualties and equipment damage.

Stoppage Loss Costs

All direct loss costs incurred due to major safety hazards or safety accidents resulting in work stoppage.

Rework loss cost

Rework costs incurred due to safety protection equipment and facilities do not meet the requirements.

Re-inspection costs

Costs paid for re-inspection of reworked safety protection equipment, facilities, devices, machinery and equipment.

Indirect Loss Fee

Indirect loss due to the loss of credibility of the enterprise due to safety accidents, and the enterprise is restricted from participating in bidding.

External Failure Costs

Litigation Costs

Costs incurred as a result of litigation due to disputes arising from safety incidents.

Costs of being claimed

Costs incurred for compensation processing due to major safety hazards or accidents that lead to complaints by contract-related parties or third parties in society.

Fines

Fines issued by contract-related or higher authorities as a result of major safety hazards or accidents.

Repair Costs

Costs incurred for rectification or compensation due to construction causing unsafe conditions for surrounding personnel and adverse environmental impacts.

Resumption of work safety conditions certification fee

Costs incurred for commissioning a third party to certify safety conditions before resumption of work due to a major safety accident.

Increase in insurance premiums

Increase in insurance premiums due to the upward adjustment of insurance rates by insurance companies as a result of a company's poor safety record.

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