An analysis of safety control effectiveness

Abstract The cost of injuries and “accidents” to an organisation is very important in establishing how much it should spend on safety control. Despite the usefulness of information about the cost of a company's accidents, it is not customary accounting practice to make these data available. Of the two kinds of costs incurred by a company through occupational injuries and accidents, direct costs and indirect costs; the direct costs are much easier to estimate. However, the uninsured costs are usually more critical and should be estimated by each company. The authors investigate a general model to estimate the above costs and hence to establish efficient safety control. One construction company has been a pilot for this study. By analysing actual company data for three years, it is found that the efficient safety control cost should be 1.2–1.3% of total contract costs.