Construction accidents in Australia: Evaluating the true costs. (December 2019)

• Record Type: Journal Article
• Authors: Allison, Ryan W.; Hon, Carol K.H.; Xia, Bo
• Is Part Of: Safety science. Volume 120(2019)
• Page Start: 886
• Page End: 896
• Publication Date: 2019-12
• Subjects: Accidents -- Costs -- Construction industry -- Australia; Industrial accidents -- Periodicals; Accident Prevention -- Periodicals; Safety -- Periodicals; Travail -- Accidents -- Périodiques; 363.11
• DOI: 10.1016/j.ssci.2019.07.037
• Languages: English
• ISSNs: 0925-7535

Abstract

Highlights: Except full incapability, indirect costs outweighed direct costs of accidents. Employer borne most true costs in accidents with short absence. Community borne most true costs in accidents with long absence and full capacity. Estimation methodology can be applied to other industries. Abstract: Despite a marked improvement in safety standards over the past two decades, construction accidents in Australia remain prevalent and costly. Furthermore, existing research indicates that employers commonly underestimate the true financial impact of such events. While significant research has been dedicated to understanding the true costs of construction accidents in an international context, currently very limited literature specific to the Australian construction industry is available. This study builds on existing research by providing a methodology and costing structure that facilitates the calculation of true construction accidents costs in Australia. Using an incidence-based, 'ex-post' approach, the mean cost of a construction accident incurred on stakeholders ranges from AUD$2040 to AUD$6, 024, 517. These costs are volatile and can vary significantly from baseline estimates depending on the specific nature of the construction accident. While the financial impact of construction accidents can pose a very real threat to the success of construction companies, clear identification of their scale can be leveraged to encourage the internalisation of true accident costs and positively inform the improvement of safety programs.