Accidents can lead to long-term losses

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Following site safety regulations can save a contractor from fines, compensation and lost time in the short term, and help its reputation in the long term.

On-site accidents could cost contractors thousands of dollars a day due to time lost through work stoppage, worker compensation and violation of fines.

According to Wagdi Seffain, director, office of environmental health and safety at the American University in Cairo, it is vital for businesses to follow health and safety procedures to avert potentially huge losses.

Seffain has been contracted by Dubai Municipality to update its health and safety code of practice, the final draft of which will be released at the end of 2007.

"An accident on site carries with it direct and indirect costs that could make a huge difference to a company's balance sheet at the end of the financial year," said Seffain.

"A direct cost would include medical fees that would have to be paid by the company to treat an injured worker, while indirect costs would include interruption of work on site, causing downtime and a loss in productivity.

"Other costs include damage to materials and equipment, time wasted due to investigations and overtime paid to substituting workers."

A contractor could lose around US $5,000 (AED18, 300) per hour if work on site ground to a halt, according to Ashok Patil, assistant resident engineer for Australian consultant, GHD, in Dubai.

"Time is money, and that's literally the case on a construction site. Work may stop but time doesn't and everyone has to be paid regardless - the labourers, the middle management, the equipment hire company, the subcontractors, security and everyone else on site."

Dubai Municipality's revised health and safety code is expected to address heat-related illnesses, first aid requirements, electrical safety at work and protective equipment to prevent falls from height.

Ahmed Khalil Abdul Karim, safety engineer in the building department, Dubai Municipality, said that a company's work will be stopped if it is found to be violating health and safety regulations.

"The law states that a company cannot be fined more than $13,600 per violation, but this is only the administration fine. You also have to add the fines imposed by the courts and other authorities too. So all in all, it's a loss for businesses."

But while there has been a visible improvement of health and safety standards on some sites, some contractors are still choosing to take the risk of losing money through accidents rather than investing in safety measures, said Paul Canson, director of FM firm Operon Middle East.

"I think that where health and safety is visible, it's improved, such as on big construction sites. But other sites are getting away with it.

"Some contractors have the mentality that the risk of losing money through site accidents is worth it compared to the cost of implementing health and safety practices. For example, if they can get away with it on 20, 30 or 40 projects, and maybe have only one accident, then they see it as a risk worth taking."

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