Understanding the impact between safety investment and accident cost in Hong Kong construction industry: regression model analysis
Creators: name: Ying, Kai
Publisher: name: RMIT University
Year: 2024
Subjects: classificationCode: 400508
subject: Infrastructure engineering and asset management

description: The occurrence of construction accidents is of great concern for construction stakeholders, such as government departments, developers, and contractors. Construction accidents induce time delays and losses of various magnitudes. Financial loss caused by accidents has been investigated to a certain extent. However, the reduction of loss to all concerned through the prevention of accidents requires in-depth re-focusing on site safety, not only to reduce the number of accidents but also to examine financial loss further.<br><br>The aim of this study is to discover the relationship between financial loss and safety investment in the construction market and to introduce a benchmark figure for stakeholders and hence introduce a framework that will serve as a guide for participants on how to invest in safety effectively in different project stage. <br><br>The objective of this study is to (1) identify the relationship of safety investment between different projects based on previous records, (2) investigate the relationship between safety investment and number of accident, (3) investigate the factors that affect financial loss due to accidents, (4) review the compensation procedure of construction accidents, (5) develop a relationship between safety investment and financial loss in Hong Kong and (6) model a safety investment performance measure and any resulting financial loss. <br><br>Comprehensive research method begins with an in-depth literature review to reveal knowledge regarding safety investment and financial loss caused by accidents. Structured interviews are conducted to collect significant information for data analysis. Regression analysis and follow-up validation survey are conducted. A questionnaire survey is conducted to verify the suggested items regarding safety investment. <br><br>Key parameters which affecting financial loss including compensation (wage of staff), fine &amp; legal expenses, idle plants, material loss and equipment loss have been demonstrated in the analysis section<br><br>Key findings in the research indicate that by sufficient investment in three aspects (safety equipment, training, and promotion); overall, financial loss in accident will be reduced. Meanwhile, safety training is the most significant parameter to reduce financial loss. The regression model is feasible to quantify nowadays situation by multiplying the compound inflation rate to the research period (year 2007-2012).  <br><br>The research introduces benchmark figures to explain the relationship between financial loss and safety investment. A framework in flow chart format (Appendix XIII) has been introduced to guide the participants on how to invest in safety effectively in different project stages to reduce financial loss of accidents.<br><br>The study provides a rational stratum to enable contractors to estimate financial loss due to accidents. Such findings can be used as a review and be implanted into the Bill of Quantities (BQ) as an overall contract sum. The findings minimizes unnecessary expense in safety investment, which may prevent over budget. <br><br>The latter must reveal the necessity of investigative safety forethought in relation to accidents and financial loss to stakeholders. Such knowledge could contribute to the improved prediction of the lump sum of financial loss per project.<br><br>This study significantly provides a framework that will further educate not only the contributors but also all stakeholders and provide them with a full awareness of the effective safety investment (safety equipment, training, and promotion) in different project stage.  <br><br>Lastly, this study offers general recommendations on the selection, usage, and maintenance of safety equipment, key area of focus for safety training, and guidelines on promoting safety awareness. It also aims to help stakeholders invest wisely in reducing the financial loss from accidents.