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Easy job bidding and costing for construction contractors just like you.

The High Cost of Not Accounting for Safety in Your Construction Job Bids

Mar 30, 2023 | Blog, Job Bidding, Safety

Construction sites can be dangerous places, and even with proper safety measures in place, accidents can still happen. Unfortunately, when a construction worker is injured on the job due to a lack of proper safety measures, the ramifications can be significant for the contractor and their business. In this article, we’ll explore the potential consequences of a workplace injury and why it’s crucial for contractors to prioritize safety on their job sites.

Financial Ramifications

The financial ramifications of a workplace injury can be significant for contractors. Workers’ compensation insurance will typically cover the cost of medical treatment and lost wages for the injured employee. However, if the injury is severe, these costs can quickly add up, and the contractor’s insurance premiums may increase as a result.

In addition to the direct costs associated with the injury, there may be indirect costs as well. For example, the contractor may have to pay for overtime or hire a temporary replacement worker while the injured employee is unable to work. They may also have to deal with delays or setbacks on the project, which can result in additional costs and lost profits.

Legal Ramifications

If an injured employee decides to file a lawsuit against the contractor, the legal ramifications can be significant. The contractor may be held liable for damages if it’s determined that they were negligent in providing a safe work environment. This could include paying for medical bills, lost wages, and pain and suffering. In some cases, the contractor may also be subject to fines or penalties from regulatory agencies.

Reputation Ramifications

In addition to the financial and legal ramifications of a workplace injury, there can also be significant reputation ramifications for the contractor. If news of the injury becomes public, it could damage the contractor’s reputation and make it more difficult for them to win future business. Clients may be hesitant to work with a contractor who has a history of safety issues, and the contractor may struggle to find new opportunities as a result.

Preventing Workplace Injuries

Given the potential consequences of a workplace injury, it’s crucial for contractors to prioritize safety on their job sites. This includes providing proper safety equipment and training for employees, conducting regular safety inspections, and ensuring that all workers are following safety protocols at all times.

When bidding on construction projects, contractors should also account for safety-related costs in their estimates. This includes the cost of safety equipment, training, and insurance premiums. By factoring these costs into their bids, contractors can ensure that they’re not sacrificing safety in the pursuit of profitability. Using a tool like ProfitDig makes it easier because you can add those costs as individual line items or you can automatically spread the cost around evenly to other bid items. However you do it, make sure you account for safety expenses!

In addition to prioritizing safety on their own job sites, contractors should also encourage their subcontractors and suppliers to do the same. This includes making sure that subcontractors have their own workers’ compensation insurance and liability insurance, and that they’re following safety protocols on their own job sites. By working together to promote a culture of safety, contractors can help reduce the risk of workplace injuries and protect their businesses from the potential consequences.

A workplace injury can have significant ramifications for a contractor and their business. Financially, the costs can be significant, and the contractor may face legal action if they’re found to be negligent in providing a safe work environment. In addition, the contractor’s reputation may suffer, making it more difficult to win future business.

To avoid these consequences, contractors should prioritize safety on their job sites and account for safety-related costs in their job bids. By working together with subcontractors and suppliers to promote a culture of safety, contractors can help reduce the risk of workplace injuries and protect their businesses from the potential consequences.

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