ABSTRACT
The objective of business is to make money and to be profitable; revenues must exceed expenses. That's the secret to success in all businesses, including construction. Both large self-insured corporations and "Mom and Pop" entities are bound by this formula. Both spend considerable effort attempting to increase their profitability, for example, by widening markets and increasing sales or by reducing component costs and making more efficient use of labor. However, one element that is often overlooked that has a negative effect on net profits is the cost of accidents. Direct costs, resulting from accidental equipment damage or personal injuries, plus the associated indirect financial impacts resulting from schedule disruptions, increases in insurance and workers compensation premiums, can be devastating to profits. As more organizations involved in construction activities look for ways to reduce project-associated costs, they are beginning to recognize that unsafe work practices cost them money.
