Construction Business Owner, November 2007

Since the Occupational Safety and Health Administration (OSHA) first began to regulate safety practices among employers in 1971, some construction business owners have worried that training and compliance programs might impose an unnecessary financial burden on their operations. Employers have also discovered that keeping pace with OSHA regulations can be confusing and time-consuming. These concerns are especially common among the owners of small to medium-sized businesses who believe they have the least amount of time and resources to spare for safety training. Unfortunately, smaller firms have the highest rate of accidents in the construction industry. For these companies, weighing the costs versus the benefits of safety programs is a crucial matter.

Know the Law

Although a widely held misconception exists that OSHA now promotes "voluntary compliance," all employers are required by law to comply with the regulations found in the Occupational Safety and Health Act of 1970. For the construction industry, the most important parts of the law are contained in 29 CFR Part 1926, which deals specifically with construction and the General Duty clause, which states that apart from any specific regulations, employers must provide a safe work environment. Failure to do so can result in various penalties, ranging from fines to imprisonment. For this reason, it is imperative for companies to know and comply with the law.

The Costs of Non-Compliance

The costs of non-compliance are heavy, in terms of loss of resources: time, money and personnel. For example, workers at a Michigan-based company recently put plastic sheeting around some scaffolding to protect themselves from the rain. When wind grabbed the plastic, it knocked over the scaffolding and acted like a sail, resulting in the death of an employee. Sadly, almost anyone in the industry can relate. Accidents are also expensive in financial terms. Last year, for example, a Texas-based company's failure to protect its employees from a cave-in resulted in fines totaling $117,500.

The Rewards of Compliance

Just as the costs of non-compliance are great, the rewards for compliance are as well. OSHA’s Focused Inspection Policy, for instance, recognizes the efforts of contractors who have implemented effective safety programs. Focused inspections are narrower in scope than comprehensive inspections and target only the leading construction hazards.

Companies with strong plans are also eligible for participation in the Voluntary Protection Program (VPP), which exempts companies from regular periodic inspections. These firms must still comply with OSHA standards, of course, and statistics show that they do much more than that: participants in the VPP are typically 50 percent below the industry average for recordable incidents.

OSHA Compliance Assistance

Another valuable resource on OSHA’s website is the "Small Business" link. Here, employers can request a free onsite consultation that can be helpful for companies with limited resources. At the company's request, OSHA will arrange for a consultant to help the business design a solid safety program. Once the plan is in place, the company can use existing personnel to oversee it.

 

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