CONSTRUCTION HEALTH AND SAFETY COST OR INVESTMENT?

ABSTRACT Occupational incidents, accidents and fatalities are rampant in the Contraction Industry. These have negative financial impact on businesses through work stoppages, lost production and penalties among other effects. To minimise negative effects of health and safety, construction companies use different methods of investing in health and safety to ensure that projects are carried out in safer environments. These include provision of Personal Protective Equipment, welfare facilities, engagement of safety personnel, general medical examinations, education and training, safety incentives, improvement in technology and occupational health and safety management systems. A research was carried out in Harare were questionnaires, interviews and observations were used to determine the effects of investing in construction health and safety. Harare based construction companies, construction employees, clients and NSSA Inspectors formed part of the target population. The research revealed that investment in health and safety leads to increased productivity, improved company safety record, competitive advantage during tendering, reduced insurance premiums, reduced time lost to injuries and profitability of construction projects. Respondents lamented costs, lack of support, enforcement and top management involvement in health and safety issues as stumbling blocks to an effective investment in health and safety. The researcher concluded that benefits of investing in health and safety exceed the costs of improving conditions of work therefore an investment.

TABLE OF CONTENTS Declaration..... (i) Acknowledgements....(ii) Abstract.........(iii) Table of Contents......(iv) List of Tables......(viii) List of Figures...(ix) List of Appendices.....(x) List of Abbreviations....(xi)

CHAPTER 1: INTRODUCTION 1.0 Introduction.1 1.1 Background Information.....1 1.2 Problem Statement......3 1.3 Research Questions.....5 1.4 Research Hypothesis.......5 1.5 Research Aim......5 1.6 Research Objectives....5 1.7 Justification.....6 1.8 Research Outline.....7

CHAPTER 2: LITERATURE REVIEW 2.0 Introduction.........9 2.1 Investment in Health and Safety.....9 2.1.1 Safety Personnel..........9 2.1.2 Personal Protective Equipment and Clothing....10
3

2.1.3 Education and Training......11 2.1.4 Improvement in Technology......12 2.1.5 Safety Incentives....12 2.1.6 General Medical Examinations and Drug Abuse Testing.....13 2.1.7 Welfare Facilities...13 2.1.8 Health and Safety Management System....14 2.2 Effects of Investment in Health and Safety......15 2.2.1 Costs of not Investing in Health and Safety......15 Direct Costs...15 Indirect Costs..16 2.2.2 Benefits of Investing in Health and Safety....19 2.3 Health and Safety Implementation Challenges.....22 2.5 Summary...24

CHAPTER 3: RESEARCH METHODOLOGY 3.0 Introduction...25 3.1 Research Design...25 3.1.1 Sampling Frame.....25 3.1.2 Target Population...26 3.1.3 Sample Size...27 3.1.4 Sampling Method...27 3.1.5 Data Sources..28 Secondary Data......28 Primary Data......29 3.2 Summary of Data Collection Methods.....31 3.4 Limitations .......31 3.5 Data Analysis Plan....31 3.6 Summary...32
4

CHAPTER 4: DATA PRESENTATION AND ANALYSIS 4.0 Introduction...33 4.1 General Information......33 4.2 Health and Safety Investment...36 4.3 Effects of Health and Safety Investment..39 4.4 Health and Safety Investment Challenges....45 4.5 Summary...46

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS 5.0 Introduction...47 5.1 Conclusions...47 5.2 Recommendations.....48 5.3 Areas of Further Research....49

REFERENCES...50

APPENDICES....53

LIST OF TABLES Table 3.1 Table 4.1 Table 4.2 Table 4.3 Table 4.4 Table 4.5 Composition of the Sample Size.....27 Response Rate for Interviews and Questionnaires.....33 Profile of Respondents....34 Percentage Contract Sum Channelled to Health and Safety Issues....38 Health and Safety Penalties and Work stoppages...41 Measures to Effective Health and Safety Investment.....44

LIST OF FIGURES Figure 1.1 Figure 4.1 Figure 4.2 Figure 4.3 Figure 4.4 Figure 4.5 Figure 4.6 Figure 4.7 Figure 4.8 Figure 4.9 Figure 4.10 Figure 4.11 Figure 4.12 Figure 4.13 Figure 4.14 Building and Construction Fatalities for the Period 2001 to 2009...4 Response Rate for Interviews and Questionnaires.....34 Experience of Respondents.....35 Projects Normally Undertaken...35 Stand-Alone Health and Safety Departments.................................................36 Health and Safety Investment Methods..37 Degree of Investment for Different Investment Methods...38 Percentage Contract Sum Channelled Towards Health and Safety........39 Effects of Investment in Health and Safety....39 Health and Safety Regulations Violation Penalties....42 Effectiveness of Investing in Health and Safety.43 Incidents, Accidents and fatalities Experienced from 2007 to 2009 .43 Measures to Effective Health and Safety Investment.45 Factors Impeding Investment in Health and Safety....45 H&S record a prerequisite for tender invitation and adjudication..46

LIST OF APPENDICES Appendix A Appendix B Appendix C Appendix D Appendix E Appendix F Questionnaire to the Contractor.....A1 Questionnaire / Interview Guide to the Client...A7 Construction Worker Interview Guide......A9 NSSA Inspectors Interview Guide...................A10 Observation Guide...................A11 Photographs.A12

LIST OF ABBREVIATIONS NSSA HSE National Social Security Authority Health and Safety Executive Health and Safety Personal Protective Equipment and Clothing Occupational Safety and Health Standard Construction design Management Occupational Safety and Health Administration Standard

H&S PPE/C OSHS CDM OSHAS-

CHAPTER 1: INTRODUCTION
1.0 Introduction Construction is considered a risky business and poses more dangers than any other business on workers, equipment and materials (Brace and Gibb, 2005). Numbers of accidents recorded at work places have been increasing, research carried out in the United Kingdom reveal that for the period 2005-2006, construction had a fatality rate of 3.5 deaths per 1000 workers (Hughes and Ferret, 2007). To make the sector safer to work in, different acts and regulations governing the health and safety of the construction industry have been crafted, the regulations range from general health and safety to data protection (Line, 2010). Although health and safety issues are a responsibility of every one at work (Davies and Tomasin, 1990), the Health and Safety at Work Act of 1974 challenged employers to regulate their own safety rather than relying on enforcement.

In Zimbabwe there are a number of acts, codes of practice and statutory instruments (regulations) which govern activities in the construction sector. These include The Factories and Works Act (1970), Factories and Works (Building, Structural and Excavation Work) Regulations (1976) among others. Failure by employers to comply with set health and safety regulations can lead to severe fines on their businesses (Heston, 2010). Salem (2010) concurred with Heston and added that non-compliance risk losing their business licences.

1.1 Background

10

Health and safety at work has a long history. There is evidence of occupational health and safety which dates as far back as the time of Egyptian Pharaohs during the construction of the Rameuseum temple by Rameses (II) about 1500BC; He established an industrial medical service where regular medical examinations were given to workers (Goestch D.L 1962). According to Ridley (2008), a notable development in health and safety in the United Kingdom started in 1556 when part of a book on metal mining by Dr Agricola dealt with diseases of miners. The year 1690 witnessed a case between Boson and Sandford whose ruling established the doctrine of Vicarious liability which states that the employer is responsible for his/her employee(s) actions while at work.

Since health and safety developed from the change of attitude from protecting machinery to people (Ridley, 2008), 1784 fever epidemic in Lancashire which claimed many lives particularly children led to the formation of Manchester Board of health in 1795. This boards main aim was to protect the health of factory workers and abolish child labour. Following persistent public pressure because of the fever (Goestch D.L 1962), the government was forced to respond and the first ever Health and Safety Act known as Health and Morals of Apprentices Act was passed in 1802 (Goestch D.L 1962; Ridley 2008).

Since then, the United Kingdom witnessed the passing of a number of health and safety acts. Some of the acts include the Factories and Workshop Act of 1901. Following workplace accidents which left employees dead or injured without compensation, a new law for wage earners known as the Workmens Compensation Act of 1906 was passed. In the year 1963 The Offices, Shops and Railway Premises Act was passed and the widely used Health and Safety Act known as The Health and Safety at Work, etc. Act was passed in 1974.

11

Since Zimbabwe was a colony of Britain, a number of legislation pieces were adopted from the United Kingdom. The Works and Factories Act of 1996 Revised edition serves as the main piece of legislation championing construction health and safety at workplaces in Zimbabwe. There are other acts, statutory instruments, by-laws and codes of practise which include The Factories and Works Act Revised edition of 1996, The Pneumoconiosis Act Revised edition of 1996; Factories and Works (Building, Structural and Excavation Work) Regulations of 1976 and The Modern Building By-Laws which serve as health and safety legislation pieces among others. The enforcing of the laws, regulations, codes of practise and by-laws is done by The National Social Security Authority (NSSA) through their Occupational Health and Safety Department and The Factories Inspectorate Department. However, Standard Association of Zimbabwe (SAZ) has duty of certifying companies of the OHSAS 18001 which is an internationally recognised standard for occupational health and safety.

Although there is a reduction in the occupational accidents and deaths (Mutetwa, 2010), many construction site workers, children and other members of public continue to die, injured or suffer from ill health emanating from construction activities that have not been adequately controlled (HSE, 2006).

1.2 Problem Statement Everyday some 6,300 people die as a result of work related injuries or diseases more than 2.3 million deaths worldwide per year (Somavia, 2010). In Zimbabwe, fourteen (14) construction workers died due to work related accidents from 2001 to 2009 giving an average of 1.75 fatalities per year for the period 2001 to 2009. During that period, the country was going through economic challenges which saw a 15.5% decline in construction activities in 2003 only (African Economic Outlook, 2004), however with few construction activities which were taking place, 14 fatalities were recorded. The figure below shows the fatalities experienced in the Zimbabwe construction industry from 2001 to
12

2009. From the figure 1.1 below, the construction industry has been experiencing a steady increase in the number of fatalities. The year 2007 recorded the highest fatalities with four deaths. In the year 2007, 340 reportable injuries and about 2000 incidences were recorded. Fig 1.1: Building and Construction Occupational Fatalities from 2001 to 2009

Source: NSSA On Guard 2010

Currently majority of Zimbabwean construction companies do not have good occupational health and safety programmes at their workplaces (Mutetwa, 2010). Assessment done by NSSA to determine the level of health and safety compliance in construction industry in 2009, only 25% of the assessed construction companies provided meaningful personal protective clothing and equipment while only 5% had adequate welfare facilities for their workers (Mutetwa, 2010). Out of the twenty assessed programme elements, the construction industry failed to score 50% or better in terms of companies assessed which were compliant with health and safety regulations. Zimbabwean construction companies assume that implementing health and safety regulations is a cost to their businesses. In a drive to cut cost, they compromise on the implementation of health and safety regulations by providing none or inadequate PPE/C and welfare facilities among other things resulting in the industry performing far below the expected safety standards.

Health and safety regulations are enforcement so that projects could be carried out in safer environments. Regulations provide threat of fines or suspension of works for non-compliance, thus,
13

provide as an incentive for compliance. Non-compliance with health and safety regulations put companies at risk of having their works suspended and or charged excessive penalties due to poor health and safety standards. According to Schneider (2011), contractors tend only to consider of health and safety improvements that result in short term paybacks and they are less apt to be able to finance their health and safety investments, this can also be said for the Zimbabwe Construction Industry. While contractors are less motivated to finance their health and safety investments, research done for the Construction Industry Institute, Hinze (2000) argued that health and safety pays.

1.3 Research Questions 1. What are major health and safety expenditure centres for companies towards improving workplace safety standards in Zimbabwe? 2. What are the economical impacts of health and safety investment on construction projects in Zimbabwe? 3. What are the challenges or barriers encountered by the construction industry in quest to implement health and safety regulations?

1.4 Research Hypothesis Benefits of implementing health and safety regulations outweigh compliance costs. 1.5 Aim To analyse the effects of health and safety management on the overall economic performance of construction projects. 1.6 Research Objectives
14

1. To establish how construction firms invest in health and safety issues in order to improve their workplace conditions. 2. To assess the impacts of health and safety investment on construction projects. 3. To investigate constrains which impede investment in health and safety issues on construction project. 1.7 Justification Construction health and safety is a widely researched area by construction professionals. A number of researches have been done. These include a research by Musonda and Smallwood (2008) where they explored clients commitment in improving health and safety performance in the Botswana construction industry. Mthalane, Othman and Pearl (2008) also researched on the economic and social impacts of site accidents on South African construction workers. However, little has been done in Zimbabwe to determine if improving workplace conditions in construction industry is beneficial or just an unnecessary cost which chews up the small profit margins in the industry (Schneider 2011).

Failure by construction companies to comply with the set health and safety laws, regulations, by-laws and codes of practice expose them to severe penalties and other costs (Line, 2010; Heston, 2010 and Salem, 2010). It is hoped that this research will bring insight to construction industry stakeholders to be more apt to finance health and safety issues so as to improve workplace conditions and hence penalties. It is further hoped that this dissertation will establish challenges faced by construction industry in implementing health and safety regulations and come out with possible solutions to the challenges.

15

Now that owners (clients) place higher emphasis on safety by pre-qualifying contractors on the basis of their safety records (Schneider 2011). Zimbabwean companies may lose some big projects on the grounds of poor health and safety policies; it is hoped that the research will be useful in encouraging Zimbabwean construction companies and stakeholders to adopt world class safety standards. Good safety culture is believed to be the most powerful tool for fighting competition locally, regionally and globally. This would result in Zimbabwean companies winning both local and international projects.

Occupational Safety and Health (OSH) Act 213 of 1991 section 21 subsection 1 says that A worker shall wear such protective clothing and use such personal protective equipment or devices as are necessary to protect the worker against the hazards to which the worker may be exposed. Most construction workers are not wearing proper Personal Protective Equipment (Mtetwa, 2010) which section 21 subsection 2 of OSH Act 213 of 1991 say that the employer shall enforce that employees comply. Assessment done by NSSA in 2009 revealed that only 25% of the assessed construction companies provided meaningful personal protective clothing and equipment (Mtetwa, 2010). This is a clear sign that companies are less motivated to spend money on health and safety issues.

1.8 Research Outline This dissertation consists of five chapters. Chapter One: Introduction This chapter introduces the reader to the field of construction health and safety, background information to the development of construction health and safety; the problem statement; hypothesis; aim of the research; research objectives; the justification and finally the research outline. Chapter Two: Literature Review
16

This chapter endeavours to review relevant literature on construction health and safety regulations and management. A detailed review to construction regulations governing Zimbabwean construction industry, different ways businesses violate the set acts, regulations and codes of practise is to be discussed in this chapter. Effects of health and safety management as well as challenges faced in implementing health and safety regulations will be discussed in this chapter. Secondary data sources will be used.

Chapter Three: Methodology This chapter focuses on the research methodology that will be used during the research process. The chapter comprises of research design, target population, sample population, data collection procedures and data analysis plan. Chapter Four: Data Presentation and Analysis This chapter details all the findings obtained during the research and the findings will be analysed in relation to the body of existing knowledge discussed in Chapter Two. Different methods of data analysis and presentation will be used in the analysis and presentation of data. Chapter Five: Conclusions and Recommendations This chapter is for recommendations and conclusions of the research. The researchers recommendations and conclusion of the effects of health and safety management will be discussed in this chapter.

17

CHAPTER 2: LITERATURE REVIEW

2.0 Introduction This chapter seeks to give an overview of construction health and safety. Costs associated with noncompliance with health and safety legislation, different ways companies invest in health and safety and benefits of complying with health and safety regulations in construction industry are to be discussed. The researcher will use literature by authors of different textbooks, journals and internet articles among other literature.

2.1 Investment in Health and Safety Costs for injuries can be a substantial burden on employers (Schneider, 2011), to avoid or minimise occupational incidents firms are inclined to channel financial resources to improve conditions of work (Rwaveya and Makova, 2010). However, for any investment in health and safety, clients involvement is crucial (Huang and Hinze, 2006) as they can influence success of investment in health and safety (Smallwood, 1998) through use of health and safety as prequalifying attribute when tendering and conduct audits on sites. In the quest to improve working conditions, firms invest in health and safety regulations through PPE, engagement of competent H&S personnel and welfare facilities among others methods.
18

2.1.1 Safety Personnel In order to promote health and safety on construction projects, firms have begun to recognise the value of committing resources to this effort (Hinze, 2000). One way construction companies can invest in health and safety environment of their operations is through employment of full time health and safety personnel. Duties of Health and safety personnel include establishing health and safety department headed by safety managers, safety officers, safety representatives and first aiders among other professionals. In the opinion of Goestch (1996), the companies that are committed to providing safe and healthy workplaces employ a health and safety manager and position him/her within the company corporate hierarchy. The duties and responsibilities of safety managers according to Goestch (1996) include: Establishing and maintaining companywide health and safety program Conducting hazard identification and risk assessments for projects Ensuring company compliance with all laws, standards and code Coordinating health and safety activities Planning and championing training of employee

Engagement of safety personnel will increase the companys salary and wages bill and associated costs. Some employees can be prequalified and included in the preliminary and generals during tender.

2.1.2 Personal Protective Equipment and Clothing (PPE/C) It is the employers legal obligation to provide personal protective equipment to workers to protect them from the hazards they may be exposed to (Factories and Works Building and Construction
19

Regulations 1981). The regulations also obligate employers to train workers on how to use the equipment and/or clothing and enforce its use by the workers. However, workers are compelled to use the PPE/C whenever they are exposed to a hazard and keep it in good condition. The following PPE/C which include steel capped boots, safety harness, hard hats, safety goggles, gloves, respiratory protective device, protective overall and life lines among other thing are required at construction sites (On Guard, 1996). PPE provides tremendous benefits to the industry and is an important measure to reduce, or at least prevent the level of accidents on construction sites. PPE enables workers to have immediate protection to allow a job to continue; in an emergency it can be the only practicable way of effecting rescue or shutting down plant; and it can be used to carry out work in confined spaces where alternatives are impracticable.

2.1.3 Education and Training According to Tarafdar and Tarafdar (1997), education and training is aimed at imparting knowledge, developing skills, aptitudes and insights about ones job. Through education and training, employees learn how to do the job; hazards involved with it and how to work safely on that very job (Sweeney, et al, 2000). Education and training plays a very important part in the reduction of accidents on construction sites and is the legal right of employers under the Factories and Works Act of 1996. It is the responsibility of the employer to provide such training during recruitment, at inductions or when being exposed to new or increased risks (Hughes & Ferret 2007). The levels of education and training required covers a wide range of information such as specific company health and safety policies, risk assessments, method statements, safety procedures, good practice codes, HIV/AIDS issues and legal requirements.

20

Education and training is a prerequisite for the employees who first join the company (induction or orientation), those who have been transferred to a different job and those whose responsibilities have changed (Ridley, 2008). Imparting knowledge can be achieved through coaching, training by supervisors, conferences and seminars, case studies, lectures and workshops among other methods (Tarafdar and Tarafdar, 1997). Employers also sacrifice their production by taking about an hour of their daily production time conducting tool-box-talks. These are discussions workers have on daily basis before start of work. Discussions about hazards and risks associated with the work of the day are done, since; occupational accidents do happen in workplaces where there is no education and training (Rwaveya and Makova, 2010). Education and training is concerned with averting of work disasters. 2.1.4 Improvement in Technology Improvement in construction technology can have a positive effect on the reduction of accidents and subsequently costs of accidents. Accidents like falls from heights can be mitigated or prevented through investment in technology. Investment in Mobile Elevated Work Platforms (MEWP) and Mast Climbing Work Platforms (MCWP) can play a significant role in minimising incidences of falls from scaffolding (HSE, 2006). More so, investment in mobile cranes and other lifting equipment can reduce number of musculoskeletal disorders in workers and improves site operations and productivity.

However, introduction of improved technologies into construction sites in an attempt to reduce accidents and injures is largely dependent on the level of training that accompanies it. Employers must be aware that productivity on site may not be at its peak during the period of change. As a result, investment in technology has purchasing and personnel training as initial costs to the initiative.

2.1.5 Safety Incentives

21

Safety incentives are used to capture employees interest in health and safety (Hinze, 2000). According to Levitt and Samelson (1993) safety incentives result in improved worker participation and interest in reducing occupational accidents. A number of steps can be taken to motivate workers put their full participation in eliminating or reducing occupational accidents. Financial and nonfinancial incentives can capture employees hearts to achieve good working environments with high standards of safety. However, Dorrell (2007) argue that health and safety should be an incentive on its own.

Different criterions can be used so as to determine who should be honoured for safety. Criterions used may include no injuries in a given time period, best practise in executing work, being a brothers keeper and smartness among other decision criterions. Each and every category will be having a reward given to a worker or group of workers. Supervisors and managers can be honoured on the overall performance of the project. Hinze (2000) came up with non-financial incentives which include baseball caps, pocketknives, windbreakers, coffee mugs, household appliances, ice chests, and a host of other items.

2.1.6 General Medical Examinations and Drug Abuse Testing Knowing ones medical status is very important as the employer will use the results to determine the suitable working condition ones health suites. Drug abusers are risk personnel as they expose not only themselves to accidents but also other workmates. According to Hinze (2000), drug abuse testing is one of the effective ways of reducing the incidence of injuries. The usually medical test done include chest x-rays, audiometric, weight, optometric and pulse tests before a newly engaged worker starts work. Drug abuse tests are not done only upon assumption of duty but as the work is taking place. This is done so as to identify and punish those found on the wrong side of the law.
22

2.1.7 Welfare Facilities Principal contractors and others who have control over construction sites are responsible for providing site welfare facilities and ensuring that the site welfare facilities are adequate for their employees (HSE, 2006). Welfare facilities include first aid boxes and kits, toilets, showers, hand-washing-basins, wash tubs, kitchens or canteens with water heater or urn, recreational sheds with chairs and tables, weather control facilities, piped hot and cold water and waste bins among other facilities (Forster, 1989; HSE, 2006). The provision of high welfare facilities is likely to reduce the number of accidents and injuries on construction sites as it promotes recruitment, good morale and employee retention. These reasons alone should be sufficient justification for the investment in welfare facilities which should encourage the client and contractors to ensure that they are provided on construction sites from the outset to an acceptable level. Without the provision of welfare facilities workers are likely to be cold, overheated, dirty, dehydrated and uncomfortable (Joyce, 2007), this in turn will have an effect on the efficiency and effectiveness of their work undertaken creating an unsafe environment to themselves and their fellow workers. The provision of welfare facilities can be seen as an important measure to reduce accidents on construction sites.

2.1.8 Health and Safety Management System By the realisation that health and safety management is founded on the provision of a safe and healthy working environment (Griffith and Watson, 2002), formal health and safety management systems (H&SMS) have been adopted by many principal contractors. By investing in H&SMS, companies will be able to craft policies, plans and procedures which are essential in delivering an effective health and
23

safety management on sites. Occupational Health and Safety Administration Standard number 18001 (OHSAS 18001) is a management system which contractor can invest in. OHSAS is a world class safety management standard which promotes a safe and healthy working environment by providing a framework that allows organisations to consistently identify and control their health and safety risks, reduce potential for accidents, aid legislative compliance and improve overall performance (British Standards Institution, 2011).

2.2 Effects of Health and Safety Management Management of health and safety issues in construction comes with both financial benefits and costs. Failure to comply with health and safety legislation exposes companies to excessive costs on penalties (Schneider, 2011) and other costs attributable to lost production time (Tarafdar and Tarafdar, 1997). However, to ensure that they are in compliance with the set health and safety regulations, companies expend some funds to impart knowledge and awareness campaigns in their work places. Management of health and safety in construction has benefits associated with the compliance with the regulations and costs due to non compliance.

2.2.1 Health and Safety Non-compliance Costs Failure by companies to comply with the previously described health and safety legislation; occupational accidents, illness or even death take place at workplaces. According to NSSA, most occupational accidents and ill health are attributable to the unsafe conditions of work (On Guard Editor, 2010). The resultant unsafe working environments are prone to accidents which add an extra cost to the management and the loss of income to the injured employee (Tarafdar and Tarafdar, 1997). Rwaveya and Makova (On Guard, 2010) say costs associated with accidents and ill health tend to be
24

grossly understated due to ignorance of the related hidden costs or indirect costs. Costs associated with occupational injuries, death and ill health can be characterised in many ways (Hinze, 2000). Tarafdar and Tarafdar (1997) categorised such costs into direct cost and indirect costs. However, there are some costs of accidents and ill health which cannot have any financial value attached to them.

2.2.1.1 Direct Costs These are costs required by law to indemnify the injured and other payments made by the firm to either the employee, repair or replacement of equipment (Dorman, 2000) The following are some of the examples of direct costs which may be incurred by construction companies as a result of accidents: Medical Costs: - Whenever an employee is involved in an occupational accident, the company incurs hospital medical bills, transport cost for the people looking after the injured while at the medical centre. Employee Compensatory Costs Costs involved on account of waste of materials and damage of plant In case of a fatality, costs associated with the burial of the deceased Penalties: - Companies may be prosecuted violating health and safety legislations. Violations can be brought to the attention of the state by a formal complaint by an individual or organisation against another employer; a result of whistle-blowing or a violation discovery during health and safety inspections (Salem, 2010). Such violation(s) may result in the company facing severe penalties. According to Heston (2010), health and safety penalties are pegged and charged by the Occupational Safety and Health Administration (OSHA) in the United States of America. He went

25

on to say that penalties range from $7,000 (violations which are no serious) to $70,000, depending upon the severity of the case, the size of the business and the offence (Lines 2010).

2.2.1.2 Indirect Costs According to Dorman (2000), indirect costs are costs that can be inferred to an accident but which do not take form of direct monetary outlays. Authenticity of the calculated costs lies upon the measurement method used, willingness of management in making costs associated with poor safety public and reliability of the safety personnel in calculating the costs (if the health and safety department ever exist in such a company). Amount of the indirect costs of accidents depend on the type of an injury.

2.2.1.2.1 Suspension of works Whenever unsafe working conditions have been noticed at a construction site by responsible authorities, works may be suspended until such a time when the conditions have been made safe (Hinze, 2000). Works may be suspended even if there is no an accident which has happened. Suspension of works has many costs associated with it. These include lost company reputation, high possibility of liquidated and ascertained damages to be paid by the contractor to the client at the end of the project, lost competitive advantage and expenditure of preliminaries and generals costs without value attached to it.

2.2.1.2.2 Lost production Whenever an injury occurs, there is an immediate impact on the ability of the injured to be productive (Hinze, 2000). During the injury time, production contribution of the injured and the one(s) assisting
26

him/her would have brought to halt. More so, whenever an injury occurs, productivity of the crew members or simply other workers who were with the injured will be affected (Hughes and Ferret, 2008). The crew will be forced to work shorthanded while a member is receiving medical treatment. More so, the crew will be under psychic trauma due to fear and fever for the member injured. This will force the residual crew members productivity down. Hinze (2000) say when an injury involves a restricted or lost workday, there will be definite reduction productivity because they will be working shorthanded until the injured has returned to work. Where the injury results in the injured not coming back to work, a new worker will be hired. For the crew to reach their level of productivity, it will take ample time thereby affecting production. 2.2.1.2.3 Replacement of Worker When an injury renders the injured unfit for duty for quite a long time or for good, a new worker will then be recruited to fill up the vacancy. Hiring of new employees as a result of accidents has some cost implications (Hinze, 2000). These include advertisement costs (especially for skilled jobs); interview costs, PPE/C costs, pre-employment medical examinations and education and training costs.

2.2.1.2.4 Damaged Equipment/Plant Some occupational accidents results in both an injury and damage to construction equipment or materials. The cost of restoring things or repairing equipment to pre-accident state will be on the company not insurance (Hughes and Ferret, 2005). Sometimes specialist plant and equipment engineers will be hired to fix the problem which would have been caused by the injury.

2.2.1.2.5 Supervisory Assistance

27

Once an accident took place at a construction site, the injured will be taken to the hospital for treatment and well upkeep. Usually this is done by supervisory staff like safety officers, site managers, engineers and sometimes quantity surveyors depending on company protocol (Hinze, 2000). More so, there will be need for accident reports, investigations and hearings which will require one of the supervisory staffs time and effort (Hughes and Ferret, 2007). In case of a restricted/lost workday injury, supervisory staff will be making some routine visits to the hospital using company cars and fuel during working hours. Hence, the supervisory staff member attending the injured and other administration issues of the accident will not be contributing anything to the company revenue but will be paid for such duties making it a cost to the company.

2.2.1.2.6 Time related costs Whenever an accident took place, production is stopped for a certain period of time depending on the severity of the accident. During this halt, time related costs will be running while workers are lying idle. Costs which will be running while no production is taking place include: Labour wages and salaries Plant and equipment hire charges Site overhead like water, electricity, amenities, rentals(if some of facilities are rented)

2.2.2 Benefits of Investing in Health and Safety Implementation of health and safety regulations come with a number of benefits construction companies can get. The following are benefits of investing in construction health and safety.

28

2.2.2.1 Improved Company Reputation/Enhanced competitive Advantage Investment in health and safety is an important source of competitive advantage to the organisation (Gwandure and Matanda, 2002).In the recent years health and safety issues became an issue and important aspect in the construction sector and beyond. In the UK, the Construction Design Management regulations (CDM), construction companies without a minimum safety

standard/performance are not included in the tender lists (HSE, 2007). Furthermore, under the same CDM Regulations, contractors cannot commence work at their sites until they have produced a comprehensive health and safety plan for the project. Implementation of health and safety regulations in construction ensures companies that they can compete in the market and be able to secure new projects and new customers.

2.2.2.2 Reduced Compensation Claims Workers' compensation is apparently designed to compensate individuals who have suffered occupational injuries and illnesses (Schneider, 2011). Compensation arises as a result of injuries to employees or incidents which damage the property (Hughes and Ferret, 2005). Employers (construction companies) will be exposed to costs of which they will have to pay the affected party a compensatory amount of money. Implementation of health and safety regulations minimise the number of accidents and incidents which may result in injury, equipment damage or fatality. Such decrease subsequently reduces injury or death compensation claims.

2.2.2.3 Time Lost due to Accidents Whenever an accident happens at a workplace, production time is lost due to absence of the injured at work, fellow employees attending the injured and the managers sitting for hearings (Hinze, 200).
29

Since health and safety management reduces number of accidents, time lost due to accidents is also reduced. Reduction in time lost to injuries gives a business an opportunity to fully utilise time available for production purposes.

2.2.2.4 Improved Productivity Improving health and safety helps you improve morale and productivity in your business (HSE, 2012). Workers will put their maximum effort into work with less difficulty, less danger. This saves money which could be lost to claims and penalties thereby adding to profitability of the organisation in the long run. According to Oxenburgh and Maurice (1991), improving health and safety standards at work will lead to improved production levels. Stress and accidents at work are two of the biggest causes of absence from work today (HSE 2012). Absence of workers at work will negatively affect the productivity of any construction activity. 2.2.2.5 Increased Staff Morale Implementation of health and safety measures at work increase staff morale and motivation (Rwaveya and Makova, 2010). The workers will feel important and valuable to the company, hence, health and safety awareness and a better understanding of risks associated with a certain work improves. More so, involvement of employees in coming up with health and safety policies motivates them and installs a feeling of belonging to the company in them. Such a sense of belonging increases employee productivity.

2.2.2.6 Management Peace of Mind

30

Management has overall responsibility for the health and safety performance of their firms (Hughes and Ferret, 2007). Their involvement and active participation will result in an improved health and safety culture which will lead, ultimately, to a reduction to in the number of health and safety claims and prosecutions. Management will have peace of mind by being compliant and up to date with the implementation of the regulations (BSI, 2012) 2.2.2.7 Reduced Insurance premiums To protect themselves from the effects of penalties and claims at work, employers (construction companies) are liable to have a cover against any injury, plant damage and fatality (Ridley, 2008). To access that cover, construction companies pay insurance premiums to the companies giving them that cover. According to Schneider (2011), workers' compensation premiums in the construction industry are high and act as an incentive for companies to reduce their injury rates. Construction companies can reduce the amount of premiums by instituting health and safety programs at their work places (Hunter, 2005) 2.3 Health and Safety Implementation Challenges Health and safety it is company responsibility to commit their time and finances to ensure that they are in compliance with the set regulations. However, in an attempt to comply with the set legislation, companies encounter some challenges or barriers which make it very difficult for them to achieve their goal. According to Health and Safety Executive (2003), barriers or challenges faced by companies intending to initially implement health and safety at their work places include cost of implementation, lack of support, time required and lack of experience among other things.

2.3.1 Cost of Implementation

31

Costs involved in order to have a sound health and safety policy at work are too prohibitive. The costs will end up making the company uncompetitive when tendering for jobs. The tendency (particularly on the part of clients) to confuse the lowest tender with the best value leads to compromise on health and safety issues so as to win jobs (Health and Safety Executive, 2002). As a result, firms end up not pricing for health and safety, involved in corner-cutting when doing work which results in poor safety; thus non compliance with health and safety regulations. This was concurred by Hughes and Ferret (2005), saying that lack of financial resources can cause employers to try to ignore health and safety requirements.

2.3.2 Time Required Time required implementing health and safety regulations end up affecting the program of works. For example, production time will be taken during employees training and Hazard Identification Risk Assessment (HIRA) which are conducted every morning before the start of work. As a result, implementation of health and safety issues may lead to time overruns which are costly the company. 2.3.3 Lack of Knowledge Since education and training is aimed at, imparting knowledge, developing skills, aptitudes and insights about ones job (Tarafdar and Tarafdar, 1997). Lack of education and training will negatively impact the health and safety performance of a firm. More so, heterogeneity of information in the industry makes some important information available to a certain group and not to the other.

2.3.4 Lack of Experience

32

According to Hughes and Ferret (2008), experienced workers are important to assist managers to come up with safe working systems. These are people who are professionally trained people either in safety or any construction related skills. Shortage of experienced workers at work will result in poor work practices which will eventually result in incidents and accidents.

2.3.5 Lack of Support Investment in health and safety requires both time and financial resources of an organisation. Besides enforcement, to witness an increase in the resources channelled towards health and safety, there is need for support to companies. Rwaveya and Makova (2010) say companies should receive support inform of economic incentives, periodic OSH inspectors training for both employees and management. Schneider (2011) pointed out that it is difficult to get contractors invest in health and safety especially where short term paybacks are not available. He suggested that improvement fund to subsidise health and safety investment is crucial. In United States of America, construction industry in the state of Ohio had several successes through the Ohio Occupational Safety Loan Program, funded by the workers' compensation funds (Hamrick, 2002).

2.5 Summary The literature has shown health and safety regulations in force in the construction industry, different ways companies can expend in order to improve the health and safety compliance record, costs and benefits of health and safety management and the challenges faced by companies in a bid to comply with the set laws. The following chapter is the research methodology. This chapter will discuss different methods of data collection and analysis going to be used by the researcher so as to get primary data regarding the area of study.
33

CHAPTER 3: RESEARCH METHODOLOGY

3.0 Introduction This chapter is basically concerned about the way the data was collected from the field. The chapter comprises of research design, target population, sample population, data collection procedures and data analysis plan. Both secondary and primary sources of data were utilised.

3.1 Research Design

34

This research is both quantitative and qualitative type of research. According to Naoum (2007), qualitative research is used to subjectively evaluate the opinion, view, or the perception of a person, towards a particular subject. Qualitative research shall allowed opinions to be drawn from different stakeholders in the construction industry to determine if construction health and safety regulations implementation is beneficial basing on their experiences. Companies were asked to give costs of non-compliance with health and safety regulations. Calculations were then done to assess effects of costs incurred for both compliance and non-compliance with health and safety regulations on the overall project performance of construction projects thus quantitative.

3.1.1 Sampling Frame Sampling frame is a complete list of all elements of the population from which a sample was be drawn (Saunders, Lewis and Thornhill 2007). The Harare based construction industry was the sampling frame.

3.1.2 Target Population The target population is basically a pool of respondents the researcher desire to visit and collect data for the purpose of this study. Clients Clients were property developers registered with the Institute of Property Developers of Zimbabwe. In this category, the researcher got the data from property developers which include NSSA, Old Mutual, CBZ Bank among others
35

Contractors Construction Industry Federation of Zimbabwe (CIFOZ) registered construction companies make the target population. The researcher collected data from selected CIFOZ registered grade A to grade E listed principal civil and building contractors. These included Murray and Roberts, Rio Duoro, Tencraft, Twenty First Century Contractors and Bitcon among others.

Construction Workers Employees are the people directly affected by health and safety issues. In quest to collect authentic data, the researcher collected data through face-to-face interviews from the employees. These included general workers, artisans and supervisors on the ground from construction companies which were part of the sample and had projects in Harare.

National Social Security Authority (NSSA) This is an organisation responsible for enforcing implementation of health and safety regulations in Zimbabwe. NSSA inspectors of factories will be interviewed.

3.1.3 Sample Size Sample size is a number of objects in a sample. A certain number of participants was drawn from the target population of contractors, clients and construction workers to make up a sample size. The table 3.1 below shows participants from different categories that make up the sample for this research. Table 3.1: Composition of the Sample Size
36

Stratum Contractors Clients Construction Workers NSSA Inspectors TOTAL

Number 22 8 44 4 78

3.1.4 Sampling Methods Non-probability sampling methods were used to collect data. According to Kahl (2012), when using non-probability sampling methods, subjects are chosen in a non-random manner, and some members of the population have no chance of being included. He went on to say that authenticity of information gathered is largely based on the judgement of the researcher. The researcher made use of convenience and snowball non-probability sampling methods.

Convenience Sampling As the name implies, this method was used to select contractors and clients who are convenient to the researcher. Contractors and clients who were conveniently accessible geographically were selected. This enabled the researcher to easily, quickly and economically obtain data from the potential respondents (Saunders, Lewis and Thornhill 2007).

Snowball Sampling This is a non-probability based sampling method aimed at identifying population which is hidden and/or difficult to locate. This method was used to select construction workers previously involved in occupational accidents and/or infections. First interviewed by default was asked to provide the names of a worker of workers who got injured or infected while at work. The interviewed workers were asked to provide names of other fellow workers within their company who have been injured before. Those employees whose names have been provided were interviewed.
37

3.1.5 Data Sources The researcher applied a triangulation process of collecting data. Saunders, Lewis and Thornhill (2007) define triangulation as a process whereby two or more sources of data are used to obtain research data. In this research, triangulation is important because when two or more sources of data points out a certain interpretation of events, or certain key interactions or key facts, the quality of data and the overall validity of the research is improved (Stake 2000). Sources of data to be used by the researcher include secondary data sources and primary data sources in the form of interviews, observation and questionnaires. The process largely depends on the type of data the researcher intends to obtain from respondents.

3.1.5.1 Secondary Data Secondary data can also be called desk research data. This data is obtained from published sources from previous researches and government publications. Secondary data sources used include: textbooks, journals, Acts of Parliament, Statutory Instruments, Internet and brochures. Advantages of Secondary data Secondary data provides a good comparative tool. New data may be compared with previous or existing secondary data to establish changes in a certain field of research. Several sources are available to help to spell the research problem clearly. The data stimulates new ideas and approaches, which provides a framework for evaluating and assessing of future work. Secondary data sources are relatively cheaper and quicker to gather required data compared to primary sources, thus giving the researcher time to attend to other academic commitments. Secondary data plays a crucial role in providing information from previous researches on how other researchers have dealt with specific problems in similar situations. This helps the researcher to handle similar problems and clearly articulate them.
38

Disadvantages of Secondary data However some of the data were collected for specific intentions which were different from the current research questions and objectives. Due to developments taking place in the research area, results from previous researches may not depict what is transpiring in the field. As a result, primary data will be required to augment secondary data which lacks new ideas and/or problems in the research area.

3.1.5.2 Primary Data Questionnaires, interviews and observations were used to collect data from the sample frame.

a) Questionnaires A questionnaire was used as a data collection instrument to collect data from the respondents. Questions regarding implementation of health and safety regulations by contractors and their subsequent effects on the construction project formed part of the questionnaire. Information on the implementation, non compliance costs and challenges faced by construction companies in quest to fully comply with health and safety regulations was also collected. A combination of both close ended and open ended questions was used. Questionnaires were delivered to intended respondents via e-mail and some were hand delivered. To confirm receipt of the questionnaires and to allow timely response, the researcher used emails, telephone calls and personal visits.

b) Face-to-Face Interviews Face-to-face interviews are one of the main sources of primary data. This instrument allows a researcher to obtain more information compared to a questionnaire. Respondents are given opportunity to express themselves and more in-depth information is obtained. Face to face interviews were used to obtain information from construction employees, clients and NSSA officers. Some clients were be
39

interviewed about their role in promoting health and safe working environments, opinions on the implementation of regulations and effects on the overall project performance. Face-to-face interviews were conducted with construction workers who were previously involved in occupational accidents or illness. The researcher gathered information regarding employees health and safety training received, level of commitment of their superiors to health and safety issues and how they are treated while sick among other things.

c) Observations Observations allowed the researcher to gather primary data through interacting with construction activities in the field. Its the researchers assumption that observing people knowingly will result in gathering biased data. As a result, disguised approach was used. During administering and collection of questionnaires, the researcher observed some of the aspects of construction health and safety on the employees, the works and the site in general. For example, the researcher would ask for permission to tour the site to acquaint self with construction activities. In the process of acquainting with site activities, the researcher was observing employees at work with respect to their PPE, conditions of work places, work practises, plant and tools used on site and welfare facilities on site among other things. Observations afforded the researcher an opportunity to gather such data without asking the respondents who could provide biased information. Only areas of interest were noted. 3.2 Summary of data collection methods

Objective Research Instrument 1. To establish how construction firms invest in health and safety issues. Questionnaire and Observations 2. To assess the impacts of health and safety investment on construction Questionnaire and projects. Interviews 3. To investigate constrains which impede investment in health and Questionnaire and safety issues on construction project. Interviews
40

3.4 Limitations The researcher encountered some limitations during the field research. Limitations encountered by the researcher are as follows: Some of the questionnaire questions were not answered. Some respondents did not return the questionnaires claiming that they had a lot of more pressing issues to attend to. Questionnaires were supposed to be stamped at the company they were filled. Although some respondents cooperated and stamped, some refused to stamp claiming that the information will not be confidential.

3.5 Data Analysis Plan Primary data gathered was analysed using both qualitative and quantitative methods. Percentages and scores will be calculated for primary data gathered. Opinion marks will then be weighted to give percentages. The researcher will make use of different data representation methods to analyse and present the data. Data will be presented in the form of tables, bar graphs, pie charts among other methods. 3.6 Summary This chapter extensively discussed about the research design, target population, sample frame, sample size and methods of data collection methods used among other issues. The data collected is to be analysed in the next chapter in order to check if the objectives of the study have been accomplished.

41

CHAPTER 4: DATA PRESENTATION AND ANALYSIS

4.0 Introduction Findings from data gathered using questionnaires, face-to-face interviews, observations and interviews is analysed in this chapter. The chapter outlines actual findings from the field in form of summarised text, pie charts, graphs and tables. Since there were no quantification without qualification and no statistical analysis without interpretation (Bauer and Gaskell, 2000) during the course of this research both approaches of quantitative and qualitative data analysis were employed. 4.1 General Information Response rate for Questionnaires and Interviews
42

Table 4.1: Response rate for Interview and Questionnaire Questionnaires Respondents Contractors Clients Const-Workers NSSA Inspectors TOTAL Intended Distributed 22 0 0 0 22 22 6 0 0 28 Returned 14 5 0 0 21 % Response 64% 83% Intended 0 8 44 4 57 Interviews Done 0 2 29 4 35 % Response 25% 66% 100%

Response rate to both questionnaires and interviews was fair. Majority of the questionnaires distributed to the respondents were returned with majority of the questions answered. A combined and more detailed response to both questionnaires and interviews is shown in the figure 4.1 below.

Fig 4.1: Response rate for Interview and Questionnaire

Profile of Respondents Respondents identified themselves with respect to their profession and experience they have. Table 4.2: Profile of Respondents
43

POSITION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Quantity Surveyor Project Manager Occupational Safety and Health Officer Quantity Surveyor Quantity Surveyor Occupational Safety and Health Officer Occupational Safety and Health Officer Quantity Surveyor Occupational Safety and Health Officer Civil Engineer Quantity Surveyor Projects Manager Quantity Surveyor Occupational Safety and Health Officer Projects Development Engineer Projects Engineer Projects Manager Principal Quantity Surveyor Projects Manager Group Property Manager Projects Engineer

EXPERIENCE 2-5 years > 10 years 2-5 years <2 years >10 years 2-5 years <2 years > 10 years >10 years <2 years 2-5 years > 10 years >10 years >10 years >10 years 5-10 years 5-10 years >10 years 5-10 years 5-10 years >10 years

Fig 4.2: Experience of respondents

The researcher was requesting senior management or senior staff to answer the questionnaires; hence the biggest proportion of respondents has more than ten years experience.

44

The work categories of projects respondents usually undertake are civil and building works. The pie chart in Fig 4.3 below shows that all respondents carried out works in at least one of the categories which were provided. Fig 4.3: Types of Projects normally undertaken

Data Validity and Reliability To ensure that the data collected is valid and reliable, the researcher put a number of measures in place. Below are the measures the researcher putted in place: Top management or senior staff members were requested to answer the questionnaire. Since information is basically central to the senior staff and top management, data provided is assumed be valid and reliable. Allowing the respondents to answer the questionnaire at their most convenient time. Answering questionnaires whilst busy results in false information being given. In order to get valid and reliable data, respondents were asked to tell the researcher when to collect the completed questionnaire. Employees of respondents who completed questionnaires were interviewed and observations on their sites were done too. The main aim of doing this was to check the credibility of responses given in the questionnaires.

45

4.2 Health and Safety Investment Fig 4.4: Stand-alone Health and Safety Department.

Respondents were asked if they had a stand alone health and safety department in their organisations, 64% said they do while 36% do not have health and safety departments. Although all respondents concurred that health and safety is very important, some firms do not have a stand-alone health and safety departments thereby agreeing with Schneider (2011) that firms are less motivated to invest in health and safety issues like employing safety personnel.

Those who said they do not have stand alone health and safety departments were asked how then do they ensure healthy and safe sites. More than 50% of respondents without stand alone H&S departments said health and safety issues are being implemented and monitored by foremen, unprofessionally trained safety representatives and senior artisans. Following different duties Goestch (1996) say safety managers and officers play, a big question is Will the site staff (formen, safety representatives and supervisors) be able to fully implement health and safety issues as extra duties while they have their convetional duties? Fig 4.5: Health and Safety Investment methods being used

46

Both of the respondents (who had H&S department at their workplaces and those without) acknowledged that they invest in health and safety issues. Provision of PPE/C and welfare facilities is the most common method of investment used while safety incentives and general medical examinations are the least used. All respondents admitted that they invest in both PPE/C and welfare facilities while 43% never invested in safety incentives and general medical examinations. The level of investment in PPE/C and welfare facilities is high because the Factories and Works Regulations (1986) make provision of PPE/C and welfare facilities a pre-requisite prior to start of work on site.

Fig 4.6: Degree of Investment for different short listed investment methods.

47

Respondents were also asked to provide the degree of use of the investment methods (figure 4.6). Provision of PPE/C emerged the most highly used method, improvement in technology is the least used and lastly, safety incentives and general medical examinations are the methods which respondents never used at their work places. Although the Pneumoconiosis Act (1996), makes it mandatory for all workers to have pre-employment medicals, only 50% of the respondents invested in general medical examinations. Low degree of investment in technology, non-investment in safety incentives and general medical examinations can be probably due to laxity of regulatory bodies in enforcement and due to the fact that some things are an extra burden which companies are not enforced to have at their workplaces e.g. safety incentives.

Table 4.3: Percentage of contract sum channelled towards health and safety issues. % of Contract Sum Number of Respondents 0% - 3% 4 4% - 6% 3 7% - 9% 2 10% - 12% 2 13% - 15% 2

In order to be able to invest in health and safety, respondents confirmed they set aside a certain amount of money from the contract sum to be channelled towards H&S. Majority of the respondents invested contract sums ranging between 0% to 3%. This could be as a result that many construction companies are still struggling from low activity in the sector. However, Schneider (2000) attributes
48

low investment level in construction saying contractors are less motivated to invest as they are after investments which have early paybacks.

Fig 4.7: Percentage of contract sum channelled towards health and safety issues.

4.3 Effects of health and Safety Investment Fig 4.8: Effects of investment in health and safety

49

Respondents were asked what effect does investment in health and safety issues had on their organisations. As a result of investment in health and safety, respondents revealed that staff morale largely increased. Increased staff morale led to 57% of respondents to say that productivity also largely increased while 43% say productivity slightly increased. On average, 100% of respondents witnessed that investment in health and safety results in the increase of productivity. Among things which decreased as a result of investment in health and safety, time lost to injuries, sickness absence and compensation claims were reported.

More than 90% of the construction workers who were interviewed said improvement in health and safety will propel them to produce more as a way of appreciating what their employers are doing to care for them. Staff morale and productivity is attributed to employees motivation having that feeling of belonging (Rwaveya and Makova, 2010) and thereby agreeing with Oxenburgh and Maurice (1991), that improving health and safety standards leads to an increase in productivity. More so, productivity increased as there will be no time lost due to accidents, improved work practices and workers working with shorthand which leads to little productivity per worker.

By investing in health and safety, the company reduces its Experience Modification Rate (EMR) which is the riskiness of a company to insure (Schneider, 2011). Investment in health and safety reduces companys EMR and eventually premiums to be paid to the insurance company. More so, by instituting health and safety programs, work procedures and practises will improve which will reduce the number of accidents and incidents to befall that workplace.

50

Table 4.4: Health and Safety Penalties and Work stoppages for construction projects Project Amount Fined ($) A Work stoppages (Days) 7 Reason for Penalty/ Work stoppage Shortage of dust masks Recalibration of machinery B C $100.00 Over $1,000.00 D 2 2 Silencer to compressor No pre-employment Slight increase in cost (Professional charges) No impact medical Not felt Effect on the Project

examinations Safety signs on site and Went behind program

equipment E F $105.00 $200.00 2 7 Absence of First Aid kit No much effect

Working at heights without Progress at site was safety belts affected

$150.00

Worker got injured while on top Worker hospitalised for of unguarded running mixer 10 days and could not while dislodging aggregates report for duty

(22days). However, the fine had no effect to company cash flow H 7 Provision of adequate PPE/C Exceeded duration

Fig 4.9: Health and Safety penalties and Work stoppages for construction projects

51

Respondent were asked to provide amounts of penalties charged and work stoppages experienced due to health and safety violations. Regardless of poor response to the questions to do with costs associated with health and safety violations, 80% of those who responded acknowledged that penalties charged ranged $100 to $500 and longest work stoppage was 7 days. The penalties and work stoppages were basically for PPE/C, education and training (safety signs). Tabulated data on table 4.4 shows that for all the penalties charged, penalties failed to fulfil their purpose of serving as an incentive to invest in health and safety as cited by Schneider (2011).

The above scenario can be attributed to the way penalties are determined, who charges them and who enforces adherence to health and safety regulations. Low penalties in Zimbabwe could be due to the fact that the High Court is responsible for determining and charging the penalties while NSSA has the duty of enforcing the regulations. Interviews with NSSA inspectors show that NSSA does not have powers to determine and charge penalties. NSSA only advises the court on the level of penalty chargeable for a certain violation. Penalties are pegged and charged by the court which makes them too low and ineffective to save as a motivation tool to invest. According to Heston (2010) in America, penalties are pegged and charged by OSHA with a minimum penalty being $7,000 and a maximum of $500,000. Logically, a $105 penalty for absence of a fully equipped first aid kit which costs about $300 will not be adequate motivate one to have it as the penalty is lower than the cost of buying one. Fig 4.10: Effectiveness of investing in Health and Safety Issues.
52

Health and safety is very effective in reducing the number of accidents on construction projects, improve company safety record and improve the profitability of projects through reduced health and safety related costs.

53

Fig 4.11: Incidents, Accidents and Fatalities experienced in construction (2007-2011).

In the figure above, a constant decrease in both incidents and accidents was experienced in the respondents companies during the period 2007 to 2011. No fatality was record at the respondents companies. In 2007 to 2008, respondents attributed decrease in accidents and incidents to economic problems which the country was facing. During that period, there was a sharp decline in construction projects were running (African Economic Outlook, 2004); very few people were employed on construction projects and health and safety data was seldom recorded. A sharp increase in incidents in 2009 was attributed to an increase in activity and low levels of resources being channelled towards health and safety as contractors in the recovery path. During this period health and safety was not a priority to construction companies. Due to a more stabilised economy, a gradual decrease in accidents and incidents can be attributed to an increase in the financial resources being channelled to health and safety issues.

54

A decrease in site incidents and accidents results in the decrease in compensation claims (Hinze, 200), direct costs of incidents and accidents to a company (Dorman, 2000), and other indirect costs like lost production and equipment damage among other costs. Value of the benefit of not experiencing an incident or accident is directly proportional to the costs which could be incurred as the result of those incidents or accidents. From this background, investing in health and safety issues is beneficial to the contractor as it cushions him/her from penalties and accident related costs thereby, an investment well done. Table 4.5: Measures to Effective Health and Safety Investment. Measure to be taken
Top Management involvement in Health and Safety issues. Construction companies to establish Health and Safety departments and employ professional personnel therein. Make H&S mandatory on all construction contracts. Proper enforcement of Health and Safety by regulatory bodies. Increase financial resources channelled to Health and Safety. Contractors to come up with realistic program of works to avoid pressure. Number of respondents 4 3 2 5 3 1

Fig 4.12: Measures to Effective Health and Safety Investment.

55

Respondents were asked to suggest measures they think should be taken in order to have an effective investment in health and safety in construction industry. The researcher coded the responses using the logic behind the answer. The above themes were drawn which include top management involvement, safety departments, making H&S issues mandatory, increase financial resources to safety and realistic programs of work. Proper enforcement of health and safety by regulatory bodies and top management involvement in health and safety issues were suggested the most with 26% and 21% respectively. By having top management involvement, safety departments, financial resources and other things which affect health and safety will be seriously looked into.

4.4 Health and Safety Investment Challenges. Fig 4.13: Factors impeding investment in health and safety.

From the questionnaires, cost of implementing health and safety programs emerged the biggest stumbling block to investment in health and safety issues. 79% of the respondents bemoaned cost of investment with tender adjudication and time being second largest challenges to investment in health and safety. Tender adjudication was bemoaned as it favours the cheapest tender which could have overlooked on health and safety issues. Some of the clients (43%) to the construction industry consider health and safety as an important tender invitation and adjudication attribute while 57% do not consider health and safety as shown by the figure 4.15 below.
56

Fig 4.14: H&S record a prerequisite to invitation to tender and tender adjudication

Contractor also lamented lack of support in the times of economic hardships. The construction industry is experiencing low activity and low interest rates. This left contractors not prioritising health and safety issues. Contractors said there are no incentives, besides enforcement, to invest in health and safety issues. This can also be due to the fact that the government and regulatory bodies are also facing the same financial challenges, hence, cannot afford to incentivise investment in construction health and safety as done in other countries like the United States of America (Hamrick, 2002).

4.5 Summary Different data presentation methods were used to present results of this project. From the data collected and presented, it is clear that channelling financial resources towards improvement of work place conditions is an investment. Data presented in this chapter is now used to draw conclusions and recommendations to this research in the next conclusions and recommendations chapter.

CHAPTER 5: CONCLUSIONS AND RECOMMENTATIONS

5.0 Introduction The essence of the research was to analyse the effects of investment in health and safety issues has on the construction projects. Having collected data from the field and made a comprehensive analysis in chapter four (4), the researcher is now able to conclude and give recommendations on the research subject.
57

5.1 Conclusions Although contractors are putting effort in ensuring that healthy and safe conditions prevail at construction sites, they are not fully embracing other methods of investing in health and safety like improvement in technology which have proved helpful in other countries especially United Kingdom. Only methods which are mandatory by law of Zimbabwe like provision of PPE/C and welfare facilities are receiving financial support while those which are not mandatory are lagging behind.

This research also concludes that investing in health and safety is beneficial to the contractor through increased productivity and reduced costs. Investment in health and safety is effective in reducing costs on construction projects and the whole organisation through improved company safety record, reduced accidents and increased productivity. However, for investment in health and safety to be effective, top management is crucial. More so, failure by companies to invest in health and safety exposes them to penalties. However, this research concludes that although penalties are furnished to serve as an incentive to invest in health and safety issues, Zimbabwean penalties are too low to have that effect on the construction industry. Some contractors opted not to invest because the punishing effects of penalties and work stoppages imposed by regulatory bodies are insignificant to be felt. Whilst health and safety investment is very important, this researched showed that construction industry is facing difficulties in improving conditions of work. Chief among the challenges are costs of implementation and less attention given to health and safety issues during tendering and tender adjudication by clients.

58

Therefore, the researcher accepts the hypothesis that benefits of investing in health and safety outweighs the costs of implementation. The research results show that if one invests in health and safety, he/she will enjoy the benefits of increased productivity, improved company safety record, reduced accidents and reduced insurance premiums than to violate and pay excessive penalties, face business closure and low productivity among other things.

5.2 Recommendations Grounded on the research results, the following recommendations are drawn for the betterment of health and safety investment in the construction industry:-

Health and safety standards should be considered when inviting for contractors to tender, tender adjudication and all contract documents should be more health and safety sensitive.

Stringent health and safety penalties should be charged for health and safety violations. By having stiffer penalties for health and safety violations, companies will be more attentive to health and safety issues thereby prompting investment. By having stringent penalties coupled with strict enforcement, financial resources channelled towards health and safety will increase.

Government, NSSA, insurance companies and clients should come up with health and safety standard improvement packages like loans, tax exemptions, subsidies and low insurance premiums among other initiatives. Countries like United Kingdom and United States of America have high health and safety standards in their construction industry as a result of giving support technically and financially to the construction companies. If this is done in Zimbabwe, health and safety standards will probably raise.

59

Construction companies should fully adopt and implement other methods of investing in health and safety like incentives and improvement in technology.

Construction companies should open health and safety departments, employ professionally trained safety personnel at top management level. Having a company with a Health and Safety Director will be good for the industry.

Lastly, top management should play an active role in championing health and safety in their companies. Top management can take a lead in health and safety by crafting health and safety strategic plans, health and safety policies and increase resources channelled towards health and safety.

5.3 Area of Further Researcher Since health and safety is a very broad research area, further research can be done in order to determine the role which can be played by clients to ensure healthy and safe work environments. More so, ergonomics is another area which holds tremendous promise for economically having healthy and safe work environments. A research can also be done to determine the relevance and economic benefits of ergonomics to the improvement of Zimbabwean construction health and safety standards. REFERENCES 1. Bauer, M.W. and Gaskell, G. (200), Qualitative Researching With Text, Image and Sound: A Practical Handbook, SAGE 2. Brace, C.L. and Gibb A.G.F, (2005), A health management process for the construction industry. In: Haupt T and Smallwood,J, (Eds) Rethinking and Revitalising the Construction safety, health and quality, Port Elizabeth, RSA.

60

3. British Standards Association, (2011), OSHAS 18001 Overview, www.bsi.com/OSHA

[Viewed 15 May 2012] 4. Dorman P, (2000), Economics of Safety, Health and Wellbeing at Work. An Overview
5. Dorrell, J, (2007), Safety incentives: do they work? http://www.healthandsafetyatwork.com

[Viewed 3 May 2012] 6. Goestch D.L (1962), Occupational Safety and Health, 2nd Edition, Prentice-Hall, USA 7. Griffith A. and Watson P, (n.d), Construction Management - Principles and Practice, Palgrave Macmillan, Great Britain. 8. Gwandure, G and Matanda, M (2002), Human Resources Management Module, ZOU, Zimbabwe 9. Hamrick, C. (2002), Ergonomic Best Practices for the Construction Industry, Ohio Bureau of Workers Compensation
10. Heston,R, (2010), Consequences of not following OSHA regulations, www.helium.com

[Viewed November 2011] 11. Hinze, J. (2000), Construction Safety and Health Management, Prentice Hall, USA 12. HSE, (2007), Managing Health and Safety in Construction, Construction (Design and Management) Regulations 2007 Code of Practice, Health and Safety Executive, UK 13. Huary, X. and Hinze, J. (2006), Owners role in Construction Safety. Journal of Construction Engineering and Management 14. Hughes, P and Ferret, E, (2005), Introduction to Health and Safety in Construction, Butterworth-Heinemann 15. Hughes, P and Ferret, E, (2007), Introduction to Health and Safety in Construction, 2nd Edition, Butterworth-Heinemann
61

16. Hughes, P and Ferret, E, (2008), Introduction to Health and Safety in Construction, 3rd Edition, Butterworth-Heinemann 17. Hunter, P. (2005), State Reforms Help Curb Workers' Compensation Costs, Engineering News Record, USA 18. Levitt, R. and Samelson, N. (1993), Construction Safety Management, 2nd Edition, John Wiley and Sons, New York 19. Line, P, (2010), Effects of not following OSHA regulations, (www.helium.com) 20. Moyo D, Towards Occupational Health Governance, On Guard Journal, December 2010 Volume 16 No. 16, NSSA 21. Mutetwa B, An Analysis of Occupational Safety and Health National Performance in 2009, On Guard Journal, December 2010 Volume 16 No. 16, NSSA 22. Naoum, S. G, (2007), Dissertation Research and Writing For Construction Students, 2nd Edition 23. Oxenburgh and Maurice (1991), Increasing Safety and Productivity through Health and Safety, CCH International, Australia, 24. Ridley, J, (2008), Health and safety in Brief, 4th Edition, Butterwoth-Heinemann, Great Britain 25. Rwaveya E and Makova T, The Economics of Occupational Safety and Health Practice in Business, On Guard Journal, December 2010 Volume 16 No. 16, NSSA
26. Salem. E. M. (2010), Consequences of not following OSHA regulations, www.helium.com

[Viewed November 2011]

27. Schneider, S. (2011) The Economics of Health and Safety In Construction in Construction,

http://www.elcosh.org, [Viewed November 2011]

62

28. Somavia J, ILO (Office of the Director General) Statement on the Occasion of World Day for Safety and Health at Work 2010, On Guard Journal, September 2010 Volume 16 No. 2, NSSA 29. Tarafdar N.K. and Tarafdar K.J. (1997), Industrial Safety Management, 1st Edition, Dhanpat Rai & Co. (Pvt.) Ltd. New Delhi 30. Zimbabwe. 1976. Factories and Works (Building, Excavation and structural Works) Regulations, Number Rgn264 31. Zimbabwe. 1996. Factories and Works Act Chapter 14:08, Revised Edition 32. Zimbabwe. 1996. Pneumoconiosis Act Chapter 14:28, Revised Edition

APPENDIX A - CONTRACTORS QUESTIONNAIRE

You are requested to answer the following questions by ticking in the box next to the appropriate answer of your choice. Where a free response is required, please write it down in the spaces provided. You are free to supply any additional information that you may feel may be helpful for this research. Your participation in this research is greatly appreciated. NB: Please fill in the blank or tick in the box that best represents your respond. SECTION A: GENERAL INFORMATION 1. Your Profession / Job Position Architect Quantity Surveyor Project Manager
63

Engineer

OSH Officer

Other

If an engineer, please specify_____________________________________________ If other, please specify__________________________________________________ 2. Type of projects normally undertaken Civil Works Commercial Works Building Works Other

If other, please specify__________________________________________________ 3. How long have you been involved in the construction industry? Less than 2 years 5 to 10 years 1. 2. SECTION B: HEALTH AND SAFETY INVESTMENT Do you have a stand-alone health and safety department in your organisation? Yes Very Important Slightly Important 3. No Important Not Important Is health and safety investment in construction important? 2 to 5 years More than 10 years

In your organisation how do you invest in or implement health and safety issues on construction projects? Please tick the box(es) which best suits your answer only. You can tick more than one box.

Investment or Implementation Method a) Provision of Personal Protective Equipment/Clothing (Overalls, respirators, safety nets, etc.) b) Engagement of Safety Personnel (Safety Managers, Safety Officers, First Aiders, etc) c) Education and Training (On the job trainings, safety awareness campaigns, etc.) d) Improvement in technology (Mobile Elevated Work Platforms-MEWP, etc) e) Safety Incentives (T-Shirts, Prizes, Competitions promoting safety, etc.) f) General Medical Examination and Drug abuse Testing (Chest X-rays, Marijuana abuse tests, etc) g) Welfare Facilities (Canteens, sheds, toilets, bathrooms, meals, etc.) h) Health and Safety management system e.g. OSHAS 18001, ISO 9001 etc. Any Other

3. For the boxes you did not tick, why are you not investing in that area of health and safety?

64

4. In the table below, tick the box which corresponds to the degree of use of each investment vehicle. Investment or Implementation Method a) Provision of PPE (Overalls, gumboots, respirators, safety signs, etc.) b) Engagement of Safety Personnel (Safety Managers, Safety Officers, etc) c) Education and Training (Trainings, safety awareness campaigns, etc.) d) Improvement in technology (Mobile Elevated Work Platforms-MEWP) e) Safety Incentives (T-Shirts, Prizes, Competitions promoting safety, etc.) f) General Medical Examinations and Drug abuse Testing (Chest X-rays, etc) g) Welfare Facilities (Canteens, sheds, toilets, bathrooms, meals, etc.) h) Health and Safety management system e.g. OSHAS 18001, ISO 9001 etc. Any Other High Moderate Low Never

5. What percentage of the contract sum do you usually channel towards investment in health and safety issues on your construction projects? %

SECTION C: EFFECTS OF HEALTH AND SAFETY INVESTMENT 1. In your opinion, what impacts does investment in health and safety has on the following? [1-Largely increase; 2-Slightly increase; 3-No effect; 4-Slightly decrease; 5-largely decrease.] Please tick one box for each outcome that applies for each item. Item Compensation claims Prosecution penalties/fines for Health and Safety non-compliance Insurance premiums Performance/Productivity of employees Sickness absence Time lost due to accidents Staff morale Competitive advantage during tendering Any Other 1 2 3 4 5

2. For the project previously undertaken, may you provide the penalties or fines charged for health and safety violations?
65

Project Project A Project B

Penalty or Fine Amount (USD)

3. What was or were the violations you have been fined for? . 4. What was the effect of the fine on the overall project cost? 5. For the project(s) previously undertaken, may you provide the work stoppages durations experienced due to health and safety issues? Project Work stoppages duration (Days) Project A Project B 6. What was supposed to be corrected before the work could be recommenced? 7. What was the effect of stoppage on the overall project duration? SECTION D: EFFECTIVENESS OF HEALTH & SAFETY INVESTMENT IN REDUCING COSTS. 1. When did you start to invest in health and safety issues in your organisation? Less than a year ago ago 2. For the period you have been investing in health and safety, show how the following behaved. Greatly Increased/ Increased/ No Improved a) Company safety record b) Number of accidents c) Productivity
66

1 5 years ago

6 10 years ago

More than 10 years

Reduced/

Greatly Reduced/

Improved

Change

Deteriorated Deteriorated

d) Quality of work e) Profitability 3. For the following years, give statistics of incidents, accidents and fatalities experienced in your firm. Year Incidents (No.) Accidents (No.) Fatalities (No.) 2007 2008 2009 2010 2011 4. In your opinion, are the available health and safety regulations compatible with the aim or desire to achieving an accident free construction industry? Yes No

5. If your answer above is no, what is the problem with the current regulations? 6. To have an effective investment in health and safety, what should be done? SECTION E: HEALTH AND SAFETY INVESTMENT CHALLENGES 1. In your organisation, which of the following challenges have you been facing in quest to invest in health and safety issues? Challenges Impeding Investment in Health and Safety 1. Costs of implementation 2. Lack of knowledge 3. Lack of support from regulatory bodies e.g. NSSA 4. Lack of information 5. Clients confuse lowest cost tender with best value (Affecting competitive advantage) 6. Time required (Too much unproductive time is required e.g. Tool box talks or HIRA) 7. Lack of experience Any Other

2. What strategies did you adopt to solve or reduce the effects of the challenges you mentioned above?
67

 ........ 3. Were the strategies adopted helpful in solving the challenges? Yes No

4. If your answer is yes, explain how they managed to address the challenges. Any additional information you may wish to give on Construction Health and Safety Investment .. .

THANK YOU

68

APPENDIX B - CLIENTS QUESTIONNAIRE/INTERVIEW GUIDE

You are requested to answer the following questions by ticking in the box next to the appropriate answer of your choice. Where a free response is required, please write it down in the spaces provided. You are free to supply any additional information that you may feel may be helpful for this research. Your participation in this research is greatly appreciated. NB: Please fill in the blank or tick in the box that best represents your respond.

1.

What is your profession or job position in your organization? .... ............. 2. For how long have you been involved in the property development industry? 3. Do you think health and safety management is important on construction projects? YES NO yrs

4. Is health and safety record of a construction company a prequalifying attribute for invitation to tender as well as tender adjudication? YES NO

5. If your answer to the above question is YES, what health and safety issues do you consider? 6. After awarding a contract to the contractor, do you have a role you play to ensure that meaningful health and safety standards exist on construction projects being undertaken on your behalf? YES 7. NO

If your answer to question 6 is YES, what do you do? ...

69

 8. For your projects previously undertaken, may you provide work stoppages your contractor experienced due to health and safety violations? Project Project A Project B Work stoppages duration (Days)

9.

What was supposed to be corrected before the work could be recommenced? .

10.

What was the effect of stoppage on the overall project duration?

11. In your opinion, what do you think are the draw backs to the investment in health and safety? ... . 12. In case companies are not complying with the set health and safety regulations, what do you do to ensure compliance? ........................................................................................................................................ ............................................................................................................................................................. ............................................................................................................................................................. ............................................................................................................................................................. ............................................. 13. Any other additional information you may wish to add on health and safety investment in construction?
70

-THANK YOUAPPENDIX C CONSTRUCTION WORKERS INTERVIEW GUIDE

1. 2. 3. What is your profession or job position in your organization? ....................................................... For how long have you been involved in the construction industry? To ensure that you work safely, does your employer do the following? Provision of PPE (Overalls, hard hats, gumboots, respirators, safety signs, etc.).......... Engagement of Safety Personnel (Safety Managers, Safety Officers, First Aiders, etc). Education and Training (On the job trainings, safety awareness campaigns, etc.). Safety Incentives.. General Medical and Drug abuse Testing (Chest X-rays, Marijuana abuse tests, etc) Welfare Facilities (Canteens, sheds, toilets, bathrooms, etc.).. 4. What else do they do to ensure that you work safely? ................................................. ................................................................................................ ..................................................................... What effect does health and safety has on the following on you? Productivity. Team spirit Off days Time lost 6. 7. due (Staff to morale). sickness. injured. yrs

5.

when

For those who were injured or die while at work, who paid for the hospital bills or burial costs? .............................................................................................................................................................. Do you get any benefits directly from the company other than those from NSSA? ..................... If yes, give examples ...
71

8.

In a bid to work healthily and safely, what challenges are you facing? .................................... ..

9.

Any additional information ...........................................

-THANK YOU-

APPENDIX D NSSA INPSPECTORS INTERVIEW GUIDE

1. What is your profession or job position in your organization? . ...... 2. For yrs how long have you been involved in the property development industry?

3. How do you ensure that meaningful health and safety standards exist on construction projects? ... 4. What is your role in ensuring compliance with health and safety regulations by construction companies undertaking your projects? .. ... 5. What do you think are the safety? ....................................... draw backs to the investment in health and

... .. 6. In case companies are not complying with the set health and safety regulations, what do you do to ensure compliance? .................................................................................................................................. 7. Any other information? .......................................................................................................... additional

72

-THANK YOU-

APPENDIX E OBSERVATION GUIDE

Site Name: . Contractor: Item Hording / Security Fencing around the site Safety Signs available Workers having on adequate minimum PPE/C Welfare facilities availability [Toilets, sheds, water, etc.] Yes No

73

APPENDIX F PHOTOGRAPHS

Site Workers attending Tool Box talks prior to start of work

74

Safety Sign obligating all entering the site to have enough PPE

First Aid Canister Contains first Aid Kit and is kept locked. Keys stay with the First Aider

Fire Point In case of fire, the sand inside the buckets will be used to put off the fire

75