NDA Convention: Safety Pays Off in Many Ways

At a session at the 2010 National Demolition Association Annual Convention titled “Safety and Your Bottom Line,” Michael Casbon of ERM Inc., pointed out the numerous ways in which a safe workplace pays off for demolition contractors.

“Most people say ‘Safety costs money,’ right?” Casbon asked attendees. A number of surveys and studies have found, however, that the cost of training and personal protection equipment to keep a workplace safe is far exceeded by the benefits of reducing insurance claims and avoiding lost work time interruptions, noted Casbon.

Catastrophic accidents in particular can destroy lives, property, equipment, project timetables and the future cost of insurance (or even insurability) for the company involved. “What happens today on your job site will affect your company for the next three years, at least,” said Casbon.

When it comes to safety violations and accidents, “the indirect costs are much higher than the direct costs,” said Casbon.

Casbon commented that in an environment of thin profit margins, when an accident or an OSHA inspection that results in several fines occurs, either event can turn a project or even an entire calendar year from profitable to unprofitable.

Safety involves more than purchasing the equipment and conducting one-time classes, said Casbon. He commented that management commitment is vital, with company owners and other top managers following the rules themselves and setting up reinforcement systems (positive and/or negative) to reward or punish employees based on their safety practices.
Such a system instills a safety culture within a company and can allow itself to tout its safety record as part of its bid and proposal packages. “What separates you from ‘Joe Low-Bid’?” asked Casbon. “An impressively low recordable injury rate, a low experience modification rate and an OSHA inspection record that you can be proud of—these can all be part of your bid documents,” he answered.

The National Demolition Association Annual Convention took place at The Mirage in Las Vegas March 20-23.