Effects Of The Construction Industry

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The construction industry was, without a doubt, one of the industries in South Africa that was the hardest hit by die recent global recession. With the prevalence of contracts decreasing, construction being cancelled on sites that were already well away and contractors struggling to stay in business, the harsh reality for this industry is that business is currently still looking bleak and all efforts and energy must be focused on, besides securing contracts, saving money.
One of the biggest money wasting culprits in the construction industry is accidents – and few employers realise just how great the effect of an accident can be. The construction industry contributes vastly to the statistics of employee injuries and fatalities and this can
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According to the Department of Labour (2012) the construction sector paid out more than R287 million (about USD34 million) on claims for injuries and illnesses that were work-related in the period ending March 2012. This large pay-out was for compensation of employees and medical costs associated with the injuries and illnesses. The construction injury rate was significantly higher than the rate for private industry as a whole. There were 171 fatalities and 755 injuries during the period 2007-2010 (Department of Labour, …show more content…
Given the growing South African infrastructure needs and the intended spend of several trillion Rand; the escalation in construction activities could potentially escalate the incidence of construction accidents and fatalities with probable severe consequences for all concerned.
Unfortunately the construction industry continues to be one of the most hazardous industries within which to work. According to Egan (1998:15) ‘the health and safety record of construction is the second worst of any industry’ and suggested that ‘accidents [could] account for 3 to 6 percent of total project costs’.
Arguably, there is a fundamental need to examine the extent, nature and management of construction accidents and their related costs to improve overall construction health and safety management. The calculated costs of construction accidents to a large extent represent the losses incurred by a construction organisation (Tang, Ying, Chan, and Chan,

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