Applying strict safety standards in construction creates an environment in which injuries are reduced. Boosting safety standards in construction can also have a substantial financial benefit for construction professionals who want to obtain lower-cost surety bonds for their projects. Reducing costs while improving safety benefits everyone involved in the project.
Benefits of Greater Safety Standards in Construction
- Improved safety standards improve companies’ financial stability – A company with a solid safety record demonstrates that it cares for its employees and is dedicated to providing good working conditions. When there have been no safety violations, there have also been no associated fines or financial penalties. Work hasn’t been interrupted to correct safety issues, and no one has had a reason to file workers compensation claims, insurance claims or lawsuits. Financial stability and high levels of safety prove to bonding companies that a construction firm has earned better bond rates.
- Practicing better safety makes getting bonded easier – If a company is thoroughly invested in maintaining high safety standards, it also indicates a company that’s most likely dedicated to excellence in other operational areas. It’s rare to have top-notch safety standards while falling short elsewhere in the company. When these factors are considered along with safety issues, it will be easier for a company to be bonded by high-quality bonding firms.
- Using improved safety standards makes bonds cheaper – As a company proves its dedication to safety and its responsibility in other areas, it’s likely to receive better rates from a bonding company. As with any insurance, a highly responsible company shows that it’s attentive to factors that reduce the need for claims. A bond issuer can be confident that a safety-conscious company is a lower risk that deserves a cheaper rate.
Construction Monitor is the construction industry’s leading source for up-to-date information on housing starts, permit issuances and important trends. Contact us today for more information on safety standards in construction.
Image via Shutterstock.com