COST OF ACCIDENTS
COST IS THE ULTIMATE MEANS OF
CONVINCING PROJECT PERSONNEL ABOUT
NEED FOR SAFETY!!
DIRECT COSTS (Easy to Measure &
Realize)
INDIRECT COSTS (Difficult to
Measure)
ACCIDENT COST
DIRECT COST
INDIRECT COST
DIRECT COSTS
Covered By Workers Compensation
•
Ambulance service
•
medical & follow-up treatment
•
hospitalization
•
medication
•
disability benefits - % of last wages
•
Losses covered by insurance – financial
transaction
Direct Costs are well understood and
What is Workers Compensation ?
A mandatory government run insurance
scheme that ensures compensation for
workers who get injured in the
workplace.
The company pays the insurance
premium based on man-hours to be
worked
INDIRECT COSTS
Difficult to Quantify
1. Lost time of injured worker
2. Cost of lost time of other workers who stop
3. Cost of lost time of supervisory crew
4. Time spent by site medical crew/ Transport
5. Damage to equipment, tools, materials
6. Employee welfare cost.
7. Disruption to crew composition
8. Reduced worker productivity / Supervisor
productivity
9. Idle equipment
10. Overhead cost
11. Administration cost / Legal costs
12. Company Image
Example
A carpenter gets injured while setting
a wall form which is being held by a
crane
20 minutes for First-Aid treatment
Indirect Losses
Crew Time for 20 min
Crane / Operator time for 20 min
Quantifying Indirect Cost
As a ratio of Direct cost
•
Factor of 4 (Heinrich 1941)
•
Factor of 10 (Sheriff, 1980)
•
Factor of 50 (Bird & Loftus, 1976)
•
“Insignificant” (Leopold and Leonard 87)
Definition of Indirect factors is
important - it varies
CII Study
> 100 firms , 185 projects 34 US states
$1 Mil to $500 Mil
56% Fixed Price or Unit Rate 44% Cost
Reimbursable
14% New Construction, 15% Maintenance ,
71% Renovation
Most -Buildings & Industrial facilities
834 injuries recorded for survey
19 different trades - pipe fitters, laborers,
CII Study
Two Categories of Injuries
•
Medical Case Injuries
Requires only doctors attention before
worker returns to work
•
Lost-workday cases
Injured worker could not return to work the
following workday or has to be reassigned
work.
Research Methodology
Questionnaire Survey
For each injury experienced, the site
personnel were required to quantify
•
Number of hrs missed by worker
•
Hourly wage
•
Supervisory time spent
•
Crew Disruption
Computations were made and the injury
type and associated information were
correlated.
Distribution for Medical-Cases
AVERAGE FIELD INDIRECT COST $442.40 (Excluding Claims) AVERAGE DIRECT COST $519.15
Distribution for Lost-Day
Cases
AVERAGE FIELD INDIRECT COST $1613.21 AVERAGE DIRECT COST $6909.98
FINAL CII RATIOS
•
Excluding Claims
0.85 (Medical Cases)
0.23 (Lost day Cases)
•
Including Claims
1.182 (Medical Cases)
2.058 (Lost day Cases)
•
Cost ratio higher on Larger
Example
Project has 34 Medical Cases & 8 Lost
day cases find cost of injuries
Medical Case
•
indirect cost = 34 * 614
•
Direct cost = 34*519
TOTAL = $38,522
Lost Day Case
•
Indirect Cost = 8* 14,223
•
Direct Cost = 8* 6,910
TOTAL = $169,064
TOTAL COST = 207,586
Example B
There are 67 Medical Case Injuries & 21
Lost Day Injuries on a project
Total direct cost (insurance) = 183,000
Find total cost of Injuries
The Regression Models
The book also presents a Regression
model for computing costs
At present this is regarded as an
academic exercise
A REGRESSION MODEL
Medical Case - Field Indirect
150 + 15*F + 30*H +100*A (R= 0.79)
150 + 80*H + 80*A (R= 0.37)
•
Total indirect = Field Indirect * 1.4
Lost Day Case - Field Indirect
625 + 20*F + 20*H +50*V
625 + 100*H + 100*V
•
Total Indirect = Field Indirect * 9
F = Hrs lost for follow up care
H= Hrs lost on day of injury
A= Admin & Sup Hrs for Injury on the day
V= No. Hrs spent by admin personnel to investigate
Example
Worker falls - gets serious cuts
•
absent 6hrs on day of injury
•
Absent for 10 days
•
6hrs lost for fellow worker
•
Sup time = 2 hrs
•
Follow up treatment = 30 hrs
•
FIND TOTAL COST!
COSTS NOT ASSESSED
Loss of Pay for worker
Pain & suffering
Effects on Family members
Personal Suits
Damage to Company Image
Reduced Profit Margins
Removal from shortlists
Reduced Morale
BIG_BLUE
MILLER PARK CRANE ACCIDENT
Case Study
Bernard Ross , Brian McDonald, S.E. Vijay Saraf “Big blue goes down. The Miller Park crane accident” . J. Engineering Failure Analysis 14 (2007) 942–961
The catastrophic collapse of Big Blue on the Milwaukee Brewers
baseball stadium retractable roof project could be the most awesome lift accident of all time.( USA)
The accident occurred during 26 mph average winds with gusts in the mid 30’s. Big Blue was lifting a 450-ton piece of the roof when the piece began swaying in the wind and the crane collapsed .
Three
ironworker fatalities and hundreds-of-million dollar
damages resulted from this mishap
.The crane, a Lampson Transi Lift III with a 340 ft main boom and a 200 ft jib, was setting a 100 · 180 · 16 ft open truss panel roof section
weighing close to 500 tons at a lift height of 230 ft. With 11 diesel engines, 6 miles of wire rope and 1150 ton counter weight, the 2100 ton crane was a massive machine, indeed.
The ensuing litigation pitted co-defendants Mitsubishi Heavy Industries, the crane lessee/operator versus Lampson, the crane designer/builder, on totally disparate theories for cause and origin of the failure.
The Miller Park accident, where a huge crane overturned while
setting a ponderous roof panel section in place, was precipitated by a combination of adverse wind speeds and gusts coupled with an out-of-level runway foundation and ground softness.
The wind forces engendered sideward displacement of the roof panel with accompanying horizontal load and lateral displacement at the jib tip.
The adverse lateral loading intensified bearing pressures at the rear corner of the load-side carbody crawler track which exacerbated
ground subsidence and/or depression. The magnitude of side load surpassed the design limit for resistance to overturning
based solely on self weight
Consequently, an unfavorable bending moment was imposed on the king pin which was designed to serve uniquely as an
unloaded locating means between the crane upper works, or tub, and the crawler base, or carbody
Ultimately, the side loads which provoked incipient failure in the kingpin, bottom end cap fixation assembly were almost 2–1/2 times greater than the requisite 2% design condition postulated in SAE J1093
Roof panel during carry-travel sequence.
Overturned crane, tub separated from crawler base.
Impact of the accident …..Lawsuits
After a three-year court battle, attorneys for Mitsubishi
Heavy Industries of America and the Miller Park stadium
district “agreed Friday on an out-of-court settlement on the
costs to build and repair the stadium’s troubled roof,”
according to Don Walker of the MILWAUKEE JOURNAL
SENTINEL.
The stadium district will receive $28.95M from Travelers
Indemnity Co. of Illinois, the main insurer in the case, and
Royal and IINA insurance companies, while Mitsubishi will
“pay the district $4[M].” Mitsubishi will receive $6M from the
district, “all of which had been set aside for years under
existing district budgets, and will receive $15.75[M] from
Travelers, Royal and IINA.”
Ove Arup, a structural engineering firm, also agreed to pay
Mitsubishi $250,000. Miller Park stadium district Exec Dir
Mike Duckett said the roof remains under warranty, and
Walker noted the warranties “would come from firms that
did repair work on the roof.” Walker wrote Mitsubishi “likely
will have no further involvement” with the roof, though it
“must honor its warranty obligations on non-moving parts of
the roof
Other Law Suits
Milwaukee, WI: (Aug-07-07) The families of four workers who
suffered post-traumatic stress disorder in the aftermath of the Big Blue crane collapse in July 1999 at Miller Park brought a lawsuit against Mitsubishi Heavy Industries of America and nine other defendants. The suit stemmed from the accident where three ironworkers were killed, delaying the opening of the baseball
stadium until March 2001. The four workers are Joseph Edwards Jr., Shayne Olson, Robert Becker, and Thomas Freda. Sources state that Olson and Edwards were operating smaller cranes at the construction site on July 14, 1999, when Big Blue became
unstable. Freda was on the roof of the stadium when he saw the crane collapse. Becker was the last person to speak to ironworkers Jeffrey Wischer, William DeGrave, and Jerome Starr, who were
killed in the accident.
http://www.bizjournals.com/milwaukee/stories/2001/02/19/story2.ht ml
Next Step??
People should be aware of Indirect
Costs
Law suites are a major component
But total can add-up to be significant
even without Law Suits
Productivity & Safety are not in
Major Construction Accidents in India (2009)
-A horrific industrial accident killed 49 workers on September 23 ,2009 at a Bharat Aluminum Co. (BALCO) construction site in Chhattisgarh's state, Korba town, 200 kilometers from Raipur.
-The workers were killed when a partially built 100meters(330feet) smokestack (chimney ) crashed down over in the midst of a heavy thunderstorm.
-Despite the foul weather, workers had been ordered to continue working on the chimney that was ultimately supposed to reach 275 meters in height
The power plant was being constructed under contract by the Chinese-based Shandong Electric Power Construction Corporation (SEPCO).
Construction of the chimney had been subcontracted by SEPCO to a New-Delhi based firm, Gannon Dunkerley and Company Ltd (GDCL).
The BALCO TRAGEDY
http://ibnlive.in.com/news/balco-mishap-police-to-question-chinese-employees/102610-3.html
Major Construction Accidents in India (2009) contd…
More than 45 people are believed dead after the bridge on which they were working gave way (collapsed) over the Chambal river on the
outskirts of the city of Kota in Rajasthan state on December 25 ,2009.
The bridge, under construction since 2007, is a joint venture among Gammon India, South Korea's Hyundai Engineering and India's
national highway authority
KOTA BRIDGE COLLAPSE
http://timesofindia.indiatimes.com/india/45-people-presumed-dead-in-Kota-bridge-collapse-Official/
Major Construction Accidents in India (2009) contd…
Six dead, three injured in Faridabad
building collapse. September 9th, 2009 . At least six people were killed, three suffered injuries and an unspecified number of people remained trapped under debris after a three-storey shopping centre collapsed Wednesday in this Haryana city Faridabad adjoining the national capital.
Five workers dead, in Ahmedabad, Nov. 20, 2009.
Five labourers were killed and one injured when a portion of an under-construction underpass caved in at the Parimal Garden railway crossing in the Ellisbridge area in Ahmedabad when the labourers were engaged in digging.
http://in.news.yahoo.com/139/20091121/808/tnl-modi-orders-probe-into-accident-at-a.html
Major Construction Accidents in India (2009) contd..
New Delhi, July 12,2009 Sunday morning was the worst accident in the history of Delhi Metro, six people were killed and 15 injured when the 4.23-metre long cantilever collapsed at the DMRC project.
The next day July 13, 2009 Monday, three cranes clearing the debris of the first accident crashed, leaving six people injured.
After 10 days another metro mishap in Delhi
The accident took place near Ram Bagh at Punjabi Bagh in west Delhi around 6 am New Delhi, on Wednesday, Jul 22. An iron girder
collapsed at the a Delhi Metro Rail Corporation (DMRC) construction site killing a 22-year-old labourer.
DMRC 2009 Accidents
http://newshopper.sulekha.com/six-killed-in-delhi-metro-s-worst-accid ent-sreedharan-resigns_news_1087555.htm
1.JULY 12,2009 DMRC ACCIDENT KILLING 3 & INJURED SEVERAL (1st NEWS)
2.JULY 12,2009 DMRC ACCIDENT KILLED 5 & INJURED SEVERAL
3.JULY 13,2009 DMRC CRANE ACCIDENT
4.THIRD ACCIDENT AT DMRC SITE AFTER 10 DAYS & KILLED ONE LABOURER
DMRC
case study
CAUSE OF ACCIDENT
The Comptroller and Auditor General’s(CAG) report on July 18 has criticized the DMRC for not having solid testing mechanisms and for violating several safety parameters. MOREOVER, It said that the DMRC had been conducting several tests in non-accredited laboratories and violating noise pollution levels.
The big contractors pass on part of the work to subcontractors, who again pass on part of their job to even smaller ones. In the process, safety measures suffer because there is not enough monitoring
As the national capital prepares to host the Commonwealth Games in 2010, there are fears that the rush to meet deadlines before the event is causing safety lapses that lead to such accidents.
There is a serious deficiency in the design of the cantilever arm; and the concrete not having the adequate strength probably due to lack of adequate curing of the concrete
DMRC
case study
Due to this accident, the estimated
damage
is Rs.6 crore
to thewhole work. “Rough estimate & believed it is more than this”.
IMPACT OF ACCIDENT
Shares of
Gammon India
on Monday fell over 17 per cent in morning trade on the Bombay Stock Exchange following anaccident at Delhi Metro at a stretch for which the company was the contractor. Gammon India opened weak on the BSE and plunged further to a low of Rs 133, down 17.49 per cent over the previous close on the exchange. Similar movement was witnessed in the
National Stock Exchange, where the scrip dipped 19.44 per cent to a low of Rs 130.15
The Delhi government announced a compensation of Rs.500,000 to the kin of each of the deceased, Rs.200,000 each to those
permanently disabled and Rs.50,000 each to those injured. The compensation will be paid by the DMRC
The traffic, and power and water supply in the area have been affected following the rescue operation. Debris clearance will take time as the collapsed structure is quite big
Around 200 Delhi Metro workers and engineers were gathered at the
site in efforts to remove tones of debris and diverting traffic.
This accident is going to cause a serious delay. We anticipate on this section a delay of at least three months.
DMRC
case study
IMPACT OF ACCIDENT
Additionally Four massive cranes were employed in relief and
rescue operations since July12,2009, one of which was a heavy capacity crane of 400 tones.
DMRC will not cancel the ongoing contracts of Gammon as that may lead to delays of about eight months or so, though they blacklisted gammon for two years.
However, "We may bar Gammon from bidding from any future projects”
Due to the publicity this accident received, the bosses admitted that over 90 workers have been killed during construction of the New Delhi-Metro system in the past 10 years.
DMRC
case study
IMPACT OF ACCIDENT
Following an enquiry, the DMRC has blacklisted the design consultancy firm (Arch Consultants) for five years. It has also debarred the structural consultant (Tandon Consultants) for two years for not giving the right advice to DMRC.
Delhi's main opposition Bharatiya Janata Party (BJP) leader
accused the state government of rushing the Metro project ahead of the Commonwealth Games.
http://newshopper.sulekha.com/india-power-plant-construction-accident
http://newshopper.sulekha.com/six-killed-in-delhi-metro-s-worst-
accident-sreedharan- http://in.news.yahoo.com/139/20091121/808/tnl-modi-orders-
probe-into-accident-http://www.thaindian.com/newsportal/uncategorized/balco-powe
r-plant-chimney-collapse- http://www.france24.com/en/20091226-least-45-presumed-dead-rajasthan-bridge-collapse-india-accident
http://www.abc.net.au/news/stories/2009/09/24/2695934.htm
http://www.hinduonnet.com/fline/fl2616/stories/20090814261604 200.htm
