This may be of interest to those after financial costs of construction accidents in Australia. This paper sought to expand existing research by providing a methodology for calculating more realistic costs.
Data was based on work from Safe Work Australia and the Australian Bureau of Statistics. The authors say that employers “commonly underestimate the true financial impact of such events” (p886).
Note: this covered only financial costs rather than the largely immeasurable emotional and social costs to individuals, families etc.
Results:
The mean cost of a construction accident incurred on stakeholders was estimated at AUD $2k for a short-absence from work, $22k for a long absence, $1.4 million for a partial incapacity, $4.3 million for a fatality & $6 million for full incapacitation. Costs are said to be volatile, varying considerably depending on contextual factors.
As per previous work, fatal accidents were found to incur less cost than full incapacity accidents; the latter being more costly than any other category.
Direct costs increase gradually in relation to the accident severity, with the exception of fatal accidents. Indirect costs increase gradually regarding accident severity and outweigh direct costs across the board, except for full incapacity accidents.
The percentage of costs borne by stakeholders depend on the accident severity. In short absences, the employer is responsible for most costs (58.8%). With long absences and full incapacity injuries the majority of responsibility shifts to the community (68.3% and 98.1% respectively).
For fatal accidents and partial incapacity, the costs are borne largely by the individual (62.9% and 69% respectively) – mostly in the form of loss of current income.
Although social welfare payments try to offset the significant indirect costs to individuals, it’s said they’re only “successful” in the case of full incapacity accidents.
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