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Three of the most important expenses you must budget for as a construction site manager. If you don't, you'll pay a hefty price

by , 22 December 2014
Budgeting for your health and safety programme should be one of your first steps as a construction site manager. After all, there's no point in creating and implementing a programme you can't afford.

This budget needs to cover all the elements you have to pay for to get your programme running on site.

But there are some expenses that should appear on your health and safety budget every year to keep your construction employees safe.

Read on to find out what they are so you don't have to pay a hefty price for them later...

 

Make sure your health and safety budget includes these three expenses

 
1. Incident costs 
 
Accidents and incidents can be very expensive, especially if your employee can't work because of an injury. 
 
That's why you need to include these costs in your health and safety budget:
 
Cost of replacement labour;
Cost of injured employee's salary;
Cost of investigations;
Cost of repairs to machinery and building; and
Cost of possible production loss or business interruption insurance.
 
Also account for any time lost because of the accident. What will you accept as reasonable loss of man-hours?
 
Make sure you include specific figures for:
 
- Man-hours loss;
- Fixing damage to machinery; and
- Replacement personnel cost.
 
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21 Items you should have in your Occupational Health and Safety Budget
 
 
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2. Personal Protective Equipment 
 
You need to do a risk assessment to find out what PPE your employees need. 
 
(You can find out everything you need to know about how to do a risk assessment in the Risk Assessment Toolkit). 
 
Then you need to assess the condition of the PPE every year to find out if you need to replace it. Also do spot checks on employee PPE to find out if anyone lost theirs. 
 
As a construction site manager, you need to budget for:
 
Safety Shoes;
Dust masks;
Overalls;
Safety glasses;
Gloves;
Respirators;
Fall protection equipment;
Ear protection; and
Other things you identified in your risk assessment.
 
Include the cost of PPE. Remember to work out how many pieces of PPE you need. Then time the price of each piece of PPE by how many you need.
 
For example, you have 78 employees that need hard hats. The hats cost R250 each. So you have to budget R250 x 78 = R19 500 for hard hats. 
 
3. Training 
 
Do a Training Needs Analysis to find out what training you need. Base this on the risks you identified during your risk assessment. You have to include these types of training:
 
Health and Safety Representative;
First Aider;
Fire Fighter;
Risk Assessor (If not utilising a specialist);
Incident Investigator (If not utilising a specialist); and
Other training that you may need.
 
Make sure you budget for:
 
Training course cost; and
The cost of time lost because of training.
 
As a construction manager, these are three of the most important expenses you need to include in your budget. You can find a complete health and safety budget template specifically for construction sites in the Health and Safety Budget
 

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