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Nov. 28, 2012 
 
Construction Injuries and Fatalities Cost California’s Economy $2.9 Billion
Between 2008 and 2010

State Would Save Money by Using Its Buying Power to Reward Companies With Strong Safety Records

WASHINGTON, D.C. – Occupational injuries and fatalities in the construction industry cost California residents $2.9 billion between 2008 and 2010, a new Public Citizen report shows.

The report, “The Price of Inaction: A Comprehensive Look at the Costs of Injuries and Fatalities in California’s Construction Industry,” quantifies the estimated costs of deaths and injuries in the state’s construction industry by considering an array of factors.

From 2008 to 2010, 168 construction workers were killed in workplace accidents in California. Additionally, the state recorded 50,700 construction-industry injuries and illnesses that required days away from work or a job transfer.

Drawing on a comprehensive 2004 journal article that analyzed the cost of occupational injuries, and combining the paper’s findings with updated fatality and injury data, Public Citizen determined that such incidents cost the state’s economy $2.9 billion during the three-year period.

“The economic picture is quite staggering,” said Keith Wrightson, worker safety and health advocate for Public Citizen’s Congress Watch division. “We now know that construction accidents impose huge economic costs in addition to tremendous pain for individual victims.”

As a partial solution, the report proposes that California pass a law requiring companies to demonstrate adherence to safety standards in order to be eligible to bid for state contracts. Such a solution not only would ensure that public-sector projects are fulfilled by responsible contractors but also would provide incentives for companies to maintain clean records while working on private-sector sites.

The report notes that California already screens construction companies to ensure that they have met performance standards in the past and haven’t violated any laws. The state also incorporates some safety standards in its prequalification system. But the system should be expanded to require construction firms to put greater emphasis on demonstrating that they provide safety training to workers and site supervisors, and that they have not had serious safety violations.

“Implementing a stricter prequalification process for public construction projects would not address all of the industry’s safety problems,” Wrightson said. “However, such a step would help further protect workers while also yielding significant gains to the economy for minimal costs.”

The report can be viewed at http://www.citizen.org/price-of-inaction-california-construction-safety-report.

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