1 Safety Management in Construction Research Study Preliminary Results—April 2013 Safety Management in the Construction Industry: Identifying Risks and Reducing Accidents to Improve Site Productivity and Project ROI All information presented © McGraw-Hill Construction, All rights reserved.

2 Types of Safety Practices

3 General Contractor General Contractors Report a Wider Use of Safety Practices than Specialty Contractors Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013) Specialty Contractor  Relative ranking for most practices are the same among General Contractors (GCs) and Specialty Contractors  The difference in use may reflect the role of GCs in promoting safety as “controlling employers” on a jobsite Types of Practices Used to Promote Safety on Projects (by Firm Type)

4 Developing Site Specific Health and Safety Plan (HASP) is Reported as the Most Effective Practice in Increasing Project Safety  Firms also report safety practices that start in the preconstruction stage to be most effective Top Practices Found Most Effective in Increasing Project Safety Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

5 Large Firms Report More Fully Integrated Safety Policies and Programs than Small Firms  Large firms are investing more in safety practices than small firms, possibly due to their larger budgets and access to resources Level of Adoption of Safety Practices and Policies Small Firms (1-49 Employees) Medium Firms (50 to 499 Firms) Large Firms (500 or More Employees) Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

Influence Factors

7 A High Number of Factors are Driving Adoption of Current Safety Practices  At least 50% report 10 different factors  In addition to worker health and well-being, top drivers stem from concerns over project cost and schedule Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

8 Reduced Insurance Rates is the Primary Factor Encouraging Investment in Safety Management Practices  Reduced insurance rates play significant role in bringing project costs down  Clients more likely to seek contractors that control their risks through comprehensive safety management practices Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

9 Owners are Most Influential in Impacting Improvement of Safety Practices  For large firms, company leadership is most important, while small firms are more influenced by owners Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

Communication and Education

11 Safety Training Impacts Those Most Directly Involved in Day-to-Day Construction Activities  Impact of training is also substantial for the project management team and company leadership, demonstrating the importance of engaging the company leadership in addition to encouraging safety on the ground Influence of Safety Training by Role at Contracting Firm Somewhat Highly Influential Highly Influential 85% 81% 77% 63% 31% Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

12 Firms Use and Value On-the-Job Training the Most  Large firms use and value classroom training significantly more than small firms, which are much more likely to outsource training Level of Use and Value of Modes of Training for Jobsite Workers Use Consider to be of Great value Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

13 Large Firms Offer Training to Jobsite Workers More Frequently  Large firms typically assume greater risk and liability than small firms and thus have a greater interest in emphasizing safety training Frequency of Formal Safety Training for Jobsite Workers Small Firms (1-49 Employees) Medium Firms (50 to 499 Firms) Large Firms (500 or More Employees) Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)

14 Toolbox Talk and Training are Most Effective Ways of Communicating About Safety  Direct forms of communication are considered far more effective, allowing workers to ask questions and avoid misinformation Most Effective Means of Communicating About Safety With Employees Source: McGraw-Hill Construction, Safety Management in the Construction Industry research study, April 2013 (SmartMarket Report to be published June 2013)