Safety: The Construction Industry Indicator of Performance

Safety in the construction industry can make or break a company’s long –term stability. There are a few basic Safety factors to consider which are analogous to a company’s total way of doing business.

For the average construction company, worker’s compensation insurance and employment taxes and burden represents up to 50% of the installers costs.  Worker’s compensation insurance is state mandated in Wisconsin and helps to protect homeowners against costly lawsuits if a worker gets injured while working on your home.

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MOD Ratings:

A MOD rating represents the modifier value to calculate insurance payments. MOD ratings are based on an industry national average. Wisconsin companies tend to be higher in MOD ratings, as we have more seasonal labor. If you have a low MOD rating, you may save as much as 20% on your labor.

Safety Is an Analogy to Everything Your Company Does

A safe company with a good MOD rating will save between 10% and 20% labor each year. As a customer, you will probably want your money going towards waterproofing, not waste. If a company has great processes and safety procedures in today’s day and age, there is a good chance they are a forward-thinking organization with concern for their future. They plan to stand the test of time. They also probably have processes and practices for ever thing they do, because they learned that there is a direct monetary reward for construction efficiency. Therefore, they have probably instituted a “Zero Defects” policy, which includes a pre-set checklist for each kind of project they install.

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The TRIR Report:

Due to the number if upstart “spin-off” companies (companies that were previously a portion of another company but decided to go into business for themselves) in the past few years, there is little stability in the construction market place. The internet has created a situation where anyone with $200.00 can set up a store front-type appearance of a very established and reliable company. Of course, “talk is easy”.

One way to ensure a company has been around the block and is operating as a stable entity is to require a TRIR report from their insurance company. “TRIR” stands for “Total Recordable Incident Rate”.

It is also recommended that you call the insurance agent to verify coverage amounts, validity, stability and history of claims, and that you will be properly covered for the project you are considering, the size and scope of the project, and the value of your home and any other combination of projects that the contractor may be working on at any given time.

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