Is the construction industry missing a trick?

The construction industry is one of the most powerful drivers of economic activity in Malta, and indeed in most other countries. It is therefore very important to the prosperity of the state and its population.

Many ordinary people's savings and investments are at least in part, tied to some aspect of this vibrant industry. Why is it then that such an important generator of income and wealth often operates in wasteful and inefficient ways?

For example, the construction industry always figures at or near the top of annual national accident statistics, with each individual accident often involving damage to equipment, wasted materials, time spent on the aftermath of the incident, and loss of an individual's input into the project.

A study carried out by the UK's Health and Safety Executive (HSE) revealed that 8.5 per cent of a project's tender price was lost in these ways. This level of inefficiency can represent the difference between profit and loss on a project, particularly in less economically buoyant times!

What makes these losses even more unacceptable is the simple fact that they are largely avoidable with some straightforward management intervention.

The industry's image is also quite poor. Many people regard those working in construction as being a law unto themselves; a group that has little or no concern for the disruption that they cause to people living close to their sites.

The sad reality is that there is much evidence to support this view. Take a walk around any of the areas in which construction work is taking place (they won't be difficult to find in Malta!).

The chances are that you will encounter pavements cracked and broken by construction vehicles, damaged road surfaces, cranes blocking walkways forcing pedestrians to walk in the road, debris strewn throughout the area, dust, noise - the list goes on.

These problems are evidence of mismanagement and lack of control in these projects not only on the part of the authorities, but also by construction companies themselves. Overall, what we often see is a general lack of "professionalism" in the industry.

As the property market slows down, those in the construction industry must look for something to give them edge over competitors, something that will encourage potential clients to deal with them rather than someone else.

It is at times such as these that a company's image and reputation become very important.

The nature of the industry

The construction industry is very broad and diverse in nature, and many types of work and workers are counted within the sector. Examples of construction projects include new building, renovation, and maintenance.

The type of work involved in projects includes painting and decorating, mechanical and electrical services, demolition and ground works and many others.

The industry is populated by a great many different types of workers; directly employed staff, contractors and sub-contractors, and casual staff brought in to fill specific needs.

The degree of control exercised over these people varies with the terms on which they are working, and with the management of individual sites and projects.

Their competence is seldom really tested before they are engaged, and in terms of health and safety, their awareness also varies a great deal with individuals' previous experience and training. These issues almost certainly have a bearing on performance in the construction industry, with competence, control and accountability emerging as central themes.

Health and safety - a barometer of performance

Many large international companies invest a great deal of energy and resources into developing effective health and safety management systems; Du Pont, for example, is one of the world's leaders in this field.

It would be nice to believe that they do this for purely humanitarian reasons, but the fact is that there is a strong financial motivation for doing so.

These companies understand the link between effective health and safety management and profitability.

In other words, they recognise that health and safety can have an effect on the bottom line! This is something that all companies would do well to understand, including those in the construction sector.

Learning the lessons

So what can be done in practical terms? In short, we need to work towards a more systematic method of managing projects, beginning before work actually starts. Questions to be asked might include:

• do any legal notifications have to be made?
• what is the location of the site, and how might the project impact on those in the area?
• how can we liaise with neighbours to maintain good relations?
• what can be done to minimise the adverse effects of the project, such as dust and noise?
• how can the site be fenced off from public access while maintaining their rights to use pavements and roads?
• what protection is required for neighbours and passers-by?
• how can materials be stored safely and securely on site?
• what access equipment will be required and how can it be selected, erected and maintained safely?
• what will the sequence of work be, what trades will be needed, and when will they be required on site?
• how will workers be selected, and how will their competence be assessed?
• how will their activities be monitored to ensure quality in their work and adherence to safe working practices?

These are just some examples of the issues that should be considered, but even these will help those in the industry plan their projects better to minimise the problems that can occur as the project progresses.

Planning for adequate safe, secure storage of materials on site, for example, will help reduce losses through damage and theft, as well as reduce risks to health and safety.

Some relatively simple measures taken while setting up construction sites, together with a more proactive approach to the ongoing management of projects can have dramatic effects on the public perception of the industry, and to the overall profitability of companies involved.

Mr Hudson is consultant to the Institute of Health and Safety in Msida.