Poor OSH
standards in
construction could
cost the EU – and
its taxpayers – over
€75 billion each
year. Or almost €200
for each member of
the population.
Quantifying the cost
of low OSH standards
in the construction
industry is
difficult, not least
due to the problems
of estimating the
true size of the
sector, especially
in view of the
potentially
significant
proportion of
unregistered
employees. To
compound these
uncertainties, it is
likely that a
sizeable proportion
of OSH problems are
not reported as many
of the firms are
small and might be
operating ‘outside
the official
system’. As a result,
any estimates of
costs are likely to
under-state the true
financial impact:
- A UK study estimated that costs of occupational accidents and ill-health in the construction sector – including the costs of delays, absenteeism and health and insurance charges, among others – accounted for 8.5% of project costs. [xvi]
- Assuming the UK estimates holds true in the EU as whole, where construction is believed to be a €902 billion industry, [xvii] this would equate to a cost of nearly €75 billion a year – or almost €200 for every member of the EU population.
- As public sector projects account for a large share of construction costs in most countries, tax payers will be shouldering much of the cost.
