It’s hardly surprising that construction is one of the most high-risk industries in the UK. A construction site is a cauldron of hazards, vehicles, plant machinery and people: a potentially lethal combination.
Proactive, comprehensive risk management is critical to the successful delivery of construction projects, and the protection of workers and other stakeholders on site.
Health and safety is a key element of construction risk management, and the next generation of workers are taking Health and safety more seriously than ever before. Research published in the 2024 Dräger Safety and Health at Work Report found that 94% of managerial staff are calling for an overhaul of the Health & Safety Act, with 78% looking for legislation that better reflects the current working and risk landscape.
In this article we will explore the current state of health and safety in construction, and how solutions such as SSIP (Safety Schemes in Procurement) certification and financial risk monitoring will help you manage risk throughout your supply chain.
The Current State of Health & Safety in Construction
According to the Health and Safety Executive (HSE), in 2023 to 2024 there were 51 fatal injuries reported in construction in the UK: the highest of all industries and just under five times the all-industry rate. Half of all fatalities across industries were as a result of falling from height.
The HSE also reported 47,000 annual non-fatal injuries in construction as an average between 2021 and 2024.
The percentage of non-fatal work-related injuries by accident kind were:
- Falls from height – 33%
- Slips, trips or falls on the same level – 30%
- Struck by moving object including flying/falling – 14%
- Injured while handling, lifting or carrying – 7%
The financial cost of failing to manage health and safety risks can cripple a construction business. According to the HSE report, 33% of non-fatal injuries resulted in an absence from work of over 7 days. This causes project delays which can result in penalties, as well as the potential for non-compliance fines, increased insurance premiums, legal costs and compensation.
Reputational damage is also a significant factor. Negative publicity, loss of trust with stakeholders, and employee retention issues make it difficult for a construction firm to secure new contracts, which impacts its long-term prospects.
Compliance Chain’s Role in Risk Management for Contractors
Compliance Chain is an all-in-one software solution designed exclusively for the construction sector. It provides construction companies with full control over its supply chain, project management and social value management.
Risk management is a key area in which Compliance Chain supports SME subcontractors, site managers, directors, procurement professionals and supply chain teams.
SSIP Certification Support
Compliance Chain is a SSIP Registered Member. This means our software has been assessed based on the SSIP Core Criteria. We are approved to perform SSIP assessments and provide a certification programme which is accessed through the Compliance Chain platform. SSIP certification is free with every Compliance Chain membership.
SSIP is central to health and safety best practice. It is an industry recognised umbrella scheme that allows contractors to demonstrate compliance with workplace safety standards when tendering for work.
Having SSIP certification demonstrates a commitment to safety and enhances credibility. It prequalifies you for contracts, removing the need for completing a new assessment each time you bid for a tender. Instead, the SSIP certificate tells potential clients all they need to know about your health and safety compliance.
Supplier Risk Review for Financial Stability
Financial instability in the supply chain heightens project risk, especially when a supplier folds mid-project.
Compliance Chain’s risk review feature is a proactive tool for monitoring the financial health of subcontractors. It allows you to analyse compliance, certifications, Delphi (credit) scores and insurances within your supply chain, through a user friendly interface.
According to the 2024 (Q4) Red Flag Alert report, almost 7000 construction firms ended 2024 in “critical financial distress”, with over 97,000 in the next category of “significant financial distress”. This makes busy construction companies, with little time for rigorous due diligence, vulnerable to supply chain financial risk.
Compliance Chain’s risk review feature, within the supply chain management software, reduces this risk by evaluating and scoring suppliers’ performance. By inputting project-specific criteria, the software tracks KPIs bespoke to your goals and workflow. Scores are generated based on punctuality, timelines, quality standards and other key factors. This results in better decision-making and fewer risks when procuring contractors or subcontractors for projects.
Ultimately, supplier risk reviews are key to instilling best practice in health and safety supply chain management.
How Will You Handle Risk Management in Your Construction Projects?
Health and safety is a non-negotiable element of risk management in a construction industry that is fraught with risk. Clear and proactive safety strategies are essential for navigating risk and protecting businesses, buildings and people.
Compliance Chain demystifies health and safety compliance to establish robust risk management in construction supply chains.
Through a cutting-edge software platform, Compliance Chain supports procurement professionals, contractors and company directors with:
- SSIP certification access
- Supplier risk reviews
- Compliance tools aligned with the Common Assessment Standard
To protect your business and your workforce, explore the benefits of Compliance Chain’s Supply Chain Management solutions and become compliant today.
With over 6 years in the construction industry (specifically compliance within construction), Luke is responsible for managing and overseeing the functionality of Compliance Chain’s Supplier Solution.
