Construction Health and Safety
Management
By Dr Simon Smith – licensed under the Creative Commons Attribution – NonCommercial – Share Alike License
http://creativecommons.org/licenses/by-nc-sa/2.5/
Construction Health & Safety Management
Simon Smith (University of Edinburgh)
& Philip Matyear (Balfour Beatty)
Part 4: Risk Management in
Construction
Introduction
• We have looked H&S legislation
– It must be remembered that legislation alone will not protect – it is
merely the ‘rules’
• We have considered the behavioural and cultural aspects of H&S
Management
• We have looked at practical aspects of health & safety on
construction sites
• We have considered specific areas where hazards occur
• This lecture will consider
– how H&S management is implemented at a site level
– the wider concept of engineering risk management
Health & Safety Hierarchy
H&S Legislation
H&S File
Method Statement
General site
safety
management
Operation Plan
Risk
Assessment
Fundamental
topic: covered in
greater
depth
Health & Safety Legislation
• As covered Part 4
• For example:
– The Health & Safety at Work etc Act 1974
– The Management of Health and Safety at Work Regulations
1999
– The Provision and Use of Work Equipment Regulations 1998
– The Manual Handling Operations Regulations 1992
– The Construction (Head Protection) Regulations 1989
– Personal Protective Equipment at Work Regulations 1992
– Control of Substances Hazardous to Health Regulations 2002
– Construction (Design and Management) Regulations 2007
Health & Safety File
• To recap:
– contains all H&S information about the
project for those that follow (i.e. clients &
users)
– should contain information about the
design & construction of every structure
& element of the project
– responsibility lies with the CDM Coordinator who must
» keep it up to date
» deliver to client at end of project
The Method Statement
• A Method Statement defines the scope of the work
to be performed in producing a significant section
or phase of the project
• It is also produced as part of the Project Quality
Plan
– It is a statement about the desired level of quality
• As a definition of the work involved it allows
assessments of the risks involved to be made
• Once prepared it should be passed to every person
involved in that part of the project – whatever
capacity they may have
Method Statements – areas covered
• A method statement is a large document
and therefore cannot be prepared for all
activities
• Work activities are therefore split into
areas – usually geographic but also process
areas
• The project manager is responsible for
determining what method statements are
required – he must find the right balance:
– too broad a scope and detail will be lost
– too narrow and the volume of paperwork will
dominate
Method Statements – examples
• On a road project we may have the
following method statements:
– One for each major structure (e.g. bridges)
– One for a group of minor structures (e.g.
culverts)
– Earthworks
– Fencing
– Site clearance
– Drainage
– Road surfacing
– Traffic management
– Safety fencing
– Any other specialist subcontractor operations
Content of a method statement
• The operations concerned
• A risk assessment of the operations
• A listing of key drawings
• The direction and sequence of work
• The types of resources to be used
• A basic layout or sketch
• Delegated responsibility for the work
• Any other specific aspects of the work
Operation Plans
• The next level in the H&S hierarchy
• It is prepared for each discrete
activity of work
• There may be a number of operation
plans for an area of work already
covered by a method statement
• The operation plan is usually drawn up
by the site engineer looking after the
work
• A pro-form is usually used
Operation Plans – pro-forma
Operation Plan
Activity No.
Activity Description
OP Ref
N.B. The activity number and location should be included on all allocation sheets
Sequence of Work & Resources
Material Requirements / Sequence of Work
Sequence of Work
Material Description
Sketch Ref.
Quantity
Inspection and Test Plan Ref.
Required Output
Remarks
(e.g. access etc.)
Plant/Lab
Risk Assessment
Principal Hazards
Rating (H/M/L)
Hazard
Opportunity
Risk
Control Measures Required
Permits Required (Y/N)
Permit to Dig
Permit to Pump
Permit to Work
Permit to Enter
Hot Work Permit
Permit to Load
Prepared By
Approved By
Date
Date
Ensure any applicable permits and sketches are appended to this sheet
Other
(Specify)
Persons Affected
Risk Assessments
• ‘Risk’ is a large part of any project
– financial, technical & safety risk
• It is just one stage in the overall risk
management strategy prepared for
every project
• We shall look at the subject in greater
depth in a moment
• Each method statement will have
detailed risk assessments:
Risk assessment only useful if the info in it
is well considered...
Risk Management
• Risks are ever present
• The management of risk is an area of
significant expansion over the last decade.
• Within the construction and process
industries the consequences of an accident
can be significant (e.g.Piper Alpha)
• Detailed management of risks are routinely
carried out, conducted at all stages of a
project life cycle
• We will look at:
– Define risk concepts
– Introduce the Risk Management Procedure
Engineering: Small Risks
Large Physical Hazards - Piper Alpha
(before & after)
Large Consequences: Hatfield, Ladbroke Grove,
Potters Bar & Greyrigg Rail Accidents
Hatfield,
17 October 2000,
4 killed
Potters Bar,
10 May 2002,
7 killed
Grayrigg,
23 February 2007,
1 killed
Ladbroke Grove,
5 October 1999,
31 killed
Some Definitions
Harm
“Physical injury or damage to health,
property or the environment”
BS8444: Part 3: 1996
» In all aspects of project management, we
want to minimise, if not eliminate any kind of
harm
» Harm may be, for example:
Employee injury or death
Financial effects
Environmental accident
Definitions
cont.
Hazard
A source of potential harm or a situation with potential
for harm in terms of human injury, damage to property,
damage to the environment, or combination thereof
– In project management terms, we need to
control financial hazards as well as physical
ones
– Examples may be:
» Falls from heights
» Collapse of excavations
» Dropped objects
» Poor environmental management
» Abnormal inflation
» Abnormal weather conditions
Non-physical hazards
•
•
•
•
•
•
•
•
•
Inflation
Supplier changes
Supplier collapses
Reduction in supplies
Cultural
misunderstandings
Corruption
Interest rate changes
Market condition
changes
Changes in labour
supply
• Skills shortage
• Design changes
• Changes in
legislation
• Security threats
• Political
changes/instability
• Demand changes
• Public opinion
• …
• …
Definitions
cont.
Risk
The combination of the probability of an
abnormal event or failure and the
consequence(s) of that event or failure to a
system’s operators, users or its environment
– Risk always involves two aspects:
» Probability of a hazard taking place, and
» The severity of the harm that occurs
– Low probability, high severity = high risk
– High probability, low severity = intermediate risk
– Low probability, low severity = low risk
Definitions
cont.
Risk Management
The systematic application of management
policies, procedures and practises to the
tasks of identifying, analysing, evaluating,
responding and monitoring risk
» Five stages:
Hazard Identification
Baker, Ponniah, Smith, 1999
Survey of Risk Management in Major UK Companies,
Journal of Professional Issues in Engineering Education & Practice,
Hazard Identification
• The stage where all potential hazards in a project
are identified
• To me the most important part of any risk
management process
• Because non-identified hazards cannot have their
risk assessed
– “There are known knowns. These are things we
know that we know. There are known
unknowns. That is to say, there are things that
we now know we don’t know. But there are also
unknown unknowns. These are things we do not
know we don’t know”
–Donald Rumsfeld, 12 Feb 2002
(relating to the increasingly unstable situation in post-invasion Afghanistan
Hazard Identification
• Possible methods of identification
– Individual Consultation
» interviews with project personnel
» lengthy & time consuming
– Group discussions
» formal brainstorming
» requires motivation & teamwork
– HAZOP
» HAZard and OPerability studies
» Formal questioning of processes, e.g design
Risk Estimation
• Potential hazards have been identified
• Now need to assess:
– Probability of occurrence
– Severity if occurs
• Can be done in two main ways:
– Qualitatively
» in a linguistic manner
» usually done first; high probability/severity
cases then may be examined:
– Quantitatively
» in a numerical manner
Risk Estimation cont
Qualitative Techniques
– Fuzzy set analysis
» Understands that likelihood and consequences
may not be definite, but rather will belong to
a ‘fuzzy set’ which has degrees of
membership
» expresses the outcome in readily understood
language terms
» For example – ‘very likely risk with severe
impact’
Risk Estimation cont
Qualitative Techniques
– Interviewing and Brainstorming
» is an extension of two of the techniques
employed in the identification stage.
– Personal and Corporate Experience
» if it exists should be exploited.
– Judgment
» We are all professionals and able to form valid
judgements
Risk Estimation cont
Quantitative Techniques
– Expected Monetary Value (EMV)
» i.e. putting a financial value to the expected
result of a risk.
» Allows a quantification of a risk outcome
– Expected Net Present Value (ENPV)
» Also used for appraising the financial nature
of long term projects
» an extension of EMV by calculating the
present value of a probability state
– Decision Analysis
» looks at possible outcomes and determining
optimal choices
more...
Risk Estimation cont
Quantitative Techniques cont
– Sensitivity Analysis
» tests how sensitive an event outcome is to
slight changes on the input variables.
– Delphi peer groups
» a Delphi group will pool the knowledge &
experience of a number of experts
» attempts to put quantitative values to results
obtained in a manner similar to discussion
groups and brainstorming.
– Simulation
» creates a probable life history of an event and
thus allows its outcome to be predicted.
BS8444-3: 1996 – Estimation methods
BS8444-3: 1996 – Additional estimation
methods
Risk Evaluation
• 3rd part of Risk Assessment
• Need to combine the severity and
probability of the identified hazards
• Allows tolerability decisions to be made
• Can be done using a risk matrix:
Category of
Occurence
Frequent
Probable
Occasional
Remote
Improbable
Incredible
Frequency
of
Occurence
/ year
>1
1 to 10-1
10-1 to 10-2
10-2 to 10-4
10-4 to 10-6
< 10-6
Consequences
Catastrophic
H
H
H
H
H
I
Major
H
H
H
H
I
I
Severe
H
I
L
L
L
T
Minor
I
L
L
L
T
T
Risk Evaluation – BS8444-3: 1996
Practical Risk Assessment Procedure
1. Identify the principal hazards that will be
present in the operation.
2. Assign a number 1 to 5 for both
Consequences of Hazard and Probability of
Occurrence.
• The Risk (i.e. the product of Consequence and
Probability), indicates the level of action.
3. Identify persons affected by the risk
4. Respond to the risk
5. Monitor and update as necessary.
Risk Response
• If risks are identified as being intolerable
how can these be dealt with?
• There are four main methods of
responding to such risks:
1.
2.
3.
4.
Risk
Risk
Risk
Risk
Avoidance
Transfer
Retention
Reduction
• British standards and other textbooks
offer the least guidance on this stage
• Because responses must be designed to
fit the situation
Risk Response
1. Risk Avoidance
• Managing or developing a situation in
which the identified risks do not occur,
e.g:
– not proceeding with the project
– tendering at a very high bid
– placing conditions on a bid
– changing design
– choosing different currency
– ... ?
Risk Response cont
2. Risk Transfer
• Via Subcontractors
– a third party undertakes the high risk portion
of the work and the responsibility that goes
with it
• Via Insurance
– A pre-determined insurance premium is often
better than unexpected costs due to risk
– may be done using a captive insurance
company
– involves excesses
– some risks may result in premiums higher
than the probable financial loss
Risk Response cont
3. Risk Retention
• Some risks may be better managed internally
• High frequency/low severity or very low
frequency/high severity risks may be best
retained
4. Risk Reduction
• The most usual way in which to manage
common risks is to reduce either the severity,
the chance of occurrence or both. E.g:
– early warning systems
» Reduces probability of hazard happening
– improved maintenance
» Reduces probability of failure
– physical mitigations
» May reduce both probability or severity
Risk Response cont
• The choice of method used to respond to
risk will largely depend on company policy
• Using the risk matrix model, a typical
project scenario may be:
Category of
Occurence
Consequences
Catastrophic
Major
Severe
Minor
Frequent
Transfer
Transfer
Retain
Avoid
Probable
Reduce
Transfer
Retain
Avoid
Occasional
Reduce
Transfer
Transfer
Retain
Remote
Reduce
Transfer
Transfer
Retain
Improbable
Avoid
Transfer
Transfer
Retain
Incredible
Avoid
Transfer
Transfer
Retain
Risk Monitoring
• The final stage of risk management
• Risk situation will continue to change
throughout the life of the project
– New hazards will become present
– Existing hazards will stop or change
• The management must be continually
monitored, reviewed and improved
• Existing risks may be managed
differently
» therefore
• Risk monitoring completes cycle back to
risk identification
Risk Monitoring
• Risk situation
will continue
to change
throughout
the life of the
project
Does
existing
hazard
still
exist?
NO
Remove
mitigations
YES
Has the
probability
of
occurrence
increased?
– New
NO
hazards will
become
present
Do nothing
– Existing
hazards will
Have new
stop or
hazards
arisen?
change
Has the
severity of
potential
harm
increased?
NO
Do nothing
YES
YES
(Re)Assess
Risk