06/25/2026
Safety Matters
Q2, 2026 Article by Greg Jarchow, Vice President, Finance, Accounting, HR, and Insurance
In construction, every decision has a price tag attached to it. We track labor hours, material costs, equipment utilization, and project schedules down to the penny. Yet one of the biggest cost drivers on any project often goes unnoticed until it is too late: SAFETY. The reality is simple — safe projects go hand-in-hand to creating profitable projects. When crews work safely, jobs stay on schedule, productivity stays high, and customers gain confidence in the company delivering the work. Simply put, when safety gets ignored, the budget and project suffer.
The financial impact of workplace injuries is staggering. According to the National Safety Council, workplace injuries cost U.S. businesses approximately $181.4 billion in 2024 alone, with the average medically consulted injury costing roughly $48,000. In construction specifically, the “Fatal Four” hazards — falls, struck-by incidents, electrocutions, and caught-in/between accidents (when a worker is crushed, pinned, or trapped between equipment, materials, or structures) — account for roughly 65% of construction fatalities. But the true cost of an accident goes far beyond medical bills or insurance claims. One injury can mean overtime for replacement workers, delayed schedules, damaged equipment, lower morale, increased insurance premiums, administrative investigations, and sometimes lost customers. OSHA estimates that indirect costs can be four to five times greater than the direct costs of an incident. There is an old saying in construction: “If you think safety is expensive, try an accident.” Most superintendents would agree that paperwork for a safety meeting is far less painful than paperwork after someone is seriously injured on the job with an OSHA investigation.
Real-world examples prove that safety and profitability go hand in hand. Companies with strong safety cultures consistently report lower workers’ compensation costs, fewer delays, and improved employee retention. Insurance providers often reward safer contractors with lower premiums and stronger bonding capacity, which can help win future work. On the other hand, a single OSHA violation or serious injury can shut down portions of a project, damage client relationships, and impact future bids. In 2024 alone, OSHA assessed over $127 million in penalties, with fall protection remaining the most frequently cited violation for the fourteenth consecutive year. A ten-minute safety check before starting work may feel inconvenient, but it is far cheaper than explaining to a customer why their project is behind schedule because someone forgot to “tie-off” properly.
At the end of the day, safety is not separate from cost management — it is cost management. Every employee, whether in the office or in the field, has an impact on both. Safe work protects people first, but it also protects schedules, budgets, equipment, customer relationships, company reputation, and the bottom line. The companies that succeed long-term are usually not the ones that cut the most corners; they are the ones that understand safety is an investment with measurable returns. After all, no Superintendent has ever begun a toolbox talk proudly proclaiming, “Good news everyone — we saved thousands of dollars on PPE & safety training AND only had an increase of fourteen OSHA recordable injuries.”
