The Importance of Pre-Work Risk Assessments | Hasmate
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The importance of pre-work risk assessments

The importance of pre-work risk assessments

The importance of the pre-work involvement of employees when it comes to the planning and communication of a task, is certainly emphasized by the recent prosecution of an Auckland scaffolding company when an employee received an electrocution from overhead 33kv powerlines.

Read article here…

This case certainly emphasises the need to carry out and to communicate the pre-work risk assessment of any task, and in this case, the need for monitoring or having a spotter in place. Like so many other prosecutions, it was not only about the imposed fine, but all the other associated or hidden costs.

In effect, the company will have lost all the potential profit from the contract, and will be playing catch up for many months to come.

I have used this rule of thumb measurement in previous articles but let us see how it works in this example.

This is the scary part and really shows why preplanning using a JSA or SSSP is essential.

Multiply the $30,000 by 5 = $150,000, or $5 for every $1 lost. This figure represents the other hidden costs associated with the event and in effect is the true cost.  Or is it?

Now apply the 30-1 principle. This will be dependent on the profit margin of the business. The principle states that for every $1 lost in any accident, non-conformance, waste, scrap, rework, legal fees, loss of time, personal dispute, etc, the business needs to turn over an additional $30 during its normal work or production, (if it can).  If the profit margin is low, the $30 would actually be higher.

If you are a builder, contractor, subcontractor, or civil contractor, this kind of financial loss is a shocking experience for any business, especially if you are competing for work with low profit margins.

Some examples of pre-work risk assessments are:

The question is, does your business undertake pre-work risk assessments and how effective are they?  These could help protect your business.

Please contact us if you wish to discuss this further.