HSE fines: Construction versus other industries

New research by Arinite health and safety consultants, shows how construction fines compares with those in other industries.

Construction businesses paid out an average of £74,231 in fines for health and safety breaches in 2016. By contrast, the average cost of health and safety compliance for companies in 2016 ranged between £5,000 and £40,000.

Construction companies that invested in health and safety therefore potentially avoided a fine £35,000 higher than the cost of compliance. A total of £32,438,677 worth of fines were issued in 2016 across the UK. Half of the total fines issued came from the manufacturing industry (£16,816,673), followed by extractive and utility supply companies (£7,375,120), and then construction (£4,824,983).

Most suspended prison sentences came from manufacturing and construction.

Health and safety in construction vs other Industries

The construction industry typically gets a large volume of fines simply due to the nature of the work, which involves working from height, working with gas, and other dangerous activities.

However, the average fine in construction is relatively low compared to manufacturing and utilities. As the graph below shows, average construction fines in 2016 were below the industry-wide average of £115,400.

Average H&S breach fines per UK industry 2016

Source: Arinite

But, of course, this should not be cause for lack of concern. Whilst the average penalties may have been lower than some others, the breadth of fines in construction was massive, ranging between £500 (for an independent plumber) and £800,000 (for a new housing development company).

Also, health and safety failures at construction companies never only result in a fine – a major accident incurs the total cost of injuries and ill health sustained to workers, as well as the PR costs when these offenses sometimes make national headlines.

The HSE estimates that the total cost of injuries and ill health from working conditions in 2014/15 was £14.1bn, out of which £2.8bn was covered by the employer.

Three largest fines in 2016 for construction companies

The largest HSE fine for a construction company in 2016 was given to Crest Nicholson Operations Ltd after a worker was struck by and pulled under a large bulk powder carrier.

HSE claimed the company failed to plan, manage and monitor the construction phase and they were fined £800,000 (the 11th largest fine for any company in 2016, with 10 highest mainly coming from manufacturing and utilities). 

The second largest fine of the year went to Highway Care Ltd, which was fined £660,000 and ordered to pay costs of £33,358.46. A worker suffered life-threatening injuries when an oil drum exploded in his face, having not been given proper health and safety training by the company.

The James St James Group Ltd also received a similarly large fine of £600,000 when a temporary wooden platform covering a stairwell collapsed, resulting in one fatality and two serious injuries.

Karen Morris, HM inspector of health & safety, said “The risks of falling from height are well-known, and the risk of joist hanger failure is well-documented. This tragic incident illustrates what can happen if temporary works are not properly organised. All those who have a role in planning and managing work on site must take responsibility for ensuring that serious risks are properly controlled.”

Biggest HSE fines 2016