The Financial and social implications of construction site accidents in Sri Lanka

Abstract

Construction site accidents are increasingly prevalent worldwide due to the dynamic and uncertain nature of the construction industry. Such accidents adversely affect overall productivity and performance while imposing significant consequences on construction firms, workers, and their families. Accordingly, this study aims to examine the financial and social impacts of construction site accidents in Sri Lanka. A quantitative research approach was adopted, and data were collected through a questionnaire survey from 68 respondents and analysed using the Statistical Package for the Social Sciences (SPSS). The findings indicate that construction site accidents lead to substantial financial burdens on organisations, including increased insurance premiums, compensation payments for injuries or fatalities, and additional costs associated with remedial and preventive measures to avoid recurrence. Furthermore, the study identifies deterioration of corporate reputation and loss of public trust as the most significant social consequences for construction organisations. At the societal level, an increase in debt was the most prominent financial impact arising from construction site accidents. From a family perspective, the loss of the primary income earner due to a site accident was the most severe social consequence. Although remedial mechanisms exist in Sri Lanka covered under the Workmen’s Compensation Policy, the compensation provided is insufficient to adequately support affected families when compared with the comprehensive social security systems available in developed countries. Based on the findings, the study proposes practical recommendations aimed at minimising construction site accidents and mitigating their adverse financial and social impacts on both organisations and affected families.