Chap03-Costs - CHAPTER 3 CHAPTER TRUE COSTS OF TRUE...

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Unformatted text preview: CHAPTER 3 CHAPTER TRUE COSTS OF TRUE CONSTRUCTION WORKER INJURIES WORKER DIRECT COSTS OF DIRECT COSTS OF INJURIES Primarily associated with treatment and Primarily rehabilitation rehabilitation q Generally covered by workers’ Generally compensation compensation q Some degree of accuracy is possible in Some computing these costs computing q MANUAL RATES FOR MANUAL RATES FOR W.COMP. Established within each state q Unique for each craft in that state q Basic cost is the manual rate multiplied Basic by the number of hours worked by q EXPERIENCE EXPERIENCE MODIFICATION RATES (EMR) Established for each firm q Examines W. Comp. history for 3 year Examines period (excludes the immediately preceeding year) preceeding q The basic cost is multiplied by the EMR The to obtain the premium to be paid to q EMR EXAMPLE EMR EXAMPLE Year 1991 1992 1993 1994 1995 1996 Loss Ratio 0.80 0.40 0.38 0.30 0.22 0.61 EMR 88% 108% 101% 105% 91% 88% INDIRECT COSTS OF INDIRECT COSTS OF INJURIES Incurred directly by the employer q Not charged, as a rule, to the injury Not itself itself q Not easy to quantify q q q q q q q INDIRECT COSTS OF INDIRECT COSTS OF INJURIES Costs associated with the injured worker Costs associated with other crew members Costs associated with members of other Costs crews crews Costs associated with supervisory Costs personnel personnel Costs associated with administrative Costs personnel personnel Costs associated with materials and Costs equipment equipment INDIRECT COSTS OF INDIRECT COSTS OF INJURIES (ADDITIONAL COST) Costs of reduced worker morale q Costs of reduced company image q Costs of lost job opportunities for the Costs firm firm q CII STUDY OF THE TRUE CII STUDY OF THE TRUE COSTS 834 worker injuries q 185 projects (from 34 states) 185 contributed data contributed q over 100 firms participated q “all” major costs were quantified q TRUE COST OF MEDICAL TRUE COST OF MEDICAL CASES Injured Worker Workers’ Crew Other Crew Supervisory/Admin. Staff Damage (Eqpt. & Matls) Impact Field Liability Indirect $177 $ 51 $5 $ 51 $101 $ 57 $442 $171 $613 Day of Injury Productivity Losses Day of Injury Productivity Losses 12 10 8 6 4 2 0 Injured Worker Crew Transport Injured Other Workers Repair & Restore Other Costs on Injury Day Other Costs on Injury Day 100 90 80 70 60 50 40 30 20 10 0 Cost Vehicle for Transport Replace D amaged Mat'ls & Equipment Subsequent Productivity Losses Subsequent Productivity Losses 8 7 6 5 4 Hours 3 2 1 0 Injured Worker Crew Supervisory Costs Supervisory Costs 3 2.5 2 1.5 Hours 1 0.5 0 Respond to Situation Investigate Complete Reports TRUE COST OF MEDICAL TRUE COST OF MEDICAL CASES (Cont.) Total Indirect Direct (W. Comp) Costs Total Ratio Indirect to Direct = 1.18 $ 613 $ 519 $1,132 TRUE COST OF LOST TRUE COST OF LOST WORKDAY CASES Injured Worker Worker’s Crew Other Crew/Repl. Worker Supervisory/Admin. Staff Damage (Eqpt. & Matls.) Impact Liability Indirect $ 816 $ 179 $ 56 $ 136 $ 175 $ 252 $12,610 $14,224 TRUE COST OF LOST TRUE COST OF LOST WORKDAY CASES Total Indirect Direct (W. Comp) Costs Total Ratio Indirect to Direct = 2.06 $14,224 $ 6,910 $21,134 ...
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This note was uploaded on 08/27/2011 for the course BCN 4735 taught by Professor Staff during the Spring '08 term at University of Florida.

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