With the increasing ability for companies to be hacked, the need for proper security and compliance protocols has never been more prominent. SecurityScorecard, a global leader in cybersecurity ratings, claims that security and compliance is crucial to avoiding fines and protecting your company’s reputation. It also says that both security and compliance are necessary to protect your company financially and legally.
Threats to security typically arise when lost IDs are used by other individuals or when IDs continue to work even though an individual no longer works for your company. When unauthorized individuals gain access to your company, it is difficult to verify who is onsite and what they are doing. Therefore, lack of security directly threatens the safety of your employees, goods, and services.
On the other hand, issues with compliance typically show themselves in the following two ways:
1). Credentials and certifications continuously expiring without management’s knowledge — when this happens, it is difficult for management to track which employees are compliant in regards to having the proper credentials. Eventually, this could lead to legal problems involving reputation, contracts and even payroll.
2). Frequent buddy punches — a buddy punch occurs when an employee clocks-in on behalf of another employee who is absent. These actions not only make it difficult to make sure employees are compliant to attendance, but it also makes it hard for management to track who is onsite. In the end, your company could lose money because it could end up paying employees who are not working. Furthermore, should an accident occur at the job site, there would be issues when accounting for all the onsite employees.
Once coping with the reality of a pandemic on the construction site, an owner then decides on how to implement OSHA, CDC, state and local COVID-19 guidelines (or may be forced to by governing bodies). This includes such protocols as a six-foot physical distancing rule between workers, the use of physical barriers between workers in indoor environments, adopting staggered shifts or maximum personnel on site rules, wearing highly rated PPE, personal hygiene practices, surface sanitizing, decontamination or disposal of PPE, preventing shared use of objects, and screening all visitors to the job site.
Maximum worker rules or staggered shifts obviously reduce labor capacity at the macro scale, while social distancing guidelines on busy sites slow down productivity, as workers have to negotiate the obstacle of each other’s personal space. Cleaning and sanitizing protocols necessitate either new dedicated cleaning staff, or more time and training from existing laborers. The observance of PPE rules causes workers to need more cool-off breaks, and extra procedures around hygiene, decontamination, disposal, and sharing of tools require extra time. When the aggregate effect of all these activities is felt, it becomes quite clear that COVID-19 safety protocols constitute a sizeable drag on site productivity and time away from project goals.
In addition to dealing with the cost of extra staff and lowered productivity, GCs also have to spend money on ordering mass quantities of PPE, expanding on-site temp office spaces and lunch rooms for social distancing, and adding ventilation infrastructure and hand washing stations. Major industrial construction companies typically bear a much greater portion of indirect costs on projects; owner organizations that are especially cautious of COVID-19 outbreaks endure ballooning indirect expenses at scale to manage the challenge.