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06/07/2016

Construction Companies Pay Out £8m In Fines - BLM

Almost £8 million in fines has been paid out by construction companies since new guidelines came into force in February.

According to risk law firm BLM's Health and Safety tracker, out of 101 health and safety fines that were issued, 38% affected the construction industry.

Under the new guidelines, which were added for health and safety, food hygiene and corporate manslaughter offences, large businesses with turnovers in excess of £50m can face up to £10m for the most serious health and safety offences, while corporate manslaughter can reach up to £20m.

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The three highest fines in construction totalled £5.6m, all of which involved fatalities. Two construction directors also received custodial sentences, one for six years due to gross negligence manslaughter, and the other to six months after an employee was killed on site.

In prosecution costs, the three largest fines resulted in almost £185,000 in costs. Overall, costs associated with fines to UK construction companies since February reached more than £530,000.

Helen Devery, partner and head of SHE practice at BLM, said: "These new guidelines have introduced fines that are proportional to the size of the company, meaning that both small and large businesses will feel the same impact. It is expected that fines will remain high for larger firms that are charged with serious offences so businesses need to work harder than ever to avoid incidents and the subsequent negative impact on their people, productivity and profits."

(LM)

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