The construction industry is heavily regulated. Construction companies need to comply with regulations so they can reduce health and safety incidents and protect themselves financially from penalties and delays.
Even though the construction industry has experienced a drop of almost 57% in nonfatal worker injury rates since 2003, the injury rate in the industry remains nearly 30% higher than all other industries combined. These statistics illustrate the importance of construction compliance.
What is regulatory compliance in construction?
All industries are regulated to some degree.
Regulatory compliance in construction refers to the rules set forth and enforced by the Occupational Safety and Health Administration (also commonly known as OSHA). Other regulatory bodies (such as the United States Environmental Protection Agency) also enforce laws and regulations governing the construction industry.
What are some compliance risks for construction?
If you’re wondering what some compliance risks are for construction, they include safety hazards that cause injuries and accidents, increased risk of lawsuits and penalties, reputational damage, and possible imprisonment.
Though ensuring compliance does require you to invest your time and finances, it is worth the effort to reduce your risk.
Types of Construction Compliance Requirements
There are a variety of construction compliance requirements enforced by OSHA. The prime contractor over a project is the person who oversees OSHA compliance in construction. It is important to make sure you’re meeting all of the following construction safety compliance requirements at all times.
Requirement #1: Building Codes
Building codes are the minimum standards that must be met to ensure resilient and safe structures. They are designed to protect from a wide variety of hazards, including unsafe wiring, weak structural integrity, and fires. Communities with buildings that are constructed according to current building codes enjoy a greater degree of protection against the above hazards and others.
Requirement #2: Lien Requirements
A construction lien gives contractors, suppliers and builders legal recourse to receive payment for their work and the costs of any supplies and materials they bought for a project. Different states have different lien requirements, so it is important to become familiar with lien regulations in your area.
Requirement #3: Safety Regulations
Every construction company is required to follow safety regulations. The five key construction site safety regulations deal with the following:
- Head, face, and eye protection
- Fall protection
- Hazard communication
All of these regulations require construction companies to do certain things to keep their employees safe on the job site. Regulations require things like guardrails, harnesses, safety nets, and protective clothing.
Requirement #4: Contractual Agreements
Construction contract compliance helps to prohibit discrimination, ensures payment of no less than the current per diem wages rate, and controls the description and details of the project. Unplanned processes are risky, but contractual agreement regulations help to reduce risk.
Requirement #5: Credit and Background Checks
Construction compliance includes following rules set forth by the Federal Trade Commission and the Equal Employment Opportunity Commission regarding contractor background checks. The FTC protects the accuracy and privacy of the credit reports utilized during background checks and the EEOC ensures that background checks are non-discriminatory.
When performing background checks for contractors, you are required to get written permission from the applicant to perform a background check. You are also required to treat everyone equally and not discriminate. There are additional regulations regarding credit and background checks that you should carefully review to ensure you remain compliant.
Requirement #6: Insurance and Bonding Requirements
Different states have different regulations regarding insurance and bonding requirements for construction companies. Carefully review the laws in your state to make sure you remain in compliance.
Requirement #7: Wage and Union Payroll Agreements
It is very important to make sure you’re following state and federal requirements when paying your construction employees and contractors. For federal projects, you’ll need to ensure you’re meeting prevailing wage requirements.
Not all states require a prevailing wage on state-owned projects, so you’ll need to check your local and federal regulations to see if you are in compliance with wage and union payroll laws.
Construction compliance can be difficult to ensure at all times, especially since regulations often change over time. Many companies turn to technology to help them improve construction safety compliance and reduce their risk.
Real-time video monitoring helps promote job site safety and improve productivity. It can also be used to assist in the claims process.
Automating compliance can help relieve some of the stress associated with trying to stay up-to-date with current construction regulations.
Unfortunately, it isn’t always possible to keep a close eye on all of your construction sites to make sure regulations are always closely followed.
That’s where camera monitoring comes in.
Sensera Systems can provide you with panoramic views up to 100MP. This gives you ultimate flexibility when monitoring your large project site.
You can use any internet-enabled device to access your cameras at any time from any location. The system can help you monitor the progress and safety compliance at any work site.
What is the purpose of construction regulation?
Construction regulation helps ensure construction companies meet the minimum requirements for job site safety and protocols. It also reduces your risk of lawsuits and fines.
What are the OSHA standards for construction?
OSHA safety standards for construction include 29 CFR 1926 Standard (which includes everything from general safety and health provisions to sanitation and housekeeping). It is important to refer to osha.gov to make sure you understand all of the requirements to which you are subject.
What is a compliance report in construction?
A compliance evaluation report is used to report the results of a compliance evaluation. If violations are identified, those violations must be described in the compliance report. The party found in violation of one or more regulations must then agree to take specific actions to address the violations included in the report.
What is non-compliance in construction?
Non-compliance in construction is the safety to adhere to specified regulations. Depending on the type and severity of non-compliance, fines and penalties may be issued to the offending company.