18-10-2024

PE 563 Elective-3

Construction and Project Management

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF

ENGINEERING, KOLLAM

Module 5
▪ Construction cost and budget
▪ Construction cost
▪ Classification of construction cost
▪ Unit rate costing of resources
▪ Budget
▪ Types of budget
▪ Project Master budget
▪ Time value of money, cash flow, depreciation, cost benefit analysis

▪ Risk and safety management in construction–

▪ Causes of risk
▪ Risk management policies
▪ Safety measures in different stages of construction
▪ Occupational and safety hazard assessment
▪ Implementation of Safety programme

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF

ENGINEERING, KOLLAM

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 18-10-2024

Construction cost and budget

*a sunk cost (retrospective cost) is a cost that has already been incurred and cannot be recovered
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Construction cost and budget

Construction cost
Cost is an amount of money needed to pay or compensate to buy or
take a service or good.

It is the sum of fixed and variable costs.

Construction cost is the total funds needed to complete the

construction work that consists of a Direct Cost and Indirect Cost.

Project cost components are

▪ Direct Cost

▪ Indirect Cost

▪ Profit or Fees

Source: https://www.theprojectdefinition.com/
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Construction cost and budget

Direct cost
Direct cost is a directly involved component in a specific task or
construction project, and can be identified a specific cost center.

The Direct Cost (opposite of the Indirect Cost) includes cost of

Design and engineering

Construction management

Construction labor employed (manpower)

Construction equipment and consumable materials

Procurement and related cost (such as GST, transportation and custom clearance)

Sub-contractor's cost, government fees, lawyers and consultant’s fee

Source:
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Construction cost and budget

Indirect cost
Indirect cost is any cost which is not directly involved in a specific task
or construction project, and can not be accurately attributed to a
specific cost center.

The Indirect cost (opposite of the Direct Cost) is the costs of services
and materials required to support construction project that, do not
contribute directly to the permanent facility.

Main indirect cost of project is the company overhead (operating

expenses) which are

▪ Project overhead

▪ General overhead

▪ Contingency fees

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF

ENGINEERING, KOLLAM

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Construction cost and budget

Profit or Fees
Profit a financial gain, especially the difference between the amount
earned form and the amount spent in construction project.

▪ Depends on the project, contractor and market conditions

▪ Typically ranges from 5 to 10% (bonus or penalty are associated components)

Fees is also a financial gain, but from the intellectual services such as
consultancy services (and which does not involve any direct spending),
rendered to a construction project.

Architect’s fee (Comprehensive Architectural Services)

Consultants’ fee (Structural, electrical, plumbing, HVAC, acoustic,…)

Chartered Accountant’s fee, fee for Lawyers for Insurance advisors.

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF

ENGINEERING, KOLLAM

Construction cost and budget

General terms
Direct Field Cost is a direct cost, associated with a particular item of
work or activity at the field for construction of the permanent facility.

Indirect Field Cost is not become a permanent part of the project but
are required for the completion of the work. This include but not
limited to field and home office administration, direct management
and supervision, temporary facilities, construction equipment and
small tools, start-up costs, insurances and taxes etc.

Home Office Cost is a project direct cost, mainly labor and expenses for
the project execution or management by office based personnel.

Overhead Cost is a regular and necessary costs but are not assignable
to a specific task or project such as staff salary, office operation and
maintenance; incentives; contingency cost etc.

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF

ENGINEERING, KOLLAM

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Construction cost and budget

Construction cost at different stages

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF

ENGINEERING, KOLLAM

Construction cost and budget

Unit rate costing of resources
Resource cost is a fixed or variable cost for the use of resources when
demanded by the various project activities.

Resources

▪ Renewable resources

▪ Consumable resources

Cost per use is the cost for the use of a resource that can be
considered as a one-time cost incurred every time the resource is used.

Unit rate costing of resources is a method that can be used to calculate

construction costs. In unit rate costing the prices of items on the bill of
quantities are each calculated separately.

Source: http://www.pmknowledgecenter.com/
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Construction cost and budget

Renewable resources

▪ Are available on a period-by-period basis, i.e. the available amount

is renewed from period to period (e.g. per hour, per day, per week,
per month, ...).

▪ Examples are manpower, machines, tools, equipment and space.

▪ Skilled laborers are available to work each day on a project,

although their availability is limited each day and may vary over
time due to absence, sickness, vacations, etc..

▪ There is no general constraint placed on the number of days skilled

labor may be used, but they are renewed each period of the
project.

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF

ENGINEERING, KOLLAM

Construction cost and budget

Consumable resources (or non-renewable)

▪ Are not constrained on a periodic basis but rather have a limited

availability for consumption for the entire project.

▪ Typical examples are money, raw materials and energy.

▪ Their consumption is not renewed as is the case with renewable

resources, but instead, these resources are consumed when used.

Partially renewable resources

▪ A resource type is characterized by a number of subsets of periods

and a certain total availability.

▪ A typical example is a worker who is allowed not to work during all

days of the week and only one day (i.e. Saturday or Sunday) during
the weekend.

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF

ENGINEERING, KOLLAM

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Construction cost and budget

The cost per unit is a cost that typically depends on the amount of the
resource demanded by the activity and its duration.

Renewable resources: the costs per unit are cost rates calculated per
time unit (hours, days, weeks, etc.) and per resource unit and hence
are based on the total work content (= activity duration x resource
demand) of the activity.

Consumable resources: The costs per unit are monetary rates typically
not calculated per hour but expressed in other units (per weight, per
length, per pallet, etc.).

▪ Fixed use: the quantity of the resource used by an activity which is

independent from its duration. A typical example is the cost per unit
for materials, such as bricks needed to build a wall.

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF

ENGINEERING, KOLLAM

Construction cost and budget

▪ Variable use: the unit for the calculation of the cost/unit for a
consumable resource can be expressed in a time dimension (hours,
days, ...). The quantity of resources used by an activity changes
proportionally as its duration changes.

Renewable Consumable
Limited availability during scheduling Surplus availability during scheduling
cost/use cost/use * resource demand cost/use
cost/unit cost/unit * activity duration * Variable:
resource demand cost/unit * activity duration *
resource demand

Fixed:
cost/unit * resource demand
Resource cost options

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF

ENGINEERING, KOLLAM

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Construction cost and budget

The “total activity cost” calculations
Total activity cost
=
fixed activity cost
+
variable activity cost * duration
+
cost/use * resource demand (renewable resources)
+
cost/unit * work content (renewable resources)
+
cost/use (consumable resources)
+
cost/unit * resource demand * duration
(variable consumable resource with units expressed in time units (hours))
+
cost/unit * #units
(fixed consumable resource with units not expressed in time units)

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF

ENGINEERING, KOLLAM

Construction cost and budget

Construction budget
Construction budget is the amount of money allotted for a specific
construction project. Construction budgets include all costs and
expenses of the building process.

Construction budget = Direct cost

+
Indirect cost
+
Profit
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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 18-10-2024

Construction cost and budget

Construction budget also includes, but not limited to;

Emergencies or unexpected building costs that arise during the project.

Site prep costs – site clearing, demolition, equipment rental, temporary

structures, rehabilitation and permit and inspection costs.

Accident cover insurance and safety gadgets for all on-site workers as
well as accommodation or transportation to and from the site.

Waste disposal costs, environment protection cost, sewage treatment

or disposal cost, premises maintenance cost, etc.

Bank interests, government fees and taxes, penalties, brokerages,

dispute settlement costs, defect liabilities, etc.

Launching expenses, advertisement cost, allowances to crew, etc.

Finally, ‘Inflation’ – an unpredictable component…………………

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Construction cost and budget

Budget on the basis of time

Long Term Budget: Prepared for a term of 5 – 10 years.

Short Term Budget: Prepared for a term of 1 – 2 years.

Current Budget: Prepared for a period of 6 months or less.

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF

ENGINEERING, KOLLAM

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 18-10-2024

Construction cost and budget

Budget on the basis of activity

Fixed Budget: Fixed for a given level of activity or time period.

Flexible Budget: Undergoes revisions according to changing needs.

Budget on the basis of nature of transaction

Capital Budget: Prepared for the capital expenditure.

Operating Budget: Prepared to meet the day to day expanses.

Budget on the basis of function

Master Budget: When various functional budgets are integrated.

Financial Budget: Related to various cost and revenues of the firm.

(Cash budget, working capital budget, capital expenditure budget)
Operational Budget: Prepared for different operations of the firm.
(Materials budget, production budget, personnel budget, sales budget)

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF

ENGINEERING, KOLLAM

Construction cost and budget

Master Budget

▪ A master budget is an overall financial and operating plan for a

construction project (or for a construction company).

▪ It is usually prepared annually or quarterly for a company and one

time for a project, but subject to revisions.

▪ The master budget is really a number of sub budgets tied together

to summarize the planned activities of the project.

▪ The format of the master budget depends on the size and nature of
the construction project or construction company.

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF

ENGINEERING, KOLLAM

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 18-10-2024

Time value of money

The time value of money is the money that you have now is worth
more, than the equivalent sum in the future, due to its potential
earning capacity.

The present value of $1,000 after 100 years into the future if not invested proprly.
Curves represent constant discount rates of 2%, 3%, 5%, and 7%.
Source: https://en.wikipedia.org/wiki/Time_value_of_money
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Time value of money

The present value (PV) of money is the value today of money
tomorrow.

𝐹𝑉
𝑃𝑉 = 𝑛
1+𝑖
where:

FV = Future value

PV = Present value (original amount of money)

i = Interest rate per period

n = Number of periods​

Source: https://www.investopedia.com/articles/03/082703.asp
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Time value of money

The future value (FV) of money is the value of a current asset at a
future date based on an assumed rate of growth.

Future Value Using Simple Annual Interest

𝐹𝑉 = 𝐼 × 1 + 𝑅 × 𝑇
Future Value Using Compounded Annual Interest

𝐹𝑉 = 𝐼 × 1 + 𝑅𝑇
where:
I=Investment amount
R=Interest rate
T=Number of years​

Source: https://www.investopedia.com/articles/03/082703.asp
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Cash Flow
Cash flow is the net amount of cash and cash-equivalents being
transferred into and out of a business.

Cash Flow can be positive or negative.

Positive cash flow indicates that a company is adding to its cash

reserves,

▪ Allowing it to reinvest in the company,

▪ Pay out money to shareholders, or

▪ Settle future debt payments.

Source: https://www.investopedia.com/articles/03/082703.asp
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Cash Flow
Cash flow comes in three forms: operating, investing, and financing.

Operating cash flow includes all cash generated by a company's main

business activities.

Investing cash flow includes all purchases of capital assets and

investments in other business ventures.

Financing cash flow includes all proceeds gained from issuing debt and
equity as well as payments made by the company.

Free cash flow - a measure to assess a company's profitability,

represents the cash a company generates after accounting for cash
outflows to support operations and maintain its capital assets.

Source: https://www.investopedia.com/articles/03/082703.asp
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Depreciation
Depreciation is an accounting method of allocating the cost of a
tangible or physical asset over its useful life or life expectancy.

It represents how much of an asset's value has been used up or

consumed over a period of time (opposite is appreciation).

There are many types of depreciation, including straight-line and

various forms of accelerated depreciation.

Accumulated depreciation refers to the sum of all depreciation

recorded on an asset to a specific date.

The carrying value of an asset on the balance sheet is its historical cost
minus all accumulated depreciation.

The carrying value of an asset after all depreciation has been taken is
referred to as its salvage value/ scrap value.
Source: https://www.investopedia.com/articles/03/082703.asp
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Depreciation
Types of Depreciation

Straight-Line: Equal depreciation each year throughout the entire

useful life, until the entire asset is depreciated to its salvage value.

(original cost− salvage value)

Depreciation =
depreciable life

Declining Balance: An accelerated depreciation method. Under this

method, an asset depreciates more in the early years than the later.

(Cost of an Asset ∗ Rate of Depreciation)

DB Method=
100

Source: https://www.investopedia.com/articles/03/082703.asp
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Depreciation
Double Declining Balance: It is calculated by multiplying the Book
value of asset with Rate of depreciation as per straight-line method
and two.

2∗(Beginning Value – Salvage Value)

DDB Method=
Useful life

Unit of Product Method : Under this method, the basis for calculating
depreciation is usage and not time. Thus, the depreciation will be
higher when the asset is used more.

(Cost of an Asset – Salvage Value)

U of P Method=
Useful life in the form of Units Produced

Source: https://www.investopedia.com/articles/03/082703.asp
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Cost benefit analysis

A cost benefit analysis (also known as a benefit cost analysis)

How much is the cost? V/S

What are the benefits?

▪ To analyze decisions, systems or projects, or

▪ To determine a value for intangibles.

The model is built by identifying the benefits of an action as well as the

associated costs, and subtracting the costs from benefits.

Direct costs, Indirect costs, Tangible costs (measurable/ quantifiable),

Intangible costs (difficult to identify and measure), and Real costs (cost
of producing a good or service).

The higher the Benefit Cost Ratio (BCR) the better the investment
Source: https://www.investopedia.com/articles/03/082703.asp
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Cost benefit analysis

Example: Which project will be more beneficial?

Project A Project B

Capital Cost (Rs.) 40,00,000 60,00,000

Annual Maintenance (Rs.) 2,00,000 1,20,000

Annual Benefits (Rs.) 1,25,000 1,00,000

Life (years) 20 20

Annual Rate of Return 8% 8%

Capital recovery factor for 8% for 20 years (A/P) = 0.1019*
(Refer Compound Interest Tables)
*https://global.oup.com/us/companion.websites/9780199778126/pdf/Appendix_C_CITables.pdf
Source: Course material, Infrastructure Planning & Management, Dr. Aswin Mahalingam, BTCM, IITM
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Cost benefit analysis

Cost Benefit analysis for Project A

Equivalent Annual Worth of Capital Costs = 40,00,000(A/P,8%,20)

= 40,00,000 X 0.1019

=Rs. 4,07,600

Total Annual Benefits = Rs. 1,25,000 (given)

Total Annual Costs = 2,00,000 + 4,07,600

= Rs. 6,07,600

Total Annual Benefits

Benefit Cost ratio =
Total Annual Costs

1,25,000
= = 0.2057
6,07,600

Source: Course material, Infrastructure Planning & Management, Dr. Aswin Mahalingam, BTCM, IITM
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Cost benefit analysis

Cost Benefit analysis for Project B

Equivalent Annual Worth of Capital Costs = 60,00,000 (A/P,8%,20)

= 60,00,000 X 0.1019

=Rs. 6,11,400

Total Annual Benefits = Rs. 1,00,000 (given)

Total Annual Costs = 1,20,000 + 6,11,400

= Rs. 7,31,400

Total Annual Benefits

Benefit Cost ratio =
Total Annual Costs

1,00,000
= = 0.1367
7,31,400

Source: Course material, Infrastructure Planning & Management, Dr. Aswin Mahalingam, BTCM, IITM
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Cost benefit analysis

Project A Project B

Capital Cost (Rs.) 40,00,000 60,00,000

Annual Maintenance (Rs.) 2,00,000 1,20,000

Annual Benefits (Rs.) 1,25,000 1,00,000

Life (years) 20 20

Annual Rate of Return 8% 8%

Benefit Cost ratio 0.2057 0.1367

▪ Project A is more beneficial

▪ Better not select either, because B/C Ratio is <1

Source: Course material, Infrastructure Planning & Management, Dr. Aswin Mahalingam, BTCM, IITM
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Causes of risk
▪ Unsafe methods

▪ Human element

▪ Unsafe equipment

▪ Job site conditions

▪ Nature of industry and management failures

▪ Workers negligence and ignorance

▪ Noncompliance to safety procedures
▪ Work at high elevations and critical locations
▪ Equipment operations without safety gadgets
▪ Poor site management and harsh work operations
Source: Harbhajan Singh, 2017, Construction Project Management, Abhishek Publications
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Risk and safety management in construction

MOM - Manufacturing Operations Management

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Risk hierarchy
1. Eliminate hazards and risks
Highest level of protection and
most effective control.
2. Reduce the risk
i) Substitution: Substitute the
risks with lesser risks
ii) Isolation: Isolate people
from the risks
3. Engineering Control
Reduce the risks through
engineering changes or
changes to systems of work.
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Risk and safety management in construction

4. Administrative controls
Low level of protection and
less reliable control.
Use administrative actions to
minimize exposure to hazards
and to reduce the level of
harm.
5. PPE - Personal protective
equipment
Lowest level of protection and
least reliable control.
Use PPE to protect people
from harm.
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Risk management
Step 1 Hazard Identification
Identify hazards
Identify potential accidents or incidents
Step 2 Risk Evaluation
Evaluate the risk levels
Prioritize the hazards to be controlled
Step 3 Risk Control
Formulate control measures according to the
Hierarchy of Controls
Analyze and evaluate outstanding risks

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Risk and safety management in construction

Risk management policies
The 3 principles of the for management of Workplace Safety and
Health (WSH) are :

a) reducing risk at source;

b) instilling greater industry ownership of WSH outcome; and

c) preventing accidents through higher penalties for poor WSH

management.

The employer, self-employed person and principal shall take all

reasonably practicable steps to eliminate any foreseeable risk to any
person who may be affected by his undertaking in the workplace.

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Where it is not reasonably practicable to eliminate the risk, the

employer, self-employed person or principal shall implement :

a) such reasonably practicable measures to minimize the risk; and

b) such safe work procedures to control the risk.

A ‘hazard’ means anything with the potential to cause bodily injury,

and includes any physical, chemical, biological, mechanical, electrical or
ergonomic hazard.

A ‘risk’ means the likelihood that a hazard will cause a specific bodily
injury to any person.

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Risk and safety management in construction

Accident Frequency (LTA General Specification)

The Contractor shall;

▪ Utilizing the risk matrix, list all activities that are essential to safety.

▪ Make sure that every task has a method statement created and
approved by the engineer prior to starting.

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Accident Severity
(LTA General
Specification)
Note:
(*) If more than one of the
descriptions occurs, the
severity rating would be
increased to the next
higher level. Applicable to
item numbers 2 and 3 only.

1For man-days lost greater

than 7 days

2For man-days lost greater

than 4 to 7 days

3For man-days lost greater

than 1 to 3 days

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Risk and safety management in construction

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Behaviour Based Safety (BBS)
a) Developing safety culture

b) Training of management staff, site supervisory staff, workers and the

appointed observers periodically, conduct mock drills

c) Assigning observers to conduct observations of safe and unsafe

behaviors for monitoring and analysis

d) Organize goal setting committees introduce intervention strategies

to correct the unsafe behaviors for continual improvement

BBS is a proactive safety strategy that emphasizes encouraging people to work

safely and correcting colleagues' potentially harmful conduct. Its ultimate goal
is to mold the way of thinking of the target group, considering and promoting
constructive safety attitudes, values, and beliefs which will subsequently affect
how they behave and contribute to creating a positive safety culture.
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Risk and safety management in construction

Safety measures in different stages of construction

a) Confined space

b) Electrical installations

c) Excavations

d) Ladders

e) Scaffolding

f) Working at height

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

a) Confined space
Tunnels

Manholes

Culvert drains

Enclosed formwork

Partially enclosed excavations

Excavations more than 4 meters deep

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Risk and safety management in construction

Confined space with little natural ventilation and no easy means of
escape for personnel, where there may be danger;

a) from :

(i) excessive concentration of certain gases, such as oxygen, that

supports combustion;

(ii) the accumulation of flammable or explosive air-gas mixtures;

(iii) gases harmful to health; or

b) from a combination of such gases; or

c) from deficiency of oxygen

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Warning signage
▪ Make a record of the description and location

▪ Inform persons who are liable to be exposed to the hazards, the

existence and hazards of the confined space

Warning signage to inform workers before entering into confined space

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Risk and safety management in construction

The following aspects to be ensured

▪ The confined space is adequately ventilated

▪ Oxygen level is within the range of 19.5% to 23.5% by volume

▪ Level of flammable gas/ vapor > 10% of its lower explosive limit

▪ Levels of toxic substances do not exceed the permissible levels

▪ Ingress of dangerous gases or any substances to be prevented

▪ The safety and health of persons who will be entering or working

in the confined space.

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Monitoring and Displays

Permit-To-Work displayed
on site

Display of gas check: Gas monitoring shall be

conducted at every four-hour intervals

Real-time Gas Monitoring System

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

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Risk and safety management in construction

Emergency Escape Route and Assembly Confined space attendant maintaining regular
Area signs prominently displayed on site contact with worker inside confined space

Emergency Escape Route and Assembly Area signs prominently displayed on site

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Ventilating confined space
Confined space
ventilation: Provision of
ventilation fan and duct

Use of
suitable
breathing
apparatus in
Confined space

Source of free air is obstructed

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

26
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Risk and safety management in construction

Forced ventilation:
The air supply shall be from a source free from contamination.

Confined space
ventilation
Exhaust ventilation:
Exhaust air from the ventilation system shall be exhausted to a location
outside the confined space.
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Escape routes and emergency precautions

Two escape routes from the excavation area

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

27
 18-10-2024

Risk and safety management in construction

Man-riding cage which is capable of taking a stretcher and two persons together
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Flowchart of procedures for confined space entry

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

28
 18-10-2024

Risk and safety management in construction

b) Electrical installations
All electrical wiring in a worksite shall:
a) be supported on proper insulators; and
b) not be looped over nails or brackets.

No electrical wiring or cable shall be left

Hang cables on proper insulator, not
or laid on the ground or the floor of a left on wet ground
worksite unless it is :
a) of the weather-proof type;
b) provided with adequate protection to
withstand the wear and tear; and
c) maintained in good & safe working
order.
Cables left lying on ground
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Electrical wiring are not maintained in a safe working environment

Proper cable management

Cables to be installed without obstructing the passageways, walkways, ladders, stairs, etc.
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

29
 18-10-2024

Risk and safety management in construction

Distribution board with Residual
Current Circuit Breaker(RCCB) and
other safety devices

Ensure that:

a) effective residual current circuit breakers are installed for all

temporary electrical installations to provide earth leakage protection;

b) overcurrent protective devices with the appropriate ratings are

installed in the distribution board to provide overcurrent or short-
circuit protection.

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Temporary electrical installations
shall be inspected at least once a
month.

All plugs, sockets outlets and

cable couplers shall be identified
by different colors:

55 V White

110 V Yellow

230 V Blue

400 V Red
Socket outlets identified by different colours

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

30
 18-10-2024

Risk and safety management in construction

Warning signage displayed word ‘DANGER’ and
the operating voltage of the equipment:

a) in block letters of at least 30mm high and

5mm wide;

b) in 4 official languages;

c) in black against a yellow background; and

d) maintained in a clear and legible condition

at all times.

All plugs, socket-outlets and cable couplers

shall be contained in waterproof enclosures
unless they are of the weatherproof type.

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

A current photograph of the Licensed Electrical Workers (LEWs) and the

contact number(s) shall be displayed on the outside of all boxes
containing DBs for ease of reference.
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

31
 18-10-2024

Risk and safety management in construction

c) Excavations

Where the depth of any excavation

exceeds 1.5 meters or where the
banks are undercut, adequate
shoring by underpinning, sheet
piling, bracing or other means of
shoring shall be provided to prevent
collapse of the excavation, or any
structure adjoining or over areas to
be excavated.

No shoring for excavation exceeding 1.5m

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Where the depth of any
excavation in a worksite exceed 4
meters, adequate shoring by
underpinning, sheet piling,
bracing or other means of shoring
shall be made or erected in
accordance with the design of a
professional engineer to prevent
collapse of the excavation, or any
other structures adjoining or over
Shoring to be designed by a
areas to be excavated. professional engineer for depths > 4 m

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

32
 18-10-2024

Risk and safety management in construction

The open side of any excavation in
a worksite which exceeds 2 meters
in depth shall be provided with
adequate guard-rails to prevent
persons from falling into the
Notices and guardrail provided at
excavation. excavation zone

Notices shall be put up at

appropriate and conspicuous
positions to warn persons about the
excavation in a worksite.
Proper guardrail around a shaft

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Equipment and loose
materials placed near
edge of excavation

Excavated material or other superimposed loads shall be placed away

from the edge of the excavation in a worksite to prevent the materials
or other loads from falling into the excavation, or cause the banks to
slip or cause the upheaval of the excavation bed.
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

33
 18-10-2024

Risk and safety management in construction

All measures shall be taken during any
excavation to prevent any person from:
a) falling into the excavation;
b) being trapped by the collapse of
the excavation;
c) being struck by an object, such as Working area of excavator is
an excavating machine or by any barricaded
material dislodged by the
machine; and
d) inhaling, or otherwise being
exposed to, carbon monoxide or
other impurity of the air in the
excavation.
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

It shall be the duty of the occupier of worksite where any excavation
work is carried out to ensure that:
a) safe access to and egress from the excavation in the worksite is
provided where persons are required to work in the excavation; and
b) the access and egress is sufficient in numbers and installed in such
locations so as to be readily accessible.

Provision of well maintained

walkway and access into
excavation
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

34
 18-10-2024

Risk and safety management in construction

Proper walkways shall be provided
along struts and walers for access
and egress. Walkways shall also be
provided on planned emergency
escape routes.
Proper walkways provided along struts

Walkways were provided to ease evacuation in case of emergencies

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Designated walkways along walers and struts shall be levelled, flushed
without tripping hazards and with rigid guardrails and toe boards
securely provided.

Toe boards and netting are added to prevent loose material from falling into excavation

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

35
 18-10-2024

Risk and safety management in construction

The Contractor shall implement a RFID (Radio-Frequency Identification)
based personnel tracking system for all deep excavation works,
underground stations and tunnels on site.

RFID Tag taped inside worker’s helmet RFID gantry was erected to track access
to and egress from confined space
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Excavators within the excavation pit shall have suitably reinforced cabin
roofs capable of withstanding impact from falling objects from the top
of the excavation and its movement coordinated by one of its operator,
who shall be appointed as a leader by the Contractor.

Excavator with reinforced roof

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

36
 18-10-2024

Risk and safety management in construction

d) Ladders
Every ladder in the worksite shall be positioned and securely fixed
when used by any person carrying out any work so as to prevent
slipping, swaying or sagging.

Ladders should be
secured during use
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

No proper landing platform, ladder not secured

Secured ladders

Crooked and unsecured ladder

should be removed from site
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

37
 18-10-2024

Risk and safety management in construction

No vertical access ladders exceeding three
meters in length is allowed on site.

Landing was provided but at an interval

exceeding 3 meters
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

e) Scaffolding
Every scaffold in a workplace shall be constructed, erected or installed
on structures or foundations of adequate strength.

In the case of a scaffold in a workplace exceeding 15m in height or

being erected on poorly drained soil, base plates shall bear upon sole
plates that are :
a) of strength not less than 670 kg force per square meter; and
b) of a length suitable to distribute the load.

There shall be no cavity under the sole plate immediately below any
standard of a scaffold in a workplace.

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

38
 18-10-2024

Risk and safety management in construction

Stacked timber pieces as

foundation is not acceptable

Scaffold erected on a proper foundation

Absence of base plate
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF

ENGINEERING, KOLLAM

Risk and safety management in construction

Proper stairs provided for access from

No proper access provided one level of the scaffold to another level
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF

ENGINEERING, KOLLAM

39
 18-10-2024

Risk and safety management in construction

Work platforms shall be provided:
a) at any place of work which does not
afford a proper and secure foothold;
and
b) in the case of a building under
construction, around the edge of the
building at every uppermost permanent
floor which is under construction.
Scaffold without proper working platform, access and edge protection.

Any board or plank which forms part of a work platform

shall project beyond its end support to a distance of not
less than 50 mm and not more than 4 times the thickness
of the board or plank unless it is effectively secured to
prevent tipping or uplift.
End of board was effectively secured
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

All board, planks or decking
used in the construction of
work platform shall:

a) be of uniform thickness;

b) be capable of supporting
a load of 670kgf per square
meter with due regard to
the spacing of the supports;
and

c) be flushed along their

Work platform not flushed along their lengths
lengths and secured. and secured

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

40
 18-10-2024

Risk and safety management in construction

Sides of work platform, from which a person is liable to fall from more than 2 m
height to be provided with toe-boards and guards-rails. Overlay or screening
nets shall be used to envelope any timber or metal scaffold.

Toe-boards and guard-rails were provided along the Screening nets used to
work platform envelope scaffold

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

f) Working at height
Any person who has to work at a place from which he is liable to fall:
a) a distance of more than 2 meters; or
b) into a substance which is likely to cause drowning or asphyxiation
shall be provided with a secure foothold and handhold at a place so far
as is reasonably practicable for ensuring his safety.

Provision of secure foothold and handhold

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

41
 18-10-2024

Risk and safety management in construction

Where it is not practical to provide a secure foothold or handhold,
other suitable means such as safety harness or safety belt shall be
provided for the safety of every person working at such places.

Safety harness should be provided

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

All openings in floors shall be securely
covered or fenced unless the nature of
the work renders such covering or
fencing impracticable.

Opening in floor is not covered to prevent fall

Covered openings
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

42
 18-10-2024

Risk and safety management in construction

A13 mesh, fixed to the Provision of standard method of railings, toe-

top steel and cast into boards and netting. Height of railings to be at
the slab least 1.1m high
Personal Protective Equipment (PPE)
The protection is as follows:
a) eye protection b) fall protection c) foot protection d) hand protection
e) head protection f ) hearing protection; and g) respiratory protection.
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Eye Protection

Safety goggles

Head Protection

Safety helmet
Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore
SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

43
 18-10-2024

Risk and safety management in construction

Visibility Protection

High-visibility vest

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

44
 18-10-2024

Risk and safety management in construction

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

45
 18-10-2024

Risk and safety management in construction

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

Risk and safety management in construction

Source: Construction Safety Handbook,September 2012, Land Transport Authority, Singapore

SUBHASH VARMA, DEPARTMENT OF ARCHITECTURE, TKM COLLEGE OF
ENGINEERING, KOLLAM

46