Group wants clarity on occupational safety cost

DAVAO CITY — The Philippine Constructors Association, Inc. (PCA) is pushing for a law on occupational safety and health in the construction industry.

“The interpretation of two provisions in Department of Labor and Employment (DoLE)-issued orders are providing confusion between the project owners and the constructors and the passage of this law will make sure that the rules on construction safety will be implemented without doubt,” PCA Executive Director Manolito P. Madrasto told BusinessWorld at the weekend.

At issue is Sections 5.3 of DoLE Order 13 issued in 1998 which states that safety and health program expenses shall be integrated into the project cost but as a separate pay item. Further, Section 6 provides that personal protective equipment shall also form part of the project cost.

“International standards provide that the safety cost should be equivalent to 8% of the project value,” Mr. Madrasto said.

However, he said, project owners insist that the safety cost should be shouldered by the constructor.

“If the total cost of safety is 8% and the constructor earns only 5% then why should the constructor operate at all if he is made to shoulder the 8%,” he said.

Mr. Madrasto said the PCA has often encountered the issue in government projects “because the CoA (Commission on Audit) believes that the cost of safety is shouldered only by the constructor.”

He claimed to have obtained the commitment of congressmen and senators to sponsor the bill and have it passed by December this year.

The CITC has proposed a one-day safety training for those involved in construction project management, he said, and attendance will be required as a prerequisite to obtain licenses

Regional officials of the Public Works and Labor departments have deferred to national officials for comment. — C. A. Carillo, Businessworld