These findings demonstrate a growing industry recognition of the importance of health factors in construction decisions. However, significant stumbling blocks exist on the road to wider adoption, including the importance of factors such as energy savings, among others. Some see those factors competing with healthier building investments.
Other serious obstacles reported by contractors include the unwillingness of owners to invest in improvements and a lack of information on the health impacts of specific design and construction strategies. These obstacles are related: Not understanding the benefits of construction strategies on health could prevent owners from being able to demonstrate a business case to invest in healthier buildings. Throughout the study, the call for more data—about productivity impacts of healthier buildings, about specific design and construction approaches and specific building products—is a clear driver for greater attention to health in the construction industry.
O&M Health Influences
An emerging trend is the increasing focus on contractor involvement during the operations and maintenance (O&M) of a building. That strategy can create opportunities for higher margins and greater profitability, extend the relationship with building owners and position the contractor for more repeat business.
But the study illustrates that contractors need to take health influences into consideration during work in the O&M phases. More than half of building owners (57%) report a willingness to pay more for healthier O&M practices. This statistic corresponds to the 61% of contractors that are engaged in the O&M phase of buildings they construct. However, contractors slightly underestimate the value that owners place on healthy practices. Nearly all the contractors that find that owners will pay more think they will pay less than 5% extra. However, 10% of the owners report they are willing to pay 5% extra or more, far greater than the 1% of contractors who believe owners will pay that amount.
In addition, the contractor may have allies in the human-resources professionals at owners' firms: 91% of them believe their firms would be willing to pay more. Given their role, HR execs understand the importance of improving workers' health and well-being and the costs of health care, which includes the impact of improved health on productivity and employee satisfaction. Their enthusiasm for healthier O&M practices can help those on the construction side make their case. However, for this to happen, the industry must encourage wider stakeholder involvement in decisions and arm stakeholders with specific ways to make O&M practices healthier.
The study also demonstrates that many construction and O&M practices can help alleviate the top reasons for absences reported by HR executives, as well as the top ailments reported by medical professionals—physicians, psychiatrists, psychologists and pediatricians—who participated in the study. For example, HR executives identified short-term and long-term physical ailments as among the top reasons for absences. Some of those top-reported ailments match with construction and O&M practices that help to mitigate the ailments.
Interest in Site-Worker Health
The health impacts of construction projects are not limited to building occupants. Health factors are also an important safety concern in the construction industry, and the study demonstrates that contractors recognize their importance. Sixty percent of contractors report they are "highly influenced" in construction decisions by the health impacts of their decisions on site workers. That leaps 13 percentage points, to 73%, by 2016. Again, a key factor for encouraging this increase is providing more data to contractors on the health impacts of the materials and methods they employ.
Not surprisingly, owners are less concerned about the impact on site-workers than contractors, with only 46% of owners acknowledging the challenge and, in the future, a much more modest predicted increase, to 53%. However, site-worker safety is not just a contractor concern. It needs to be a serious consideration for all players in the industry, including owners of these projects. The industry needs to do more work to increase awareness of this factor to other players beyond contractors that can influence the outcome.
Looking Ahead
Contractors already are attuned to the increasing importance of health impacts on future projects. However, they lag behind other players in terms of their active interest and perception of benefits. While the public looks to the medical community—and not the industry–for help in making building-related decisions, the medical community itself is not fully aware of the connections between buildings and health. Thus, contractors can take a bigger leadership role. They can grab the interest of owners and become a major influence on building decisions that improve human health.
No one is better suited than contractors to providing advice on tracking performance and outcomes of building systems. They are also on the front lines of construction and O&M decisions, with a tremendous influence over the products and practices used in projects. They can ensure that buildings are part of the solution to creating a healthier population. At the same time, that leadership can bring those contracting firms greater market differentiation and build a stronger client base.
Harvey M. Bernstein is vice president of Industry Insights and Alliances for McGraw Hill Construction. He oversees MHC's thought leadership, market research and SmartMarket Report initiatives.
Michele A. Russo is director of research communications for McGraw Hill Construction. She directs MHC's SmartMarket industry insights program.