In this chapter, there reviews some of literatures by base on balls which are related betterment and progress the building safety in Hong Kong. Actually, Hong Kong has a good building safety direction system from authorities, developers, and contractors under the statute laws, ordinances. But the consequence showed that the rate of accidents, rate of hurt and the rate of human death still occur ever in the life. Equally know as, the rates are dropping down continuously and somewhat, but it compared with other states such as Taiwan, Singapore, and Japan. The rates of Hong Kong are the highest while comparing with other states in Asia.
Most of definitions and premise will be apply on following chapters. Here will acquire the thought and definitions.
3.2 Social value of forestalling human death ( VPF )
Hong Kong is a modern metropolis and still has many of accidents occur in existent life. Equally know as the human life is of import and high value in it worth to protect and forestall. The value of forestalling human death and the value of statistical life applied for define the worth.
Jonathan ( 2007 ) gave the thought of the ‘value of forestalling human death ‘ ( VPF ) or, equivalently the ‘value of a statistical life ‘ in a proficient squad used in safety determination devising. It gets its life from hazard cost benefit analysis ( RCBA ) . There was mentioned the safety step designed to cut down the hazard of decease. And the major inquiry of the analysis that is it worthwhile on the position of economic in a possible safety step could be excessively expensive to be deserving implementing it is necessary to happen a manner of giving some significance to this thought, and to settle such inquiries. ( Wolff, Jonathan ( 2007 ) , “ London Doctrine Documents ” , pp.1 ) ,
Orley ( 2006 ) mentioned that:
“ aˆ¦a cardinal issue to clear up at the beginning is the precise significance of the phrase “ the value of a statistical life ” , which many no uncertainty happen unsavory ” .
He said that there is no definition of the value of human life and no defined method to cipher precisely. By the manner, he said the wealth allow to avoid fatal hazard while expense money or clip on it. The tradeoff from wealth and chance of decease is just plenty. The ratio of the human wealth is willing to accept in exchange for a little alteration in the chance of a human death is expressed in units of “ dollars per decease ” , or the dollar value of a human death. He figure out the tradeoff footings called the value of a “ statistical ” life which is intended to do clearly in populating life. Orley Ashenfelter ( 2006 ) , “ Measuring the value of a statistical life: Problems and chances ” , NBER Working Series Paper, working paper 11916, pp.2 )
The value of forestalling human death and the value of statistical life possibly less or immense in existent life, but there is difficult to acquire imaginativeness in it. In the chapter one, there provided the statistic chart in mathematics.
3.3 Value of Statist Life ( VSL ) and application
Orley ( 2006 ) assumed the computation method for VSL to do affair concrete, suppose involves an addition of at least a changeless in wealth in return for an addition in the chance of a human death. Then the invariable divided by the chance of human death, which is an acceptable tradeoff for the VSL. It described by this peculiar human death hazard. VSL is non a changeless and surely be expected to depend on the degree of individual ‘s wealth which is evaluated and possibly many other factors, including personal penchants. ( Orley Ashenfelter ( 2006 ) , “ Measuring the value of a statistical life: Problems and chances ” , NBER Working Series Paper, working paper 11916, pp.3 – 6 )
The VSL used for several conditions such as Traffic safety determination, benefit-cost analysis of environmental ordinances and Medical intercessions and engineering.
In Traffic safety determination, Orley ( 2006 ) mentioned the earliest usage of VSL estimations, and an country that remains of great practical importance, is in the design of main roads. The authorities main road sections throughout the universe engage in an analysis of two cardinal considerations virtually day-to-day: ( 1 ) the best manner to apportion resources to cut down traffic human deaths within a given budget ; ( 2 ) budget sufficient used in the traffic safety and is at that place need wage more for traffic safety to cut down the human deaths.
In benefit-cost analysis of environmental ordinances, Orley ( 2006 ) mentioned the Environmental Protection Agency normally applies of the VSL construct in the rating of the costs of environmental wellness and safety hazards. The basic thought is to gauge human death hazards in different environmental jeopardy and particular conditions where the cost of an extra life saved is greater than VSL. The application method is same as usage of the VSL as in the analysis of traffic safety, even though in different footings and it leads some of reckoners into different decision about the virtues of the attack.
In medical intercessions and engineering, Orley ( 2006 ) mentioned the usage of VSL in medical specialty is much the same as in the countries discussed above, though steps of the value of life saved take their ain particular dimensions. In instance, the acceptance of a medical process is justified if its cost is low plenty compared to the life old ages it saves.
It has been merely 30 old ages during which economic experts have defined, quantified, and critiqued the operational definition of safety hazards summarized as the value of a Statistical Life. ( Orley Ashenfelter ( 2006 ) , “ Measuring the value of a statistical life: Problems and chances ” , NBER Working Series Paper, working paper 11916, pp.6 – 9 )
As supra mentioned, the thought used in different scenarios such as traffic, environmental and medical. Here will use into building safety, the scenarios are likewise and suited in instances.
3.4 Willingness to pay ( WTP )
Willingness to pay studies is one of measuring method, which is used to mensurate the benefit of wellness and life salvaging plans. However, the dependability and cogency of study responses to inquiries refering the decrease of human death or hurt hazards have been questioned.
Muller and Reutzel ( 1984 ) think that the WTP step is appealing since it is intended to reflect qualities and measures that are hard if non impossible to mensurate.
“ The step incorporates the person ‘s penchant for hazard antipathy, rating of hurting and agony, penchant of proroguing decease, and grasp of cut downing hazards to life and wellness by little sums. ”
Muller and Reutzel ( 1984 ) researched that there is no relationship was found between willingness to pay responses and variables reflecting respondent ‘s rational considerations.
“ The consequence seem to be due to the misguided premises that people employ rational considerations when reacting to willingness to pay inquiries and that they are capable of fiting their responses with functional relationship underlying implied value of life computation ” . ( American Journal of Public Health ( 1984 ) , Vol. 74, pp.808 – 810. )
Persons ‘ willingness to pay ( WTP ) that is dominant attack today, this attack assumes that persons ‘ penchants are the footing for economic public assistance.
Dreze ( 1962 ) think that the WTP-approach to value mortality hazard decrease was introduced as followers.
“ Dreze ‘s Paper was written in French and the construct became widely known merely after Schelling ( 1968 ) ‘s seminal paper. The theoretical foundation of the construct was further developed within the expected public-service corporation model by Mishan ( 1971 ) and Jones-Lee ( 1974 ) . A cardinal subscriber to the empirical literature on VSL is Viscusi, in peculiar for his analysis of counterbalancing pay differentialsaˆ¦ ” ( Viscusi, 1993 ; Viscusi and Aldy, 2003 ) . ( Henrik Andersson ( 2004 ) , “ The Value if a Statistical Life ” , Swedish National Road & A ; Transport Research Institute, pp.2 – 3 )
In economic sciences, the willingness to pay ( WTP ) defined that most of people instead to pay, forfeit or interchanging for goods.
The WTP will use in the survey.
3.5 Fiscal costs of building accidents
Fiscal costs of building accidents is a most concern points in a undertaking, incurred by private investors, such as contractors, due to the happening of the accidents.
In fiscal analysis, Tang ( 2003 ) think that:
“ aˆ¦there are markets monetary values are ever used to stand for benefits and cost a figure of surveies refering accident costs ( e.g. , Heinrich et al. , 1980 ; Lee, 1991 ; Levitt and Samelson, 1993 ) . ” The undermentioned fiscal losingss are used in the research carried out by Tang, Lee and Wong ( 1997 ) :
Loss due to the hurt individual
The compensation paid to the injured worker by the contractor is 4/5 of the rewards of the injured individual for each twenty-four hours of absence from work.
Disability compensation, which depends on the per centum of disablement ( determined by a registered physician ) that the injured worker suffers.
Loss due to inefficiency of the worker who has merely recovered from injured and resumed work
When the injured worker returns to wok, he can non ab initio work with 100 % efficiency
A expression to cipher the loss is as follows, which is based on the absence from work.
Loss = Wages of injured worker x ( Day loss ten 1/20 + % of disablement )
Loss due to medical disbursals
Medical disbursals of the injured worker, including the cost of conveyance to and from infirmary
Loss due to mulcts and legal disbursals
If the contractor faces prosecution, he may hold to pay the canvasser ‘s fees and mulcts imposed by the tribunal
Loss of productiveness of other employees
The safety officer, site agent, site applied scientist and the chief may be involved in helping the injured and transporting out work associating to the accident such as accident probe and accident study composing
Other workers may hold to halt work instantly after the happening of the accident
Loss premises ( based on the experience of site safety staff interviewed ) :
Site agent: 0.05 twenty-four hours
Site applied scientist: 0.05 twenty-four hours
Foreman: 0.25 twenty-four hours
Other workers: 0.25 twenty-four hours for each worker and on mean 4 other workers are involved in each accident
Loss due to damaged equipment or works
Loss due to damaged stuffs or finished work
Loss due to idle machinery or equipment
After the accident has occurred, the workers may halt work temporarily and therefore there will be idle machinery or equipment
Loss expression is based on the premise that 20 % of the contract of the contract amount is attributable to works and equipment and that 2 % of the works and equipment will be idle on the twenty-four hours of accident:
Loss = Contract sum x 20 % ten 2 % / Number of working yearss of the contract
Figure 2 the questionnaire used in the research to get informations on the fiscal costs of accidents. Readers should observe that insurance premium, peculiarly the extra premium paid to an insurance company by a contractor when his safety record is hapless, represents fiscal cost. This is, nevertheless, highly hard to quantify and therefore is non considered in the research, which is necessarily a drawback. On the other manus, the insurance payment is the fiscal costs and non societal costs. Social costs will be discussed as below. ( S.W. Poon, S.L.Tang, Francis K.W.Wong ( 2008 ) , “ Management and economic sciences of building safety in Hong Kong ” , Hong Kong University Press, pp.120-121 )
Harmonizing the above premises, they will be utilizing in the computation in Chapter 5.
3.6 Fiscal costs versus societal costs
This is the basic definition of societal costs.
Ngai and Tang ( 1999 ) have attempted to compare the differences between fiscal costs and societal costs, and to detect what the societal costs of building accidents are.
“ Social costs are reckoned as the cost incurred by the society because extra resources are required to be utilised when building accidents occur. If there were no accidents, the use of these society ‘s resources could hold been saved ” .
The aims are to describe on a survey carried out in 2002 to 2004 ( Tang et al. , 2004 ) , and include the followers:
Identify from a list of contractors ‘ fiscal losingss, based on the old work of Tang et Al. ( 1997 ) , what fiscal losingss are besides societal costs and what are non
Identify other societal costs borne by the society that are non contractors ‘ losingss
Identify societal safety investing in the building industry
Gather cost informations on those identified in aims 1, 2, and 3 in Hong Kong for 1999, 2000, 2001
Analyze the information gathered and set up a relationship between the societal safety investing and the societal costs of accidents for the building industry in Hong Kong
( S.W. Poon, S.L.Tang, Francis K.W.Wong ( 2008 ) , “ Management and economic sciences of building safety in Hong Kong ” , Hong Kong University Press, pp.131-132 )
Harmonizing above thoughts, this survey set and figures out the cost of fiscal and societal, the cost of forestalling accident to specify the Cost-benefit Analysis and willingness to pay.
3.7 Cost-benefit analysis ( CBA or BCA )
Cost-benefit analysis is a term that refers both to help and screenings appraise, or buttocks, the instance for a undertaking, programme or policy proposal. It used an attack to doing economic determination of any sort chiefly.
The definitions of the procedure involved explicitly or implicitly, burdening the entire expected costs against the sum expected benefits of one or more actions in order to take the best or most profitable option. The formal procedure is frequently referred to as either CBA ( Cost-Benefit Analysis ) or BCA ( Benefit-Cost Analysis ) .
“ Benefits and costs are frequently expressed in money footings, and are adjusted for the clip value of money, so that all flows of benefits and flows of undertaking costs over clip ( which tend to happen at different points in clip ) are expressed on a common footing in footings of their “ present value ” . Closely related, but somewhat different, formal techniques include cost-effectiveness analysis, economic impact analysis, financial impact analysis and Social Return on Investment ( SROI ) analysis. The latter physiques upon the logic of cost- benefit analysis, but differs in that it is explicitly designed to inform the practical decision-making of endeavor directors and investors focused on optimising their societal and environmental impacts. Cost-benefit Analysis is besides used in Decision Architecture to warrant investing determinations. ” ( hypertext transfer protocol: //en.wikipedia.org/wiki/Cost-benefit_anaylsis )
The construct of Cost-benefit analysis will use in the aim and computation.
3.8 Non-fatal accident instances
Non-fatal accident instances defined as hurt instances or otherwise by Tang ( 2008 ) as followers:
3.8.1 Material amendss
Judges based on below information to cipher some of pecuniary values, rates or monetary values. The awards are clearly meant to counterbalance for pecuniary losingss or disbursals incurred as a consequence of the accident hurt.
3.8.2 Loss of net incomes
Loss of net incomes reflects the losingss suffered by the victim because of incapacity ensuing from the accident. Many such claims arise from the fact that the accident victim could merely return to sedentary occupations. Courts would present amendss at the pre-trial rate of net incomes for and Tang ( 2008 ) defined as followers:
The period of ill leave
Some sensible period of clip to beg and happen a sedentary occupation, provided that the victim has made sensible attempt to happen work
Then for the period of partial incapacity where the victim may be transporting out sedentary employment, the tribunal would present the difference between the pre-trial rate of net incomes and the income from the sedentary employment. Where documental cogent evidence of employment and net incomes are non available, Judgess have frequently worked on the footing of national incomes harmonizing to figures published by Census and Statistics Department in Hong Kong. Judges would besides do allowance for rising prices, gradual additions in wages, publicities and so on.
3.8.3 Loss of gaining capacity
This is an award made on the footing that, in the hereafter, the victim may lose his occupation and, because of the hurt, he may be at a disadvantage in the occupation market. To a individual enduring from lasting partial incapacity, it is typical for Judgess to do an award equivalent to several months pay at the rate of national monthly income.
3.8.4 Losingss of personal belongings
The victim may lose the apparels worn at the clip of the accident and other personal properties. This is normally a really nominal amount frequently awarded without being contested by the suspect.
3.8.5 Medical disbursals and assorted disbursals
These include points such as hospitalization, traveling, disbursals, wheel chairs, walking AIDSs, nappies, bedpans, attention giver wages, physical therapy intervention, exerting AIDSs, quinine waters and nutrition merchandises, traditional herbal medical specialties, and so on.
Frequently immediate household members may hold to give up their employment or take up parttime work in stead of full-time work, so as to be able to take attention of injured individual. Such losingss are besides paid under this header. ( S.W. Poon, S.L.Tang, Francis K.W.Wong ( 2008 ) , “ Management and economic sciences of building safety in Hong Kong ” , Hong Kong University Press, pp.153-154 )
Above thought defined the footings in the chapter 5 and application.
3.9 Non-material amendss in non-fatal accident instances
The undermentioned non-material amendss are non calculated by Judgess based on any pecuniary values, rate of monetary values. The awards are clearly meant to counterbalance for amendss that can non be easy estimated in pecuniary footings.
3.9.1 Pain, agony and loss of comfortss ( PSLA )
An accident victim may undergo hurting and agony as a consequence of the hurt. Loss of comfortss refers to inability to prosecute in and bask household and societal life due to the hurt, e.g. , transporting one ‘s kids and playing with them, prosecuting in athletics and recreational activities and so on. The writers, in the procedure of analyzing the instances, have observed some claimants back uping their claims by saying that they used to swim, play hoops and so on.
There is no easy manner that PSLA amendss could be calculated. Nevertheless, Judgess have to keep the consistence of awards made by the tribunals. Therefore, they refer to judgements of instances decided in the yesteryear, compare the badness of the mental and physical conditions of the victim ensuing from hurts, compare the ages and household state of affairss of the instances ( i.e. , whether there are immature kids ) , see alterations in the pecuniary values in the society ( i.e. , rising prices or warp ) , and so on to present a value to be awarded. It is considered in Every V Miles ( 1964 ) .
Hence, victim of different classs of hurts receive different PSLA ( hurting, agony and loss of comfortss ) awards from the tribunal. And this portion is deficiency of information and merely for information merely.
3.9.2 Loss of society
This is an award made ( under Law Amendment and Reform ( Consolidation ) Ordinance ( LARCO ) , Cap 23 Clause 20C ) to immediate household members ( particularly the partner ) of earnestly injured individuals ( normally in the Disaster class given above ) , who suffer loss of company, for illustration, due to encephalon harm sustained by the victim ( LARCO, 1998 ) . To be eligible to have such award, the receiver should last 30 yearss after the cause of the loss of society ( i.e. , the day of the month of the accident ) . The value so awarded is capable to a upper limit of HK $ 150,000 at present ( although the upper limit used to be HK $ 100,000 before 4 September 1998 ) . Non-fatal accident instances Nos.7 and 27 presented are illustrations of this award made. ( S.W. Poon, S.L.Tang, Francis K.W.Wong ( 2008 ) , “ Management and economic sciences of building safety in Hong Kong ” , Hong Kong University Press, pp.155-156 )
3.10 Fatal accident instances
Similar to the non-fatal instances, all of the undermentioned stuff amendss are calculated by Judgess based on some pecuniary values, rates and monetary values. The awards are clearly meant to counterbalance for pecuniary losingss or disbursals incurred as consequence of the decease.
3.10.1 Loss of dependence
By this award, the dependants are remedied for the loss of fiscal support they would have had the victim lived until natural decease. Dependants may include partner, single kids, aged parents and in some instances even siblings who need to depend on the victim. Judges would see parts to family disbursals, likely addition in disbursals as the kids grow up ( e.g. , demand for instruction ) , and so on. The figure of old ages of dependence for each dependant would be adjudged based upon the age of the person. The writers have observed that claimants, at times, would show paperss to turn out kids ‘s good public presentation at school to bespeak that they are assuring person who, had the victim lived, are likely to be supported through third instruction. Judges would besides do all allowances for rising prices, gradual additions in wages and publicities the victim may have, and so on.
3.10.2 Loss of accretion of wealth
This award attempted to rectify losingss to the deceased ‘s estate due to the ill-timed decease. In make up one’s minding the value of this award, Judgess would look into whether the decreased has a form of salvaging and investment, had responsible attitudes towards life such as taking insurance policies, being free from chancing and alcohol addiction, and so on. Further, Judgess may dismiss these figure by an sum say 5 % to 22 % ( value being higher for higher estimations of wealth accretion ) on the footing that a individual may pass some of the wealth accumulated to populate out the retirement, and the more a individual hour angle in retirement financess, the more that individual is likely to be passing during retirement old ages while basking sufficient fiscal security.
3.10.3 Loss of earning of the immediate household members
Due to the decease of a outstanding subscriber to the household, immediate household members at the times may hold to give up their employment or take up parttime work in stead of full-time work so as to be able to take attention of the kids or aged parents. Such losingss are paid under this header.
3.10.4 Loss of personal belongings
The victim may lose the apparels worn at the clip of the accident and other personal properties. This is normally a really nominal amount frequently awarded without being contested by the suspect.
3.10.5 Funeral disbursals
The existent full value of the funeral disbursals is paid to the household. Court determination becomes easy when grosss of the disbursals are submitted as documental support.
3.10.6 Loss of services
On the decease of a hubby, a married woman loses the ready to hand adult male at place who would go to to all the fixs, anything heavy to be moved and so on, necessitating her to use foreigners for that intent. On the decease of a male parent, kids lose the individual who would take them to school safely, take them to see topographic points, etc. , and the female parent may necessitate to use foreigners to go to to such demands. On the decease of a married woman, a hubby would necessitate to use foreigners to go to to housekeeping, kid minding, cookery and so on. Such losingss are remedied by the award for the Loss of Services as provided in the LARCO ( 1998 ) , Cap 23, Clause 20C. ( S.W. Poon, S.L.Tang, Francis K.W.Wong ( 2008 ) , “ Management and economic sciences of building safety in Hong Kong ” , Hong Kong University Press, pp.156-157 )
3.11 Non-material amendss in fatal accident instances
This non-material harm is non calculated by the Judgess based on any pecuniary value. The award, stipulated in the Fatal Accidents Ordinance ( 1997 ) ( FAO ) , Cap 22, Section 4, is clearly meant to counterbalance the heartache suffered by the household members who survive the decreased for non less than 30 yearss. The value of compensation to be awarded is besides stipulated in the FAO, being HK $ 150,000 at present, although it used to be merely HK $ 70,000 before 30 June 1997 ( at the clip of decease of about all the victims in the fatal instances studied under this research ) . ( S.W. Poon, S.L.Tang, Francis K.W.Wong ( 2008 ) , “ Management and economic sciences of building safety in Hong Kong ” , Hong Kong University Press, pp.158 )