A performance-based safety evaluation model for workers’ compensation decision support in offsite construction

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Abstract
Purpose: This paper aims to develop a performance-based safety modification rate (SMR) framework designed to address selected structural limitations associated with using the experience modification rating (EMR) alone for offsite safety-performance assessment. The framework integrates phase-sensitive leading and lagging indicators across fabrication, transportation and assembly within a multidimensional relative-benchmarking structure. Design/methodology/approach: The study develops a data envelopment analysis (DEA)-based benchmarking framework using 36 expert-prioritized leading and lagging safety indicators identified through a structured literature review and an expert survey of offsite contractors and insurance professionals. A simulated dataset is used to examine model computational workflow, comparative efficiency benchmarking, pattern classification and diagnostic gap assessment. Multicollinearity and dimensionality checks are performed to examine the analytical structure of the illustrative model. Findings: The simulation illustrates how the DEA-based SMR differentiates simulated firm-year profiles based on multidimensional safety performance, establishes a common ideal-referenced safety benchmark, and classifies firms into distinct descriptive performance trajectories. Through its design, the framework represents proactive safety practices and phase-specific operational conditions that are not explicitly captured when EMR is used alone. Research limitations/implications: The model is demonstrated using simulated data due to limited availability of consolidated, multi-year offsite safety datasets. Also, the simulated yearly trajectories are descriptive illustrations and do not constitute statistical longitudinal inference. Future research should validate the SMR using real-world industry data. Practical implications: The SMR provides insurance carriers and offsite contractors with a structured framework for benchmarking multidimensional safety performance, prioritizing safety review, and examining phase-specific performance patterns. It also establishes a structured foundation for integrating proactive safety information into workers’ compensation underwriting and loss-control processes. Originality/value: The study operationalizes an expert-prioritized, leading and lagging set of offsite construction safety indicators within a DEA framework and demonstrates how the resulting scores may support relative benchmarking and performance classification to support insurance decisions.

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