The On-Site Performance Ratio Worksheet

Many construction contracts require that a contractor’s Workers’ Compensation Experience Modification Rating (EMR) be at 1.00 or less. While the EMR is a moderately effective barometer at measuring a contractor’s losses as an average, it doesn’t tell the whole story.

The contractual requirement that the EMR be at 1.00 or less is reflective of a construction owner’s desire to hire safe contractors for their jobsite. However, the EMR does not just take jobsite losses into account- it takes all losses into account. These may include losses that have nothing to do with a contractor’s safety record on the job (carpal tunnel syndrome, slip-and-fall accidents in the office parking lot, shop accidents, etc.).

That’s why we helped create the On-Site Performance Ratio Worksheet (OPR). That’s right, we were at the drawing board. The OPR worksheet recalculates a contractor’s EMR in relation to jobsite related losses only. This gives a much clearer picture to owners as to how a contractor performs on the jobsite – which is the only thing concerning the owner. Many construction owners accept this modified ratio and allow contractors with distressed EMR’s to work on their sites. It just makes sense.