Safety incentives and sanctions in contract agreements

Implemented

Rail R

Accident

11.11.2014

R2013-02/S344

Suosituksen perustelu

According to current practice, penalties for contract delays may lead to compromises in safety. There are no direct financial incentives for maintaining safety. Contract agree-ments should therefore specify the financial consequences of compliance and non-compliance with safety regulations.

Recommendation

The Finnish Transport Agency will include in all trackwork contracts the detailed financial consequences for the contractor arising from compliance or non-compliance with safety regulations.

Suosituksen tarkennus

Financial consequences should be sufficiently effective, and they should be applied in practice, in order for the contractors to pay more attention to compliance with safety regulations.

Toimenpide-ehdotukset

According to current practice, penalties for contract delays may lead to compromises in safety. There are no direct financial incentives for maintaining safety. Contract agree-ments should therefore specify the financial consequences of compliance and non-compliance with safety regulations.