Abstract

Purpose: This study explores the impact of cost-cutting practices in the multilayered subcontracting structure of the construction industry on the reduction of occupational safety and health management costs (OSHMC). Research design, data and methodology: By analyzing legal and contractual limitations of the current system, and the shortcomings of existing cooperative safety models, this study aims to identify structural issues and suggest alternatives. Results: The findings indicate that subcontracting cost reductions often lead to the omission or reduction of essential safety expenses, including the deployment of safety managers and training programs. Current institutional frameworks—such as mandatory contract clauses, cost adjustment systems, and partial prepayment models—show limitations in ensuring actual safety implementation, particularly for small subcontractors. Conclusions: Based on the analysis, this study proposes an 'Automated Safety Cost Linkage and Guarantee Platform' that ensures real-time calculation, monitoring, and validation of safety expenditures through a digital system. The platform aims to enhance transparency, prevent cost shifting, and improve safety outcomes, ultimately contributing to a safer and more sustainable construction industry.