Exploring the Societal Cost of Damaging Buried Utilities

Mike Sullivan - President, Utility Safety Partners

The Canadian Common Ground Alliance (CCGA) is initiating a new report on the Societal Cost of Damaging Buried Utilities. The report refers to the broader economic, environmental, and social impacts that occur when underground infrastructure—including gas lines, water pipes, electric cables, and fiber optics—is accidentally damaged during excavation or construction. These costs go beyond the immediate repair expenses and affect businesses, communities, and public services.

Some examples of societal impact include an excavation contacting and damaging a fiber optic cable disrupting banking systems, internet services, and emergency communication networks. Or a gas line rupture, which can lead to evacuations, fire hazards, or even explosions, putting lives at risk. Damaging a water main can also result in flooding, road damage, water shortages, and costly repairs. In fact, eight years ago, the community of Grande Cache experienced paralyzing effects following damage to a fiber optic cable.

Studies suggest that the societal cost of buried utility damage is often 10 to 30 times higher than the direct repair costs and highlights the critical importance of initiating the damage prevention process by submitting an online locate request to ClickBeforeYouDig.com. Selecting the provincial or state notification centre serving your area, using proper excavation techniques, and employing damage prevention specialists and coordinators will reduce these risks.

Preventing utility damage not only saves money but also protects lives, infrastructure, and essential services that communities depend on.

The Key Components of Societal Cost include:

1. Direct Costs – Immediate expenses related to repairing the damaged utility, including labor, materials, and equipment.
2. Indirect Costs – Secondary financial impacts, such as delays in construction projects, increased insurance premiums, and legal fees.
3. Service Disruptions – Loss of essential services (electricity, water, internet, gas) that can impact homes, businesses, hospitals, and emergency services.
4. Economic Losses – Businesses may suffer lost revenue due to downtime, and workers may lose wages if operations are halted.
5. Public Safety Risks – Gas leaks, electrocutions, or water contamination can endanger public health and lead to injuries or fatalities.
6. Environmental Damage – Pipeline leaks may cause soil or water contamination, harming ecosystems and requiring costly remediation efforts.
7. Traffic & Infrastructure Disruptions – Road closures, detours, and congestion can result in lost productivity and increased emissions.
8. Emergency Response Costs – First responders (firefighters, police, utility crews) may be needed to manage the situation, diverting resources from other emergencies.
9. Legal & Regulatory Penalties – Companies responsible for damages may face fines, lawsuits, or increased regulatory scrutiny.