In a survey of large contractors, the organization found that less than half of the respondents thought public sector clients considered health and safety performance to be a very important factor when awarding contracts.
Just over a third said that post-completion health and safety reviews were never carried out.
Chief executive Stephen Ratcliffe said today: 'Companies who perform best at health and safety should also get a commercial return in that they are more able to compete for work. Sadly we are not there yet.
'We need our public sector clients to show leadership by ensuring that it only puts on its select lists those suppliers who can demonstrate good health and safety practice, who look after their workforce and who improve quality. These are the real measures of best value.'