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This study aims to explore the “psychological contract of safety” (PCS), a key factor in the safety climate (SC), which relies on the behavioral safety actions of workers at construction sites. While numerous factors have been identified in various sectors across different countries, there is a consensus among researchers that there is a dearth of common assessment factors specifically for the Indian construction industry (ICI). Therefore, this study undertakes a systematic review of existing literature to identify the factors that determine PCS in construction and to ascertain the relative importance index (RII) of these variables and their interrelationships using structural equation modelling (SEM).

A structured survey was conducted among 420 professionals in the ICI to collect data. This data was then analyzed using descriptive and inferential statistical methods to derive results.

The findings of the study indicate that PCS factors have a significant impact on the construction industry (CI). The inferential analysis ranks “Safety System” as the top factor with the highest RII value. The chi-square results highlight two key SC factors that enhance and regulate an organization’s safety performance. The SEM results reveal that SC factors contribute to the improvement of PCS and influence worker safety behavior.

The outcomes of this study will be beneficial for stakeholders aiming to improve safety at construction sites and enhance safety performance by fulfilling the mutual safety obligations of employers and employees and by improving safety norms, procedures and policy-making. This paper also provides a theoretical framework for scholars to reassess the results in various contexts.