A "drastic reduction" is health and safety budgets could see the number of injuries and deaths in the workplace increase, builders liability insurance holders have been told.
The report by research firm Mactavish said that health and safety could be compromised as firms looks at ways in which they can cut their costs.
"At least some knock-on impact on site practice compliance and injury incidence must be expected," the report stated.
It also pointed out that there could be more liability disputes in 2010, with firms deciding to embark on joint ventures which have increased the chances of them getting work.
Public liability insurance holders were also warned about taking on work in areas that they are not qualified or experienced in.
Recently, the Health and Safety Executive asked firms to make a New Year resolution to improve statistics relating to injuries and deaths in the workplace, with 2009s figures showing positive signs on previous years.