The purpose of this study is to find out the most possible factor which causes accidents in the construction industry and thus affecting the safety management in the construction firm. It also includes identifying the effects of accidents in construction industry. A questionnaire was framed, in which a total of 44 causes and 11 effects of accidents were included and then a respondent of 30 construction firm was received. The major causes of accidents were grouped into five groups; the groups of causes of accidents were unsafe act, unsafe working condition, communication barrier, management commitment, and training. Therefore, for improving the safety in a project each of these items should be analyzed and a practical approach introduced to finding the most possible factor which causes accident in the construction industry. The most possible factor that causes accident in the firm were failure to follow safety rules, ignorance of PPE (Personal Protective Equipment), space congestion, improper use of safety items, improper equipment. Then the most possible effects of accidents in the construction industry were cost of medical expenses, time loss of project execution, productivity loss, distrust of firm, cost of training given to new workers.