Contractor management - WorkSafe Victoria
Guidance Note
Contractor management This Guidance Note is intended for general use only and does not constitute legal advice. WorkSafe Victoria recommends that you see independent legal advice before entering any contractual arrangements.
June 2011
Background Employers must, so far as is reasonably practicable, provide and maintain a safe work environment for workers. This includes labour hire, independent contractors and sub-contractors. Employers should consider a contractor’s health and safety throughout each phase of the project before the contractor begins work. Project phases include planning, the tender process (when an offer is made), contract requirements and evaluation. The way health and safety is included in the process depends on the size and complexity of the project.
Planning Employers should scope the contractor’s work. This should include more than just documenting the task to be performed by the contractor. Health and safety issues associated with the task and the level of supervision required must also be considered. Effective planning may be achieved through consultation with suitably qualified person(s) who is/are knowledgeable in the task to be undertaken. Health and safety hazards must be identified during planning to eliminate or reduce the risk of injuries to workers. Consider the following: • What needs to be done to achieve the required outcome? • What are the key activities required to perform the task? • Could the task involve high risk activities or environments (eg working at height or in confined spaces)? • Could the task involve working with hazardous materials or dangerous goods? • Will the contractor’s materials and equipment create hazards? • Where can things go wrong (eg where can shortcuts be taken)?
Task creep
Example A contractor is employed to install guarding on a lathe. The contract is drawn up and includes a job safety analysis. The employer has a duty here and cannot contract out their duty to undertake on job safety analysis. The first area causing task creep happens when the contractor removes the control panel cover to wire in the interlock and finds an asbestos seal. The contractor must now perform additional work, may have to engage a licensed removalist and implement additional health and safety controls to fit the guards safely. The second area causing task creep happens after the asbestos issue is resolved. The wiring in the control panel does not comply with the current wiring standards. To fix this, an entirely new control panel is installed onto the lathe. Both these issues were not built into the job safety analysis or the standard operating procedure. The employer engaged the contractor to install the guarding and failed to give the contractor all the required information. The contractor failed to identify all issues before the contract was drawn up.
Tender process The tender process has two stages – developing a tender specification and evaluating submitted tenders. This process allows you to assess whether the contractor is able to perform the task safely within the budget and timeline requirements. A preferred contractors list can help employers manage contractors. Employers must assign a person or team (each with clearly defined tasks and responsibilities) to manage and monitor the contracted works from tender to contract and evaluation. They should address issues that arise during the contract process, either personally or by engaging a suitably qualified person.
Task creep means the task is set, but to achieve the agreed outcome, more work is required than what the employer and contractor had originally agreed on.
Tender specifications Tender specifications set out the work to be completed as part of the contract. They should also state the requirement to follow the employers policies and procedures, and the contract.
Be clear about what is required of the contractor. Include this in your tender process and create a system for dealing with task creep.
Tenders should also state the consequences of tenderers failing to comply with health and safety requirements.
GUI0147/01/06.11
Guidance Note Contractor management
Employers should develop and document clear criteria for contract selection. Ask the tenderer for evidence or details of: • their approach to health and safety (eg how they would eliminate or reduce issues identified during planning) • a third-party certified health and safety management system (eg a safety management achievement program) • safety records, safety incidents, improvement notices (including how these were resolved) or prosecutions and enforceable undertakings • safety qualifications, licences or certificates held by workers eg licenses for high risk work • equipment maintenance records • selection processes for plant and substances • induction and training processes • consultation and issues resolution procedures • communication process with the employer contracting the works. Tender evaluation Effective tender evaluation is likely to result in a thorough assessment of the contractor’s health and safety performance. The person evaluating tenders should have the necessary skills and knowledge, or engage a suitably qualified person to assist with this process. Tender evaluations may highlight the need for the tenderer to provide more information in relation to occupational health and safety. Tenderers should be interviewed if necessary. Sub-contracting A contractor may sub-contract some or all of the work to other contractors. This can affect your agreement and should be considered through the tendering and contract management processes.
Contract requirements The contract The contract between the employer and contractor should include: • health and safety requirements (eg company policies, procedures, equipment maintenance and bringing hazardous substances onsite) • health and safety roles and responsibilities of the employer and contractor (including their management teams)
• procedures for handling non-compliance with company policies, procedures and agreed work methods. Include a provision to terminate the contract and remove the contractor from your preferred contractor list and the worksite • processes for eliminating or reducing risks to health and safety so far as is reasonably practicable • reporting expectations including: health and safety performance (eg incidents, near misses and hazards) site inductions and training minutes of consultation arrangements and dispute resolution changing actions or controls that were agreed on • a procedure for handling changes to processes, procedures or controls • scheduling and procedures for inspections and audits of work • how the employer and contractor will regularly communicate • the requirement for contractors to inform the person managing the contractor that they are on site • induction and training processes. Keep records of inspection results and outcomes of discussions with the contractor. Inspections should not be limited to those scheduled in the contract. Supervision Before a contactor starts work, the employer should induct the contractor or their workers/sub-contractors to the worksite. The level of supervision of contractors depends on a number of factors. Higher levels of supervision are expected for at least: • the start of the contracted works • new contractors to the workplace • high risk work • people working alone or at night • complex work • a specialist skill or knowledge • the introduction of new machinery, equipment or systems of work • tasks where work methods are relied on to control the risks. Contractor supervision should also include regular reviews of the contractor’s health and safety reports.
2
Guidance Note Contractor management
Contract evaluation Employers should evaluate all contracts to review the quality of the work performed and the contractor’s health and safety. An evaluation should include feedback from those who: • managed the contract • observed the contracted work being undertaken (eg employers, supervisors or other workers) • were involved in conducting the works (eg contractors or sub-contractors) • health and safety representatives. Share these reports with workers who have duties in the tender/contract process.
Further information Contact the WorkSafe Victoria Advisory Service on 1800 136 089 or go to worksafe.vic.gov.au
Related WorkSafe publications Guidance Note – Safety supervision, supervising workers with specialist knowledge or skills. Guidance Note – Safety Supervision, creating an environment for effective supervision. Guidance Note – Working on energised plant. Guidance Note – Isolating plant Checklist – Contractor management
Note: The information presented in this Guidance Note is intended for general use only. It should not be viewed as a definitive guide to the law or the provision of legal advice. While this information is provided in good faith by the Victoria WorkCover Authority, you are warned that the Authority makes no claim as to the accuracy or completeness of the information and will not accept any liability for any loss or damage which may be incurred by any person acting in reliance on the information. For a definitive statement of the law and your legal obligations in this area, you should always check any applicable legislation and/or seek independent legal advice.
©2011 The information contained in this publication is protected by copyright. The Victorian WorkCover Authority hereby grants a non-exclusive licence in this publication to the recipient of this publication on the condition that it is not disseminated for profit. The Victorian WorkCover Authority encourages the free transfer, copying and printing of the information in this publication if such activities support the purposes and intent for which the publication was developed.
3
Contractor management This Guidance Note is intended for general use only and does not constitute legal advice. WorkSafe Victoria recommends that you see independent legal advice before entering any contractual arrangements.
June 2011
Background Employers must, so far as is reasonably practicable, provide and maintain a safe work environment for workers. This includes labour hire, independent contractors and sub-contractors. Employers should consider a contractor’s health and safety throughout each phase of the project before the contractor begins work. Project phases include planning, the tender process (when an offer is made), contract requirements and evaluation. The way health and safety is included in the process depends on the size and complexity of the project.
Planning Employers should scope the contractor’s work. This should include more than just documenting the task to be performed by the contractor. Health and safety issues associated with the task and the level of supervision required must also be considered. Effective planning may be achieved through consultation with suitably qualified person(s) who is/are knowledgeable in the task to be undertaken. Health and safety hazards must be identified during planning to eliminate or reduce the risk of injuries to workers. Consider the following: • What needs to be done to achieve the required outcome? • What are the key activities required to perform the task? • Could the task involve high risk activities or environments (eg working at height or in confined spaces)? • Could the task involve working with hazardous materials or dangerous goods? • Will the contractor’s materials and equipment create hazards? • Where can things go wrong (eg where can shortcuts be taken)?
Task creep
Example A contractor is employed to install guarding on a lathe. The contract is drawn up and includes a job safety analysis. The employer has a duty here and cannot contract out their duty to undertake on job safety analysis. The first area causing task creep happens when the contractor removes the control panel cover to wire in the interlock and finds an asbestos seal. The contractor must now perform additional work, may have to engage a licensed removalist and implement additional health and safety controls to fit the guards safely. The second area causing task creep happens after the asbestos issue is resolved. The wiring in the control panel does not comply with the current wiring standards. To fix this, an entirely new control panel is installed onto the lathe. Both these issues were not built into the job safety analysis or the standard operating procedure. The employer engaged the contractor to install the guarding and failed to give the contractor all the required information. The contractor failed to identify all issues before the contract was drawn up.
Tender process The tender process has two stages – developing a tender specification and evaluating submitted tenders. This process allows you to assess whether the contractor is able to perform the task safely within the budget and timeline requirements. A preferred contractors list can help employers manage contractors. Employers must assign a person or team (each with clearly defined tasks and responsibilities) to manage and monitor the contracted works from tender to contract and evaluation. They should address issues that arise during the contract process, either personally or by engaging a suitably qualified person.
Task creep means the task is set, but to achieve the agreed outcome, more work is required than what the employer and contractor had originally agreed on.
Tender specifications Tender specifications set out the work to be completed as part of the contract. They should also state the requirement to follow the employers policies and procedures, and the contract.
Be clear about what is required of the contractor. Include this in your tender process and create a system for dealing with task creep.
Tenders should also state the consequences of tenderers failing to comply with health and safety requirements.
GUI0147/01/06.11
Guidance Note Contractor management
Employers should develop and document clear criteria for contract selection. Ask the tenderer for evidence or details of: • their approach to health and safety (eg how they would eliminate or reduce issues identified during planning) • a third-party certified health and safety management system (eg a safety management achievement program) • safety records, safety incidents, improvement notices (including how these were resolved) or prosecutions and enforceable undertakings • safety qualifications, licences or certificates held by workers eg licenses for high risk work • equipment maintenance records • selection processes for plant and substances • induction and training processes • consultation and issues resolution procedures • communication process with the employer contracting the works. Tender evaluation Effective tender evaluation is likely to result in a thorough assessment of the contractor’s health and safety performance. The person evaluating tenders should have the necessary skills and knowledge, or engage a suitably qualified person to assist with this process. Tender evaluations may highlight the need for the tenderer to provide more information in relation to occupational health and safety. Tenderers should be interviewed if necessary. Sub-contracting A contractor may sub-contract some or all of the work to other contractors. This can affect your agreement and should be considered through the tendering and contract management processes.
Contract requirements The contract The contract between the employer and contractor should include: • health and safety requirements (eg company policies, procedures, equipment maintenance and bringing hazardous substances onsite) • health and safety roles and responsibilities of the employer and contractor (including their management teams)
• procedures for handling non-compliance with company policies, procedures and agreed work methods. Include a provision to terminate the contract and remove the contractor from your preferred contractor list and the worksite • processes for eliminating or reducing risks to health and safety so far as is reasonably practicable • reporting expectations including: health and safety performance (eg incidents, near misses and hazards) site inductions and training minutes of consultation arrangements and dispute resolution changing actions or controls that were agreed on • a procedure for handling changes to processes, procedures or controls • scheduling and procedures for inspections and audits of work • how the employer and contractor will regularly communicate • the requirement for contractors to inform the person managing the contractor that they are on site • induction and training processes. Keep records of inspection results and outcomes of discussions with the contractor. Inspections should not be limited to those scheduled in the contract. Supervision Before a contactor starts work, the employer should induct the contractor or their workers/sub-contractors to the worksite. The level of supervision of contractors depends on a number of factors. Higher levels of supervision are expected for at least: • the start of the contracted works • new contractors to the workplace • high risk work • people working alone or at night • complex work • a specialist skill or knowledge • the introduction of new machinery, equipment or systems of work • tasks where work methods are relied on to control the risks. Contractor supervision should also include regular reviews of the contractor’s health and safety reports.
2
Guidance Note Contractor management
Contract evaluation Employers should evaluate all contracts to review the quality of the work performed and the contractor’s health and safety. An evaluation should include feedback from those who: • managed the contract • observed the contracted work being undertaken (eg employers, supervisors or other workers) • were involved in conducting the works (eg contractors or sub-contractors) • health and safety representatives. Share these reports with workers who have duties in the tender/contract process.
Further information Contact the WorkSafe Victoria Advisory Service on 1800 136 089 or go to worksafe.vic.gov.au
Related WorkSafe publications Guidance Note – Safety supervision, supervising workers with specialist knowledge or skills. Guidance Note – Safety Supervision, creating an environment for effective supervision. Guidance Note – Working on energised plant. Guidance Note – Isolating plant Checklist – Contractor management
Note: The information presented in this Guidance Note is intended for general use only. It should not be viewed as a definitive guide to the law or the provision of legal advice. While this information is provided in good faith by the Victoria WorkCover Authority, you are warned that the Authority makes no claim as to the accuracy or completeness of the information and will not accept any liability for any loss or damage which may be incurred by any person acting in reliance on the information. For a definitive statement of the law and your legal obligations in this area, you should always check any applicable legislation and/or seek independent legal advice.
©2011 The information contained in this publication is protected by copyright. The Victorian WorkCover Authority hereby grants a non-exclusive licence in this publication to the recipient of this publication on the condition that it is not disseminated for profit. The Victorian WorkCover Authority encourages the free transfer, copying and printing of the information in this publication if such activities support the purposes and intent for which the publication was developed.
3
