Contractor ManagementDuties owed in Contractor Management

A poignant Contractor management issue was highlighted following a win from a recent court case where a worker for a business injured themselves moving a 10kg bucket of product on a pallet. The difference in this instance, was that the worker was not at their own workplace when the injury occurred. They were also not a labour hire employee working for the direction of another employer. They were a merchandiser delivering their employers product to be sold through the retail outlet.

The person had a task from their employer to deliver and position 10kg buckets on pallets. Whilst completing that task they injured their back. An injury so bad that the worker ‘was in agony for the past six years.’  So why does the retail outlet owe a duty to this worker of another business?

Firstly, the worker is a contractor and considered a worker for the retail outlet. When a business engages with a contractor to perform work for or at the direction of the business they enter into an agreement (contract) and under the Model WHS Legislation definition for a worker, it includes a contractor or subcontractor and an employee of a contractor or subcontractor.

Secondly, the retail outlet had devised, controlled and regulated the prevailing system of work for its own employees. The workers for the retail outlet had received information, training and instruction for the various tasks and a system of supervision was implemented.

Thirdly, the retail outlet did not apply the same rigor or adopt the same precautions for the merchandisers. The contractors had not received the same assistance and as shown in this example the worker for the other business was not aware of the information, training and instruction for this specific task and injured themselves.

The retail outlet also has a duty to so far as is reasonably practicable, consult, cooperate and coordinate activities with all other persons who have a duty in relation to the same matter. The retail outlet had identified specific requirements in relation to manual handling and had structured systems in place to support their worker but failed to communicate this with the other business delivering the 10kg buckets. A robust contractor management system would have included some form of communication with other business and possibly an induction system.

Contractor Management system

To overcome these issues businesses should develop and implement a contractor management process. as part of this process to develop a good Contractor Management program businesses should at least consider the following:

  • Undertake risk assessments where there is an interaction between the business and activities of the contractor tasks before engaging a contractor.
  • Develop a system to communicate the necessary information to the contractor about any hazards that are managed by the business.
  • Implement systems to ensure that the contractors’ workers are aware of and competent in the work processes to be undertaken at the businesses premises.
  • Develop and maintain an effective communication process with the contractor to ensure that any issues are communicated quickly and efficiently.
  • Train staff to monitor the contractor’s work activities ensuring that the contractor complies with business rules relating to the health and safety requirements.
  • Defined a mechanism reporting and looking into incidents and near-misses for the underlying cause and putting preventative measures.
  • Schedule a review and evaluation of contractor performance against the business processes to ensure contractor compliance is maintained.

Our Safety Consultants have had over 30 years’ experience in coordinating the health and safety function including how to manage contractors. We can assist through a Safety Audit targeted at the Contractor Management aspects of your business and provide a range of recommendations for improvement. You may also consider training key staff in the WHS Legislative requirements around contractor management. This will assist the Business in managing contractors and providing a safe workplace.

Following are some posts with added information for this topic that may assist in you deciding on using a Safety Consultant to assist your business,

If you are interested in our WHS Consultancy services, you can contact David, Andrew or Mark to discuss your Health and Safety Issues.

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