Contractor Management

Updated: Dec 20, 2021



Contractor Management
.pdf
Download PDF • 264KB

Advice when Contracting

The majority of businesses in New Zealand at some point engage contractors. When contractors are engaged health and safety obligations can overlap. Whether it is engaging a cleaner for the office or hiring subcontractors to assist with a construction project - health and safety duties become shared.

All PCBUs involved have duties under the Health and Safety at Work Act 2015 (HSWA).

This Safety talk will illustrate different contractual relationships between parties, and provide examples of ways health and safety is built into contract management.


Key points are:

  • Consult, Co-operate and Co-ordinate with other PCBUs when working in a shared workplace or as part of a contracting chain.

  • You can’t contract out of health and safety duties

  • You should always build health and safety into contract management.


What you need to know

If you share duties with other PCBUs you must consult, co-operate with and

co-ordinate activities with all other PCBUs you share duties with, so far as is

reasonably practicable.


Where duties are shared, all PCBUs have a responsibility to meet those duties,

to the extent that they have the ability to influence or control the matter.


Self - Employed?

If a self-employed person is working for another PCBU, they both share duties as a PCBU.

If the self-employed person decides how their own work is done and creates and controls risks, they are considered to have the ability to influence or control the matter.


If the self employed person is working for another PCBU, and the PCBU decides what they do, and how and when they do it, then that PCBU is considered to have the ability to influence or control the matter.



Do you share H&S Duties?

PCBU’s that work together, either in a shared workplace or in a contracting chain,

will often share health and safety duties in relation to the same matter.


Shared Workplace

This is where several different contractors / businesses are working in the same place

(e.g. Construction Site, Event, Shopping Centre or Port) They will not usually share

contractual relationships with each other. More than one contractor may control or

influence the work onsite.


Contracting Chain

This is where several different contractors are all working together on the same project,

although not necessarily in the same workplace. Usually, one PCBU will have the most

influence and control over the work. These contractors need to enter into reasonable

arrangements with each other to make sure that everyone’s health and safety duties

are met.

(example: Florist engages a courier firm to collect product from their grower and deliver

it to their store)



What is expected?

There can be several different levels in a contracting situation; either in a

shared workplace, or in a contracting chain. See below an example of how a

contracting situation could look and the responsibility of each PCBU.




Lead PCBU Responsibilities :

  • To be health and safety leader

  • To set clear health and safety expectations and incorporate these into contracts with contractors

  • To work with designers to eliminate risks so far as is reasonably practicable, or minimise risks if they cannot be eliminated

  • To choose the best contractors and site managers for the job using prequalification

  • Check health and safety records of potential contractors

  • To put clear and effective reporting procedures in place so they can be confident all duties are being met

  • Set up clear framework for information sharing for the duration of the project



Lead Contractor Responsibilities

The Lead Contractor will likely have the most influence and control over the

workplace.

  • To possibly act as site manager - this would include being on-site at all times, and having an overview of the site

  • To hold high health and safety expectations of the contractors that they hire

  • To choose the best contractors for the job using prequalification

  • Check health and safety records of potential contractors

  • In charge of inductions on-site

  • In charge of communication about health and safety at the start of each day (pre-start talks)

  • Coordinate and communicate the on-site rules and procedures to everyone

  • who accesses the work site

  • Work with subcontractors to create a health and safety plan

  • Monitor their workers and/or subcontractors they hire

  • To put clear and effective reporting procedures in place so they can be confident all duties are being met

  • To make sure they have all of the required information from the lead PCBU

  • Ensure, as far as is reasonably practicable, that the health and safety of workers and other people are not put at risk by their work


What is expected? continued


Contractor Responsibilities :

  • To hold high health and safety expectations of the contractors that they hire

  • To choose the best subcontractors for the job using prequalification

  • Check health and safety records of potential subcontractors

  • Monitor their workers and/or subcontractors they hire

  • To put clear and effective reporting procedures in place so they can be confident all duties are being met

  • To make sure their workers and subcontractors have all of the required information, are aware of on-site rules and procedures, inductions, toolbox talks, safety plan and reporting procedures.

  • Ensure, as far as is reasonably practicable, that the health and safety of workers and other people are not put at risk by their work

Subcontractor Responsibilities :

  • Monitor their workers and/or subcontractors they hire

  • To put clear and effective reporting procedures in place so they can be confident all duties are being met

  • To make sure their workers and subcontractors have all of the required information, are aware of on-site rules and procedures, inductions, toolbox talks, safety plans and reporting procedures

  • Work closely with other contractors, including the lead contractor, to help manage risks

  • Ensure, as far as is reasonably practicable, that the health and safety of workers and other people are not put at risk by their work


Contractor Chain Common Shared Duties

  • Primary Duty of PCBU - Section 36, HSAW 2015

  • Managing Risk - Section 30, HSAW 2015

  • Worker Engagement, Participation and representation - Part 3, HSAW 2015

  • Notification - Section 56, HSAW 2015

  • First Aid - HSW General Risk and Workplace Management Regulations 2016

  • Emergency Plans - HSW General Risk and Workplace Management Regulations 2016

Working with other PCBUs

We recommend that you make a record of any discussions you have, and

agreements you reach around how work will be carried out.

  • There are four main points to remember about overlapping duties:

  • You have a duty to consult, cooperate and coordinate activities with all other PCBUs you share overlapping duties with, so far as is reasonably practicable

  • You can enter into reasonable agreements with other PCBUs to make sure everyone’s health and safety duties are met

  • The more influence and control your business has over a workplace or a health and safety matter, the more responsibility you are likely to have


Need Assistance?


For more information regarding Overlapping Duties or Contractor

Management please contact our team or check out WorkSafe’s PCBUs

Working Together Guidelines at worksafe.govt.nz


OHS Consultants have a number of resources available to make this process

easier for your team or if you want someone to do it for, we are happy to

discuss consultant assistance in this area.


Please contact us if you require any advice or check out our website:

https://www.ohsconsultants.nz















28 views0 comments

Recent Posts

See All