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Contractor management is the managing of outsourced work performed for an individual company and implements a system that manages contractors' health and safety information, insurance information, training programs and specific documents that pertain to the contractor and the owner of your business.

Under the Work Health and Safety Act 2011 (WHS Act), a contractor is a worker and is owed duties by the person conducting a business or undertaking (PCBU).

Where PCBUs engage contractors to perform work, effective contractor procurement and management is essential to make sure WHS duties both to the contractors as workers, and third parties, are met.

Integrating health and safety requirements into contractor procurement and management prevents injury and helps fulfil health and safety obligations. PCBUs must ensure the health and safety of all workers at work in the business or undertaking;

  • who are engaged or are caused to be engaged by the PCBU
  • whose activities in carrying out work are influenced or directed by the PCBU

Contractors also have a duty as workers under the WHS Act. While at work, a contractor must take reasonable care for his or her own health and safety and take reasonable care that their acts or omissions do not adversely affect the health and safety of others.

WHAT ARE THE ELEMENTS OF A GOOD CONTRACTOR MANAGEMENT SYSTEM?

Good contract management is the process that ensures both parties in a contract fully meet their respective obligations as efficiently and effectively as possible, in order to continually deliver both the business and operational objectives required by the contract.

Successful contract management exists when:

  • Procurement of contractor services. When engaging a contractor to carry out services, the PCBU must consider the different hazards and risks to health and safety in each stage of the procurement process.
  • Consultation and representation of WHS issues. As contractors now fall under the definition of workers under the WHS Act, a PCBU has an obligation to consult with workers on WHS issues to minimise the risk to health and safety.
  • Engagement of contractors overseas. PCBUs with international workers have the same obligations and duties as if the worker was carrying out the work in Australia.
  • All parties know their obligations under the contract
  • The arrangements for service delivery continue to be satisfactory to both customer and supplier
  • The contract is fully compliant and satisfies both legislative and audit requirements.

If you require any assistance with management of your contractors matter please contact the MTA’s Workplace Relations team by clicking here or by calling 8291 2000.