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PUBLIC LIABILITY RISK MANAGEMENT

INFORMATION & RESOURCES

- Brought to you by Riskex Pty Ltd     

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MANAGEMENT OF CONTRACTORS

 

 

Many contractors are not directly concerned for the safety of your customers and need assistance and close monitoring. For the purposes of risk management "contractors" can be considered in three categories:

 

1.      Contract Labour are usually from employment agencies, and are employees of that agency.  Typically these contractors work as if, in all other respects, they are employees.  These staff should be inducted, trained and supervised, as if they were employees.  Although their workers compensation is the responsibility of the employing agency, the "host" organisation has the same statutory responsibility for their safety as if they were employees. It should also be noted that the employing agency also has statutory responsibility for the safety of their employees, and have been prosecuted in New South Wales.  However, this does not lesson the responsibility of the "host".

 

2.      Independent Contractors are at the other end of the spectrum.  Typically these are organisations that provide specialised services on an as required or specific project basis.  These would include plumbers, electricians, maintenance and service personnel, builders undertaking renovations and consultants.  Often these contractors are proprietary limited companies, and may themselves use sub-contractors.  Usually they will be expected to be in control of the workplace, and provide their own safe work procedures and training.  If, however, such contractors are to work alone, then it is appropriate to ensure they are inducted into the site, appropriate to the risks to which they are exposed.  Typically such induction should include information and instruction on:

  • Fire and evacuation

  • Danger tag and isolation procedures

  • Confined spaces

  • Hot work cutting and welding permit procedures   

  • Personal protective equipment required on site

  • Public safety rules (e.g. the use of warning signs when cleaning)

  • Security procedures

  • First aid arrangements.

 

3.      Contractors working under direction and control of the host organisation management and staff could include contract cleaners, trolley collectors, security personnel, and maintenance staff.  They may be employees of larger organisations, or independent self-employed persons.  In some circumstances they may be deemed to be employees for some purposes (e.g. workers compensation), but non-employees for other purposes (e.g. unfair dismissal).

The level of liability for workers compensation, OH&S regulations, and for their actions and failures in the event of a common law action, will depend upon the particular circumstances of the relationship and the facts of the incident.

 

It is particularly important that the responsibilities of these contractors are very clearly established.  It is essential that their insurance coverage match these responsibilities. Such staff should be inducted, trained, and supervised to the same standard as employees.

Copies of insurance certificates should be obtained and reviewed annually for all contractors. Failure of a contractor to hold adequate Public Liability (and Workers Compensation) insurance, may result in a claim being borne unnecessarily by your Insurers. The failure of a contractor to have a site risk management plan and appropriate safe operating procedures applied by trained personnel, could result in breach action against the Centre in the case of an accident.

 

GENERAL PROCEDURES

 

You must obtain a copy of the contractors' workers’ compensation and public liability policy documents or at least written evidence which indicates:

 

a)       Name of insurer

b)       Policy expiry date

c)       Sum insured - Note:  must be at least $10,000,000 – in the case of public liability

d)       That "Principals Liability" extension is included in the scope of the public liability cover provided

  

Before commencement of work, ensure the following:

 

a)       Set up a file on each contractor.

 

b)       Contractor’s site specific and general OH&S responsibilities and liabilities are described in contracts.

 

c)       Contractors produce evidence of successfully completing similar jobs and provide a history of their accident performance.  Check this performance with the appropriate authority (eg WorkCover).

 

d)       The contractor has adequate proof of both Public Liability and Workers Compensation insurance and that this is verified by their insurer.

 

e)       Principals Liability Extension is included either in the contract or their Public Liability Insurance documents.

 

f)       That the contractor has identified all hazards associated with the work and has a Risk Management Plan to remove the hazards.  (Place in contractor’s file)

g)           That the contractors Risk Management Plan includes Safe Operating Procedures

 

h)           That all contractors staff are Inducted into Safe Operating Procedures for the Centre and the job.

 

i)        The contractor is supplied with the site specific rules and procedures required by the Centre  and they sign off and date the document.  (Place in contractor’s file)

 

During the period of work, ensure:

 

a)       That the contractor is complying with the properties rules and the contractor’s Risk Management Plan by regularly inspecting the work site.

b)           Issue a documented non-conformance whenever there is a breach of the rules or plans and place copy in contractors file. 

(Note: If contractor still fails to rectify problem, you should organise to do so and back charge the contractor in question.)

         

c)           Document the minutes of all contract review meetings and their resulting decisions and place copy in contractors file.

 

d)           The contractor's insurance is still valid by re-checking with their insurer.

 

         On completion of the work, ensure:

 

a)       The contractor leaves the site in a tidy manner with no inherent risks to people who will use the area.

 

b)     Document any infringements by the contractor and your corrective action and keep this information on record in case of future dealings and the possibility of back charging the contractor for that work.

 

SEE ALSO:

 

EXAMPLE CONTRACTOR RULES

 

EXAMPLE CONTRACTORS MANUAL

 

EXAMPLE WORK METHOD STATEMENT

 

CONTRACTORS PROCEDURES - EXAMPLE

 

COLES MYER SAFETY MANAGEMENT PLAN           

 

(Also available from http://www.contractor.colesgroup.com.au/ContractorInduction/default.asp along with other useful information for any person working at a Coles location)

 

COLES MYER WORK METHOD STATEMENT

 

Myer Contractor Online Induction - mandatory for anyone visiting or working in a Myers store

 

 

 

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* This insurance is arranged by A&G Insurance Services Pty Ltd (trading as Budget Direct) (ABN 61 003 617 909, AFSL 241 411) on behalf of the insurer, Auto & General Insurance Company Limited (ABN 42 111 5 86 353). Because we don’t know your financial needs, we can’t advise if this insurance will suit you. You should consider your needs and read the PDS before making a decision to buy insurance. To view or download a copy of our FSG and PDS visit our website. Car insurance not available in NT. This advertisement is placed by A&G Insurance Services Pty Ltd.