Mallesons Stephen Jaques

Geoff Wood  
Partner

Melbourne
Peter Megens  

Canberra
Chris Wheeler  


Principal contractor - principal point of responsibility for site safety?

Recent changes to Workplace, Health and Safety Legislation

Recent amendments to the Workplace Health and Safety Act 1995 (Qld) and the Workplace Health and Safety Regulation 1997 (Qld) have broadened the workplace, health and safety obligations of parties involved in “construction work” throughout Queensland. There has been a staggered introduction of certain amendments with the remainder likely to take effect during 2007. They reinforce the existing framework for managing health and safety risks at Queensland workplaces. It is likely that more head contractors will assume responsibility for other parties on shared workplaces.

Appointment

Construction work valued at more than $80,000, or involving demolition or asbestos work, must be overseen by a principal contractor. Any party commissioning construction work (the client) must appoint a principal contractor. Generally the head or prime contractor is appointed as the principal contractor for the construction work. However, the client will be deemed to be the PC where it fails to appoint one.

Responsibilities

Parties appointed as principal contractor for construction work have broad statutory responsibilities including:

  • responsibility for hazards at the workplace for which no other person owes a workplace, health and safety obligation
  • ensuring the safety of anything that is provided for the general use of persons at the workplace
  • supervising construction work in a way that minimises risks at or near the workplace
  • consulting with others to identify hazards and assess risks
  • taking any safety measures prescribed by regulation
  • directing others to comply with their own workplace, health and safety obligations, and
  • ensuring that anyone not complying with workplace, health and safety obligations is stopped from working.

Other changes

Other changes introduced as part of the amendments include:

  • the definition of “construction work” has been broadened to cover work such as renovations, repairs and refurbishments
  • introduction of the client (person commissioning construction work) and project manager as obligation holders, and
  • changes to the obligations of designers.

Implications - owners

It is good practice for owners to:

  • consider whether they are prepared to assume the role of principal contractor or prefer the contractor to do so (including an assessment of the corresponding obligations and sanctions), and
  • ensure that contractual arrangements with any contractor provide sufficient comfort regarding the discharge of statutory workplace, health and safety obligations. Such arrangements may include:

 
  • indemnities from the contractor for any act, omission, breach or default regarding its principal contractor and workplace, health and safety obligations; or
  • other contractual rights such as suspension of works until the contractor complies with its principal contractor and workplace, health and safety obligations.

It is important to note that, despite appointing a principal contractor, owners will retain significant workplace, health and safety obligations (especially when, as is usually the case, the work is performed at the owner’s site or involves the owner’s plant). These cannot be contracted out of and infringement can potentially result in significant fines and in extreme cases, imprisonment or fines for an entity’s executive officer(s).

Implications - contractors

Contractors appointed as principal contractor should:

  • be familiar with their statutory obligations (and any sanctions for non-compliance)
  • ensure that their workplace, health and safety systems and plans adequately address health, safety, security and training practices for each particular site, and
  • ensure any subcontract:
  • contains indemnities dealing with liability incurred by the contractor as a result of any subcontractor’s act, omission, breach or default regarding workplace, health and safety, and
  • includes appropriate requirements regarding compliance with WH&S plans or systems.
This publication is only a general outline. It is not legal advice. You should seek professional advice before taking any action based on its contents.