ARM Contractor Compliance Presented by Donagh Freestun Business - PowerPoint PPT Presentation

ARM Contractor Compliance Presented by Donagh Freestun Business Development Manager E: donaghf@arm-cc.com

What is Contractor Compliance? Checking who you hire are:- • Who they say they are; and • Can do what they say they can do; and • If something goes wrong they have safety nets including:- – Suitable insurance; and – Safe work systems.

How can you make sure? Check:- • Appropriate Licensing • Appropriate Insurance – PI, PL, product liability and WorkCover • Valid ABN and GST status • ??????Professional memberships???????? • Systems for safe work practices and policies

Why Check? • Employing contractors = RISK • Types of Risk:- – WH&S Risk – Duty of Care Risk – Licencing Risk – ABN & Tax Risk – Warranty Risk

What can go wrong? • Recent case – Baiada v The Queen. • Unlicensed contractor used – they did not check • No control over the way they conducted their work • Accident happened • $100,000 fine for………… not checking • Later appeal was dismissed but then in the high court a further appeal to the decision came down in relation to what was “reasonable and practicable” steps – sent back to County Court

Two recent client experiences • 200+ pools inspected – unlicensed contractor • Client had to pay for another 200 inspections. (NOTE: Currently in NSW a company is claiming they do pool inspection – not licensed.) • Client was using a contractor for 3 years to inspect and install Fire Doors. • Recently found out - not licensed for 12 months • QBCC to say investigating them. • Looking at a huge cost to rectify.

WHS fines • Obligation to ensure safe work practices • Fines of up to $3,000,000; and • Jail terms of up to 5 years • Onus on you to show you have taken appropriate action • Powerful laws that take precedent • Cannot contract out of them

Litigation • Toomey case • Aust Lacrosse captain fell = paraplegic • Railing too low • Contractor tiled floor and raised level which reduced rail height to 968mm • 32mm = $3,200,000 – reduced to $2.5 as 30% of the blame was decided to be T oomey’s • $100,000 per mm

Warranty & Insurance Risk • Warranties may not stand up if unlicensed contractors used • Insurance policies often have clauses regarding following local, state and federal legislative requirements • ABN claiming GST while not registered • Contractor using Centrelinks ABN – valid but not theirs

How do you ensure compliance? • Live online 24 hour data for Strata Schemes, Managers & Contractor • Real time uploads into some software systems • Tracking of renewal dates with reminders going out before anniversary dates. 2 week, 1 week and 3 days. Then call is made. • Contractors directly upload details and scanned supporting documentation • All verified before compliance tick given

What’s checked? • Licensing – type, scope and value/volume • Insurance – Public Liability, Professional Indemnity, Product Liability and Workcover • ABN number • The existence of safe work practices • Any WHS cards required to operate – Blue induction card • Professional memberships

Resolving common issues is easy Resistant contractors • The good ones realise this removes the cowboys or gets them compliant. • Creates a level playing field • They are thankful at the end of the process and want to advertise this fact Confusing contractors on an existing system • Well written letter explains & they willingly comply

Conclusion • Employing contractors =RISK • The RISK can be managed • Insourcing uses up valuable resources and distracts from core business and keeps RISK in-house • Outsourcing is cheaper and transfers a lot of your RISK • If you don’t have your login het come at see me today at the Solutions in Engineering table.