How to Get the Big Tick on a Contractor Prequalification

The Health & Safety at Work Act 2015 (HSWA) clearly states a business (PCBU) cannot ‘contract out of its duties’. What does this mean to you? It means you must consider the risks involved of a contractor completing work on your behalf.

Then the more responsibility you are likely to have regarding the health and safety of those involved. This does not mean you carry all the responsibility, but that you’re in the best position to control the risks.

Businesses (PCBU) working together on a project need to consult, cooperate, and coordinate. This article aims to introduce you to different types of contractor prequalification.

What is Contractor Prequalification?

Contractor prequalification is an information gathering and assessment process that determines a contractor's capability, capacity, resources, management processes, and performance.

Why is Contractor Prequalification required?

Prequalification of contractors helps to create a pool of contractors that have the quality, capacity, and ability to perform work on projects of a particular size and complexity, It weeds out contractors with a history of litigation, claims, and performance failures.

It is important to emphasise health and safety at the very start of any contract agreement. Ensure contractors meet your standards and consider a process that assesses their competence before they are invited to tender for the project:

-        Are they competent?
-        Are they qualified to carry out the work?

When would I consider Contractor Prequalification?

Prequalification allows a business to assess the suitability of a contractor to conduct works. Once ‘approved’ the business maintains a register that allows work/projects to proceed knowing the contractor has already met an agreed standard, this approval can then last for between 12-24 months (usually depending on level of risk = higher the risk, more frequent the prequalification).

What does it involve?

It either involves completing a health & safety questionnaire or can involve using the services of a prequalification provider. The process identifies the contractor has met the following obligations:

1.    Valid business insurance/s
2.    Communication and Employee Engagement / Participation eg. Safety Meetings
3.    Safe Method Statements (JHA / JSA / SWMS / SSSP’s etc)
4.    Risk Management
5.    Incident Reporting & Investigation
6.   Training & Competence
7.   Sub-contractor Engagement
8.   Health Monitoring

It will also assess their safety performance:

•    Infringements / Prosecutions
•    Key Performance Indicators eg. No. of Lost Time or Medical Treatment Injuries.

What are the different types of Contractor Prequalification?

1.      Are you requiring YOUR contractors to be pre-approved?
a.      They complete your Health & Safety Questionnaire, or
b.      They achieve ‘contractor approval’ from a specified prequalification provider, eg:

1. SiteWise
2.  IMPAC
3.  Totika
4.  ISNetworld

or

2.      Are your clients requesting YOU are pre-approved as a contractor?
a.      You complete their Health & Safety Questionnaire, or
b.      You achieve ‘contractor approval’ from a specified prequalification provider, eg:

1. SiteWise
2.  IMPAC
3. Totika
4.  ISNetworld

If you would like assistance in preparing or completing a Contractor Prequalification
call SBS - Freephone 0508 424 723