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 Toomey’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.