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

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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


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SLIDE 1

ARM Contractor Compliance

Presented by

Donagh Freestun

Business Development Manager E: donaghf@arm-cc.com

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SLIDE 2

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.

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SLIDE 3

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
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SLIDE 4

Why Check?

  • Employing contractors = RISK
  • Types of Risk:-

– WH&S Risk – Duty of Care Risk – Licencing Risk – ABN & Tax Risk – Warranty Risk

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SLIDE 5

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

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SLIDE 6

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.
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SLIDE 7

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
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SLIDE 8

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
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SLIDE 9

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

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SLIDE 10

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
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SLIDE 11

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
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SLIDE 12

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
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SLIDE 13

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.