A common myth in the construction and trade industries is: "I hired a subbie, so safety is their problem."
This is incorrect. Under Australian WHS laws, the Chain of Responsibility means that you cannot contract out your safety obligations. If you engage a subcontractor, you have a duty of care to ensure they are working safely. If they have an accident on your site, you can be held liable.
You Are the PCBU
As the entity engaging the subcontractor, you are a PCBU (Person Conducting a Business or Undertaking). The subcontractor is considered a "worker" under your influence. Therefore, you must ensure their safety so far as is reasonably practicable.
What You Must Do Before They Start
To protect your business and ensure compliance, you must have a robust Contractor Management System. Before a subbie steps foot on your site, you should collect and verify the following:
1. Insurances
Ensure they have current:
- Workers Compensation Insurance (for their employees).
- Public Liability Insurance.
- Professional Indemnity (if applicable).
2. Safe Work Method Statements (SWMS)
If they are performing High Risk Construction Work, you must collect their SWMS.
- Review it: Don't just file it. Check that it is relevant to the specific site and task.
- Monitor it: Ensure they are actually following the controls listed in the SWMS while working.
3. Licences and Competencies
Verify they hold the necessary licences for the work (e.g., Electrical Licence, High Risk Work Licence for forklifts/cranes, White Cards).
Monitoring and Supervision
Your duty doesn't end with collecting paperwork. You must monitor the subcontractor's work.
- Are they wearing the required PPE?
- Are they using safe equipment?
- Are they following the site rules?
If you see a subcontractor working unsafely, you have the authority—and the obligation—to stop the work until the issue is rectified.
The "Shared Duty" Concept
WHS laws recognise that multiple PCBUs can have a duty in relation to the same matter.
- The Principal Contractor has a duty.
- The Subcontractor (company) has a duty.
- The Self-Employed Subbie has a duty.
These duties overlap. You must consult, cooperate, and coordinate with each other. You cannot assume someone else is taking care of it.
Streamline Contractor Management
Managing subcontractors involves a lot of documentation. A structured WHS Management System provides the checklists, registers, and procedures you need to onboard and monitor contractors efficiently, ensuring the Chain of Responsibility remains unbroken.
Need help managing subcontractors? Explore WHS management systems.