Contractor Compliance Checklist: What to Verify Before Engaging a Contractor

Quick answer: Before engaging any contractor, verify their ABN, insurance currency, relevant licences, WHS policy, SWMS for high-risk work, plant pre-starts, SDS for chemicals, and site induction. This checklist walks you through each item.

Last reviewed: June 2026 by the BlueSafe Technical Team. Reflects current Model WHS Regulations.

Engaging a contractor without verifying their compliance is one of the most common WHS gaps in Australian businesses. If a contractor is uninsured, unlicensed, or unfamiliar with your site hazards and an incident occurs, the consequences fall squarely on both parties — including you as the principal contractor.

This checklist covers every document and verification step your business should complete before a contractor starts work. Work through it once per engagement, update it for ongoing contractors at least annually, and keep the records in your contractor register.

For a broader overview of how contractor WHS management works in practice, see our guide: What is Contractor WHS Management?

1. Business and Identity Verification

Confirm who you are dealing with before anything else.

Contractor has provided their full legal business name.
ABN has been verified via the ABN Lookup tool at abr.business.gov.au and is current and active.
The ABN name matches the name on their insurance certificates and licence documents.
Contact details (phone, email, address) have been recorded.

2. Insurance

Insurance is non-negotiable. Expired or inadequate cover exposes your business directly.

Public Liability Insurance: Certificate of Currency sighted, with a minimum $10 million cover per occurrence (check your contract or site requirements — many require $20 million).
Expiry date is current and extends beyond the planned engagement period (or the contractor has committed to providing renewal certificates before expiry).
The insured party name on the certificate matches the contractor's ABN/trading name.
Workers Compensation Insurance: Certificate of Currency sighted for any employees the contractor brings on site.
If the contractor is a sole trader with no employees, this has been confirmed in writing and personal accident/income protection cover has been noted.
Professional Indemnity Insurance (if applicable to the scope of work — e.g., engineers, consultants, designers): Certificate of Currency sighted.

3. Licences, Tickets, and Registrations

Match licences to the actual scope of work being performed.

All licences and certificates relevant to the work have been identified (e.g., electrical licence, plumbing licence, builders licence, high-risk work licence for scaffolding, rigging, or crane operation).
Each licence has been sighted — not just listed by the contractor — and verified as current with the issuing authority where possible.
High-Risk Work (HRW) Licences for any individual workers performing licensed HRW have been sighted and recorded.
Operator competencies for specific plant (e.g., forklift, EWP) have been sighted and recorded for each relevant worker.
Copies of all licences have been filed in the contractor record.

4. WHS Policy and Management System

A contractor with no WHS policy is a contractor with no safety culture.

Contractor has provided a current WHS Policy (signed and dated by their management).
WHS Policy is dated within the last two years or has a current review date.
Contractor has been asked about their safety management system and can describe how they manage hazards, incidents, and WHS obligations.
Contractor has confirmed they are aware of their duties under the applicable WHS Act and Regulations.

5. Safe Work Method Statements (SWMS)

Required for high-risk construction work; strongly recommended for all significant site activities.

The scope of work has been assessed to determine whether it involves High Risk Construction Work (HRCW) as defined under the WHS Regulations (e.g., work at heights over 2 metres, work near energised electrical installations, excavation over 1.5 metres, demolition, confined spaces).
For any HRCW: a site-specific SWMS has been provided, reviewed, and accepted before work commences.
The SWMS identifies the specific HRCW activities, associated hazards, and risk controls.
The SWMS has been signed off by the contractor's responsible person.
Workers performing the HRCW have signed the SWMS to confirm they have read and understood it.
For non-HRCW activities: a Job Safety Analysis (JSA) or equivalent has been requested where appropriate.

6. Plant, Equipment, and Pre-Start Checks

Unregistered or uninspected plant is a liability on your site.

A list of plant and equipment the contractor will bring on site has been obtained.
Any registrable plant (e.g., pressure vessels, cranes, boilers) has current registration documents sighted.
Plant inspection/service records are current and have been sighted for high-risk plant.
The contractor has a documented pre-start inspection procedure for mobile plant (e.g., excavators, forklifts, EWPs).
Pre-start checklists will be completed daily and retained by the contractor (or a copy provided to your business).
Any defective plant will be tagged out and removed from service before use on site — this has been communicated to and acknowledged by the contractor.

7. Hazardous Chemicals and SDS

If the contractor is bringing chemicals on site, you need to know about them.

The contractor has been asked to provide a list of all hazardous chemicals they will bring on site.
A current Safety Data Sheet (SDS) for each chemical has been provided (SDS must be no older than 5 years from the manufacturer's issue date).
SDS documents will be kept accessible on site during use.
The contractor has confirmed their workers have been trained in the safe use, storage, and disposal of the chemicals they are using.
Any specific site requirements for chemical storage or handling have been communicated to the contractor.

8. Induction

An uninducted contractor is a hazard to themselves and everyone else on site.

The contractor and all their workers have completed your site induction before commencing work.
Induction covered: site hazards and controls, emergency procedures (including evacuation routes and assembly points), first aid locations, incident reporting procedures, site rules (PPE requirements, exclusion zones, permit requirements), and relevant WHS policies.
Induction completion has been recorded in the Site Induction Register (name, date, signature or digital confirmation).
If induction was conducted by a third-party platform or online system, a certificate of completion has been retained on file.
The contractor understands the process for reporting hazards and incidents to your site management.

9. References and Prequalification

Past performance is a valid part of due diligence.

At least one professional reference (previous principal contractor, project manager, or client) has been contacted and can speak to the contractor's safety performance.
Any past WHS incidents, improvement notices, or prohibition notices relevant to the contractor have been disclosed and reviewed.
If your business uses a formal prequalification process or approved supplier list, the contractor has been assessed against it and formally approved before engagement.
The contractor's details and compliance documents have been entered into your contractor register and are accessible to the relevant site personnel.

Keeping Records

Completing this checklist once is not enough. You must also:

Store all supporting documents (insurance certificates, licences, SWMS, induction records) against the contractor's record.
Set calendar reminders to chase expiring insurance certificates before they lapse.
Re-verify licences and insurance at least annually for ongoing contractors.
Record the name of the person who completed each verification and the date.

A well-maintained contractor register is the practical tool for managing all of this. It should be reviewed as part of your regular WHS management system audits.

Frequently asked questions

What insurance does a contractor need before starting work?

At a minimum, contractors should hold current public liability insurance (typically $10 million or $20 million cover) and workers compensation insurance for any employees they bring on site. If the contractor is a sole trader with no employees, workers compensation may not be required — confirm this in writing and check whether they hold personal accident insurance instead.

Do all contractors need a SWMS?

A SWMS is only legally required for high-risk construction work (HRCW) as defined under the WHS Regulations. However, many businesses request a SWMS or equivalent JSA from all contractors as a condition of engagement. Check your own WHS policy for your site requirements.

What is contractor prequalification?

Prequalification is a formal process where a business assesses a contractor's WHS capability before adding them to an approved supplier list. It involves verifying insurance, licences, WHS policies, and past safety performance. A contractor register is used to record and track this information.

Who is responsible for a contractor's safety on my site?

Under the WHS Act, a principal contractor has a duty of care to ensure the health and safety of contractors at the workplace, so far as is reasonably practicable. This duty exists alongside the contractor's own duties — it is not transferred to them. Completing this checklist before engagement is an important step in meeting that duty.

This checklist is provided for general information purposes only and does not constitute legal advice. WHS legislation varies between states and territories. Always verify current requirements with your state regulator and seek professional advice for your specific circumstances.

Need a system to manage contractor compliance records? Get started with Blue Safe Online.