Capital Development Guidelines

The contract specification documents are an important first stage in specifying health and safety requirements to Contractors tendering for works. By ensuring that health and safety requirements are clearly identified in specification documents, several key messages are conveyed. These are:

• OH&S is an important priority to the way of conducting business, including Contractors engagement.
• Contractors are required to demonstrate that they have an appropriate OH&S management system and to verify its implementation in practice.
• Contractors are required to comply with contract specific OH&S requirements.

Smaller Contractors typically have less formalised OH&S management systems, in comparison to larger contracting organisations. The Contractor management system should be sufficiently flexible to accommodate the different levels of OH&S system development. For major contracts Contractors are expected to demonstrate a higher level of development of their OH&S management system. For minor contracts Contractors are required to demonstrate appropriate health and safety competencies associated with performing the contract tasks.

Classification of Contract Works

The decision to classify a contract as major or minor will depend on a range of factors including:

• Level of risk associated with the contract.
• Duration of the contract.
• Complexity of the contract.
• Value of the contract.

Level of Risk

Contracts involving high-risk activities should be classified as major. High-risk activities include:

• Working in confined spaces.
• Working at heights.
• Demolition work.
• Working with hazardous goods or materials eg asbestos.
• Work involving significant danger to the public.

Level of Complexity

Where the project involves the use of subcontracted labour the contract should be classified as major. Requirements for suitable systems of selection and supervision also apply to subcontractors used on projects.

Duration of Contract

Contracts that extend beyond 2 years should be classified as major and Contractors required to have formalised OH&S management systems that reflect the type of work they are performing

Value of Contract

Contracts over $250,000 are generally considered as a major contract but other factors are to be considered as well as cost.

Contract Specification—Health & Safety Requirements

Incorporation of health and safety requirements into contract documentation should be considered as early as possible in the specification stage. Consultation should be undertaken with Department or Agency health and safety personnel, contract managers and other relevant personnel to ensure that relevant health and safety issues are identified and considered when preparing specification documentation.

Determining OH&S Requirements for Contract Specifications

Different approaches should be considered in relation to OH&S requirements for major and minor contracts. These are:

• Model OH&S Requirements
  Reference should be made to the OH&S Specification & Tender Document Requirements, of this document for Model OH&S Clauses for incorporation into major contracts. The clauses cover compliance, management systems, risk assessment, reporting, incident notification and non-compliance.
• Tenderer OH&S Management System Questionnaire
  Tenderer OH&S Management System Questionnaire is to be incorporated with tender documents. The questionnaire is to be completed by Tenderers and submitted as part of their tender to enable evaluation of their health and safety competency.
• Risk Assessment
  The Risk Assessment form should be incorporated with specification documents to enable Tenderers to consider requirements in completing the risk assessment if awarded the contract. Completed Risk Assessments should be reviewed prior to commencement of the contract.
• Health and Safety Plan
  Completed Health and Safety Plans should be reviewed prior to commencement of the contract.

Specification Elements

In general terms, the contract specification should incorporate the following contract health and safety requirements:

• Comply with health and safety legislative requirements
• Demonstrate evidence of an OH&S management system
• Complete the Tenderer OH&S Management System Questionnaire
• Undertake and document a Risk Assessment
• Develop a Health and Safety Plan
• OH&S performance reporting
• OH&S incident reporting
• Establish a recording and action system for non-compliance.