The presence of contractors at a place of work can present a range of potential risks, from the hazards that already exist to the creation of risks to themselves and others.
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Managing Contractors
To compound the problem, anomalies exist between the Approved Code of Practice to the Construction (Design and Management) Regulations 2007 (CDM 2007) which states that clients do not have to visit a site to supervise or check the construction work standards.
In this article, we highlight the legal principles for managing contractors and offer a best practice, categorised approach to the fundamental aspects of managing contractors within your business.
Who and what are Contractors?
For clarity, contractor personnel who are merely visiting your premises for meetings are deemed to be visitors, not contractors. Employers need to be aware of and understand the differences between ‘labour only’ and ‘bona fide’ Sub-contractors.
The term ‘contractor’ is not restricted to building contractors. In its wider sense it includes any individual or company who enters premises to fulfil a contractual obligation agreed with the business occupying the premises, the property owner or their managing agent.
Legal duties
- Their general duties extend to providing adequate information, instruction, training and supervision (Section 2)
- Their activities do not endanger persons not in their employment
- Information is given concerning potential health and safety hazards (Section 3)
Section 4 places duties on occupiers and/ or owners of premises to ensure that:
- The premises, plant and substances contained in them are safe and without risks to health, and
- Where a contractor has operational control over part of a site, then there is a duty to ensure that as far as is reasonably practicable that area and any access are managed safely and without risk to health.
- Any person who designs, manufactures, imports or supplies any article for use at work shall ensure, so far as is reasonably practicable, that it will be safe and without risk to health when it is being set, used, cleaned or maintained by a person at work (Section 6).
Clients and Contractors also have legal responsibilities under health and safety regulations dealing with special hazards including:
Whilst the legislation can seem overwhelming, the HSE provides the following guidance (see HSG159)
Planning and Communication
For higher risk operations such as demolition or work at height, the contractor should be asked to prepare and adhere to a method statement. This must demonstrate that all tasks have been fully considered and a detailed step by step documented approach has been recorded to manage those risks. A method statement should be produced prior to commencement of any works and should include as a minimum:-
- Location of the task and who is affected by it eg (neighbours, tenants etc)
- How will the work area be protected and access be controlled
- Will additional hazards be introduced as part of the process
- Additional emergency procedures required in light of these activities
- A supply chain management process should be established from which an approved contractor and supplier list can be prepared, monitored and reviewed regularly by those involved in selecting, appointing and managing contractors
- Examine contractor arrangements for health and safety, insurance and employee training before contracts are placed
- Appoint a project manager to manage each stage of the process and to liaise with Contractors • Establish pre-contract stage communication links with your management and Contractors’ staff
- Prior to Contractors coming on site, make them aware of your health and safety policy via formal site induction including access control procedures, fire drills and emergency arrangements, accident reporting requirements, shared facilities, authorisations for operating plant and welfare and first aid facilities.
Selection of Contractors
Not all employers and public liability insurance policies are the same and limits of indemnity can vary substantially. When validating a contractor’s insurance cover, ensure it is current for the period of time work is to be undertaken and that levels of indemnity are sufficient. If you are unsure seek advice from your insurance broker.
Many organisations have a policy of only using Contractors from an “Approved List” of firms whose capability, quality of work and health and safety performance are already known. Such lists should be the subject of regular review and appraisal.
The following list can be used as an ‘aide memoir’ when considering appointing a contractor.
- Refer to local authorities, trade bodies, etc, for recommendations
- Always obtain copies of insurance certificates and validate the adequacy of cover of both Employers and Public Liability policies
- Seek references and information on their health and safety performance
- Validate their competency for the task to be undertaken and to manage health and safety
- Look for evidence of personnel being trained in health and safety management, such as an accredited IOSH qualification, Construction Skills Certification Scheme (CSCS) and trade qualifications
- Provide your contractor with sufficient information to undertake the contract safely
Managing Contractors on Site
Ensure you are advised in writing by the contractor and before any work commences, of any plans the contractor has to use sub-contractors and that there is the same considerations to those of the principal contractor.
An appointed individual within your management team should liaise with Contractors daily and communicate any information or actions to those who may be affected by the day’s undertakings. Similarly, a member of the contractor’s staff must be identified as responsible for supervising their work. Any concerns over their supervisory competency or effectiveness must be addressed immediately.
For larger and more complex projects the points below give general guidance as to key areas of focus for managing Contractors safely on your sites.
- Contractors’ employees and vehicles should be logged in and out of site
- Carry out site induction training for all contractor employees
- Include Contractors operations in safety audits and inspections, paying special attention to access and egress
- Inform your employees, tenants and residents where Contractors are working in their particular area, identifying any overlaps which may adversely affect health and safety
- Contractors’ employees should be trained to recognise site dangers. Misuse of your equipment or facilities should never be allowed and hazardous substances used safely
- Where providing any plant or equipment, including as personal protective equipment (PPE) ensure this is suitable and safe
- Consider controlling high risk contractor activities using a permit to work system.
Training
- Co-operate with other employers
- Take reasonable steps to co-ordinate between other employers to comply with legal requirements
- Take reasonable steps to inform other employers where there are risks to health and safety.
Monitoring Contractors and maintaining control
- All accidents, incidences of ill health, hazards, near miss and adverse conditions are promptly reported, recorded and investigated adhering to the host company’s internal procedures. Controls should be implemented to prevent a recurrence
- Occupiers should monitor sites for incidents, including traffic accidents involving Contractors and Sub-contractors. Likewise, Contractors should be aware of their responsibilities to report accidents to the site occupier
- Routine inspections are jointly undertaken by occupiers and Contractors as work progresses
- There is periodic inspection and audit of the contractor management processes
Contractor Appraisal
Conclusions
For minor works and smaller projects a common sense approach should be adopted, applying the principles of good management outlined above and ensuring for all tasks that a safe system of work is adopted by the contractor, whilst ensuring that adequate insurance provision is in place to deal with any mishaps.
QBE believe there are significant financial and reputational benefits for those organisations whose management of Contractors is a priority and a key performance indicator driven by senior management.
Originally posted by QBE Insurance
This guide is for information purposes and based on sources we believe are reliable, the general risk management and insurance information is not intended to be taken as advice with respect to any individual circumstance and cannot be relied upon as such.