How to enhance controls when hiring maintenance contractors

Maintenance contractors are generally hired to provide services anywhere from security and cleaning to fire protection equipment maintenance, to plumbing and electrical equipment repairs.

The management of these service providers can affect the risk of damage to the building or injury to the occupants, because of the works undertaken. If the building is damaged or someone is injured, the management procedures that are in place can have a significant impact on the ability of the building owners/managers to recover the costs associated with an incident from the contractor or their insurers.

Risk of liability

Building maintenance and repair activities have the potential, if undertaken or managed poorly, to cause damage to the building or injury to the building occupants. Contractors may also be injured during their work at a site. If that injury is the result of deficiency at the site, then the building owners and managers may be held responsible and liable for the costs associated with that injury.

The building and equipment damage or the injury resulting from maintenance or repair work can be significant. For this reason, it is important that good operating procedures are in place, so that:

• Work is controlled, to minimise the risk of damage or injury.
• The people undertaking the work are competent to do so.
• They are familiar with the safety requirements at the site.

Considerations when hiring maintenance contractors  

1. Site induction procedures

A process should be established to ensure that anyone working at the site is familiar with the emergency procedures for the building. This includes procedures relating to the safety of work at the site and ensuring that inconvenience/interruption to residents is minimised. Site induction procedures can involve a combination of written instructions, verbal briefings and/or site walkarounds and video presentations. Before commencing work, the contractor should sign a written acknowledgment stating they understand the requirements. 

2. Sign in/out process

Contractors should be required to sign in and out from the site. This allows building management to identify which contractors are currently in the building, so they can be accounted for in an emergency or in the event the building needs to be evacuated. A sign in/out process can also serve as a written acknowledgement of the rules for work at a site. 

3. Evidence of liability insurance cover

The costs of damage or injury associated with an incident during work at a building may fall on the building owners/managers, unless these costs can be recovered from a contractor who is responsible for the incident. Many contractors providing building services are small businesses with limited financial resources and would not be able to cover the costs associated with a major loss from their own resources. In addition, the only way to recover costs from an uninsured contractor may well be to initiate costly and time-consuming legal action. For this reason, it is important to ensure that all contractors who work at the site have adequate liability insurance cover.  

No contractor should be permitted to start work at a building without having provided evidence (certificate of currency) of adequate liability insurance cover.  Contractor’s insurance certificates should be kept on file and a regular review process should be established to ensure that certificates are updated when they expire.

4. A contractor’s responsibility 

It should not be assumed that an injury to a contractor’s employee, which occurs at your site, will be covered by the contractor’s workers’ compensation insurance. Where the workers’ compensation insurer has identified a deficiency at the premises where the contractor was working, they may seek to recover the costs associated with the injury from the liability insurer for the building owner or manager.  Contractors should be able  to analyse, identify and manage the risk associated with the work they undertake. Contractors should also be required to provide the appropriate safety equipment and personal protective equipment for work on-site.

5. Importance of written contracts

If work undertaken by the contractor is based only on verbal agreement, then the recovery of costs from that contractor (in the event of damage or injury) will likely be more difficult. All work at a building should be based on a written agreement or contract, which should state the requirements related. Specific requirements may include the development of formal work method statements, job safety analysis, statements of work, etc. Contracts should also cover a contractors’ obligations in identifying and reporting hazards or unsafe conditions and should require the contractor to comply with the requirements of the relevant Occupational/Work Health and Safety Acts and hold the relevant licences for maintenance activities.

6. Hot work permits and fire impairment procedures 

Many instances of damage to buildings result from poorly controlled hot work, such as welding or as a result of fire protection systems which have been isolated during the works and do not operate correctly in a fire situation.  For this reason, procedures for the management of hot work and fire protection system isolations/impairments should be in place at the site, with contractors being required to adhere to these procedures (refer to Chubb’s ‘Resources’  found below).

7. Rooftop controls

Rooftops and other elevated areas can be a serious injury hazard due to the possibility of falling from a height. Access to exposed roofs and other elevated spaces should be restricted and carefully controlled. Adequate fall arrest fittings and equipment should be provided and contractors working in the area should be advised of the hazard and of the availability of safety fittings.

8. Limit access to work areas

Maintenance, repair or testing works can create a lot of disruption and can impact on the safety of occupants and visitors to the site. Typical building works can create a large amount of dust, may involve welding or oxy-acetylene work, or may result in trip hazards such as slippery floors in the work area. Contractors should be required to properly separate the work area from areas accessible to the building occupants with a barrier and/or warning sign.

9. Have an approved suppliers list

An approved suppliers list can help manage contractors by shortlisting those who have already been verified as meeting the site requirements. In addition, appropriate contractor management procedures can help to mitigate the risk of incurring costs and liability when hiring maintenance contractors. 

References

https://www.fairwork.gov.au/find-help-for/independent-contractors#difference-between-contractors-and-employees

https://www.fairtrading.nsw.gov.au/housing-and-property/renting/during-a-tenancy/health,-safety-and-security

https://www.consumer.vic.gov.au/housing/owners-corporations/property-maintenance/maintenance-plan

https://www.qld.gov.au/law/housing-and-neighbours/body-corporate/maintenance/responsibilities

https://www.nsw.gov.au/housing-and-construction/strata/living/repairs-and-maintenance