Dealing with the gatekeeper of Federal Government building work: The Federal Safety Commissioner

Dealing with the gatekeeper of Federal Government building work: The Federal Safety Commissioner

The Federal Safety Commissioner (FSC) administers an OH&S accreditation scheme (Scheme), which assesses accreditation applications by head contractors under the Construction Industry Improvement Act 2005 (Cth) (Act).  The Scheme, which is mandatory for head contractors tendering for Federal Government (Government) building work, requires head contractors to satisfy a 2 step audit process prior to achieving accreditation. 

Increasingly, head contractors are facing challenging times in obtaining accrediation. This is often a direct result of the particular approach taken by the Scheme’s auditors. This article will outline the requirements of these audits and examine how you can best prepare in order to maximise your chances of approval.

Background

Head contractors who fail to achieve accreditation under the Scheme, or who fail to maintain their accreditation, are prevented from entering into particular Government building contracts including directly Government funded contracts that exceed $3 million or more in value, and indirectly funded contracts where the Government’s contribution is at least $5 million (representing at least 50% of the total construction value) or $10 million or more (irrespective of the total construction value).  Initiatives that were announced and funded under the Government’s $42 billion Nation Building and Jobs Plan are excluded from the Scheme. 

In alliances and joint venture arrangements only the party carrying out ‘building work’ will require Scheme accreditation  However, if multiple alliance or joint venture partners are undertaking ‘building work’ then you will all require accreditation, irrespective of the monetary values of your proportion of the work. 

Head contractors applying for approval under the Scheme should adopt a systematic approach and ensure they address each audit criterion.  This requires the applicant to review all of its occupational health and safety procedures and address any deficiencies prior to making an application. 

Approval criterion

The FSC undertakes a 2 step audit process in determining eligibility under the Scheme.  The first step is a desktop audit, which involves a paper-based assessment of your documentary evidence for compliance with the audit criterion.  If you provide sufficient evidence to pass the desktop audit, then the FSC will conduct an onsite audit to confirm that the policies and procedures are actually implemented onsite.

On 21 July 2009, the FSC released its updated Audit Criteria Guidelines (Guidelines).  These Guidelines are particularly useful to applicants who are preparing for the desktop audit, as they specify the kinds of evidence that may be submitted to satisfy the audit criterion.  The Guidelines specify the following audit criterion:

• OHSMS audit criteria;
• Scheme audit criteria; and
• Hazard audit criteria. 

OHSMS audit criterion

In order to pass the desktop audit, your organisation must demonstrate that it has an occupational health and safety management system (OHSMS) which has been certified as compliant with Australian Standard 4801:2001 or international standard OHSAS 18001:1999.  This criterion is primarily concerned with an organisation’s high-level OH&S policies and procedures. 

In order to satisfy this requirement you should provide evidence of a comprehensive risk management procedure addressing hazard identification, risk assessment, control measures, implementation of control measures and monitoring and review.  You should also provide evidence that these procedures have been satisfactorily implemented, such as work instructions and work method statements, emergency action plans, inspection programs, reporting requirements and OH&S audit programs.

Scheme audit criterion

The Scheme Audit criterion, which is mandatory under the Regulations, requires:

a.  demonstrated senior management commitment to OH&S;

b.  demonstrated effective subcontractor OH&S management;

c.  integration of safe design principles into the risk management process;

d.  whole of project OH&S consultation and communication;

e.  whole of project OH&S performance measurement; and

f.   OH&S training requirements.

Senior management commitment

This criterion requires the allocation of a senior management position with overall OH&S responsibility, senior management endorsement of OH&S policies, a procedure for regular management site visits and a procedure for senior management monitoring, resolving and preventing of significant OH&S issues.  Essentially, you must ensure that senior management are informed of, and have a significant input in, the management of OH&S issues.

Integration of design issues

Where contracts that you undertake are for design and construction, then you must have a process for the conduct of risk assessments during the design phase of the project.  If you have no input during the design phase of projects, you must have a procedure to ensure that design related hazards are identified and managed prior to the commencement of construction.

Whole of project consultation

This requires effective policies for the communication and consultation with all workers onsite.  This should include a policy for the election, and appropriate training of, employee representatives and/or OH&S committees.  This also requires an effective procedure for exchanging information with relevant external parties, and the involvement of workers in developing safety procedures.

Management of subcontractor OH&S

This criterion requires head contractors to have a process in place to ensure that OH&S plans submitted by subcontractors are reviewed against defined criteria, as well as policies to ensure that subcontractors are properly inducted and involved in site inspections and audits.  Essentially, you must ensure that appropriate oversight is maintained over your subcontractors and their safety systems and that you do not delegate responsibility for the safety of your subcontractors.

Project performance management

You must have effective procedures for the reporting and recording of incidents and non-compliance, addressing incidents and non-compliance, measurement of safety data across the life of the project, and regular senior management review of performance reports.

Training arrangements

This criterion requires you to have effective training and competency procedures, procedures for the identification of training gaps upon promotion, the recording of training and the evaluation of the effectiveness of training.

Hazard audit criteria

The hazard audit criterion identifies 19 hazards that are commonplace in the construction industry, and requires you to provide appropriate evidence of your organisation’s response to relevant hazards.  The hazards include, for example, working at heights, demolition, asbestos, temporary support structures, confined spaces, excavation and mobile plant and equipment.  If any of these hazards are relevant to your workplace, it is essential that you provide documentary evidence that those hazards have been addressed.  In many cases, there will be specific Codes of Practice applying to the particular hazard, which must be complied with. 

Onsite audit

If you are successful in passing the desktop audit, the FSC will conduct an onsite audit. During the onsite audit the FSC inspector will conduct an inspection of the relevant site, a system review at the site office or head office location, and will speak to senior management representatives, site personnel and subcontractors.

In preparing for the onsite audit you should ensure that the audited sites will be operational on the scheduled inspection date/s, all system documents will be readily available onsite, onsite company staff will have a good understanding of the OHSMS, and senior management and all subcontractors will be available for discussions.

Conclusion

Anecdotally, it is clear that many businesses fail the auditing process on their first few attempts. Part of this results from very strict approaches being taken by some of the auditors to the information contractors are required to include in their documentation as well as evidence of the procedures themselves being implemented.

In order to best prepare for an FSC audit, it is helpful to undertake a process of self-audit, or in some cases, to obtain an independent external audit, to pre-empt any issues that may otherwise delay the accreditation process.