This document summarizes a 5-part contractor safety series presented by Fefo Consulting. Part 1 focuses on selecting and engaging contractors and addresses challenges such as variability, communication, expertise, and time pressures. It suggests segmenting contractors based on risk and direction of control. When selecting contractors, the document recommends considering criteria like lessons learnt rather than just injury rates. It also provides examples of pre-qualification processes and agreement types that align with complexity and risk. The goal is to establish a legal relationship and define roles, obligations, and expectations to improve contractor safety.

1. Contractor Safety Series
Part 1 of 5: Selecting & Engaging Contractors
Mark Wright
Managing Director,
Fefo Consulting
1. Selecting & Engaging ✓ Today
2. Mobilising 23 March
3. Managing Contractors 30 March
4. Control Verification & Improvement 6 April
5. myosh Technology 13 April
Ben Kirkbride
Head of HSEQ,
Gamunda Engineering Australia

2. TEAM CLIENTS REACH OUTCOMES
About Us
✓ Statistically reliable >0.9
✓ Credible lead indicators benchmarks
✓ Integrated Health AND Safety
2
info@fefo.com.au | fefo.com.au

3. 1. Selecting & Engaging Contractors
1.1 Challenges
1.2 Segment: Differentiating contractors
1.3 Select: Tendering and evaluations
1.4 Engage: Pre-qualification, agreements
“Simple can be harder than complex…
You have to work hard to get your thinking clean to
make it simple. But it's worth it in the end because
once you get there, you can move mountains.”
Steve Jobs
3

4. Poll #1
4
Question:
Is it a legal requirement for a Principal Contractor to collect
subcontractor worker qualifications, e.g., construction white cards?
Options:
A. Yes
B. No
info@fefo.com.au | fefo.com.au

5. Contributing factors:
1. Variability
2. Communication from top layers
3. Expertise in work vs safety
4. Time pressures / cut corners
Proportion of fatalities who were contactors
in ASX 200
70%
Behind Subcontractor
Risk…
C. T. Vallu, Andrew Rae, Sidney Dekker
September 2020
The Future of Health
and Safety Reporting
A Framework for Companies
December 2019
Contractor Safety Challenges
5

6. 6
Desired State
Current State
1. Current vs
Desired Stated
2.Select &
Engage
3.Mobilise 4.Manage
5.Review, Learn
& Improve
2.Select
& Engage
3.Mobilise
4. Manage
5. Review, Learn
& Improve
1. Current Reality
Current Future

7. Types of Contractors
Contractor Type
Contracting Organisation
Influence & Control
Labour-hire ●
Permanent / Part-time short-term contract ●
Consultant ●
Independent contactor ●
Construction Principal Contractor ●
7
info@fefo.com.au | fefo.com.au

8. 03 01
04 02
High Risk & Low Direction
03
01 High Risk + High Direction
Role
&
Risk
Control & Influence
8
Low Risk + Low Direction
02
Low Risk + Low Direction
04
High Risk
Labour Hire
Low Risk
Consultant
Segmentation
Low Risk
Labour Hire
High Risk
Independent
Contractor
What are other examples of workplace WHS contract arrangements?
info@fefo.com.au | fefo.com.au

9. Selection: Tendering
1. Selection Criteria Tense Little Value Value Creation
Past *Injury Rates Contract outcomes, e.g. innovation and improvements
Past Prosecutions Lessons learnt
Current ISO Certification Methods to create great leaders & high performance
Future Nothing Potential value creation and innovations
Traditional Modern
9
info@fefo.com.au | fefo.com.au
*Injury Rates
• Used to track performance
• Often little value in comparing performance between different contractors
during contract tendering and contractor monitoring phases.

10. Engage: Pre-qualification risk-based approach
Role
&
Risk
Request/Provide Information
Prequalification Docs Low High
SWMS Binary Yes/No SWMS Quality Review
Review insurances Binary Yes/No Track Expiry
Training systems Binary Yes/No Verify systems*
Plant & equipment systems Binary Yes/No Verify systems*
Contracting Company
Activity
10
info@fefo.com.au | fefo.com.au
*Depending on your organisations risk appetite and nature of the work, you may decide to verify and retain records.
Also consider different requirements based on needs, e.g. organisations, locations, positions and individuals.

11. Engage: Agreement
Complexity
&
Risk
Contract Clause Details
• Verbal – Not recommended
• Email
• Purchase Order
• Short-form contract
• Long-form contract
Contract Terms & Conditions
Purchase
Order
Short Form
Contract
Long Form
Contract
Establish legal relationship
Define roles and separation of
WHS obligations
Set performance mgt expectations
Set performance reporting
expectations
Set incident management
expectations
Agreements
11
info@fefo.com.au | fefo.com.au

12. Poll #2
12
Question: Based on todays discussion, what was your most valuable learning?
Options:
1.1 Contractor challenges
1.2 Segmenting Contractors: Differentiating contractors
1.3 Selecting Contractors: Tendering and evaluations
1.4 Engaging Contractors: Pre-qualification, agreements
info@fefo.com.au | fefo.com.au

13. 13
Business Process
Outsourcing (BPO)
Contractor Requirements
Case Study
Demo Questions
Contractor Audits
Further Information
info@fefo.com.au | fefo.com.au
Download
Guide
‘6 Steps to Contractor Safety’, click on the download guide button here:

14. Subscribe
Email
Phone
Website
Contact Us
SAFETY & ENVIRONMENT
• Strategy
• Health & Safety Surveys
• Training & Leadership Development
• Management Systems
• Safety in Design
• Chain of Responsibility
• Event Safety
• Fefo Safety Products
HEALTH & WELLBEING
• P s y c h o s o c i a l R i s k
A s s e s s m e n t s
• S t r a t e g y
• Te a m / j o b d e s i g n
• S y s t e m s a n d p r o c e s s e s
• T r a i n i n g
• P s y c h o l o g i c a l i l l n e s s
i n v e s t i g a t i o n s
RISK & ASSURANCE
• Business Risk
• Due Diligence
• Critical Risk Control
• Contractor Management
• Investigations
• Audit & Assurance
info@fefo.com.au | fefo.com.au 14