Contractor OHS

Assessment Tool

A helpful guide to assist in assessing

a contractor’s OHS performance
before engaging them for work
on your mine site
Acknowledgements Disclaimer
This publication was commissioned by the NSW Mine Safety The compilation of information contained in this document relies
Advisory Council as a result of the NSW Mining Industry Health upon material and data derived from a number of third party
and Safety Action Plan to 2008. The NSW Mine Safety Advisory sources and is intended as a guide only in devising risk and safety
Council would like to acknowledge Graham Terrey of Mine Resilience management systems for the working of mines and is not designed
(Australia) Pty Ltd for drafting this Contractor OHS Assessment Tool. to replace or be used instead of an appropriately designed safety
management plan for each individual mine. Users should rely
NSW Mine Safety Advisory Council on their own advice, skills and experience in applying risk and
safety management systems in individual workplaces. Use of this
The NSW Mine Safety Advisory Council was established in 1998
document does not relieve the user (or a person on whose behalf
following recommendations made in the Mine Safety Review and
it is used) of any obligation or duty that might arise under any
Gretley Inquiry. The Council was strengthened in 2006 through:
legislation (including the Occupational Health & Safety Act 2000,
the setting up of a secretariat within the existing structure of the
any other Act containing requirements relating to mine safety and
NSW DPI; the appointment of two independent experts in OHS; and
any regulations and rules under those Acts) covering the activities to
making resources available, when appropriate through the NSW DPI,
which this document has been or is to be applied. The information in
on the Council’s recommendation to explore issues and commission
this document is provided voluntarily and for information purposes
research. The Council includes senior officials from some of the
only. The New South Wales Government does not guarantee that
most respected bodies in the mining industry including the CFMEU
the information is complete, current or correct and accepts no
(Mining and Energy Division), Australian Workers Union, NSW
responsibility for unsuitable or inaccurate material that may be
Minerals Council and Cement Concrete and Aggregates Australia.
encountered.
Two independent experts in occupational health and safety are also
part of the Council. Mr Norman Jennings was appointed Chairman Unless otherwise stated, the authorised version of all reports, guides,
of the Council in 2006. The Council was established to provide the data and other information should be sourced from official printed
Minister with advice on critical OHS issues to the NSW Government. versions of the agency directly. Neither the Department of Primary
The Minister brings these matters to the Council for its consideration, Industries, the New South Wales Government, nor any employee
requesting its advice on appropriate ways forward in the continual or agent of the Department, nor any author of or contributor to this
drive to foster improved OHS performance in the industry. The NSW document produced by the Department shall be responsible or liable
Government’s vision is for the Council to operate in an environment for any loss, damage, personal injury or death howsoever caused.
of trust and co-operation to address these issues and for all Users should always verify historical material by making and relying
stakeholders to demonstrate a willingness to support the work of the upon their own separate inquiries prior to making any important
Council and move forward on matters of importance as one group. decisions or taking any action on the basis of this information.

NSW Mining Industry Health and Safety

Action Plan to 2008 Contractor OHS Assessment Tool (June 2008, version 1.0)
The NSW Workplace Health and Safety Summit was held in Orange © NSW Department of Primary Industries for and on behalf of The
on 25-26 August 2005. A workshop at the summit involved State of NSW - 2008
representatives from the NSW mining industry. An industry group
was established for mining and utilities to identify priority areas
and agree on steps to address these priority areas. A number of
recommendations were agreed to by participants at the summit.
Assessing a contractor’s OHS performance
All organisations must implement safe systems of work
Every mine, quarry and extractive industry site must have a formalised system to manage the risks they face. A contractor is expected to have
the same. All people working on a mine site have occupational health and safety (OHS) responsibilities. Sites have a responsibility to ensure
that a contractor’s system complements the site’s OHS system. Sites may need to help contractors establish, implement and maintain their
OHS systems.
The Contractor OHS Assessment Tool has been developed to help evaluate a system for managing risks and uses topical issues. It is compatible
with Australian Standards AS 4801 and AS 4804 - OHS management systems and techniques used by regulators and the Australian mining
industry.

Using the Contractor OHS Assessment Tool

The first step for the principal of the contract is to determine the risk level of the contract - high, medium or low. This information must be
made available to potential contractors.
Use the chart inside (pages 4/5) for each contractor being evaluated. Look at their ‘system’, talk to them, ask questions of other sites where the
contractor has worked and think about each box in the chart. The order in which you look at each box is not important, and it is sometimes
easier to look at those boxes nearer the centre of the chart and work outwards. This is because the boxes nearer the centre reflect the more
tangible or visible actions. You will see that the sum of the first column reflects ‘policies’, while the second column reflects ‘plans’ and so on.
Under each box is a score. Circle the score that reflects your impression of the status of the contractor’s system - from 0 (meaning that nothing
apparently exists) through to 5 (meaning the contractor has an advanced system). An advanced system is one that supports excellent
performance that is continually being improved. Scores may be made on first impressions, to be refined on closer examination. They are not
scientific - they are subjective, to be used wisely, identifying areas for closer examination or, ultimately, closer supervision during the course of
the contract.

Score the contractor’s system

Subtotal the scores in each column to get a score out of 20. Then add each score across the bottom row to get a score out of 100. This score
will help prioritise competitive contractors.
The tool has provision for a summary following your evaluation of the contractor’s OHS system. The score will help you reflect on a contractor’s
capability in light of your ranking of the risks involved. The higher the risk involved, the higher the score will need to be.

Identify areas requiring further development

Use the form on page 8 to list those areas identified for further improvement. This form is to support consultation and communication
between sites and contractors. It might also identify an area in which the contractor may need additional support and supervision.

PA G E 1
 Contractor OHS Assessment Tool flowchart

PRINCIPAL DETERMINES RISK

( Low / Medium / High )

IS THE CONTRACTOR PRE-QUALIFIED?

Yes / No

IS THE CONTRACTOR COMPETENT DOES THE CONTRACTOR

AND CURRENT? SATISFY ALL THE
Yes / No FOLLOWING CRITERIA?

1. Possesses an OHSMS
(L/M/H) including:
- Hazard management
- Competence
- Induction?
Use the ‘Contractor OHS Systems
Criteria’ chart to score the
contractor’s OHSMS. Minimum
assessment scores are:
- Low-risk contract: min 50%
- Medium-risk contract: min 60%
- High-risk contract: min 80%

2. Has insurances (WC, PL)?

3. Referees checked?

No:
(Suggest improvement and
request resubmission)
Yes

PRINCIPAL FREE TO SELECT CONTRACTOR

PA G E 2
Using this tool to assess a contractor’s
OHS performance
STEP 1 Principal of the contract determines risk
Sites must conduct a due diligence exercise prior to engaging a contractor, in the same way that a site is responsible when
employing anyone. This due diligence can be described as asking the right questions of the right people / resources and being
satisfied. A structured assessment of a potential contractor’s OHS performance can fulfil this obligation.
Avoid any temptation to dodge paperwork. In the preparation phase of contract work, a risk assessment for the tasks involved must
be conducted. Some sources for external support in doing this are listed on page 7 of this publication. Hazards may exist for people,
equipment, production and the environment. You need to list ‘reasonable’ hazards and consequences for ‘realistic’ scenarios - being
neither too pessimistic nor optimistic. Identification of particular hazards and giving them a risk ranking will encourage open
dialogue with contractors. Most contractors will have an existing generic risk assessment and safe work method statement, but site
information is vital for them to make these generic documents site-specific.
This will lead to specific requirements for a task. Some requirements will be mandatory, such as tickets for handling or using
explosives or following site rules, while others may be determined in consultation with a contractor (such as which ‘standards’ will be
followed).

STEP 2 Check whether a contractor is already on a ‘preferred contractor’ list

If a contractor has already been assessed and is on a preferred contractor list and is both competent and current and able to carry
out the contract, the site is free to select them and commence the pre-job phase, which starts with providing them with information
about risks and suitable and/or required controls.
Once this part has been done, you can check whether a contractor is already known to the site. It may be necessary to check their
competency and currency, depending on when they were last on-site, or when checks of their competency and insurances were last
made - in light of any legislative or organisational changes in the meantime.

STEP 3 Inform potential contractors of the hazards involved in the contract

The operator’s duty of care must be shown, among other things, by informing the contractor of risks. Even if the site has no
experience in a task - such as blasting, and the task is for an experienced blasting contractor to do some of this work - the site will
have knowledge of some things that are essential for the contractor’s consideration. There may be local features, such as an adjacent
picnic spot that might be an important consideration for flyrock risk, noise restrictions and so on.

STEP 4 Evaluate potential contractor’s OHS performance

If you haven’t assessed contractor performance then the site should conduct a check of the contractor’s OHS management system
- using the information and tools in this publication - their personnel, equipment and materials and processes/procedures. This
tool is useful in rating a contractor’s capability against the level of risk involved in the contract - the higher the risk the higher their
capability must be. This document assists contractor managers to assess potential contractors’ capabilities to fulfil the contract safely.
The following checks should also be made:
1. The contractor’s insurance arrangements.
2. Other sites where the contractor has worked.

STEP 5 Competing contractors can now be compared on value for money and health and safety

PA G E 3
Contractor assessment conducted by: Scoring/rating system:
0 = absent 1 = barely started, little 2 = beginning to take shape but 3 = evolving well, adequate 4 = good standard of content, 5 = advanced, experienced,
Review by: Date: Contractor: experience not tested process and performance excellent

Note: the criteria suggested below is seen as a high scoring/rating, eg 5

AIM, INTENT, POLICY, OBJECTIVES PLAN, APPROACH IMPLEMENTATION, ACTION, DEPLOYMENT MONITORING, RESULTS ONGOING IMPROVEMENT
EVOLVING SYSTEMS
(Are there clear and shared objectives for safety (Is there a plan to achieve those objectives and is it easy (Are people doing what is expected by them and when it should be (How do you check that the plan is being followed and if it needs (What is the mechanism for deciding what went well and
MATURITY
and health?) to communicate?) done?) adjustment?) what needs to be improved for next time?)

The managed working • A clear intention to improve safety and health exists. • Hazards are identified and a suitable hazard reporting approach • Workplace inspections are carried out in accordance with a plan and in response to • Hazard reports are reviewed and closed out properly. • Communication and consultation are seen as vital ingredients in
environment (both the • Proactive, as well as reactive risk management, is is designed. hazard reports. • Audits are conducted for improvement. achieving the planned objectives.
intended. • Risks are assessed and controlled by proper processes. • Health surveillance and welfare programs are implemented -with support from all • Health monitoring is reviewed. • A process of ‘change management’ is agreed and implemented.
physical and cultural – people.
• A ‘no-blame reporting culture’ is evolving. • Controls are adequately communicated in two directions to • ‘Culture’ checks are occasionally made by a proper process. • Feedback mechanisms are open, and hazard reporting is properly
taking into account the • Health and safety are given full commitment with action develop a good understanding of monitoring and responses. • Safety and health programs have a resource commitment commensurate with risk. • Disciplinary action recorded. rewarded.
geology/geography/ as well as words. • Welfare programs are designed in consultation. • Contract managers are trained and appointed. • Hazard ‘causes’ are identified in an open manner.
organisational and • Formalised arrangements exist for consultation and • An annual safety and health improvement plan is developed • Accountabilities are accepted and respected for contract work supervision.
personnel commitment) communication. based on fact. • Site access controls observed.

0|1|2|3|4|5 0|1|2|3|4|5 0|1|2|3|4|5 0|1|2|3|4|5 0|1|2|3|4|5

Equipment and materials • E&M are properly selected in view of an overall risk • Standards for E&M are determined with involvement of • E&M are properly introduced into work, commensurate with the level of risk. • Prestart checks and servicing records are reviewed. • Review teams revise E&M selection and standards to reduce risk.
(E&M) management approach. relevant people to control all risks. • New E&M is checked on arrival at site. • E&M defects, modifications and innovations are recorded and reviewed. • Liaison with original equipment and material manufacturers
• E&M are fit-for-purpose, user-friendly, and suitably • Purchasing specifications are set out and checks of E&M on • Planned maintenance is carried out in addition to breakdown maintenance. • Availability of equipment is tracked. (to optimise uptake of innovations, modifications and standards
maintained. arrival on-site are documented. • Reviews of materials used on-site are conducted. • Reviews of materials identify risk concerns, relative to reduction of risk. improvements).
• Service and stock review schedules are laid down for items of • Revision of functional use specifications.
E&M.
• Registers of and access to material safety data sheets.

0|1|2|3|4|5 0|1|2|3|4|5 0|1|2|3|4|5 0|1|2|3|4|5 0|1|2|3|4|5

People (including • People are competent and committed to the OHS aims. • People are recruited to address key risks in the working • People (including subcontractors) are appropriately inducted to work at sites. • Injuries, incidents and investigation reports are reviewed (including for • Consultation and communication mechanisms review reports to
contractors and sub- • People are trained in their tasks. environment, E&M and processes. • Inductions pitched at level commensurate with risks. near hits/misses). determine improvement action.
• People are organised and supervised, and good • Everyone’s skills and knowledge are assessed and developed. • Tasks are allocated according to competence and capacity. • Reviews of (including currency of) licences, ‘tickets’, competency • Open disclosure of injuries and incidents together with related safety
contractors) assessments and course evaluation. and health improvements done as a consequence.
communication is fostered. • Subcontractor management carried out. • Supervisors implement system requirements.
• Toolbox talks conducted regularly and (especially, vital actions agreed) are recorded. • Personnel development (including but not limited to training) is
• Task observation provides good feedback. ongoing and is based on monitoring/results in a range of areas.

0|1|2|3|4|5 0|1|2|3|4|5 0|1|2|3|4|5 0|1|2|3|4|5 0|1|2|3|4|5

Processes (and procedures) • Work is planned, tasks are described and communicated • Energy isolation procedures in place. • JSAs (or equivalent) used, recorded and revisited by others. • Toolbox talk feedback helps review work and procedures. • Consultation and communication mechanisms (especially safety
effectively. • People aware of roles and responsibilities. • Work permits for high-risk tasks, and ‘clearances’ given for specific tasks. • Due diligence seeks out concerns. meetings involving both principal and contractor) help review
• Processes retain ‘corporate memory’. • Emergency response plans anticipate dangerous situations and • Emergency response actions are implemented and trialled. • Tests and reviews conducted, especially in support of emergency response processes and procedures and keep them up to date.
plan suitable responses. plans.
• Procedures are documented, readily available and effectively • Reporting (including statutory reporting and non-conformance reporting)
communicated. is timely, informative and aimed at on-going improvement.
• Documents are ‘controlled’ effectively.

0|1|2|3|4|5 0|1|2|3|4|5 0|1|2|3|4|5 0|1|2|3|4|5 0|1|2|3|4|5

/ 20 Subtotal / 20 Subtotal / 20 Subtotal / 20 Subtotal / 20 Subtotal

Critical areas for

improvement from above

Note: For any critical areas of improvement - identify the areas on this page and then complete the form on page 8 Score total / 100 Total
(even where item may have scored 0 to reach score out of 100)

PA G E 4 PA G E 5
 contract DETAILS, RISK ASSESSMENT AND CONTRACTOR EVALUATION

Site contract number or reference: Site / location:

Description of work:
Contractor’s name:
Contractor’s phone: Fax:
Contractor’s mobile: Email:
Main work location:

SITE IDENTIFICATION OF HAZARDS AND CONTROLS (FOR GUIDANCE OF CONTRACTOR)

HAZARD EXISTS (Y / N) RISK (H/M/L) COMMENTS

Electrical
Mechanical
Chemical, dusts
Pressure
Radiation
Thermal
Work-related musculoskeletal
Noise, vibration
Biological
Gravitational

REVIEW SPECIFIC REQUIREMENTS

(with reference to Legislation, Standards, Codes of Practice, guidance, policies, procedures, work permits/authorisations, competencies, etc)

CHECK OF ‘PREFERRED CONTRACTOR’ LIST, OR POTENTIAL CONTRACTOR DETAIL

Name of contractor Existing ‘preferred contractor’? Y / N Competent and current Y / N / Comment

EXISTS, CURRENT AND

INSURANCES COMMENTS
SUFFICIENT ( Y / N / NA)
Workers’ Compensation
Public liability
Other (eg professional liability, etc)

CHECK OF CONTRACTOR’S OHS MANAGEMENT SYSTEM

OHS system Score (0 – 20) Comments (are there particular areas you will need to pay special attention to, even if improvements have been
elements made? If so, what, how, when, who?)
Aim/Intent / 20
Planning / 20
Implementation / 20
Monitoring / 20
Improvement / 20
Total / 100 Is this contract work a low, medium or high risk task? L/M/H

Does the contractor pass the suggested level of 50%, 60%, or 80% for a low, medium or high risk task respectively Yes / No

Contract / contractor assessment review conducted by:

Date: Reviewed by and date:

PA G E 6
Useful resources
The following website links feature useful resources for risk assessments and contractor management:

NSW Department of Primary Industries Mine Safety website (eg MDG 1010 Risk Management Handbook, MDG
1014 Guideline to reviewing a risk assessment of mine equipment and operations, etc)
www.dpi.nsw.gov.au/minerals/safety/publications/mdg

Minerals Industry Safety and Health Centre website (National Minerals Industry Safety and Health Risk
Assessment Guideline)
http://nmishrag.mishc.uq.edu.au/NMISHRAG_Contents.asp

NSW WorkCover website (eg the Subby Pack – OHS Contractor Management Tool)
www.workcover.nsw.gov.au/Publications/OHS/SafetyGuides/default.htm

NSW Minerals Council website (eg Contractor Safety Guidelines)

www.nswmin.com.au/news,_reports,_submissions/publications

South Australian Mines and Quarries Occupational Health and Safety Committee (eg Contractor Guidelines)
www.maqohsc.sa.gov.au/ohs_guides.cfm

PA G E 7
FEEDBACK FORM F0R CONTRACTOR

Principal to complete and discuss with contractor

CRITICAL AREAS FOR
ACCOUNTABILITY (WHO HAS
IMPROVEMENT OR ISSUES AND CONCERNS TRIGGERS RESPONSE
TO DO WHAT BY WHEN?)
UNRESOLVED CONCERNS

PA G E 8
 NSW DPI CONTACTS
Telephone 02 4931 6666
Website www.dpi.nsw.gov.au/minesafety
Email [email protected]

Maitland Cobar Singleton

NSW Department of Primary Industries Government Offices, 62–64 Marshall Street, Coal Services Building,
Mineral Resources Cobar NSW 2835 1 Civic Avenue, Singleton NSW 2330
516 High Street, Maitland NSW 2320 (PO Box 157 Cobar NSW 2835) (PO Box 51 Singleton NSW 2330)
(PO Box 344, Hunter Region MC NSW 2310) Phone: (02) 6836 6000, Fax: (02) 6836 4395 Phone: (02) 6571 8788, Fax: (02) 6572 1201
Phone: (02) 4931 6666, Fax: (02) 4931 6790
Lightning Ridge Thornton
Armidale Miners Association Building 8 Hartley Drive Thornton NSW 2322
NSW Department of Primary Industries, Lot 60 Morilla Street, Lightning Ridge NSW 2834 (PO Box 343 Hunter Region Mail Centre
Earth Sciences Building (C2) (PO Box 314 Lightning Ridge NSW 2834) NSW 2310)
Ring Road North Phone: (02) 6829 9200, Fax: (02) 6829 0825 Phone: (02) 4924 4000, Fax: (02) 4924 4080
University of New England, Armidale NSW
2351(PO Box U86 UNE Armidale NSW 2351 Lithgow Wollongong
Phone: (02) 6738 8500, Fax: (02) 6772 8664
Hartley Building State Government Offices
Suite 1, Level 1, 184 Mort Street, Level 3, Block F, 84 Crown Street,
Broken Hill Lithgow NSW 2790 Wollongong NSW 2500
Level 2, 32 Sulphide Street, (PO Box 69 Lithgow NSW 2790) (PO Box 674 Wollongong NSW 2500)
Broken Hill NSW 2880 Phone: (02) 6350 7888, Fax: (02) 6352 3876 Phone: (02) 4222 8333, Fax: (02) 4226 3851
(Note changed PO Box number)
(PO Box 696 Broken Hill NSW 2880) Orange
Phone: (08) 8088 9300, Fax: (08) 8087 8005
161 Kite Street, Orange 2800
(Locked Bag 21, Orange NSW 2800)
Phone: (02) 6360 5333, Fax: (02) 6360 5363
After hours – emergency only – (02) 6360 5343