Subcontractors

Subcontractor prequalification checklist for builders

A subcontractor who turns up uninsured or unlicensed is the builder's problem as much as theirs. Prequalification catches it at the desk instead of at the gate.

Why prequalify

Under the WHS Act, every business with a duty for the same work must consult, cooperate and coordinate, and duties cannot be handed to someone else by contract. A builder who engages a subcontractor is expected to know that they can do the work safely.

Prequalification is the record that you checked. Done once and kept current, it also saves the subcontractor from filling in the same paperwork for every project.

The checklist

Before a subcontractor starts on site, check and keep:

  • an active ABN that matches the business you are contracting with
  • the trade or contractor licence the state requires for the work, such as an electrical or plumbing licence, or a QBCC licence in Queensland
  • a certificate of currency for public liability insurance, for the amount your subcontract requires
  • a current workers compensation policy with the state scheme, or a statement that they have no workers
  • contract works insurance, where the subcontract requires them to hold it
  • their WHS policy or safety management system, and the SWMS for any high risk construction work
  • White Cards, high risk work licences and trade licences for the workers they will send
  • registration and maintenance records for any plant they bring to site that must be registered
  • their incident history and any notices issued by a regulator

NSW subcontractor's statements

In New South Wales, a principal contractor can be liable for a subcontractor's unpaid workers compensation premiums, payroll tax and wages unless it holds a written subcontractor's statement covering the period of the work. Collect it with the certificates of currency, for every payment period.

Keeping it current

Insurances and licences expire part-way through projects. A prequalification that was true in February is not proof in October, so expiry dates matter as much as the documents.

In WHSComply, each subcontractor keeps its own ABN, trade, insurances and workers up to date through a free account. Certificate of currency expiry is tracked against the subcontractor, and a lapse is flagged before they are booked onto a site.

Questions

Frequently asked questions

What is a certificate of currency?+

A document from the insurer confirming that a policy is in force, with the insured, the cover, the amount and the period. It is the evidence to keep, rather than the policy schedule.

Do sole traders need workers compensation?+

Usually not for themselves, but they do if they employ anyone, and some states treat certain contractors as workers. Ask for a statement and check the rules of the state scheme.

Do subcontractors pay to use WHSComply?+

No. Subcontractors, their workers and visitors are never charged, so keeping their details current costs them nothing.

This guide is general information, not legal advice. Confirm current requirements with the WHS regulator in your state or territory, or your own adviser.

Keep reading

See how it works in solutions, compare pricing, or book a demo.

Find the gaps before an inspector does.

Thirty minutes, your projects, your subcontractors. Bring one SWMS and one subbie and we will set them up live.