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Podcast transcript

BoardRoom Radio interview

New OHS risks in procurement – if WHS laws passed. Podcast by Stuart Robertson, Thursday 24 November 2011 at 4:15 pm

BRR: We're joined by Stuart Robertson. He is a senior lawyer in the Commercial group at AGS and he joins us from Sydney. Stuart, a warm welcome.

SR: Thanks, Kate.

BRR: Well Stuart, with the new OH&S or work health safety laws due to commence on 1 January, our Commonwealth agencies should certainly by now be considering their obligations in terms of safety to workers. But really, today I would like to focus on what happens in terms of procuring goods and services. Are there any new work health and safety risks in these circumstances?

SR: Yeah, well there are, Kate. I guess, at this stage it is important to just consider that the new laws haven't yet been passed. Ah, so, really, we can only talk about the bill before Parliament at the moment and the various drafts, model regulations and codes of practice. But, under the legislation, there continues to be a duty to do what is reasonably practicable to ensure the health and safety of workers. But there has been an extension of what the concept of what a worker is under the bill – and this now includes anyone who does work for the agency. So in effect that could include agencies' contractors, as well as their employees. There is also a new duty on officers to exercise due diligence to ensure that their agency complies with its obligations and there is also specific up-stream duties on manufactures, designers, suppliers, importers and installers. So, an example of one of these duties is that they must give adequate information to each person who has supplied.

BRR: And Stuart, just in relation to the fact that the bill hasn’t actually been passed yet, is there a time limit for when it has to be passed if the new laws are to come in 1 January?

SR: At the moment it is scheduled to commence on 1 January – but it's really up to the Parliament at this stage to get the bill implemented in time for that deadline.

[which they did]

BRR: Okay, and so what are some of the important work health and safety issues for the Commonwealth to consider, assuming that the laws do go ahead on 1 January?

SR: Yeah, that is right. Well, it is really important to consider your WHS obligations throughout your procurement process – and this will be from your tender planning stage to the specification, selection, and also through to your contract, contract management and post-contract implementation. So there's a few important aspects for the agencies to focus on. And the first of those is really getting the specification right – and that is buying the right goods or services. So, for example, are they suitable for the purpose or the intended use? And, in identifying that, really are there any WHS risks which are inherent to those goods or services which are being procured? And also how are you going to best manage those? Another important aspect is obviously selecting the right contractor.

BRR: Hmm.

SR: What information will you need to determine if your contractor will meet your required WHS standards? So, for example, does your contractor have the relevant expertise, qualifications and licences? And also look at their WHS track record and methodology. So another 2 important points to consider when selecting contractors, or goods and services providers, are that the agencies are familiar with the codes of practice and any specific requirements that apply to procurement. And also clearly allocating the responsibilities under the contract, making it clear who is responsible for what.

BRR: Sounds like a good idea and, just finally Stuart, you did mention about the ongoing responsibilities when you do have a contact in place. I'd just like to focus on this and if you could run us through what ongoing issues or risks that agencies should consider in terms of the contract and contract management.

SR: Yeah that’s right. So after your contact's been signed it is really important that the contract management planning takes into account WHS responsibilities. So, for example, that'll be checking what has been delivered meets the specification, ensuring those up-stream duties that we spoke about, and also considering the relationship with the contractor and its employees from a WHS perspective. So, there is particular consultation, representation, and participation requirements in relation to workers and others with whom there are shared duties, so really how are these going to be managed?

BRR Well some really great tips there, Stuart. Thanks so much for joining me today on BRR.

SR: Thanks a lot, Kate.

BRR That was Stuart Robertson. He is a senior lawyer at AGS.