When engaging a principal contractor for construction work valued at $250,000 or more, it's important for the person conducting a business or undertaking (PCBU) commissioning the work (often referred to as the client) to be aware of the default status as the principal contractor. However, the client has the flexibility to appoint another PCBU as the principal contractor by granting them management or control authority over the workplace where the construction work will occur.
It is advisable to document and have relevant parties sign any authorization or appointment pertaining to the principal contractor to ensure clear delineation of roles.
The Work Health and Safety Regulation 2011 (WHS Regulation) defines a construction project as any project involving construction work with a cost of $250,000 or more. Principal contractor duties encompass aspects such as displaying signage, preparing the work health and safety (WHS) management plan, informing all individuals of the plan before they commence, and obtaining a safe work method statement (SWMS) before commencing high-risk construction work. Other duties include managing risks associated with construction materials, waste, plant, traffic, and essential services.
For construction projects valued at $250,000 or more, each project must have a designated principal contractor with specific WHS Regulation duties. Construction projects cover all activities related to the construction work, with the cost determined by the contract price, including project management costs, fittings and furnishings, and applicable taxes or charges.
For construction work valued at less than $250,000, a PCBU can engage a contractor, and it does not qualify as a construction project under section 292 of the WHS Regulation. However, a Principal Contractor cannot be appointed in such cases. The PCBU can authorize a contractor to have management or control of a construction workplace, considering what is reasonably practicable.
Notably, there is no requirement to notify Workplace Health and Safety Queensland of principal contractor appointments. Notification is still mandatory for QLeave, the portable long service leave authority.
A construction project is allowed only one principal contractor at any given time, as stated in Section 293 of the WHS Regulation. When commissioning multiple construction projects with different principal contractors, clear definition and separation of workplaces associated with each project are essential. This separation can be achieved through physical boundaries or visible markers, and each principal contractor must address risks associated with boundary crossings and ensure workplace security.
Furthermore, each principal contractor must be in a direct contract with the client, and they, along with subcontractors, must engage in consultation, coordination, and cooperation to manage health and safety risks before and during the work.
Additionally, for building and construction projects valued at $150,000 or more, the Building and Construction Industry (Portable Long Service Leave) Act 1991 mandates the payment of a work health and safety levy. This levy is applicable to certain projects and is collected by QLeave.