What is contractor management and why is it important?

Safety and health obligations

Under the Mine Safety Inspection Act 1994, a contractor is owed duties by the principal employer. Where a principal employer engages contractors to perform work, effective contractor procurement and management are essential to ensure duties to a contractor are met as both an employee (i.e. worker) as well as a third party.

Integrating health and safety requirements into contractor procurement and management, and aligning safety systems where practicable, helps prevent incidents and fulfills health and safety obligations.

Contractors also have a duty as workers under the Mine Safety Inspection Act 1994. While at work, a contractor must take reasonable care for his or her own health and safety, and take reasonable care that their acts or omissions do not adversely affect the health and safety of others.

What are the elements of a good contractor management system?

Good contract management is the process that ensures both parties in a contract fully meet their respective obligations as efficiently and effectively as possible, in order to continually deliver both the business and operational objectives required by the contract.

Successful contract management exists when:

  • all parties know their obligations under the contract
  • the arrangements for service delivery continue to be satisfactory to both customer and supplier
  • expected business benefits and value for money are being delivered and realised, including safety and health performance
  • the supplier is co-operative and responsive
  • disputes are rare
  • the contract is fully compliant and satisfies both legislative and audit requirements.

Related information

Below is a link that you may find useful.

Further guidance on Contractor management is available from Comcare.