What You Need to Know About Subcontracting Work to Others
Being a builder with experience in renovation and construction can put you in a desirable position. You’ll very rarely be without work and will be required for several significant projects throughout your working career.
However, you can’t carry out an entire building job on your own, nor will you likely be able to handle every part of a renovation project independently. Often, you need to find subcontractors to assist.
Did you know there can be quite a lot involved in choosing the right subcontractors for the jobs you require? If you need a helping hand to know what to consider first, the following information may be of use.
What is a Subcontractor?
A subcontractor is a tradesperson that a contractor hires to complete specialist work. For example, a builder may be building a house, but they need to hire a roofer to put on the roof and a plumber to install all the plumbing.
The builder in charge of the project is responsible for the work quality, and the subcontractors report to the builder rather than the homeowner. However, that’s not the case in all situations.
A home or business owner may have arranged a labour-only contract with a builder. In that case, finding and hiring subcontractors may be up to the building owner to arrange, rather than the builder (contractor).
The Duties of Principals
The principal is the person that has engaged another person to do work for payment or reward. In the construction industry, the principal is likely the primary builder.
Under the HSE Act, the principal must take all practicable steps to ensure that contractor employees or subcontractors are not harmed while doing any work other than the work that they were engaged to do.
You can do your best to mitigate risks of harm and other problems by:
Engaging competent and qualified subcontractors and workers
Checking references and credentials before signing contracts
Giving any subcontractors information to make health and safety a priority
Monitoring their health and safety performance
Coordinating their activities
What to Consider Before Hiring a Subcontractor
When the principal starts looking for subcontractors to assist with their project, there is a broad range of criteria to consider. This step is essential, as not all subcontractors will be suitable for your line of work or reputation.
At a minimum, find out what their incident and hazard reporting procedures are and perform an assessment of their health and safety performance. It’s also worth looking at any near-misses or injuries they’ve had, along with any investigation reports, the results of those reports, and whether they have had any enforcement and prosecution history.
It’s also essential to know their ability to get the job done and make sure they have a training plan and evidence of training. Ensuring they also have all the necessary equipment to perform the job you hired them to do is also crucial.
These are just some of the minimum requirements of WorkSafe, so it can be worth consulting your local representative to find out more.
Understanding Licensing and Permits
A know-how attitude and some basic DIY knowledge are typically not enough to be either a contractor or subcontractor, especially when restricted building and renovation work is involved.
Licensed building practitioners (LBPs) are required for renovations and new builds that require building consent and affect a property’s fire safety design, primary structure, and weather-tightness.
The primary structure also incorporates building features like flooring, roofing, columns, beams, bracing, walls, subfloor framing, and foundations.
Depending on the specialty work you’ve hired subcontractors to assist with, you may need to check their specific licensing, as well.
For example, asbestos removal experts called in to remove friable asbestos or more than 10m2 of non-friable asbestos must have a licence to do so. Class A is required for friable asbestos, while Class B is necessary for non-friable.
Restricted plumbing work also requires licensing. If you’re hiring a plumber for subcontracting work, they must have a licence with the Plumbers, Gasfitters and Drainlayers Board. You can search for this information before you have your preferred subcontractor signing on the dotted line.
I’m Not Sure What To Do, Help!
If you have never hired a subcontractor before, you may not know what to look for, how to make the right hiring decisions, and even how to understand contract law. You may also be unaware of any liability issues that could present themselves and what you should do regarding worker’s compensation.
While WorkSafe and other government agencies have an abundance of helpful information, there’s no harm in contacting a lawyer specialising in your line of work for help and advice. They can make sure you follow the law to the letter while covering all bases to protect yourself. You can then hire subcontractors with confidence.