One of the most persistent myths in transport is that engaging a contractor shifts the risk. The assumption goes something like this: “They’re a contractor. They run their own business. They’re responsible.
Under the Heavy Vehicle National Law (HVNL) and work health and safety (WHS) laws, duties don’t disappear when a contractor arrives on site. In many cases, your exposure increases.
This is the grey zone of chain of responsibility (CoR), the part operators talk about the least, yet the part regulators increasingly examine first.
Before the contractor starts: The due diligence most people skip
If an incident occurs, investigators will ask one simple question: “Show us what you checked before engaging them.”
Far too often, the answer is silence or a folder of half-complete paperwork. Basic due diligence is still being missed, even by large operators.
Prior to work beginning, every company should be able to produce clear, contemporaneous records showing that:
• You met the contractor face-to-face (or via video) and discussed safe work practices and expectations.
• Any required training or testing was completed — not assumed.
• Qualifications, licences and registrations were sighted and copied.
• Public liability, professional indemnity and workers compensation policies were checked and kept on file.
• The contractor knows who supervises the work and who to contact.
• They were inducted into your WHS rules, procedures and site layout.
• Hazards were explained, and risk controls agreed.
• Clear instructions were given for reporting incidents or hazards.
• There is written confirmation that the contractor understands and accepts their duties under WHS and your internal requirements.
These steps form the evidentiary base of “reasonably practicable” conduct. Without documentation, it did not happen.
During the contract
Once work begins, many operators step back. That is precisely where the legal risk increases.
You cannot “set and forget” a contractor. The company who engages another business must actively monitor them. That means:
• Regular site visits where practicable, to verify compliance, not relying on assumptions.
• Written notes when an issue is raised or needs follow-up.
• Routine confirmations that safety measures remain in place.
• Clear identification of all hazards on site, including confined spaces and restricted zones.
• Making sure the contractor knows the emergency arrangements:
– first aid locations
– fire equipment
– emergency exits
– parking controls
– speed limits
• Involving contractors in your safety committee or toolbox processes.
• Documenting every meeting and every WHS-related interaction.
This is what regulators now expect. Passive oversight is no longer defendable.
Why contractors are front and centre in current enforcement
Recent investigations have shown a common pattern: a contractor is operating “alongside but outside” the business’s safety system. It usually emerges after an incident that policies existed but were not implemented, not monitored, or not communicated.
When that happens, liability lands squarely back on the operator.
Closing the grey zone
Done properly, contractor engagement is not paperwork, it is risk control. It protects your business, your people and the community.
The grey zone only exists because too many operators assume that contractors come with ready-made compliance. They don’t. They bring their own systems, their own gaps, and sometimes their own misconceptions about the law.
If you’re serious about CoR, start treating contractor management the same way you treat fatigue, maintenance or loading: verify, document and follow through.
Because once something goes wrong, that grey zone becomes very black and very white and it’s your documentation that decides which side you fall on.
Hughes Law is led by Belinda Hughes who has deep expertise in safety duty prosecutions and can help you assess what Contractor management might apply in your case. belinda@hugheslaw.com.au
Important notice
This article provides general guidance only and is not intended to cover every circumstance or provide specific legal advice. Each case turns on its own facts and operators should seek independent legal advice.
Liability limited by a scheme approved under Professional Standards Legislation
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