Sunday, September 26, 2010

Contractor Relationships

Exploration companies often engage contractors at an early stage in any program. It is important that the contractor/principal relationship be properly established at this time. In Queensland, when exploration activities are carried out under the mining safety and health legislation, engagement of a contractor does not relieve the site senior executive of responsibilities for safety and health issues of the contractor’s work. It is only if the contractor were appointed to be the operator for that work that responsibilities and accountabilities can be delegated. In any case, contractors retain obligations under the legislation.

Relationships between exploration companies and any contractor must consider the safety of all employees. Too often, in the past, the principals have tended to ignore any responsibility for safety of the contractor’s employees and operations. Fortunately, exploration companies are now more aware of their responsibilities under various mining safety laws and common law. They also recognise that poor performance in safety and environmental matters by their contractors reflects badly on the exploration company. More importantly, exploration companies realise that they can influence the safety performance of contractors.

Most exploration tasks that involve the use of uncommon or heavy equipment are carried out by contracted specialists. Many projects involve a single, site-specific contract, such as a series of drill holes, bulldozed trenches and tracks, or use of an excavator. Use of heavy equipment can create new hazards.
New hazards can occur when:
• exploration company employees are working around unfamiliar heavy equipment
• exploration companies fail to explain all potential hazards at the site
• the contractor is under pressure for increased production
• the contractor’s employees are paid production bonuses
• different safety standards or operating practices exist between the principal and the contractor.

These potential problems can be overcome by establishing good cooperative relationships at an early stage, and by writing tender briefs which include safety issues. These could include:
• detailing the laws and safety standards under which the contract will operate
• providing copies of the principal’s safety manuals and policies to the contractor
• detailing known hazards in the exploration area
• requiring the tenderer to include details of their safety policies, manuals and safety records in their tenders
• requiring the tenderer to show how compliance with the principal’s standards will be achieved
• requiring details of what training will be given by contractors to their employees
• providing details of training and inductions that will be provided by the principal.

The contract itself should include clauses on:
• compliance with safety laws and standards
• compliance with the principal’s and the contractor’s policies, procedures and rules concerning health and safety
• cooperation in the promotion of health and safety awareness
• safety training, certificates of competency and skills training
• safety auditing of the contractor’s equipment and work methods by both the principal and the contractor, and removal of defective equipment
• reporting of accidents and incidents to the principal and to the mines inspector
• conduct of employees of both the principal and the contractor
• supervision, safety representatives and first aid certificates.