The Australian Government Building and Construction OHS Accreditation Scheme

Construction companies considering undertaking government construction projects as head contractor for federally funded building works valued at $3 million or more may need to be accredited under the Australian Government Building and Construction OHS Accreditation Scheme.

In February 2009, the Australian Government announced a range of new initiatives under the Nation Building and Jobs Plan, including funding for new building works. Construction companies are encouraged to apply for accreditation to the Australian Government Building and Construction OHS Accreditation Scheme as soon as possible to avoid being in a position that precludes them from being engaged from these new projects.

The scheme was developed by the Office of the Federal Safety Commissioner (OFSC) and is designed to improve health and safety in the building and construction industry. The scheme is established under the Building and Construction Industry Improvement Act 2005 (BCII Act). Subject to certain thresholds, only head contractors who are accredited under the scheme can enter into contracts for building work that is funded directly or indirectly by the Australian government. For directly funded projects, the threshold is $3 million. Where the Australian government contributes funding indirectly via a third party, such as a state government, the threshold is generally $5 million.

Why the scheme was established

Building and construction industry workers make up almost 9% of the Australian workforce, yet they accounted for 24% of all notified fatalities reported for the 2007-08 financial year.

The scheme enables the Australian government to use its influence as a major construction client and provider of capital to improve the OHS performance of the industry. Through the scheme, the government aims to foster a new culture where work must be performed safely as well as on budget and on time.

The BCII Act requires head contracts for building work to be signed with accredited builders. Almost 130 accredited companies are currently enjoying the benefits of accreditation, including eligibility to contract for Australian government funded projects and improved OHS performance that leads to increased productivity, lower sick leave, reduced insurance and workers compensation costs, improved retention and greater innovation.

Getting accredited

Accreditation occurs in two phases. Phase one is a desktop assessment, which involves an analysis of documents and evidence submitted by the company in the application. If the evidence submitted meets the assessment criteria, the application is progressed to phase two. Phase two is an on-site audit, which aims to verify the implementation of claims made in documentation that the contractor has supplied to the OFSC.

The scheme sets a high benchmark and some applicants may need some months to reach the OHS standards required for accreditation. Accreditation is valid for a period of up to three years from the date of accreditation.

Applicants must satisfy the following criteria to obtain accreditation:

1. Evidence of an OHS management system. This needs to be certified to AS/NZS 4801:2001 ‘Occupational health and safety management systems - Specifications with guidance for use’ or alternatively, OHSAS 18001:1999 ‘Occupational Health and Safety Management Systems - Specifications’. Certification needs to be undertaken by a Joint Accreditation System of Australia and New Zealand accredited certification body.
2. Demonstrated ability to manage construction hazards and high-risk activities.
3. Record in relation to workplace safety.
4. On-site audit results.
5. Performance against the following focus points:

• demonstrated senior management commitment to OHS;
• integration of safe design principles into the risk management process;
• whole-of-project OHS consultation and communication;
• demonstrated effective subcontractor OHS management arrangements across building and construction projects;
• whole-of-project performance measurement; and
• OHS training and competency to deal with safety risks.

On successful completion of the desktop assessment, an initial on-site audit is arranged. The Federal Safety Officer (FSO) conducting the audit may request documentary evidence in accordance with the criteria to verify the implementation of OHS procedures and practices on site. This process is separate to the initial documentary evidence review carried out at the desktop assessment stage.

The Federal Safety Commissioner (FSC) will make the final decision on accreditation, taking into account the findings of both the desktop assessment and the on-site audit.

Determining which site to audit

When a contractor progresses from the desktop assessment to an on-site audit, they are required to provide comprehensive details of sites for possible selection, including:

• names and addresses of sites;
• anticipated dates of construction completion;
• stage and size of the projects;
• project value; and
• a brief description of works in progress and hazards on each site.

The OFSC then determines which sites are the most appropriate to audit. The focus of this audit is to verify claims made against the assessment criteria. The OFSC then liaises with the contractor to confirm that the site is suitable and that there is a sufficient amount of activity being undertaken on site to conduct a comprehensive audit. For example, the OFSC will not arrange an on-site audit on a rostered day off, as the audit should reflect a typical working day.

The auditing process

Auditing is a compulsory condition of becoming and staying accredited under the scheme. It is, therefore, important that companies know where they stand when it comes to auditing.

The FSOs are dedicated to meeting the high standards set through accreditation. These high standards are essential in order to ensure the safety of workers and their families.

Both the OFSC and FSOs are committed to working with companies in a genuine spirit of transparency, collaboration and cooperation. Details about the auditing process are available by contacting the Auditing Team through the FSC Assist Line on 1800 652 500.

Reaccreditation

Under the scheme, companies can be accredited for up to three years. At the end of this period, companies need to apply for reaccreditation, as required by the Building and Construction Industry Improvement (Accreditation Scheme) Regulations 2005. Any companies not intending to apply who are currently accredited should inform the OFSC.

Getting reaccredited is a more streamlined process than accreditation and involves two phases: a desktop assessment and an on-site audit. These two phases are designed to help the FSC make an informed decision.

For the desktop assessment component, companies need to provide a copy of their AS 4801 certificate and submit an application against all scheme criteria. Companies are also assessed on their past performance and this assessment then determines whether a company requires a one- or two-day on-site audit.

As part of the FSC’s vision of a building and construction industry where no one is harmed, the OFSC will also use reaccreditation as an opportunity to run a targeted hazard campaign on mobile plant and equipment - one of the greatest causes of injury in the industry. Mobile plant and equipment will feature as a focus of the reaccreditation auditing process.

Companies can apply for reaccreditation from 1 July 2009, by submitting an application either online at the OFSC website or a hard copy sent by post. An Application Guide will be made available on the FSC website shortly to assist companies with the reaccreditation process.

Companies should apply for reaccreditation at least six months before their accreditation expiry date to reduce the risk of entering a period of non-accreditation.

If a company has not achieved reaccreditation at the time of its accreditation expiry date, it will be removed from the register of accredited companies. The OFSC will publish a list of expired companies already in the reaccreditation process on its website.

Office of the Federal Safety Commissioner