State Rail +

Yesterday I posted about NSW State Rail and the issues they have had with failing to manage the bid process on station upgrade projects. It set my mind wondering what other holes may or may not exist in areas of contract management and liability within the government sphere.

One area which I have numerous close friends associated with is manpower security. It is pure speculation/rumour, however it is widely believed that government issues contracts for security services to tenderers who bid at 20-21$ per hour for static security services. The work is then apparently sub-contracted out to companies for even less - probably in the order of 16-$17 per hour. 

Given the current award rate for security officers is $15.82 it is very difficult to see how these subcontractors are surviving. Unless of course they also are subcontracting the work out to individuals who are operating as companies. 

The questions are: Is the government aware exactly who are providing these services on their projects - and what unknown security risks are running around within the security service providers? Given the tiny margins involved - are security providers fully insured - including those subcontractors they bring to the job? Given the degree of subcontracting, can any government department be certain the security staff they are being given are certified to the appropriate level to do the job?

How much risk do these issues present? If an unqualified, unlicenced security officer who is a sole trader paying no tax under a false ABN accidentally injures someone with a weapon they are not qualified to use, I suspect we will find out relatively quickly. Of course its all speculation......................

Cheers

Steve

Liability for Security Contractors

Ive taken this one from my Misedio website - courtesy WorkCover NSW.

Its a good reminder why principal contractors engaging security (or any sub-contrator actually) MUST ensure their subbies have adequate insurance coverage. If your sub-contractor has ineffecitive cover (ie no coverage at all) the principal contactor will be up for the bill (or their insurer will, if its covered in their policy).

$407000 fine for subcontrator employee fatality
In the NSW Industrial Relations Commission in 2005 a head security contractor, a company it had engaged as a sub contractor, and a director were issued fines totalling $407,000. The Workcover CEO said, “This judgement is a landmark decision, which has clarified that the place of work definition in the Occupational Health and Safety Act 2000 applies equally to principal contractors and sub-contractors.”

Of note, principal contractors often rely on invoicing as a way of controlling their contactors ongoing insured status. They demand that sub-contractors must submit a copy of their current insurance policy prior to issuing payment of an invoice (as principals know,under the security of payments legislation, this is in fact law). However, this system does not adequately cover the situation of insurance expiring immediately AFTER an invoice has been paid. You could potentially have an uninsurred contractor working for you, and not have this identified until the next invoice is recieved for payment.

Don't say I didn't warn you......

Steve
www.misedio.com

Links
Misedio website where article can be found:
http://www.misedio.com/Resources/CaseWatch/tabid/305/Default.aspx

Workcover website where article can be found:
http://www.workcover.nsw.gov.au/MediaResources/MediaReleases/2005/security_firms_fined_after_fatal_robbery.htm