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Contractor Management NZ — Your PCBU Duties Under HSWA 2015

If you manage contractors on site, you need to know your legal duties under the Health and Safety at Work Act 2015 (HSWA). This guide covers the key obligations for PCBUs (Persons Conducting a Business or Undertaking) when engaging contractors, including overlapping duties, induction requirements, and what you must provide versus what the contractor is responsible for.

This guide is current as at May 2026 and written for NZ frontline managers and staff in plain English.

What is a PCBU?

A PCBU is any person conducting a business or undertaking — whether alone or with others. This includes companies, sole traders, partnerships, and even local authorities. If you engage contractors, you are a PCBU and have duties under HSWA.

Overlapping Duties Under s34

Section 34 of HSWA 2015 says that if more than one PCBU has the same duty in relation to the same matter, each PCBU must:

This means you and your contractor share responsibility for health and safety. You cannot simply contract out your duties. For example, if a contractor is working on your site, you both have a duty to ensure the work is safe. You must work together to identify risks and control them.

Key rule: Under s34, you must consult, cooperate, and coordinate with contractors. This is not optional — it’s a legal duty. Document your consultation in meeting notes or a shared safety plan.

How to Discharge Your Duty to Contractors

To meet your obligations, you should:

  1. Pre-qualify contractors — Check they have the right skills, experience, and safety systems. Ask for their safety policy, training records, and insurance.
  2. Provide information — Tell contractors about known hazards on your site (e.g., asbestos, live electrical equipment, confined spaces). This is required under s36(3)(a).
  3. Agree on a safety plan — Work with the contractor to develop a site-specific safety plan that covers risks and controls.
  4. Monitor performance — Regularly check that the contractor is following the plan and site rules. If you see unsafe behaviour, stop the work and fix it.
Warning: If you fail to consult, cooperate, or coordinate with a contractor, you can be prosecuted under HSWA. Penalties for individuals include fines up to $300,000 or imprisonment for up to 5 years for reckless conduct.

Induction Requirements

Under regulation 37 of the Health and Safety at Work (General Risk and Workplace Management) Regulations 2016, you must provide information, training, instruction, or supervision that is necessary to protect all persons from risks to their health and safety. For contractors, this typically means a site induction.

Your induction should cover:

Keep a record of every induction, including the date, attendee name, and topics covered. This helps you prove compliance if there is an incident or inspection.

Site Rules

You must have clear site rules that apply to everyone, including contractors. These should be written and communicated during induction. Common site rules include:

If you operate in a sector covered by NZS 8134:2021 (e.g., health and disability services), you must also comply with standard 2.7 which requires documented contractor management processes, including induction and monitoring.

What a PCBU Must Provide vs Contractor’s Own Obligations

It’s important to know where your responsibilities end and the contractor’s begin. Here’s a breakdown:

PCBU (you) must provideContractor must provide
Safe site access and egressSafe work methods and equipment
Information about site hazardsCompetent workers with appropriate training
Coordination and consultationCompliance with site rules and safety plan
Emergency procedures and first aidPersonal protective equipment (unless agreed otherwise)
Monitoring and supervisionReporting hazards and incidents

Remember: the contractor also has duties under HSWA as a PCBU. They must manage their own risks, provide safe plant and equipment, and ensure their workers are trained. You are not expected to do their job for them, but you must work together.

If you have policies or safety documents that you need quick answers from, your staff can ask ShiftScript questions directly from uploaded policies at shiftscript.nz/portal/. It’s a fast way to get plain-English guidance without reading through pages of text.

Practical Steps for Frontline Managers

  1. Before work starts: Pre-qualify the contractor, share hazard info, and agree on a safety plan.
  2. On the day: Conduct a site induction, issue any permits, and confirm the contractor understands site rules.
  3. During work: Monitor the contractor’s activities. If you see something unsafe, stop the work and discuss it.
  4. After work: Debrief with the contractor, note any issues, and update your records.
Key rule: Under s36(3)(a), you must give contractors information about hazards that could affect their health and safety. This includes hazards you know about or ought reasonably to know about.

Common Mistakes to Avoid

Warning: WorkSafe NZ can issue improvement notices, prohibition notices, or prosecute you for failing to manage contractor risks. In 2025, a construction company was fined $180,000 after a contractor fell from height because the PCBU did not coordinate safety measures.

FAQ

Do I need a written contract with every contractor?

While not legally required, a written contract is strongly recommended. It should clearly state each party’s health and safety responsibilities, including who provides PPE, who manages specific hazards, and how incidents will be reported.

What if the contractor refuses to follow site rules?

You have the right to stop the work and ask the contractor to leave your site if they refuse to follow rules. Under s34, you must consult and cooperate, but you are not required to accept unsafe behaviour. Document the refusal and notify WorkSafe if necessary.

Can I rely on a contractor’s safety certificate instead of doing my own checks?

No. A safety certificate (e.g., Site Safe card) is a good start, but you still need to verify that the contractor’s workers are competent for the specific tasks on your site. You must also provide site-specific hazard information.

Do I need to induct a contractor who is only on site for one hour?

Yes. Even short visits require an induction to cover emergency procedures and immediate hazards. A brief, documented conversation is sufficient — but it must happen before they start work.

What records must I keep for contractor management?

Keep records of pre-qualification checks, induction attendance, safety plans, permits, and any incidents or near misses. Under regulation 37, you must keep training records for at least 5 years. These records may be requested by WorkSafe during an inspection.

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Frequently asked questions

Do I need a written contract with every contractor?
While not legally required, a written contract is strongly recommended. It should clearly state each party’s health and safety responsibilities, including who provides PPE, who manages specific hazards, and how incidents will be reported.
What if the contractor refuses to follow site rules?
You have the right to stop the work and ask the contractor to leave your site if they refuse to follow rules. Under s34, you must consult and cooperate, but you are not required to accept unsafe behaviour. Document the refusal and notify WorkSafe if necessary.
Can I rely on a contractor’s safety certificate instead of doing my own checks?
No. A safety certificate (e.g., Site Safe card) is a good start, but you still need to verify that the contractor’s workers are competent for the specific tasks on your site. You must also provide site-specific hazard information.
Do I need to induct a contractor who is only on site for one hour?
Yes. Even short visits require an induction to cover emergency procedures and immediate hazards. A brief, documented conversation is sufficient — but it must happen before they start work.
What records must I keep for contractor management?
Keep records of pre-qualification checks, induction attendance, safety plans, permits, and any incidents or near misses. Under regulation 37, you must keep training records for at least 5 years. These records may be requested by WorkSafe during an inspection.