Contractor Management

Contractor management can be a very challenging area for organisations to manage and your obligations under Occupational Health and Safety legislation are not absolved because you have engaged the services of a contractor. It is important that contractors have a clear understanding of what is required while on site at your workplace and that they have their own robust safety policy and safety procedures in place.

If your organisation engages contractors or sub-contractors, contractor risk management should be integrated into your safety management system. A safety induction which is relevant to the site should be completed before commencing work. The complexity of the contractor management process will depend on how a contractor is engaged, the type of work, where and under what circumstances the work is being conducted.

Designated workplace health & safety consultants with experience in your particular industry will work with you to develop a contractor management program that demonstrates due diligence and gives you a practical tool to systematically manage contractors.

A Consultant can provide you with a gap analysis to ensure your current safety policy and safety procedures are up to date with current Occupational Health and Safety legislation.

Contractor management safety services should include:

·    Review the current contractor safety management process and make recommendations

·    Development of a contractor safety management program for your business including safety policy, safety procedures, safety checklists, safety induction and/or safety training

·    Mentoring and training program to give your staff the skills to manage contractor safety

Source; Safety Australia; safetyaustraliagroup.com.au

Why do I need a Section 52 Statement?

In Victoria you are legally required to provide a prospective buyer with a Vendor’s Statement (also known as a 'Section 52 Statement') if the goodwill, plant, equipment or fittings of the business are being sold for a total price of $350,000 or less. Failure to provide this statement or satisfactorily complete it will give the buyer the right to terminate the sale contract. You must give the purchaser or their representative a completed and signed copy of the statement before they either sign the contract or pay the deposit.

The sale of small businesses is regulated by provisions of the Estate Agents Act 1980 and the Estate Agents (General, Accounts and Audit) Regulations 1997.

Your accountants will make sure you have this document is available to prospective purchasers prior marketing the business.

Why buy an existing business?

If you buy an existing business, you can analyse the profit and loss statements and balance sheet of the Company you are buying. This is an advantage because you see firsthand what you are getting in, particular the income streams of the business and the individual expenses of the business.

In addition to this you have a going concern producing revenue, with staff, brand, systems and an infrastructure in place. In essence you are making money from the day you settle.

When you start a business from scratch, you must secure and fit out a premise, build the systems, web site, arrange plant & equipment, hire and train staff- all of this before you begin to earn an income.

Statically most start up businesses struggle to make a profit and in some cases fail within 3 years from commencing. Experience would say that starting up a business require an enormous and of persistence & resilience but above all a bullet proof business plan.

What items to be included in the sale of a rent roll?

The followings items that possibly could be included in the Contract of Sale to purchase a rent roll;

 1.            Telephone numbers and Facsimile numbers- In some cases the franchisor may   reserve/own these numbers and this is reflected in the franchise agreement.

2.            The agency’s web site URL.

3.            The agency’s Trading Name.

4.            Any mobile phone numbers of staff where the business pays for or provides a mobile phone as part of the employees work agreement.