Summary
When ESM sends a contractor to site - you can rest assured that they have passed security & licensing checks and they hold all the relevant insurances, should anything not go to plan.
ESM have an in-house supplier compliance team who check and vet all the contractors. The information is continuously updated to ensure all contractors meet and exceed our clients needs.
Duty of Care
Whilst Suppliers have a duty of care to only complete work that they are qualified and insured to complete, we also want to ensure that we are doing our due diligence when selecting people for jobs.
It is important to understand what those symbols mean when you are sending out suppliers to complete tasks. If you are unsure about whether a tradesperson is compliant or qualified for the work you are requesting them to complete, please ensure you ask them in the Work Order to confirm and receive it in writing.
Supplier compliance is an essential aspect of doing business in Western Australia. It ensures that suppliers provide goods and services that meet legal, regulatory, and industry standards. However, not all suppliers are subject to compliance requirements. Some are exempt from compliance regulations due to specific circumstances or conditions. In this article, we will discuss who is exempt from supplier compliance in Western Australia.
Small Businesses
Small businesses with an annual turnover of less than $10 million are generally exempt from supplier compliance requirements in Western Australia. This exemption applies to all types of businesses, including sole traders, partnerships, and companies. The exemption recognizes the limited resources of small businesses and aims to reduce their compliance burden, allowing them to focus on their core business activities.
DeleteSuppliers of exempt goods and Services
Some goods and services are exempt from supplier compliance regulations in Western Australia. For example, goods that are intended for export or for use outside of Western Australia may not need to comply with local regulations. Additionally, certain types of services, such as health services, may be exempt from compliance requirements due to the nature of the service provided.
DeleteGovernment Agencies
Government agencies are often exempt from supplier compliance regulations as they are subject to their own procurement rules and regulations. These agencies may have their own standards and requirements for suppliers that they engage with. However, this exemption does not apply to government-owned corporations or companies.
DeleteCertain Industries
Some industries have their own specific regulatory requirements and may be exempt from supplier compliance regulations in Western Australia. For example, the mining industry has specific safety and environmental requirements that suppliers must comply with. The exemption recognizes that these industries have their own unique regulatory framework and standards that suppliers must adhere to.
DeleteSome Types of Contracts
Finally, some types of contracts may be exempt from supplier compliance requirements in Western Australia. For example, contracts that involve the supply of goods or services that are of a low value or for a short duration may be exempt from compliance regulations. This exemption recognizes that the compliance burden for these types of contracts may be disproportionate to the value of the goods or services being supplied.
Delete
In conclusion, supplier compliance is an essential aspect of doing business in Western Australia. However, not all suppliers are subject to compliance requirements. Small businesses, suppliers of exempt goods and services, government agencies, certain industries, and some types of contracts may be exempt from compliance regulations. It is important to understand the exemption criteria and to seek advice if you are unsure whether your business or contract is subject to compliance requirements.
Example Story:
In a small complex, a previously self-managed strata company had sourced a painter to repaint the external surfaces of all the units. The works had been paid for via the raising of a special levy.
Within a year, the complex had professional management. At handover of the files, the owners stated that they were unhappy with the paint job, as the paint was now peeling in many areas. This job was unusual as there were many separate invoices - all below $1,000. This strategy enabled him to take on large jobs (that he was unlicensed for) but pretend they were smaller individual jobs which enabled him to exploit a weakness in the law.
We looked at the invoices and determined that there were no PL (painters license) numbers given, or details of the products used or the preparation work he did. A phone call to the contractor made it clear that he was unwilling to return to rectify the matter. As he was not registered, there was very little that could be done to hold him accountable.
Had the contractor been properly licensed, the Building Commission may have required him to meet a certain standard, and return to the site to carry out the required remedial work.
This case highlights the importance of using licensed, reputable trades people who will be there for you should something go wrong.