Using the cost of construction work to trigger legislative duties for WHS: the Australian experience

Abstract

PurposeIn an attempt to create national harmonisation of legislation, a set of model Work Health and Safety (WHS) Regulations were developed in Australia. These regulations require principal contractors to undertake specific WHS planning and coordination activities if the construction works to be completed cost AU $250,000 or more. However, there are some doubts about the usefulness of this monetary threshold. This study aimed to investigate how effective this threshold can be in Australia.Design/methodology/approachTo evaluate the performance and operation of this threshold in the Australian construction industry, this study modelled the costs of construction for four construction project scenarios – small classroom, two-storey home renovation with adjacent pool, small commercial warehouse and single-storey house (volume home builder) – under various conditions based on historical data (2011–2017) and in eight Australian jurisdictions.FindingsAmong the six study factors (i.e. the types for construction, geographical location, design specification, delivery method, contracting approach and inflation), the research found considerable variation in the operation and performance of the monetary threshold.Originality/valueThe research highlights some potential challenges associated with the use of a monetary threshold in the regulation of WHS planning in construction projects. Thus, the results are expected to contribute to addressing these challenges, leading to the development of an appropriate balance to achieve efficient and effective WHS regulation in Australia.