Checking that every contractor holds the right licence and current insurance protects the building owner from liability if something goes wrong. Licences and policies expire, so the checks need to be continuous, and contractors should be inducted before they start work.
What should be checked
- Trade licences, for electrical, plumbing, gas, fire and other regulated work.
- Public liability insurance, with a suitable limit.
- Workers compensation insurance, as required in the state of work.
- Safe work documents such as a safe work method statement (SWMS) for high-risk work.
- Site inductions and any required training or tickets.
Why it matters
Work health and safety laws apply in every state and territory. Owners and managers have duties toward contractors who work in their buildings, and insurers and regulators expect evidence that checks were done. A contractor without a valid licence or policy puts the owner at risk.
Expiry is the hidden risk
A certificate checked in January may expire in June. Managing this by spreadsheet is easy to miss. Systems that record expiry dates and chase renewals automatically, and block unapproved contractors from site, are far safer.
Sign-in on site
Contractor sign-in, by QR code or similar, creates a record of who was on site, when, and for what job. It also lets you confirm that induction is complete before work begins.
What a facilities manager does
A facilities manager keeps a register of approved contractors, checks documents before engagement, tracks expiry, coordinates induction and records attendance. In FlowLog, contractor licences and insurances are checked automatically and site access is managed by QR.
Frequently asked questions
What is a SWMS?
A safe work method statement sets out the hazards of a high-risk task and how they will be controlled. It is required for high-risk construction work under work health and safety regulations.
Who is responsible if a contractor is uninsured?
Responsibility depends on the circumstances, and owners can be exposed. Check insurance before work starts and keep records.
This page is general information about the topic and is not legal, financial or safety advice. Requirements vary by state, site and contract. Last reviewed 30 October 2026.