PCBUs & Principal Contractors

We know the world of compliance has no shortage of jargon and terminology, and often they overlap in both meaning and obligations. One of the more commonly asked questions we get is for the acronym “PCBU”. It’s important to understand what a PCBU means for your business, so let’s take a look.

What is a PCBU?

A “PCBU” stands for a Person Conducting a Business or Undertaking — in essence, the person or business responsible for a piece of work. Many different companies have, or are, a PCBU, such as:

• Sole traders 

• Private or public organisations

• Government sectors

• Partners in a business

• Local councils

• School and universities
  

One of the primary roles of a PCBU is to manage the work health and safety (WHS) obligations of a worksite. They have a duty of care towards the health and safety of their workforce, including subcontractors, ensuring that risk is mitigated and that workers have what they need to get the job done in a safe manner. Some of the duties of a PCBU include but are not limited to:

• Ensuring a safe working environment 

• Providing adequate facilities such as access to a toilet and clean drinking water

• Providing sufficient training, inductions and supervision for safe work 

• Managing risks associated with the environment

• Adhering to WHS regulations 

PCBUs also have a responsibility towards visitors that aren’t a part of their regular workforce, such as site visitors or volunteers. 

And what about Principal Contractors? 

PCBUs and Principal Contractors go hand-in-hand. Both roles are essential for construction works to take place and for a business to remain compliant, so it is important to be aware of how they function.

By default, a PCBU is the Principal Contractor of a piece of construction work valued at a certain threshold based on which state or territory they are working from. For example, in New South Wales, this threshold is $250k or more. However, the PCBU can actually appoint someone else to fulfil the role of Principal Contractor, which can happen at any stage of the works. The role of the Principal Contractor is to manage the construction site where the work is carried out on behalf of the PCBU. This person, like the PCBU, also has a duty of care towards the health and safety of their workforce, and has responsibilities such as: 

• Consulting and communicating with workers to ensure health and safety 

• Managing every phase of the project from planning to completion to ensure risk is mitigated 

• Appointing the right tradespeople for the works who have the capability to complete the job safely  
  

For example, a Council is a PCBU and commissions a construction project, such as for a new facility development. If the project is more than $250k, they are by default the Principal Contractor for the job. However, they can hire someone else (such as someone from the construction company who will carry out the works) to fulfil that role for them and manage the worksite and their staff on their behalf.

In short, when a PCBU gives the role of Principal Contractor to another person, they still own the construction project as the PCBU, but the elected Principal Contractor manages the project for them.

So, whether you’re a PCBU or a Principal Contractor (or both!), managing your contractor compliance is critical to ensure you meet WHS obligations. To learn more, check out our article on why you need a robust Contractor Compliance management system here. 

Get in touch with our friendly team to learn more about how Conserve can help your business manage its contractors, and subscribe to our newsletter for regular updates and insights!