Why Contractor Oversight Matters: Lessons from Recent Safety & Cyber Incidents

Recent high-profile cases in NSW have highlighted the risks businesses face when contractor oversight falls short – whether on a building site or in cyberspace. Both physical safety and data protection require more than just trusting your contractors. They demand strong governance, clear processes, and proactive verification.

Case 1: Safety Failures in Site Handover

A recent NSW Industrial Court ruling reinforced the legal importance of proper handover procedures when engaging contractors, especially in high-risk work environments.

The Incident

• A specialist contractor installed a gate without a safety stop.
• The gate collapsed onto a mother and her three children as they walked past a redevelopment site.
• The contracting company, 465 Leichhardt Pty Ltd, was fined $180,000 under the Work Health and Safety Act (NSW).

The Court’s Findings

• Reliance on a licensed contractor did not excuse the company’s duty to verify safety.
• The lack of formal inspection and handover amounted to negligence.
• Businesses must demonstrate active oversight, even where defects appear unintentional.

Risk Management Lessons

• Handover must be a structured, risk-assessed process – not a tick-the-box exercise.
• Businesses must confirm that work is complete, compliant, and safe before assuming site control.
• Oversight of contractors remains a statutory responsibility, regardless of subcontractor expertise.

Case 2: Cybersecurity Risks in the Supply Chain

In July 2025, Qantas Airways experienced a cyber incident originating from a subcontractor system connected to its customer support operations.

Strategic Implications

• Third-party systems are now the leading cause of Australian data breaches.
• The incident underscores the need for resilience that extends beyond internal networks.
• New legislation requires organisations to disclose ransom payments promptly, with penalties for non-compliance.

The Bigger Picture

From collapsed gates to compromised systems, both cases demonstrate the same core lesson: businesses cannot outsource accountability. Whether in health and safety or cybersecurity, oversight of contractors is non-negotiable. Robust handover, inspection, and verification processes are essential for protecting people, data, and reputation.