Occupational Health and Safety Act Compliance for Government Tenders

The Occupational Health and Safety Act 85 of 1993 (OHS Act) imposes legal obligations on all employers to provide safe working environments and safe systems of work. For government tender purposes, compliance with the OHS Act — along with the Construction Regulations 2014 and the General Safety Regulations — is frequently required as both a mandatory compliance criterion and an evaluated quality dimension. Non-compliance exposes contractors to disqualification and significant legal liability.

Core OHS Act Obligations for Employers and Contractors

Section 8 of the OHS Act 85 of 1993 places a general duty on every employer to ensure, as far as reasonably practicable, the health and safety of all persons who may be affected by their activities. This includes employees, subcontractors, and members of the public. Employers must identify hazards, conduct risk assessments, implement controls, provide information and training, and maintain a Health and Safety File. On construction projects, the Construction Regulations 2014 (promulgated under the OHS Act) impose additional duties on clients, designers, principal contractors, and contractors.

Key legal appointments required under the OHS Act include the appointment of a Health and Safety Representative (Section 17) where there are more than 20 employees, a Health and Safety Committee (Section 19), and a competent person to investigate incidents. On construction sites, the Construction Regulations require appointment of a Principal Contractor (CR 5), a Construction Health and Safety Manager (CR 6), and a Construction Health and Safety Officer where more than 20 persons are employed on site. All appointments must be in writing.

Conduct baseline risk assessments and issue-based risk assessments
Prepare site-specific Health and Safety Plans for construction projects
Appoint a Health and Safety Representative (20+ employees)
Appoint a Construction Health and Safety Manager (CR 6) on construction sites
Maintain an up-to-date Health and Safety File
Ensure all subcontractors comply with OHS requirements before entering site

OHS Requirements in Tender Documentation

Government tenders — particularly in construction, engineering, facilities management, and mining — typically require bidders to submit an OHS Plan, evidence of a registered OHS representative, proof of COID (Compensation for Occupational Injuries and Diseases) registration with the Department of Labour, and a letter of good standing from the Compensation Fund or a licensed mutual association such as Rand Mutual Assurance. In the construction sector, the client (organ of state) is required under Construction Regulation 5 to prepare a baseline Health and Safety Specification before going to tender.

The standard tender evaluation process for construction projects includes assessment of the contractor's OHS track record, incident statistics, and the adequacy of the proposed Health and Safety Plan. The Department of Public Works and Infrastructure requires contractors on its panel to maintain a current OHS compliance certificate and to have a dedicated health and safety officer on major projects. Tenders above certain thresholds also require appointment of a full-time Construction Health and Safety Manager.

Submit a Health and Safety Plan with your tender bid
Attach COID registration certificate and Letter of Good Standing
Provide CV and appointment letter of your H&S Manager or Officer
Include incident statistics for the past three years (Lost Time Injury Frequency Rate)
Attach any ISO 45001 or OHSAS 18001 certifications held

Penalties for OHS Non-Compliance

Section 38 of the OHS Act provides for criminal penalties for employers who fail to comply with the Act. An employer convicted of an offence under the OHS Act can be fined up to R100 000 or imprisoned for up to two years, or both. In addition, a conviction results in automatic listing as a non-compliant entity, which can affect tender eligibility. The OHS Act also allows for prohibition notices and improvement notices issued by OHS inspectors from the Department of Employment and Labour, which can halt all operations on a site.

In the context of government contracts, OHS non-compliance discovered during a contract period can result in suspension of the contract and referral of the matter to the procuring department. The Construction Regulations 2014 empower the client to halt construction activities if the contractor fails to comply with the agreed Health and Safety Plan. Clients (organs of state) are themselves liable under Section 37(2) of the OHS Act for harm caused by contractors they have appointed if they did not take reasonable steps to ensure the contractor's competence.

Criminal fine: up to R100 000 and/or imprisonment up to two years
OHS inspectors can issue prohibition notices stopping all work
Contract suspension possible for on-site OHS non-compliance
Client (organ of state) liable under Section 37(2) for contractor negligence
Incident reportable to Department of Labour within 7 days (Section 24)

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Frequently Asked Questions

What is a Letter of Good Standing and why is it needed for tenders?

A Letter of Good Standing is issued by the Compensation Fund (Department of Employment and Labour) or by a licensed mutual assurance organisation such as Rand Mutual Assurance, confirming that the employer's COID assessments are paid up and the entity is registered as required under the Compensation for Occupational Injuries and Diseases Act 130 of 1993. It is required in virtually all construction and labour-intensive government tenders.

What are the Construction Regulations 2014?

The Construction Regulations 2014 are subordinate legislation promulgated under Section 43 of the OHS Act 85 of 1993. They impose specific health and safety duties on clients, designers, principal contractors, and contractors involved in construction work, including requirements for H&S Specifications, H&S Plans, H&S Files, and the appointment of competent persons at each phase of the project.

Do I need an OHS plan for every tender I submit?

Not for every tender, but it is required for construction, engineering, and maintenance tenders. Many service contracts also require an OHS plan where workers will operate on government premises. Always review the specific tender SBD documents and scope of work to determine if an OHS plan is required at bid stage.

What is the LTIFR and how is it calculated?

LTIFR stands for Lost Time Injury Frequency Rate. It measures the number of lost time injuries per million hours worked: LTIFR = (Number of LTIs × 1,000,000) / (Total hours worked). Many government tenders require submission of LTIFR statistics for the preceding three years as evidence of health and safety performance.

Is ISO 45001 required for government tenders?

ISO 45001 (Occupational Health and Safety Management System) is not universally required but is increasingly specified in large infrastructure and engineering tenders, particularly by entities like Transnet, Eskom, and national government departments. Holding ISO 45001 certification strengthens your OHS compliance evidence in tender evaluations.

Who must be appointed as a Health and Safety Representative?

Under Section 17 of the OHS Act, an employer with 20 or more employees must designate a Health and Safety Representative for each workplace or section. The representative must be a full-time employee in the relevant area, nominated by the employees or their representatives, and must receive adequate training. The appointment must be in writing.

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