A maintenance company has been fined $35,000 after failing to properly assess hazards associated with an excavated tunnel where two workers were carrying out plumbing work at the Melbourne Exhibition and Convention Centre.

A Grade Maintenance Service Pty Ltd was the principal contractor for pre-emptive plumbing works at the Exhibition and Convention Centre workplace.
WorkSafe inspectors attended the site in July 2024 following an anonymous allegation concerning unsafe work practices. They were taken to an underground carpark where two workers were undertaking the plumbing works inside an excavated tunnel measuring approximately 6.2 metres long, one metre wide and 1.7 metres high.
The tunnel was deemed to be a confined space, but inspectors found there were no measures in place to prevent engulfment if the excavation collapsed. There was also no documented confirmation that atmospheric testing had been conducted to identify hazards associated with working inside the tunnel.
Only one of the two workers had confined spaces training.
The inspectors issued two prohibition notices after forming the view that the workers were exposed to risks of asphyxiation from a significant reduction in oxygen levels and serious injury or death from engulfment if the excavated tunnel collapsed. Two improvement notices were also issued in relation to other alleged contraventions.
The circumstances highlighted failures to adequately identify hazards and assess the risks associated with high-risk construction work, including work in a confined space and the potential for structural collapse.
A Grade Maintenance Service complied with the notices, including by obtaining a confined space entry permit, reviewing and revising its safe work method statement and preparing an excavation plan. The company also engaged a geotechnician to prepare a report for structural engineers.
Ultimately, the pre-emptive plumbing work did not resume. The excavated tunnel was filled in and the site was closed.
A Grade Maintenance Service pleaded guilty and was sentenced without conviction to pay a $35,000 fine.
The Court found the offences to be objectively serious, with the company's departure from its duties under the OHS Act described as significant and substantial. The objective seriousness of each offence was assessed as being at the higher end of the spectrum.
The presence of a fan, the use of oxygen monitors by the workers and the fact that one worker had confined spaces training slightly reduced the seriousness of the offending.
An explanation of the Regulations around confined space work can be found at our OHS Reps Confined Spaces page, with further advice offered at Confined Spaces & Poorly Ventilated Areas. Free guidance is available for employers undertaking confined space tasks in WorkSafe’s Compliance Code: Confined Spaces.
In February 2025 the Sentencing Advisory Council released a report to the Victorian Government making 12 recommendations for reform regarding the sentencing of OHS offences in Victoria. This included significantly increasing maximum penalties for breaching OHS duties in line with community expectations. The Victorian Government is yet to provide a response to this report.
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