CONSTRUCTION COMPANY FINED $50K FOR TRAFFIC MANAGEMENT PLAN AND SAFE WORK METHOD STATEMENT FAILURES

Montdami Constructions Pty Ltd is a civil construction business that had completed civil construction works as part of developing a parcel named ‘Trilogy Place’ in South Morang. When Montdami was recalled for remediation works at the estate in August 2024 they failed to prepare a Safe Work Method Statement (SWMS) or traffic management plan for the work despite the work being classified as high-risk construction work.

By the time Montdami returned to rectify the house drain issue the public roadways in the housing estate had been opened to traffic, meaning that the trench required to connect the new drain to the stormwater pit would be dug across an active public road.

Three Montdami employees attended the site to complete the task. Initially one of the employees was tasked with traffic management, another was using the excavator, and the third performed manual labour tasks, including working in the trench. However, the employee performing traffic management left the workplace at lunchtime to attend another worksite, whilst the task was still being completed. From that time onwards, the employee in the excavator was also tasked with traffic management.

By mid-afternoon one of the employees was crouched down in the trench, with his back facing upward, using a hammer drill on the storm water pit whilst wearing ear protection. A car approached and the employee in the excavator attempted to stop it by waving his arms, yelling and using the excavator’s horn. The car did not stop, ran over the trench and in doing so, ran over the back and shoulders of the employee in the trench, and drove away.

The work conducted is considered high risk construction work – it is expected that a safe work method statement be prepared and a traffic management plan be in place for such work. With a 50-year history working in the construction business, the Court found that Montdami should be aware of their basic safety duties under the OHS Act and Regulations.

It was reasonably practicable to expect Montdami to develop a formalised traffic management plan that included closing the road for the duration of the task, or using a traffic controller, placing physical barriers such as bollards between employees and road users, such as bollards, and the use of appropriate signage.

WorkSafe publishes information to support employers in understanding and delivering on their responsibilities under the OHS Act and Regulations when engaging in high risk construction work.

It was also reasonable for Montdami to ensure that persons acting as a spotter in a traffic management situation were not also performing other work.

The importance of dedicated spotters was highlighted in a 2024 NSW case where a company was fined $180,000 after allocating additional tasks to a traffic management spotter, resulting in a worker being partially run over by a 3.5 tonne excavator.

Montdami pleaded guilty and was sentenced to pay an aggregate fine of $50,000 for its failure to provide a safe system of work for high risk construction work, its failure to prepare a SWMS, and its failure to provide a safe traffic management plan.

The maximum applicable penalty value for a breach of s.21 of the OHS Act at the time of the incident was approximately $1.77 million.

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.

Read more: Prosecution Result Summaries and Enforceable Undertakings | WorkSafe Victoria

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